Even before the pandemic, research showed that when givers shift to online, recurring donations, their total giving increased. For example, congregations with any form of online giving bring in $323 more income per capita on average than congregations that have no form of online giving, according to early 2020 research from Faith Communities Today.

A recent Chronicle of Philanthropy article underscored the importance of this shift, and offered tips on helpful ways to cultivate monthly (or similar) giving from online donors.

“Monthly giving is a program that is often underutilized. A lot of nonprofits just don’t think about it,” said LeAnne Lavender in the article. She is donor and content manager at Water for Good, a charity with a longtime monthly donor program.

“Monthly donations are an important financial cushion during tough economic periods,” said Genevieve Shaker, associate professor of philanthropic studies at the Indiana University Lilly Family School of Philanthropy. “Recurring giving can provide a predictable and reliable source of income for a nonprofit.”

The reasons for nonprofits to start or bolster monthly giving programs include high retention rates, reliable income, and the opportunity to encourage supporters to become major donors over time. Research from Classy, a software company focused on fundraising, found that 52% of organic growth in donations at organizations raising $50,000 or more annually came from recurring givers. At the largest organizations—$50 million or more raised annually—37% of total revenue came from recurring gifts.

“And recurring givers don’t just stop with their monthly donation. They’ll often give more if asked,” says Michelle Boggs, executive nonprofit industry adviser at Classy.

“It’s not like you say, ‘Oh, they’re giving to us monthly. We don’t want to ask them to also sponsor an event or buy a ticket to a gala,’” Boggs says. “We have found that they’re actually more likely to support in other ways if they’re already a recurring donor.”

Creating a Sense of Community

Veteran fundraisers say it’s critical to create a sense of community, according to the article. One simple way to do that is to name the program. For example, Water for Good, which brings clean water to the Central African Republic, calls its monthly givers Rainmakers. The group maintains a roughly 90% retention rate for its monthly donors. “I try really hard to make them feel like they’re in a club,” says Water for Good’s Lavender.

Fundraisers should also connect differently with monthly givers than with one-time donors. “Have a different stewardship and communication strategy,” Indiana University’s Shaker says, “one that recognizes the kind of support they’re providing and their really deep level of trust and commitment to your organization.”

Rainmakers receive monthly updates via an email newsletter called the Liter, which Lavender describes as a “deep dive behind the scenes” that offers information such as how much water is pumped or well-maintenance reports. Rainmakers also can participate in quarterly video calls, which last about 30 minutes and discuss the group’s work, often including updates from program staff and the group’s leaders. After a year of support, each Rainmaker gets a photo book with pictures of the good work the group supported during the year, and last year Lavender sent personalized holiday notes.

Mistakes to Avoid

The article pointed out four common mistakes in monthly giving programs:

1. Don’t lump monthly donors with the same thank-you pathway as all other donors. It’s too much for a donor to receive a thank-you note every single month, especially if the note is minimally changed from month to month.

2. Be sure to make sure your website clearly and prominently displays the monthly giving option to donors. “We look at nonprofit websites all day long, and we’re always surprised to see that [the monthly giving option] is not at the forefront,” says Classy’s Michelle Boggs. “There might be a ‘donate’ button, but few were making it really clear: ‘We want you to be a recurring donor and here’s why. Here’s the incredible impact it’s going to have on the organization’.”

3. Don’t mistakenly assume everything’s working fine once you set up your website’s recurring giving page. Every few months, “test it yourself and see what it’s like as a recurring donor, and if it provides the options and information and experience that you would want someone to have,” one advisor says.

4. Finally, nonprofits often fail to be proactive when it comes to common, expected issues. For example, some monthly givers use a credit card, but many charities don’t track when that card will expire. “In one study, they observed only a limited number of the nonprofits contacted [cardholders] to try to get the new number,” Indiana University’s Shaker says. “They weren’t looking ahead at what’s the expiration date on this credit card and ‘How do I start talking to the donor in advance of that so that we don’t lose them?’

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