How To Build a Recurring Gift Program from Scratch: A Step-by-Step Guide for Nonprofit FundraisersI 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:
Why Donors Love Monthly Giving Monthly giving resonates with donors for several key reasons:
8 Steps to Launch Your Recurring Gift PrograMHere’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:
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:
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:
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:
Step 6: Offer Meaningful PerkS While your main goal is sustainable support, offering small perks can enhance donor loyalty without significantly increasing costs:
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:
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. PS - I hope you’ll continue the conversation by subscribing to Real Deal Fundraising. When you subscribe, you’ll get my e-newsletter, which includes the best articles on fundraising, productivity and cool stuff every week. The whole thing is curated awesomeness as well as freebies like webinars, instructional videos, and whatever else I can put together to be helpful to you!
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Jessica Cloud, CFREI've been called the Tasmanian Devil of fundraising and I'm here to talk shop with you. Archives
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