Are you looking for a steady source of income for your nonprofit? This guide is for you. Recurring donations have increased by 144% in recent years. So this is the perfect time to build a program that helps donors give consistently.
In this guide, you’ll learn how to create and sustain a recurring donation program that strengthens relationships and secures long-term funding.
What Are Recurring Donations?
Recurring donations are donations that donors commit to giving to an organization regularly. It can be monthly, quarterly, or yearly.
Why Do Recurring Donations Matter?
Let’s look at the benefits of recurring donations:
- Steady income: Your organization will have a steady flow of revenue.
- Higher lifetime value: Recurring donors are more loyal and have a lifetime value of about 8 years.
- Smarter planning: Predictable revenue means fewer surprises and better budgeting.
- Stronger connections: It helps you build relationships with your donors.
- Lower fundraising costs: It’s more cost-effective to keep donors than to find new ones.
- Convenience: Donors love how easy and stress-free it is to give automatically.
How to Build a Recurring Donation Program That Works
Here are key strategies for building a strong recurring donation program.
Identify Your Ideal Recurring Donors
Not every donor will commit to making recurring donations. Focus your efforts on the people most likely to say yes.
Create a Recurring Donor Persona
Start by reviewing your current donor base:
- Who is already donating monthly?
- What do they have in common?
Look at:
- Demographics: Age, location, income, and education
- Psychographics: Beliefs, interests, values
- Giving behavior: Frequency, donation size, preferred payment methods
Prospects to Pay Attention To:
- Volunteers: These are people already giving to your cause
- Event attendees: They have a genuine interest in what you’re doing
- Engaged subscribers: These are people who read your emails
Build Relationships First
Personalized outreach is key. Show donors you see and value them.
- For volunteers and first-time donors: Start by building a genuine connection. Then, share how ongoing support creates a consistent impact
- For event attendees: Tell them stories about how consistent giving can change lives
- Be flexible: Let donors choose the amount, frequency, and payment method
Ask at the Right Time
Timing matters more than you might think. Here are some best moments to invite a recurring donation:
- After a positive experience, like an inspiring event or campaign
- During year-end campaigns and GivingTuesday, when people are more receptive
- Reach out to donors after initial donations, when they’re still eager
Remove Any Roadblocks
Make it easy for donors to say yes.
- Add recurring giving options on all donation forms
- Use trusted payment processors like Stripe or PayPal
- Offer suggested monthly donation levels with impact statements
- Show the benefits of recurring giving
Keep Your Recurring Donors Engaged
After getting recurring donors, keep them connected using the following strategies:
Communicate
Talking to your recurring donors won’t scare them away. Tell them how their gift is making a difference through:
- Monthly updates: Share stories, photos, or quick wins.
- Personal thank-you messages: Express constant gratitude.
- Annual reports: Send them reports on progress and goals so they can see the bigger picture.
Build a Community
Your donors want to feel like they belong to something meaningful.
Offer:
- Exclusive events like virtual Q&As or behind-the-scenes tours
- Small, personal touches, like a handwritten thank-you or birthday message
- Public or private recognition, when appropriate, to honor their generosity
Promote Your Recurring Giving Program
Even the best recurring donation program won’t grow if no one knows it exists. Here’s how to spread the word:
Craft Compelling Messages
Focus on the impact of their ongoing gift. Paint a picture that helps them feel like they’re going to make a difference.
For example
Instead of: “Support our work.”
Try: “It takes a $25 monthly gift to clothe a family of 3.”
Use Many Channels
Reach out to donors where they are:
- Email campaigns: Share impact stories with clear donation CTAs.
- Social media: Show the real-life results of consistent support.
- Website: Use pop-ups or banners to nudge visitors toward recurring giving.
- Live events: Mention recurring giving as a powerful next step for attendees.
Use the Right Tools to Streamline Your Efforts
The right tool can take the stress out of creating and managing a recurring donation program.
Consider using Lamp, a trusted fundraising CRM software that makes it easy to:
- Accept one-time and recurring donations
- Send automatic receipts and personalized thank-you
- Track donor relationships and giving habits
- Build a strong, connected donor community
- Access insights to make smarter decisions
Track the Right Metrics to Grow Your Program
To have a powerful program, you need to know what’s working. Pay attention to the following metrics:
- Total recurring revenue
- Donor retention rate
- Average gift size and frequency
- Payment failure rate
- Upgrade frequency (how often donors increase the amount they give).
Use these insights to refine your approach and expand your program.
How to Handle Common Recurring Donation Challenges
Recurring donation comes with unique challenges. Here’s how to address them:
Payment Failures
This happens when cards expire or payments decline.
- Make the payment process simple and stress-free.
- Use payment systems that retry failed payments.
- Send a gentle message to ask donors to update their payment info.
Donor Fatigue
This is when donors are no longer interested or don’t trust your organization anymore.
Prevent this by:
- Being transparent about how you use their donations
- Sending thank-you messages after each donation
- Sharing the latest stories and updates
- Hosting engaging events that carry them along
- Keep the focus on the impact they’re making
Recurring donations aren’t just another revenue stream. They’re the foundation for long-term impact and financial resilience.