Launching a Monthly Giving Program: Your Key to More Reliable Revenue

Fifteen percent. The president of my organization wanted me to raise our annual

revenue by 15% by the end of our comprehensive campaign, which was less than three years away. Not only did I need to find a way to increase giving in a landscape of decreasing donors, but I also needed to sustain that increased revenue beyond the end of our campaign. It was expected to be our “new normal.”

Ultimately, I spent the next two-plus years focused on revenue growth resulting in an increase of 14.5%. Not the 15% that was asked for, but over the subsequent two years we reached the original goal.

I wasn’t the first—and I wouldn’t be the last—annual giving director to get this sort of mandate from a president or executive director. After leaving fundraising for a role in consulting, I have helped dozens of customers who have received similar mandates. To achieve my lofty goal, I focused on the most reliable sources of revenue available, and I recommend customers do the same. In particular, I suggest launching a monthly giving program as a vital part of the strategy.

Starting a monthly giving program can feel overwhelming, but in times when funding sources can feel uncertain, monthly donors can ensure you’re delivering on your mission. In three clear and impactful steps, you’ll have the information you need to launch a monthly giving program that’s the right fit for your team.

Why Monthly Giving Matters

Recurring donors provide benefits to your organization beyond their monthly contribution. A well-established monthly giving program also provides your institution with predictability, longevity, and community.

Predictability. Have you ever sat at your desk at the end of the fiscal year waiting for that one gift to come in that will put you over your goal? Well, I have! A key benefit of a monthly giving program is predictability. Building a base of monthly donors gives you peace of mind in times when other funding sources seem uncertain. According to Grantwatch, grant funding is getting more competitive, with federal grants becoming rarer and foundations granting only 1 in 7 proposals to nonprofits. Finding reliable revenue is vital for future sustainability. 

Longevity. As an annual giving director, I was hyper-focused on retention rate. I knew it was better for our bottom line to keep a donor coming back than to reactivate a lapsed donor or acquire a brand-new donor. The beauty of a monthly giving program is that one action from a donor can create longevity, not only in that donor’s giving, but also in your donor retention overall.

• Blackbaud reports that organizations with established monthly giving programs have seen an 82% retention rate for monthly donors versus a 44% retention rate for individual gift donors.
• Monthly donors have a higher lifetime value for the organizations they support compared to single gift donors. In fiscal year 2023, the per-donor lifetime value for an acquired monthly donor was $432, compared to $155 for single gift donors.

Community. Monthly donors are an incredible resource. When our career development center was looking for new alumni to add to its jobs network, when our alumni relations department was looking for reunion committee members, when we were looking for alumni to tell their stories about why they support the mission, we went to the list of monthly donors. They make an extraordinary support team.

• Monthly donors are loyal.
• They ensure support of your work never falters.
• Many sustainers have stories to tell about how your organization has impacted them.

Engage them! Give monthly donors an opportunity to share and encourage others.

Step-by-Step Guide to Launching a Monthly Giving Program

The benefits of a monthly giving program are clear, but getting started is the most difficult step. When I launched my first monthly giving program, I broke it down into these three steps to make it easier for me and (more important) my team to focus on the end goal.

Step 1: Set Up the Right Infrastructure

In my time consulting with organizations, the set-up of the infrastructure has been the most challenging step. If you’re going to commit to this program, make sure you have the following items in place, each consistently managed:

• Donation forms. All donation forms should include a monthly giving option. Better yet, choose a donation form that encourages a monthly donation to one-time donors. And make sure that the form is mobile friendly and is as streamlined as possible to increase conversion.
• Reporting and tracking. Your gift processing workflow needs to be set up to support monthly giving. Confirm that your reports are accounting for items like credit card expiration dates to ensure your monthly donors don’t lapse. A payment processing service that includes an automatic credit card update service can streamline this task. Automated stewardship reports ensure your donors aren’t getting the same thank you note every month when their payment is processed (more on stewardship in Step 3).
• Goal setting. Launch your program with one or two specific goals in mind. For example, I consulted with a college whose goal was to target their two- to three-year lapsed donors with a monthly giving ask for an entire fiscal year. All solicitations centered on a monthly ask no matter if it was an email, mail, phone, etc. They wanted to set a baseline to see how many new monthly donors they could capture with a consistent message. At the end of the fiscal year, they had dozens of new monthly donors in their program.

Step 2: Launch with a Strong Campaign

When I was working with my team to launch our monthly giving program, I reminded them, “Monthly giving is how one gives, not why one gives.” Lead with annual giving fundamentals: segmentation, messaging, channel, and timing.

Decide on your target audience for your monthly giving program. Not every potential donor is a good fit for the program. Consider finding a segment of donors who already make multiple gifts in a year. Or target donors who give for a few years and fall off your roster. They may be the supporters who would benefit from a recurring option. You may also want to exclude donors with potential to give mid-tier or major gifts from this cultivation stream.

When it comes to the message you send to potential monthly donors, focus on what’s important: the impact their gift will have on your mission. The only difference in your message is that your ask of them is to set up a monthly gift. The task is different; the impact remains the same.

A multichannel approach to your monthly giving program launch will be important, but focusing on your email and online solicitations will be crucial. These are the easiest ways for your donors to set up their monthly gift, so make sure your online presence is compelling.

You must get your monthly gift ask in front of potential donors at the right time to capture their attention. Create a sense of urgency to help them understand that you not only need their support now, but also you need their continued support.

Step 3: Steward and Grow Your Program

This one may be the final step, but it is arguably the most important: A good stewardship plan will ensure that your monthly giving program has staying power. You don’t need to set up a new recognition society. Just find opportunities to surprise and delight! For example:

• Welcome your new monthly donors with a special welcome packet with impact stories and a promotional car decal
• Send out a special newsletter or e-newsletter once a year to monthly donors
• Surprise monthly donors with stewardship, engagement, and impact

Once you’ve gained stability in your program, analyze your results and determine your next steps. Where does it make sense to grow? Do you want to increase the number of donors making monthly gifts? Do you want to upgrade monthly donors to the next ask amount? The next steps all depend on your overall goals and how this program fits into that strategy.

Time to Get Started

I could have let the towering goal of a 15% increase intimidate me. I could’ve tossed up my hands and said, “It can’t be done!” Honestly, I wasn’t convinced it could be done, but I knew I needed to try. Our mission and the role we played in the community were too important not to try. I’m certain you understand that drive. t’s a similar drive that will compel you to launch your monthly giving program.

When you do, remember the three steps—set up your infrastructure, build a strong campaign, and steward and grow your program over time—and you’ll be on your way to achieving even your loftiest goals.