5 Steps to set up a recurring giving program

Erin Booker

•

November 2, 2024

•

6 minutes

Nonprofit Trends

How To Nonprofit

This article is part of a series

Keep learning with related articles.

5 Steps to set up a recurring giving program

The Ultimate Guide to Upgrading Your Recurring Donors

25+ Monthly Giving Programs Examples, Names, & Ideas

Retain and Upgrade Your Donors: Top Tips from a Successful Nonprofit

7 ways to prioritize monthly giving donations (+ how to ask for recurring donations)

We’re probably not the first ones to tell you this, but if you haven't already, you need to hop on the recurring giving train. Like, ASAP! Recurring, or monthly giving, is a huge opportunity for your nonprofit to have predictable monthly revenue and build lifetime relationships with some of your most dedicated donors. In fact, according to industry research, recurring donors give on average 42% more each year than non-recurring donor, and Funraise organizations grow recurring revenue 52% year over year on average. That’s a lot of extra money that your nonprofit can use to fund awesome.

When your nonprofit organization is just starting out with recurring giving, or if you’re looking to optimize your program, there are some non-negotiables you need to have in place. Let’s dive into the five things you you need to set up a recurring giving program.

The right tools
A system for updating expiring credit cards
A monthly donor onboarding process
A donor retention plan
A donor stewardship plan

1. You Need the Right Tools

We know you don’t have time for extra administrative work. That’s why you need the right tools to run your recurring giving program. Recurring giving works best when your nonprofit can effortlessly charge or withdraw an monthly automatic donation (think of it in terms of paying for your favorite subscription service each month, but instead, you're donating to your favorite nonprofit). That means you need a payment processing system that works its magic so you don’t have to. Ideally, your payment processing system will be integrated with your donor database so that each gift is automatically recorded.

One tool you shouldn't overlook is Double the Donation. Offering company matching features that integrate with Funraise, Double the Donation can literally double your donations. And when we're talking about not just one-time gifts, but monthly gifts, company matching your recurring donations is worth shouting about. Here's what Double the Donation says:

"...aggregating recurring donations... is a quick and easy way to significantly increase revenue without having to ask existing donors to reach back into their own wallets. Plus, it makes a ton of sense for recurring givers in particular, who are able to batch and request matches for their twelve previous gifts at once!"

2. Have a System for Dealing with Expired Credit Cards

What’s the biggest reason the average nonprofit loses recurring giving donors? Expired credit cards. Yep, and it can be a hassle to follow up with donors to get updated payment information.

As you build and grow your recurring giving program, you need a system to deal with expired credit cards. This could be something like running a weekly report and making calls to donors. Lucky for you, Funraise automagically follows up with donors who have expired credit cards.

In a super magical world, your donor profiles could trigger the confirmation email automation so you don’t have to lift a finger. Even more magical, you could use your donor CRM's Text Engagement solution to text donors with soon-to-be expiring information. Just think about how awesome that would be.

And P.S, that super magical world already exists with Funraise.

3. Create a Stellar On-Boarding Process for New Recurring Donors

You know we’re all about showing donors lots o' love. That’s why we love the idea of creating an amazing on-boarding process for new recurring donors. This obviously would include a great thank you letter, but the other bells and whistles are up to you. You could send prospective donors a physical welcome packet, make a thank you phone call, email them a custom thank you video, or invite them to a special stewardship event. Dream big, fundraising friend, and make it awesome for your potential donor.

4. Have a Plan for Donor Retention

An onboarding process is great, but you also need to think about the long-game: retaining your regular donors and encouraging donor loyalty. Make a list of touch points you have with recurring donors and ways to remind them of their impact and your gratitude. Here are a few ideas:

Host a quarterly Thank-A-Thon for staff and board members to call and say thank you to recurring and major donors
Send them an anniversary card to recognize their giving
Invite them to a special event just for recurring donors
Let them be an insider with special content

5. Don't stop asking your recurring donors

Just because their donation schedules are set-it-and-forget-it doesn't mean your recurring donor base won't give additional gifts. In fact, as committed supporters, they have even more reason to continue investing in your mission.

So keep on asking: ask your members to increase their recurring amounts, upgrade their memberships to the next tier, appeal to them for additional gifts, stretch fundraising goals, capital campaigns, event tickets, auctions, and contests, put out the call for volunteers, and pose the opportunity for alternative donations from donors.

Easy example: stock gift options. With markets at near all-time highs and stock gifts averaging more than $5000, the amount of wealth tied up in the stock market means that your current donors may have untapped funds to share—and a desire to avoid massive capital gains taxes. Tools like DonateStock make stock gifts easier than ever, and asking your recurring donors to transfer asset-based wealth to your nonprofit is a no-brainer. Here's what Steve Latham, CEO of DonateStock has to say:

"Appreciated stock represent billions in untapped funding with more than 100 million Americans owning securities (all major givers and most mid-level donors). With an average gift of $5,600, and 25% of stock donors making recurring gifts, stock gifting has tremendous potential to diversify and grow funding."

For further information on stock donation options and how you can get in on the action, listen in to Steve on the Nonstop Nonprofit podcast.

Starting and growing a recurring giving program is a great fundraising goal for any nonprofit professional. By making sure you have these five steps in place you’ll be well positioned to grow your program with a lot less headaches. (And if you need monthly giving program examples, we've got 'em!)

At Funraise we are super passionate about the power of recurring giving. That’s why we’ve built in many of the tools you need to succeed right into our fundraising platform. Easy to use online giving forms, integrated payment processing, expired credit card reports. Check, check, check!

Want even more impactful tips on building a recurring giving program? Watch our webinar with charity: water to learn more.

Mobile phone with donation form and donation charts floating around the phone.

Woman looking at fundraising chart with button to book a call.

Yellow shapes in background with donation form in front with stylized text, build an intelligence giving experience.

Download

Start For Free

Recurring Program Essentials FAQ

Why are recurring donors important?

Monthly donors provide nonprofits with a reliable and predictable income stream, enabling better financial planning and resource allocation. They tend to have higher lifetime value compared to one-time donors and often become strong advocates for the organization. Their consistent support helps sustain ongoing programs and facilitates long-term fundraising success.

How do you acknowledge recurring donations?

Acknowledge monthly donations for nonprofits by sending personalized thank-you messages after each contribution. Provide regular updates on the impact of their monthly gifts through newsletters or exclusive reports. Consider offering special recognition in donor programs or at events. Tailor communication to highlight their ongoing commitment and express gratitude for their sustained support.

How do you retain recurring donors?

To retain monthly donors, maintain regular communication that highlights the impact of their contributions. Offer personalized updates and exclusive content. Recognize their loyalty through special acknowledgments or events. Simplify the management of their donation requests with user-friendly portals. Address any issues promptly and ensure they feel valued and connected to your mission.

Which donation website is best for recurring donors?

Funraise offers robust features for managing one-time donations and recurring donations as well as a user-friendly interface, customizable donation forms, and automated communication tools. You should evaluate Funraise based on your organization's specific needs, such as integration capabilities, pricing structure, and donor management features to find the best fit.

Check out how easy Funraise makes it to set up subscriptions!

How do I set up a matching donation for recurring donors?

To set up a matching donation amount for monthly donors, add an easy-to-use feature to your Funraise online donation form. Clearly communicate the matching opportunity to donors through targeted fundraising campaigns and use your donation software to track matched gifts and provide updates on the impact of these amplified contributions to engage both monthly donors and first-time donors.

How do I set up a recurring donations program?

To set up a recurring donation program, choose a reliable online donation platform like Funraise that supports automated regular donations. Create an easy-to-navigate donation page with clear options for monthly giving. Develop compelling messaging that emphasizes the impact of sustained support. Promote the program through various channels, including emails to donors, social media posts, and fundraising events, to attract loyal donors.

Keep calm and get your Funraise on