November 10, 2022
Nonprofit Technology & Fundraising Blog
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September 12, 2022 | Categories #GivingTuesday, Featured
Recurring gifts are the most effective and effortless way to retain donor support beyond Giving Tuesday. During the year-end giving season, many fundraisers launch a monthly giving program to make sure their efforts are organized and measurable, especially when working toward a Giving Tuesday goal.
Nonprofits that create a monthly giving program through DonorPerfect have an average donor retention rate of 90%.
The Giving Tuesday heyday mostly happens online, specifically on social media. The movement has its own hashtag, connecting 35 million people and 80 countries worldwide. The givers that will be seeing your Giving Tuesday posts are already perfect candidates for a monthly giving program.
Through recurring giving, Generations Y and Z can make an impact while working within the financial constraints associated with starting their careers. They prefer to show their support in smaller amounts over time, rather than a lump sum or upfront commitment. More than half of millennials (52%) are more likely to give monthly over a large one-time donation.
Getting monthly donors in the door is more important than the amount they initially pledge to give. Imagine gaining 100 new monthly donors on Giving Tuesday at $2-$5 each – that’s an extra $2,400-$6,000 per year. Plus, as younger donors get more comfortable financially, they can allot more of their budget to your cause.
The best case scenario for measuring monthly giving success is that your fundraising system integrates with your payment processing tools. That way, all of your donors’ gift and payment details will be automatically stored safely in your database for reporting, and their recurring pledges will be automatically processed using the information on file. With DonorPerfect Payment Services, for example, your monthly giving data flows into your database and onto your Monthly Giving Dashboard to produce analytics.
An integrated solution will also allow you to set up automatic gift acknowledgments each time their recurring gift is processed, and schedule impact updates and thank-yous when appropriate.
On your Giving Tuesday form, make sure your messaging shows them – in terms that they can relate to – that they can make a difference, and their donation does matter, no matter how small. Since Giving Tuesday is only 24 hours long, focus on their daily habits or expenses. For example: “Skip today’s latte and save a shelter animal.”
Erica Waasdorp, author of Monthly Giving: The Sleeping Giant, recommends using one-third of your average annual gift as your monthly ask. Our data shows that the median one-time gift amount is $50, so your Giving Tuesday ask might be something like $17 a month.
Keep in mind that this method can be applied to specific donor groups to develop a range of monthly giving levels that resonate with smaller Giving Tuesday donors. You can find the median one-time gift amount for different donor groups to tailor your asks to their financial needs.
Instead of a dollar goal for Giving Tuesday, let your donors know the desired number of monthly pledges you’d like to achieve in 24 hours. If your goal is to gain 100 new monthly donors at $5 a person, and your supporters know that, they could ask their friends and family members to join them, especially if they feel strongly about your Giving Tuesday cause.
Try soliciting the following donor segments:
Emotion is what motivates people to give. Remember, you only have 24 hours to grab their attention on Giving Tuesday. Just as you should explain your monthly giving levels in terms that resonate with your supporters, do the same when explaining the impact that the amount will have. This information can be shared on your Giving Tuesday donation form, your monthly giving program page, and your social media posts on Giving Tuesday.
For example, a human services organization might say, “Feed a person in need with a monthly gift. A $10 monthly donation provides lunch for a week. A $20 monthly donation covers breakfast and lunch for a week. A $40 monthly donation provides 3 full meals a day for a week.
Make your monthly giving program an attractive opportunity to support your organization beyond Giving Tuesday and the holiday giving season. After all, your mission needs support year-round. Make them feel special and part of something exclusive, encouraging them to stay engaged and increase their involvement.
On Giving Tuesday, you can begin building meaningful relationships with the donor groups that will sustain your organization’s future. By creating a monthly giving program, you’re turning their gifts into opportunities to support your mission long-term!