{"id":9831,"date":"2025-03-13T00:00:00","date_gmt":"2025-03-13T07:00:00","guid":{"rendered":"https:\/\/pro-migration.local\/blog\/top-5-reasons-to-invest-in-monthly-recurring-donations\/"},"modified":"2025-06-10T11:29:32","modified_gmt":"2025-06-10T18:29:32","slug":"top-5-reasons-to-invest-in-monthly-recurring-donations","status":"publish","type":"post","link":"https:\/\/gofundme.to\/__proxy\/pro.gofundme.com\/c\/blog\/top-5-reasons-to-invest-in-monthly-recurring-donations\/","title":{"rendered":"Why and How to Invest in Recurring Donations [4 Ways]"},"content":{"rendered":"

Building a strong recurring giving program is no longer a nice-to-have but critical to <\/span>nonprofits<\/span>\u2019 <\/span>sustainability<\/span> and scalability.\u00a0<\/span><\/p>\n

With increased access to innovative <\/span>online fundraising<\/span> software, encouraging and accepting <\/span>recurring donations<\/span> has become a realistic option for <\/span>nonprofit organizations<\/span> of all sizes. Whether you need to create a recurring giving program from scratch or strengthen and grow its existing community, a well-developed program and strategy can protect your organization\u2019s long-term financial health and help you scale it.<\/span><\/p>\n

Below, we\u2019ll provide more background on the value and appeal of recurring giving in today\u2019s economy and discuss four approaches to building a <\/span>successful monthly donors<\/span> program.<\/span><\/p>\n

What is recurring giving?<\/span><\/h2>\n

Before we discuss the best practices and strategies, let\u2019s clarify what we mean by recurring giving. Recurring donations occur when a donor signs up to give automatically at a specified interval.<\/strong><\/span><\/p>\n

Monthly donations<\/span> are perhaps the most common frequency, but daily, weekly, biweekly, quarterly, semiannual, or annual <\/span>giving options<\/span> are available, too.\u00a0<\/span><\/p>\n

Many <\/span>nonprofits<\/span> also refer to recurring giving as monthly giving or subscription giving.<\/span><\/p>\n

Why do <\/span>recurring donation options<\/span> appeal to donors?\u00a0<\/span><\/h2>\n

The subscription economy is expected to <\/span>grow to $1.5 trillion in 2025, <\/span><\/a>double its size five years earlier. From artisan coffees and cat toys to music services and streaming platforms, people have gotten used to the subscription model, paying a set amount each month for goods or services.\u00a0<\/span><\/p>\n

In fact, recent surveys have shown that subscriptions are as popular as ever, with <\/span>51% of people<\/span><\/a> likely to start a new subscription within the next six months, and 59% saying that excitement is their top emotion when signing up for a new monthly service.<\/span><\/p>\n

Nonprofits can respond to this consumer shift by rebranding their recurring giving programs as subscription donations and implementing the best practices from today\u2019s most successful subscription services.\u00a0<\/strong><\/p>\n

With some subtle tweaks and intentional messaging, your <\/span>nonprofit<\/span> can capitalize on the ease subscription services offer to take your recurring giving program to the next level.<\/span><\/p>\n

Here are some pro tips from successful subscription brands that can help you increase <\/span>recurring donor<\/span> acquisition and <\/span>retention rates<\/span>, allowing you to benefit from consistent <\/span>online donations<\/span> from a loyal <\/span>recurring donor base<\/span>.<\/span><\/p>\n

Tip 1: Treat <\/span>recurring donors<\/span> as members<\/span><\/h3>\n

Companies like Amazon Prime and Disney+ treat subscribers as members through strategies like special member days and branding. Try giving your <\/span>recurring donor<\/span> community a special name and offering members unique opportunities and access throughout the year.<\/span><\/p>\n

Tip 2: Offer membership tiers<\/span><\/h3>\n

Subscription services often offer <\/span>price<\/span> tiers based on users, features, or professional status to balance value and cost. Apply this to donations by promoting giving levels with special perks.<\/span><\/p>\n

Tip 3: Create a discount option<\/span><\/h3>\n

Another common strategy used with subscription services is offering first-year <\/span>pricing<\/span> discounts to encourage new members to join. <\/span>Nonprofits<\/span> can institute a \u201cdiscount\u201d by encouraging donors to request a donation match from their employer to gain the benefits of a higher membership level without paying the additional cost.\u00a0<\/span><\/p>\n

Tip 4: Ensure seamless, automated payment<\/span><\/h3>\n

The subscription economy doesn\u2019t rely on members returning each month to settle their bills. Instead, it sets up their payment information once to seamlessly automate the charge at the agreed-upon frequency. <\/span>Nonprofits<\/span> can implement modern payment processes for <\/span>recurring donations<\/span> through software like <\/span>Classy Pay<\/span><\/a>, with preferred payment methods, such as <\/span>credit cards<\/span>, ACH bank transfer, digital wallets, <\/span>PayPal<\/span>, and Venmo.<\/span><\/p>\n

What are the benefits of a <\/span>monthly giving program<\/span> for <\/span>nonprofits<\/span>?<\/span><\/h2>\n

Classy\u2019s <\/span>State of Modern Philanthropy<\/span><\/i><\/a> report found that <\/span>29% of first-time donors who become <\/b>recurring donors<\/b> do so within the first 90 days of their initial gift<\/b>. Once they\u2019ve established their giving on a <\/span>recurring basis<\/span>, <\/span>these loyal supporters are over 9x more valuable to your <\/b>nonprofit<\/b> than <\/b>one-time donors<\/b>.\u00a0<\/span><\/p>\n

If that\u2019s not enough to motivate you, recurring giving programs also facilitate:<\/span><\/p>\n