So, you’re now offering donors an option to give monthly. Fantastic!
How’s that going?
Did you know . . . with a few tweaks and targeted strategy, you can grow your monthly giving program to provide a reliable source of revenue to sustain your organization long-term?
The average retention rate for monthly donors is 70%. So the average attrition rate is 30%.
The average retention rate for first time donors is about 40%. The average attrition rate is 60%.
"Donor attrition is the equivalent of termites eating away at your home. Many home owners are unaware that the support system of their flooring is being destroyed."
If you do these simple things, you’ll boost your overall retention rates and reduce the risk of “termites” eating away at your foundation. Fewer lost donors (“termites”) mean more revenue for your mission and ministry.
And a well thought out and organized monthly giving program will keep your organization free from the pesky termites. *
Monthly Giving is a win/win for the donor and your organization because . . .
© Donors give more overall
© You are helping to build stronger relationships with your donors
© Donor Retention increases and “termites” (attrition) decreases
© Monthly Donors have a higher likelihood of becoming major and legacy donors
© There is now ongoing, reliable, and predictable revenue to support your life-changing mission.
© Fundraising costs are lower overall
So, how can you grow your Monthly Giving program?
#1 Shower Donors with Gratitude and Appreciation
“Making donors feel truly appreciated is what can separate you from the average nonprofit.” ~ Jay Love, Bloomerang
Mail your thank you letter within 48 hours of receiving the initial gift. The letter should be personalized to that donor and make the donor feel truly appreciated. And remember: “A receipt is not a Thank You.”
No need to send form letters every month after you’ve processed the payment. Send the receipt at year end.
A thank you call is a must for ALL donors. Recruit your ED, Board, and staff to make those calls. All gifts of all sizes matter and should be acknowledged with a phone call. Many legacy givers started out as small one-time donors.
Thank your donors often and sincerely. Remind them that they’re part of an important cause.
“When people give to charities, it activates regions in the brain associated with pleasure, social connection, and trust; creating a ‘warm glow’ effect.” ~ 2006 Nat’l Institutes of Health
After all, your organization is responsible for keeping the ‘warm glow’ alive in your donors for years to come.
#2 Communicate Regularly
Your organization should communicate with the donor regularly. Communication is so much more than just “asking” and receipting. It is about a well-planned year-long effort to inform and engage your donor in the good work their gift made possible.
Not all donors are the same, so make sure your communications are tailored to fit the donors in your monthly giving program. And communications to the exclusive Monthly Giving Club, will make your donors feel even more special.
Your job is to communicate enough, so that donors feel good (‘warm glow’) every single month they give.
© Demonstrate the impact of the donor’s gift,
© Show donors how their monthly gift makes a difference,
© Celebrate serving constituents more efficiently and even serving more constituents, and
© Provide opportunities for donor input and feedback.
#3 Offer Additional Giving Opportunities
Just because you now have a Monthly Donor, don’t stop asking for additional gifts of support. Monthly donors are loyal and if inspired they will give again and in other ways.
Give them opportunities to:
© Upgrade their monthly gift at least annually
© Support special initiatives
© Give to capital campaigns
© Give a one-time gift at year end
Always the best way to find out if your monthly donors are amenable to additional giving opportunities is to ask. Not ask for the gift, but rather ask them “are there other ways you would like to support the mission”. Engaged donors will likely welcome additional opportunities to support their beloved cause.
So take your current monthly giving opportunities, tweak them a bit, and watch the revenue stream in for your life-changing mission and ministry.
You already know the tremendous power of monthly donors. You know the positive impact they have on your cash flow and donor retention.
But how do you make that leap to the next level? How do you grow to 200, 500, 1,000, 2,000, 10,000 and higher?
In this interactive workshop Erica Waasdorp (President at A Direct Solution and author of "Monthly Giving. The Sleeping Giant.") will share how you, with any size budget, can leverage your digital and other channels to boost your monthly donor program. You will learn how to cultivate your monthly donors, keep them, bring them back and make them leap higher!
At the end of this workshop you will have tools and plans to hit the ground running and
Prior to the workshop you will have the opportunity to submit materials for review and questions to assist in your learning.
This is YOUR workshop.
$50 Current J. Milito & Associates Customers
$50 AFP Members
$75 Not-Yet Members or Customers
Register here by May 31, 2018
You had a fantastic year end campaign. Donations were up. A few new donors even joined the family. But there were also some donors who lapsed and did not make a gift last year.
According to the 2015 Fundraising Effectiveness Survey organizations typically retain only 19% of their first time donors. Overall, retention rates are at 46%.
“Usually it costs less to retain and motivate an existing donor than to attract a new one, and so taking positive steps to reduce gift and donor losses is often the best strategy to increase net fundraising gains at the least cost.”
One of the very best and most cost effective ways to retain your donors is to bring them into your monthly or recurring giving program.
Monthly giving can be a valuable part of your overall fundraising strategy. With realistic monthly giving options your organization can increase the size and volume of your donations.
Here are 5 reasons why you should engage your donors in monthly or recurring giving now . . .
What? No monthly giving program? No to worries.
Here are a few easy first steps
The downside, if there is one: It’s too easy to forget about your monthly donors. You don’t have to keep asking them. But you do have to keep connected to them. Or they will go away.
J. Milito & Associates can help you retain your donors with follow-up (1) to your email and direct mail solicitations and (2) to help you stay connected to your monthly donors, with professional phone calls on your behalf.
J. Milito & Associates turns conversations with your donors into pledge commitments at an average cost to you of just $.21 for every dollar raised.
If your current efforts are costing you more than that, we can save you money while you achieve your fundraising goals.
Contact J. Milito & Associates today to help you plan your monthly giving outreach and stewardship because your organization is worth it.