Maximizing the Potential of Recurring Gifts in Fundraising
In the realm of nonprofit fundraising, major gifts typically account for 80-90% of a fundraising campaign’s total. However, it's good practice not to completely overlook the significance of smaller, recurring donations. While these contributions might not necessarily move the needle by themselves, they can form the bedrock upon which sustainable funding and future major gifts are built by creating out donor pipeline.
The Strategic Value of Recurring Donations
Recurring donations are the subtle, steady heartbeat of nonprofit funding. They offer a predictable income stream, allowing for better planning and budgeting. For most donors, the act of giving smaller amounts regularly is less daunting and more feasible than making a large one-time gift. This accessibility opens the door to a broader base of supporters.
Laying the Groundwork for Major Gifts
Every major donor’s journey starts with a single step. Often, that step is a smaller and/or recurring donation. By nurturing these donors through thoughtful recognition and stewardship, nonprofits can gradually build a relationship that will one day lead to a more substantial gift.
Recognition and Stewardship: Key to Upgrading Donors
Recognizing and stewarding small-scale donors is vital in their journey towards becoming major contributors. It is a way to thank the donor while also drawing attention to the project you are working towards. Personalized thank you notes, impact reports, and invitations to exclusive events or webinars can make donors feel valued and connected to the cause. This connection fosters loyalty and increases the likelihood of gift upgrades.
This is not to say that you should spend large amounts of time stewarding all of your small donors, but a little bit can go a long way. This is true especially considering that many nonprofits barely have a stewardship program at all, so it’s easier to stand out than you think!
Implementing Effective Recurring Donation Programs
Easy and Accessible Donation Processes: Ensure that the process of setting up a recurring donation is straightforward and user-friendly. Offer multiple payment options and clear instructions.
Regular Communication: Keep recurring donors informed about how their contributions are making a difference. Regular updates through emails, newsletters, or social media can help maintain donor engagement.
Donor Recognition Programs: Create special recognition programs for recurring donors. This could range from listing their names on your website to sending personalized gifts or acknowledgments.
Feedback and Surveys: Regularly seek feedback from your donors. Surveys can provide valuable insights into what motivates them and how they view your organization.
Recognition Events for Donors: Host exclusive events for recurring donors based off of their total contribution over a year or a campaign can deepen their connection with your work and mission. It also can create some healthy FOMO for those who were not invited and want to increase their giving!
While the pursuit of major gifts should remain a primary focus for any fundraising campaign, cultivating a robust recurring giving program is a strategy that pays dividends in the long run. It's about playing the long game, recognizing the potential in every small donor, and nurturing those relationships with care and attention. In doing so, we not only build a sustainable funding base but also create a pipeline for the major donors of tomorrow.
Need help building out a more sustainable fundraising program for your nonprofit? We can help with that! We’ve helped build and maximize fundraising programs for hundreds of nonprofits. Schedule a call with us and we would love to learn more about your nonprofit.
