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Fundraising Tuesday: 3 Ways to Ask for Monthly Donations

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There’s every reason your nonprofit should ask donors to make monthly donations. Monthly donors:

Give more. As Sarah Fergusson points out, “Many moderate donors make great candidates for your monthly giving program. For instance, a donor who gives $100 per year may not have the capacity to become a major donor who gives upwards of $1,000 annually. However, they might be able to give $10 a month, increasing your nonprofit’s yearly earnings by $20.” Multiply that by a lot of $100 donors and it adds up!

Keep on giving. Monthly donors rarely become lapsed donors. They renew from year to year. According to Network for Good, Monthly giving programs typically enjoy retention rates over 80% after one year and 95% after five years.

Make additional gifts. People who give monthly donations are among your most loyal supporters. So, as Amy Eisenstein says, “Donors give at modest levels for recurring gifts and at much higher levels for special, occasional projects.”

Contribute a huge amount over a lifetime.  Consider this information from monthly giving expert Erica Waasdorp:

Right now, the average recurring donor gives between $24 and $36 a month—that’s $288 to $432 per year! Just think, if they keep giving monthly for 5 years, that’s $1,440 to $2,160. Starting to get really interesting, right?

And that’s not even considering that people who give monthly donations are the most likely group to leave you something in their will!

How Do You Ask for Monthly Donations?

Let’s say you’re convinced that asking donors to give every month is a good thing for your nonprofit–but, you’ve never done it before. How do you begin?

A quick look at my mailbox give us three different ways to ask.

In the postscript

My wife and I support RESPOND, an organization based in Somerville, MA working to end domestic violence. At the end of a fundraising appeal, Jessica Brayden, the CEO of RESPOND, asked us:

P.S. Have you thought about becoming a monthly donor? The sustaining support we received from our monthly donors throughout the Covid-1i pandemic has given us the flexibility to meet the changing and growing needs of survivors. Visit respondinc.org/donate to get started!

What’s great about using this method is that people read postscripts. The P.S. is often the first thing donors look at in your appeal letter–after their own name! So, if you use the P.S. to make it quick and easy to sign up for monthly donations, chances are you will get them.

On a buckslip

You’ve seen those little extra enclosures that some nonprofits tuck into their fundraising appeals, right? The technical term for that piece of paper is a buckslip. It’s called that because historically, it was the size of a dollar bill. No matter what size it is, it can make you big bucks–if you use it to ask for monthly donations.

That’s what Greater Boston PFLAG did. The buckslip they enclosed with their fundraising appeal is 8″ x 5″, it’s entitled OTHER WAYS TO GIVE, and it includes too many things to my mind: Employer Matching Gifts, Bequests, IRA Charitable Rollover, to name a few. But crucially, it tells me:

Monthly Giving

Your monthly gift to Greater Boston PFLAG provides reliable support for our year-round work to create a safe, inclusive, welcoming society for LGBTQ+ people. Check the relevant box on reverse side to give monthly. You can cancel at any time.

In a separate appeal

Does your nonprofit have long-time, loyal supporters? The kind you know will give every year, or twice a year, without fail? These are people who care about your mission. They may be actually looking for more ways to support what you do!

A special appeal letter may be just the right approach to ask these dedicated supporters to start giving monthly donations.

Planned Parenthood took just that approach to ask my wife and me to become monthly donors. Look at what they did:

  • Used an unusual size envelope (so it wouldn’t look like regular mail)
  • Printed this message on the front of the envelope: “Your Exclusive Invitation Enclosed”
  • Explained the program in a letter that called us “supporters who have demonstrated an extraordinary commitment.” (Gee, they noticed!)
  • Included a separate note from the President and CEO
  • Branded every piece of paper with the words “Monthly Giving Program”–even the reply envelope!

If a donor is giving for the first time, or the second, it’s possible you might want to take a softer approach. The postscript or the buckslip might introduce them to the idea (and some people will accept that introduction right away).

However, if you know that Rona and Dennis Fischman (or a donor on your list) stands with you, has your back, and is in it for the long haul, you should ask them directly to start giving monthly donations. By asking, you are recognizing–and deepening–the special relationship they already have with your nonprofit.

Fundraising Tuesday: How Monthly Giving Can (& Should) Support Capital Campaigns

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A guest post by Amy Eisenstein of Capital Campaign Toolkit

Are you a monthly giver to organizations you believe in? If so, you know what monthly giving is like. Every month, you see the charge on your credit card. Periodically you get reports—either in print or through email—about what the organization is doing with your money and everyone else’s. Occasionally, you get an invitation to a special event. Toward the end of the year, you get a notice about how much you have given for your tax records.

But rarely, if ever, do you get a call from the DD or a board member or even a thank you note that feels like anything personal. However, you keep right on giving. Why?

Because you know the organization does important work and it would take something big to shake your confidence. Your giving is on automatic pilot.

Now, the naysayers will argue that this kind of giving is bad for major gift fundraising—and capital campaigns are the supreme version of major gift fundraising. They argue that donors get trained to give at amounts that are well below what you might otherwise ask for during a major campaign.

That’s true as far as it goes. But it doesn’t go far enough.

The Same Donors Give Recurring Gifts and Special Gifts

You will understand why monthly giving is good for capital campaigns when you think carefully about the difference between recurring gifts and special gifts. For in that idea is the magic sauce of great fundraising.

Monthly giving is the ultimate form of recurring gifts. Like all gifts that support your annual operating budget, they are needed year in and year out. The concept is that people will give at an amount they believe they can sustain over time.

I first understood this concept when I was standing in front of a donor plaque in the lobby of the athletic facility at the college where my husband taught. I knew many of the donors to the college. And looking at the donor listing on the wall, I saw the names of many of the wealthiest people in town at the $1,000 level. Only when I realized that the plaque recognized people for annual contributions did it make sense.

Those wealthy people who gave $1,000 each year also give much larger gifts to support the college’s capital projects. The same donor listed for a $1,000 gift on the annual funding plaque was also listed at the $1,000,000 level on the donor listing for the capital campaign.

Bingo! Donors give at modest levels for recurring gifts and at much higher levels for special, occasional projects.

The recurring gifts build a long-term relationship and commitment to the institution. The special requests enable them to make transformational gifts every once in a while. Just because a donor gives a monthly gift of $50 or $100 doesn’t mean that they won’t also make a gift that is many times that amount occasionally for a big special project.

Recurring giving builds donor relationships over a long time. Special giving multiplies the commitment. Click To Tweet

Capital Campaigns Don’t Cannibalize Annual Giving

Monthly donors who give to your capital campaign will keep right on giving even when they make a second, very large gift. And that’s why capital campaigns aren’t likely to cannibalize your annual fund.

Again and again, we see that the very same donors who give recurring gifts for years are the donors who give extraordinarily large gifts to capital campaigns now and again. When they are asked for very large gifts for a special project, they understand that you won’t expect them to make that huge commitment year after year. And they calibrate the size of the gift accordingly.

How to Turn Your Best Monthly Donors into Capital Campaign Donors

  1. Identify your top 50 donors. Capital campaigns depend on a relatively few very large gifts for their success. In a typical campaign, the top 20 donors will give more than 50% of the campaign goal.

Turn your monthly giving into a glide path for your capital campaign by identifying your top 50 donors who are recurring givers and treat them particularly well. Use the many research tools available to you to identify those 50 donors. Look at their capacity, giving patterns, and values.

Select those people for white glove treatment. Invite them to meet your president. Communicate personally with them. Send them insider information. Thank them more diligently.

  1. Get to know those top 50 better. Beyond better stewarding their support, actively set out to get to know them. Find out why they give and what they enjoy giving to. Learn enough about their history and background so that you develop instincts about them. Learn how they like to be asked for gifts. Determine who in your organization should build a relationship with them.
  1. Treat those top monthly donors well. Don’t let their monthly giving experience replicate the one I described at the beginning of this post and simply put them on auto-pilot. Pay more and better attention to them even while they are giving at a lower, recurring gift level. Personalize and target your communications to this unique segment.

 

  1. Involve those top donors in your project and campaign planning. One of the keys to securing the top gifts to a capital campaign is to find ways to involve your top prospective donors in the early steps of planning the project and your campaign.

You might invite them to a small group meeting with the architects, for example, to give some early feedback about the design. You might invite them to review an early draft of your case for support. You might involve them in the feasibility study—either serving on that committee or being interviewed for the study.

  1. Ask them in person for a big gift they will want to give. As you get to know those donors you will learn how they like to give. You’ll learn about other gifts they have made. You’ll develop instincts about what size and kinds of gifts they like to give. And then, when the time is right, you’ll be able to ask them in person for a gift to your campaign that fits their patterns.

Use Your Monthly Donor Relationships to Get Ready for Your Campaign

When you ask someone for something they want to do, chances are they’ll say yes. So use the pre-campaign period to identify, research and cultivate your best monthly givers so when you are ready to ask them for a campaign gift you’ll know what to ask them for. It makes simple sense, doesn’t it?

Step-by-Step Campaign Checklist & Guide

This intuitive guide breaks down each step of your campaign, and the timeline allows you to visualize your whole campaign, from start to finish! Download this free campaign checklist now!

 

Amy Eisenstein, Capital Campaign Toolkit

Amy Eisenstein

Amy Eisenstein, ACFRE, and Andrea Kihlstedt are co-founders of the Capital Campaign Toolkit, a virtual support system for nonprofit leaders running successful campaigns. The Toolkit provides all the tools, templates, and guidance you need — without breaking the bank.

Fundraising Tuesday: What’s Next For Digital FR? 3 Keys for the Future

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A guest post by Sarah Fergusson of Cornershop Creative

As we move into the second half of 2021, it’s starting to become clear which trends are here to stay. Digital fundraising and marketing have become necessary for most nonprofits. Even non-fundraising experts say establishing an online presence is a smart move.

Fundraising professionals might be aware of how other nonprofits have found success but be unsure if they can replicate those results without knowing why certain strategies worked. In many cases, it’s easier to point out the keys to future development after the data has been collected than navigate the cutting edge of new trends.

To help your nonprofit understand how to advance your digital fundraising campaign, this article will discuss three key trends that are likely to bring the positive change your nonprofit is looking for:

  1. Focus on moderate donors.
  2. Host online and hybrid events.
  3. Apply SEO best practices.

1. Focus on moderate donors.

Not every supporter has the capacity to become a major donor. Major donors often contribute a large percentage of a nonprofit’s donation revenue. However, this doesn’t mean you should let your other donors go neglected. Many nonprofits have improved their overall fundraising by focusing on growing their moderate donors.

Moderate donors provide what could be considered average donations to your nonprofit. Over time, these donors have the potential to increase their donations significantly by:

  • Becoming monthly donors. Many moderate donors make great candidates for your monthly giving program. For instance, a donor who gives $100 per year may not have the capacity to become a major donor who gives upwards of $1,000 annually. However, they might be able to give $10 a month, increasing your nonprofit’s yearly earnings by $20. Of course, no matter how much they’re able to give, be sure to maintain your relationships with recurring donors by thanking them regularly.


  • Donating planned gifts. While moderate donors may not be able to give in large quantities now, they might be able to do so later on in life. Planned gifts allow otherwise modest donors to make large one-time contributions to nonprofits they have a strong connection with.


  • Helping your nonprofit make connections. As Double the Donation’s prospect research guide explains, some donors may have business affiliations that your nonprofit can leverage to earn increased giving. A moderate donor may not have the capacity to make a major donation themselves, but they might be able to help your nonprofit establish an in-office giving program at their place of employment.

Use your CRM to identify your moderate donors, then reach out to them about the ways they can expand their giving potential. From there, use your prospecting tools and collected data to create a personalized donor experience. Building connections with many moderate donors can be your nonprofit’s first step towards creating a successful recurring giving, planned giving, or workplace giving program.

2. Host online and hybrid events.

While social distancing made online events a necessity, moving into the latter half of 2021, these events are still here to stay. For many of your supporters, hybrid and online events provide more opportunities for getting involved and are a welcome addition to fundraising calendars.

Online and hybrid events might lack a face-to-face component, but you can still use your technology to build connections by:

  • Live-streaming events. Make sure all of your donors can participate in your events, whether they’re attending in person or from home. Live-streaming lets your donors connect with your event right when it’s happening, no matter where they are. Plus, a live-stream chat lets them stay connected and participate in your events’ discussions and presentations.


  • Using custom software. Use hybrid and online events as a chance to get creative with how you engage donors. Get in touch with a nonprofit software developer to build custom, interactive tools that can accompany your events. For example, you might develop a unique mobile app to let donors stay in touch while on-the-go.

 

  • Tracking donor data. You can gather data on your donors from in-person and online events. However, there are a few data points unique to online gatherings. For instance, you might monitor where your donors are tuning in from to help gauge your nonprofit’s overall reach or get a sense of where your supporters are localized.

Whether online or in-person, events can also earn your nonprofit additional donations. When your event ends, ask your volunteers to check if they’re eligible for a grant. Volunteer grants are donations made by your volunteers’ employers. Most volunteer grant programs require volunteers to work a specific number of hours, so make sure to keep a log of your volunteers’ time.

3. Apply SEO best practices.

Most professionals working at organizations that operate online have heard about search engine optimization and likely understand that it’s important. While most major search engines keep the specifics of what makes a page rank highly under lock and key, nonprofits can still improve their website’s organic traffic by following a few proven SEO strategies:

  • Leverage location data. Search engines take location data into account, which means that your nonprofit is more likely to come up in the search results for locals in your area. Make sure to fill out your location data and provide relevant information about where you are located to appeal to supporters who live nearby.


  • Make your website accessible. Increasing your website’s usability also increases its likelihood to rank high on a search results page. Add alternative text to your images, and make sure your links are marked by indicative text rather than generic “click heres.”


  • Target specific keywords. If you’ve ever searched for “nonprofits” or “charities,” the results have likely been for major websites such as Wikipedia and Facebook. While your nonprofit may not have much luck competing against these digital giants, you can find success by targeting keywords directly related to your nonprofit. For example, an animal shelter will likely find more success by focusing on keywords such as “[your state] no-kill animal shelters” rather than “animal shelter.”

Most nonprofit fundraising professionals can implement basic SEO best practices without being experts in web design and marketing. If your nonprofit’s leadership wants to take your digital marketing to the next level, consider seeking out a consultant.

Not every digital marketing consultant follows the same practices. Cornershop Creative’s guide to nonprofit consultants showcases the wide range of consulting options available. Compare your options and send a request for proposal before signing up with a firm.

 

Sarah Fergusson – Director of Digital Strategy at Cornershop Creative

Sarah Fergusson digital mavenSelf-described as a “non-profit junkie,” Sarah has dedicated her career to serving the needs of the non-profit sector. Her project management experience spans a variety of non-profit management disciplines including strategic planning, community engagement, capacity building, fundraising and research. She has worked both in and for the non-profit sector at the Feminist Majority Foundation, the Sadie Nash Leadership Project, and the consulting firms The Lee Institute and The Curtis Group.

With her ever expanding non-profit tool belt, Sarah joined Cornershop Creative to tap into her techie, creative side, while developing meaningful partnerships with her clients to help them more effectively achieve their goals.

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