How to Launch a Monthly Giving Program

Good morning. It’s officially April Fools’ Day and a new quarter; we’re already 25% of the way through 2024. Depending on who you ask, that could be a great or awful thing.

In any case, we wish you lots of success and progress this new quarter. Deep breaths. You’ve got this. 💪

—Ryan Almusawi

• How to Start a Monthly Giving Program 💰

  • A Rant: The Importance of Technology

  • Let’s Talk About Fundraise Up

• Designing a Monthly Giving Program

• Ways I Can Help You 🙋‍♂️

• One Quick Favor, Please 🙏

How to Start a Monthly Giving Program 💰

Are you looking to secure steady, reliable funding for your organization while deepening donor engagement? Say hello to your new secret weapon: a monthly giving program!

Picture this: a consistent stream of revenue flowing into your nonprofit month after month, providing stability and allowing you to plan ahead with confidence. That's the power of monthly giving!

Here's why it's a game-changer:

1. Steady Income: Monthly donors commit to giving a fixed amount each month, providing your organization with a predictable revenue stream. This steady income allows you to budget more effectively and focus on your mission without worrying about financial fluctuations.

2. Long-Term Support: Monthly donors are more likely to stick with you for the long haul. Their ongoing support builds a strong foundation for your organization, allowing you to invest in impactful programs and initiatives that create lasting change. “According to Classy’s “State of Modern Philanthropy” report, recurring donors have the highest lifetime financial return — 42% above fundraising events and 440% above one-time donors!”

3. Increased Donor Engagement: When donors give on a monthly basis, they become more invested in your cause. They feel like valued partners in your mission, leading to deeper relationships and increased loyalty over time.

4. Cost-Effectiveness: Acquiring new donors can be costly and time-consuming. Monthly giving programs offer a cost-effective way to cultivate donor relationships and maximize your fundraising efforts.

Before I dive into the steps of launching your own monthly giving program, I want to provide you with a list of charities that have recurring giving programs so you can view their landing pages, understand how they work, and get inspired.

In a nutshell, donors use their credit or debit cards to make a recurring gift to an organization via its website, which they automatically receive monthly. It’s similar to a Netflix subscription or a phone bill on autopay.

It’s very powerful for both the donor, who gets to automate their giving, and the charity, who gets predictable, sustainable revenue to carry out their mission.

Here are some of the most fantastic recurring giving programs from extraordinary charities:

1. charity: water — The Spring

2. The Adventure Project — The Collective

3. dream: success — The Dream Club

4. Splash — The Tap

5. Pencils of Promise — PASSPORT

6. PAN Foundation — GEMs

7. TEAK Fellowship — TEAK Investors

8. Operation Broken Silence — The Renewal

9. She’s the First — The Front Row

Now, I don’t want to overwhelm you, but as you can tell, MANY organizations have monthly giving programs.

It’s because they work — and they drive tremendous results for organizations.

Let’s get into the steps of launching a monthly giving program.

We’ll first talk about technology — YAY!

A Rant: The Importance of Technology

Many organizations are stretched (really) thin and, as a result, skimp out on technology.

You must break this toxic mentality to create a solid monthly giving program.

There is absolutely no way around this.

And with the current volatile macroeconomic environment, this is becoming increasingly apparent.

Many organizations struggle to receive the funding they need to continue their operations.

Anecdotally, there are organizations in my hometown of Fort Worth, Texas, that I have seen close their doors within the LAST FEW WEEKS.

Nonprofits are really struggling, and it’s precisely why I created this newsletter: to make you a more effective, knowledgeable, and resilient leader.

The world needs your help!

Anyway, refocus your mind to see technology as an investment — not a necessary evil.

Technology is here to stay.

Those who welcome it with open arms will win.

Unfortunately, many people in the nonprofit sector — leading the most important organizations on the planet: nonprofits — aren’t so bullish on technology.

I want to challenge that ubiquitous notion that nonprofits shouldn’t invest time, energy, and money into technology.

Paying for your website, fundraising platform, email servers, etc., SUPPORTS YOUR MISSION — and don’t let anyone tell you differently.

It’s time we, as nonprofit leaders, harness the power of technology without bitterness or anxiety around overly explaining the line item on the P&L.

I promise Apple doesn’t have to explain what technology they use (or its costs) to manage projects, host their website, or take payments to customers or board members.

I’ll say it once more: paying for technology SUPPORTS YOUR MISSION.

Now that my rant on technology is over, I’d like to introduce you to the most powerful donation management app ever: Fundraise Up.

(It’s literally free, by the way, excluding credit card processing fees.)

Let’s Talk About Fundraise Up

Before I begin, I am in NO WAY associated with Fundraise Up.

Our charity, dream: success, uses Fundraise Up to power our website, and it has been the best donation platform we have ever used in our organization’s history.

I’m not exaggerating.

It has a myriad of integrations, and the most valuable to us are Salesforce and Double the Donation.

Here are some reasons Fundraise Up rocks:

1. Seamless Donation Processing: Fundraise Up offers customizable donation forms that are easy to set up and integrate with your website. With just a few clicks, you can create visually appealing forms that capture donors' attention and encourage them to give.

2. Flexible Payment Options: Whether your donors prefer credit/debit cards, PayPal, or ACH transfers, Fundraise Up has you covered. Their platform supports a variety of payment methods, making it convenient for donors to contribute in the way that works best for them.

3. Automated Recurring Giving: One of the standout features of Fundraise Up is its ability to facilitate recurring donations effortlessly. Donors can set up monthly contributions with ease, ensuring a steady stream of income for your organization.

4. Donor Data Insights: Gain valuable insights into your donors' behavior and preferences with Fundraise Up's robust reporting tools. Track donation trends, measure campaign performance, and identify opportunities for growth.

5. User-Friendly Interface: Fundraise Up is designed with both nonprofits and donors in mind. Its intuitive interface makes the donation process simple and enjoyable, leading to higher conversion rates and increased donor satisfaction.

The list goes on, including but not limited to AI/machine learning that helps with increasing revenue, upgrading donor giving levels, attracting supporters in different languages, accepting many currencies, cryptocurrencies, and stocks, etc.

Unless you have a FANTASTIC reason to stay with your current donation platform, you’re undoubtedly leaving money on the table by not using Fundraise Up.

On launching a monthly giving program, I will make this (very) strong claim: there isn’t a better donation platform out there than Fundraise Up.

Now, let’s explore tactical advice for designing and launching a monthly giving program.

Designing a Monthly Giving Program

At a high level, here are the steps for designing an outstanding monthly giving program that will increase revenue, donor satisfaction, and your organization’s vitality:

1. Secure buy-in and set goals:

• Get your team on board: Explain the importance of recurring donations to your board and staff. Show them how it can provide a stable income stream and boost donor retention. When the monthly giving program is set up, you’ll rely on your board to be among the first monthly donors. (If they won’t commit, why should others, right?)

• Set SMART goals: Define what success looks like for your program. This could include the number of monthly donors, desired monthly revenue, or average gift amount.

2. Identify your ideal monthly donor:

• Look at your donor data: Use your donor management system to find past donors who contribute smaller amounts regularly. Frequency of giving is a strong indicator of potential for monthly giving programs. If you’re just getting started, no worries. Much of your success will depend on your ability to experiment, fail, reiterate, and repeat.

• Consider lapsed donors: Reach out to past donors who haven't given recently and see if a monthly giving option might entice them to return to supporting your cause.

3. Craft a compelling program message:

• Develop branding: This topic can’t be covered in a bullet point, but you’ll want to develop a relevant, engaging name for your monthly giving community and top it off with customized branding and assets, including a separate logo, colors, fonts, etc. The goal is to create an exclusive membership feel for your recurring donors. After all, they’re a special group of people who believe in your cause and support you every month!

• Highlight the impact: Explain how monthly donations allow you to make a consistent and lasting difference. Get as specific as reasonably possible about how dollars translate to impact. For example, “a $40 donation can bring education to one child.” This makes the donor’s impact more tangible and digestible.

• Offer incentives: Consider offering small welcome gifts or tiered benefits based on monthly giving levels to show appreciation. Be careful; you don’t want this eating into your profits, complicating your accounting, or changing the tax deductibility of donations. (Consult with a knowledgeable CPA or lawyer for more.)

4. Make signing up easy and accessible:

• Seamless online experience: Ensure your donation form is user-friendly and optimized for mobile devices. If you use an excellent platform like Fundraise Up, you won’t have to worry about this. Make it easy for donors to choose the monthly giving option and set their desired amount. You should also consider how easy donors can manage their donations. For example, if they need to edit the card on file, cancel their donation, or change the amount, you don’t want it to be difficult for your donor or staff. Fundraise Up also makes this a breeze by giving your donor a self-serve portal to manage their recurring donation(s) — it’s fantastic!

5. Promote your program across all channels:

• Website: Dedicate a webpage to your monthly giving program, explaining its benefits and showcasing the impact of recurring donations. Notice that all the charities’ monthly giving programs included above have a dedicated landing page showcasing stories, social proof, and a clear ask to join their recurring giving program. Building a landing page is not an easy task, and I certainly can’t cover its complexities in a bullet point; however, we will cover this in more detail in a future newsletter. Stay tuned.

• Email marketing: Segment your email list and send targeted campaigns to potential monthly donors. Email marketing and segmentation can be a massive undertaking, so start small.

• Social media: Spread awareness about your program through engaging social media posts and videos.

• Direct mail: Consider targeted direct mail campaigns highlighting the convenience and impact of monthly giving. If you already have donors and their mailing addresses, direct mail can be a great way to engage them to upgrade to monthly donor status.

6. Steward your monthly donors:

• Regular communication: Keep your monthly donors informed about your work and their contributions' impact. If you visit some of the monthly giving programs created by other charities I listed above, you’ll notice that many promise an exclusive regular email showing the impact of their gift. This is paramount as your focus will eventually shift from acquiring new donors to retaining existing donors.

• Express gratitude: Thank your monthly donors regularly and show them their ongoing support is valued.

• Engagement opportunities: Invite your monthly donors to exclusive events, webinars, or online communities to foster a sense of belonging.

By following these steps and nurturing your relationships with monthly donors, you can build a sustainable and impactful recurring revenue stream for your nonprofit.

While this guide mainly keeps things high-level, we’re working on more in-depth resources. And we can’t wait to share them with you! 🔥

That’s all for today!

Ways I Can Help You 🙋‍♂️

1. Free Nonprofit Coaching Calls: I offer free 30-minute consultations for nonprofits. We can discuss monthly giving programs, social media, accounting, etc. I'm always excited to meet newsletter subscribers and brainstorm solutions to your nonprofit's problems! Schedule your free consultation today! ☎️

2. Monthly Giving Program Done-For-You: Get your monthly giving program launched on Fundraise Up in a flash for a one-time fee of $585. I'll handle the setup so you can focus on building relationships with your donors. Launch your program today! 🤗

3. Nonprofit Accounting and Bookkeeping Services: My firm, Clarion Tax & Accounting, offers nonprofit accounting and bookkeeping services. Our minimum is $325/mo. and we'll work with you to design a customized plan that meets your organization's specific needs and budget, ensuring your finances are in order and you can focus on achieving your mission. Schedule a free consultation today to discuss your nonprofit's financial needs! 🧮

One Quick Favor, Please 🙏

If you found this newsletter remotely helpful, please forward it to a friend or colleague who would benefit from it.

I’m on a mission to help 100,000 nonprofit leaders become more effective, knowledgeable, and resilient.

I’m just getting started. 💪

Ryan Almusawi
Founder, Nonprofit Hustle
Founder & CEO, dream: success
Owner, Clarion Tax & Accounting