Recurring Donations: A Guide for Nonprofits

Working at a nonprofit, you know financial support is essential for fueling impactful initiatives and driving meaningful change. As you work to solicit donations, a mix of one-time and recurring donations is important.

Recurring giving allows donors to support your organization continuously and helps your organization predict and manage cash flow. Recurring giving can be a sustainable and dependable income source and is easy to manage.

There are other benefits as well. Recurring gifts can save your organization time and money, make planning less stressful, and help retain donors.

Let’s explore what recurring donations are, their benefits, and how you can encourage recurring giving.

What Are Recurring Donations and How Do They Work?

A recurring donation is a commitment by a donor to support your nonprofit on a regular, ongoing basis. Most donors initially contribute using an online donation form that includes options for the amount they wish to contribute and the frequency of their donations. Common options include daily, monthly, quarterly, or annually scheduled donations.

Here’s how it works for the donor:

• Someone decides to support a cause they believe in. When they visit your website or donation page, the donation form includes a recurring giving ask or option.
• Using the form, a donor can set a contribution level and frequency that suits their lifestyle and giving habits.
• The donor will submit payment information securely through the online form. This could involve providing credit card details, bank account information, or digital payment platforms.
• With the payment details securely stored by your payment processor, the donation amount is automatically deducted from the donor’s chosen payment method according to the schedule they have selected. The donor does not have to engage again for this to take place on their set schedule.
• After each successful transaction, the donor will receive a thank-you message or confirmation email acknowledging their contribution. This also serves as a receipt.
• Then, you can manage and report on recurring donations through software connected to your donation form. You want a strong giving tool, such as GiveWP, that enables you to track donation schedules, manage donor information securely, and generate reports to monitor fundraising progress and donor engagement.

Benefits of Recurring Donations for Nonprofit Fundraising

A key reason to offer a recurring giving option on your website is that it is easy for donors to use. Ease of the donation process can make someone more willing to give. A recurring donation adds to that simplicity because donors can give on a schedule just as easily as a one-time donation.

The convenience of automated donations and the ability to spread contributions over time alleviate the financial strain associated with lump-sum giving, making it easier for donors to support causes they care about without donation fatigue.

But that’s not the only reason you might want to consider recurring donations as part of your nonprofit fundraising plan. There are plenty of organizational benefits as well:

• Increased Revenue: Recurring donations serve as a steady stream of income that accumulates over time, bolstering your organization’s financial health. Most donors who start with a recurring donation will continue it for a long duration, providing more lifetime value than a single gift.
• Planning a Reliable Revenue Stream: Recurring donations help you with budgeting, planning, and strategizing. A more predictable revenue stream provides stability, enabling your organizations to allocate resources efficiently.
• Time and Cost-Effectiveness: Recurring revenue helps you create a solid donor base so that you aren’t constantly soliciting new supporters, saving donor acquisition dollars.
• Donor Retention and Engagement: Recurring donors are more likely to be advocates and integral members of your organization’s greater community. They often develop a deeper connection with your mission and values, give in other ways (such as volunteering), and can even help solicit new donors.

How to Encourage Recurring Giving

Nothing encourages recurring gifts like making it easy for donors.

This starts with your donation form. Make sure recurring donations are an option on all of your forms. You may consider making the recurring donation option the default on some or all forms.

By simplifying the decision-making process, you remove barriers to entry and encourage supporters to opt for ongoing contributions effortlessly. If a default recurring option isn’t for you, prominently feature it as an option.

Here are more ways to encourage recurring giving and increase recurring donor acquisition:

• Show donors how recurring gifts make a lasting impact. You can communicate the transformative power of sustained support through storytelling, testimonials, statistics, and impact reports. When donors understand the ripple effect of their contributions, they are more inclined to commit to recurring giving.
• Use secure payment processors such as Stripe or PayPal to process recurring donations. This has benefits for both you and the donor. For your organization, a strong third-party payment processor is a trusted and credible source that you can trust with sensitive data. For donors, making payments will be easy and familiar.
• Offer incentives that recognize and appreciate the commitment of recurring donors. Whether it’s exclusive merchandise, access to member-only events, or personalized recognition, additional tangible benefits can help strengthen donor support and duration.
• Remember to say “thank you.” Send personalized thank-you messages after each contribution, highlighting the impact of their support and reaffirming their role in advancing your nonprofit’s mission. By consistently acknowledging donors’ support, you reinforce the connection and purpose that likely motivated someone to give in the first place.

Try Recurring Donations with GiveWP

Recurring donations are a solid option for creating sustainable fundraising campaigns and long-term financial stability. Not only is this type of giving good for your nonprofit organization, but it is also an easy and well-liked option for many donors as well.

GiveWP has all the tools you need to start a recurring donation campaign, including the ability to track donors, offer flexible giving options, and send customized email thank yous and receipts. The GiveWP Recurring Donations Add-on has everything you need to help build lasting relationships with new and recurring donors.

See the live demo now, or explore all GiveWP plans!