How to Start a Successful Recurring Giving Program: Step-by-Step Guide for Nonprofits

New year, New donors: Building a Monthly Giving Program

1/7/2025

How To Build a Recurring Gift Program from Scratch: A Step-by-Step Guide for Nonprofit Fundraisers

I learned the power of recurring gifts when I ran a faculty/staff giving campaign. I saw how quickly even $5 payroll deductions added up across the year when dozens upon dozens of donor participated. When I arrived at a much smaller institution that really needed unrestricted gifts, I knew they needed a strong monthly giving program that would help us reach our annual goals.

Recurring giving is a powerful strategy that can transform your nonprofit’s fundraising model. A successful recurring gift program provides steady, unrestricted income and builds a loyal donor base that supports your mission long-term. Here’s how to build a thriving recurring gift program from scratch.

What is a Recurring Gift Program and Why Start One?

A recurring gift program allows donors to give smaller, automated contributions on a monthly basis, typically via credit/debit card or bank draft. These "set it and forget it" donations make giving simple and budget-friendly for donors, while providing nonprofits with reliable revenue.

Why You Should Launch a Recurring Gift Program:

Cost-Effective: Solicited only once, recurring gifts reduce acquisition costs.
Predictable Revenue: Monthly gifts offer a consistent income stream.
Higher Lifetime Value: Studies show that recurring donors give more over time compared to one-time or annual donors.
Increased Donor Loyalty: The regular engagement helps deepen the relationship with your organization.

Why Donors Love Monthly Giving
Monthly giving resonates with donors for several key reasons:

Convenience: Automated payments make it easy to maintain their support without additional steps.
Budget-Friendly: Smaller, regular donations are easier to fit into monthly budgets.
Eco-Friendly: Recurring gifts reduce paper usage and reliance on direct mail, aligning with donor values around sustainability.
Impactful: Donors feel a deeper connection, knowing their consistent support enables ongoing projects and growth.

8 Steps to Launch Your Recurring Gift PrograM

Here’s a step-by-step approach to creating a sustainable recurring gift program that will drive long-term success.

Step 1: Explore Technical OptionS

Choose a donation platform that securely stores donor payment information and processes automated monthly contributions. Key features to consider include:

Mobile Optimization: Ensure the sign-up process is seamless on all devices.
Security: Look for Payment Card Industry (PCI) compliance and encrypted data storage.
User-Friendly Maintenance System: Make sure the system is easy for staff to manage, update, and integrate with your CRM.

Pro Tip: The ability to automate receipts and acknowledgments in your software will save staff time and maintain a consistent donor experience.

Step 2: Build Internal SupporT

Engage your team and leadership early. Present a clear case for why a recurring gift program is a strategic priority using data and examples:

Highlight the benefits of consistent revenue and lower acquisition costs.
Address any concerns about additional workload or technology investment.

Share a short executive summary and draft donation page copy with key stakeholders to secure buy-in and streamline implementation.

Step 3: Create an Identity for Your PrograM

Develop a unique brand identity for your recurring giving group to create a sense of community. Consider naming the group and designing a logo (e.g., "The [Organization] Sustainers"). This branding helps build a strong identity and a feeling of belonging among donors.
Examples:

Step 4: Start Small with Personal OutreacH

Begin by reaching out personally to a select group of 25-50 loyal donors, volunteers, or board members. These individuals are likely to be early adopters and provide valuable feedback for refining your program.
Action Steps:

Make personalized calls or set up Zoom meetings to introduce the program.
Explain the benefits of becoming a founding member and gather testimonials from these early donors.

Step 5: Launch a Broader CampaigN

Once you’ve piloted your program, it’s time for a full launch. Use a multi-channel approach to reach your audience:

Email: Highlight the ease and impact of monthly giving.
Social Media: Share testimonials and visual stories of impact.
Direct Mail: Include a simple option to sign up for monthly giving on reply cards.
Phone Campaigns: Engage donors directly and answer any questions they have.

Keep the momentum going by regularly reporting progress. Consider using a thermometer graphic to illustrate growth in monthly donors and total contributions.

Step 6: Offer Meaningful PerkS

While your main goal is sustainable support, offering small perks can enhance donor loyalty without significantly increasing costs:

Access to an exclusive Facebook group or early event registration.
An annual Zoom Q&A with your CEO or program director.
Personalized thank-you notes or recognition on your website.

These gestures help make donors feel special and connected to your mission.

Step 7: Steward, Maintain, and Upgrade DonorS

Ongoing maintenance is key to the success of your program. Be proactive about updating expired credit cards and follow up with donors whose payments fail. In January, send timely letters for tax purposes covering all of the gifts the donor made in the previous tax year. I’ve always liked to send monthly donors a sticker and/or car decal for every year they are in the program.
Upgrade Strategy:

Every 12-24 months, ask existing donors if they’d consider increasing their monthly gift. Even a small increase can have a big impact over time.

Step 8: Conduct an Annual Recurring Gift PusH

Persistence is crucial when building a recurring gift program. Plan an annual campaign to recruit new donors and replace any who have lapsed.

Case Study: When we started "The Starr King Sustainers" program in 2016, we had just 11 donors giving under $1,000 monthly. By 2024, we grew to over 110 monthly donors contributing nearly $6,000 each month, providing a stable base of support for our mission.

Conclusion: Start Your Recurring Gift Program TodaY

Building a successful recurring gift program takes time and effort, but the payoff is substantial. With a thoughtful approach and consistent stewardship, you’ll create a loyal base of donors who are passionate about supporting your mission month after month.

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