Establishing a Winning Monthly Donor Program: The Essentials
Recently, we talked about WHY monthly donors are so important. But now I’d like to talk about what it takes to establish a winning monthly donor program. Monthly giving programs take planning and work. It can feel daunting at times. But I assure you, it is 100% worth the time and investment. Now that you’re convinced, how do you get going on establishing a successful monthly donor program?
1. Research
You need to know who your donors are. This includes where they live, their average ages, income brackets, giving history and why they started giving to you in the first place - as much information you can obtain about them. Everything you learn during the research phase can be used to tailor the ‘ask.’
This research phase never really ends - as your monthly giving program grows, you need to continue to refine all aspects of the program.
2.. Brand your program
Name
Branding doesn’t mean that you have to have the perfect name or logo for your monthly giving program. In fact, you don’t need any name. The David Suzuki Foundation doesn’t use one - and they have built up an incredibly strong program over the past twenty years.
On the other end of the spectrum, you can choose a name that relates to your program, like Charity:Water does with Pipeline or think of a name that will appeal to the donors emotions, like Union Gospel Mission does. There are many different options, so you need to find the name and image that fits your donors and your organization.
Cause and Product
The cause is your organization’s mission - but the product is what you are selling with your monthly donor program. This product should be specific and clear - the donor should know where their monthly gift will make a difference.
For example, donors are willing to give to poor children in a third world country (this is the cause), but they will be thrilled to give to a program that will use their $24/ month to give 15 pairs of shoes to children so that they can walk to and from school everyday (this is the product you’re selling).
Commitment
Once you have figured out how you will sell your program, break down your costs. What are you asking donors to commit to?
It may be specific financial amounts for specific items that your organization provides, like Heifer International does. Or it may be a multiple of a specific cost, the way UGM does with their ‘$3.29 for a meal’ program.
Another way to break it down is by day. Rather than asking for $10 per month, ask a donor to commit $0.33 per day. When something feels like a smaller commitment, people will often more inclined to give.
The important thing here is that you are directing your donors towards a specific cost. Suggest different amounts at different levels. Using three specific amounts and then one ‘open’ option that they can fill in is fairly standard way to go. The important thing to remember is that people are happy to give, but they like to be given direction when doing so. By giving them three or four options, you are helping them make the decision.
3. Build a relationship with every one of your monthly donors
You want to maintain a relationship with your monthly donors for a long time. They are different than donors who give one gift a year, requiring more work and a higher touch. While this is time consuming, it is both beneficial and essential. A few key things to do to build this relationship:
Always send an immediate Thank You letter. This should be personal, thanking the individual for their commitment. It should outline where their gifts will be going and it should reinforce why their monthly giving is so important. At this point, you can also mention that their tax receipt will be arriving at the end of the year for all of their donations.
Have one specific person in charge of monthly giving. There should be a name, email and/or phone number that monthly donors can use if they have any questions.
Don’t forget about them after the first thank you letter. Monthly donors should be treated differently than one-time donors. This can come in different forms, depending on what works for your organization and what you have the resources for. A Christmas card can work wonders for monthly donor retention. It can even be as simple as an anniversary letter thanking them after they have been a monthly donor for one year. This is also a great time to ask for an increase in their pledge.
4. Make it easy for your monthly donors
Billing should be seamless (or appear so to them.) They should receive one tax receipt at the end of the year. Their money should be processed on the same day, every single month. Whether you do it automatically through PayPal (or another payment processor) or are doing it manually in office, it must happen on a schedule.
Be available to your monthly donors. If they contact you, don’t delay getting back to them. This is where your designated person comes in handy - they are there to make the monthly donors feel part of an exclusive club.
Going forward, think about different ways you can engage with your monthly donors. If they have been part of the program for a sustained period of time, you could send them some information on legacy giving (also known as estate planning).
During your Christmas campaign, you can send them a personalized letter, asking for a special, additional gift. There are many ways to increase their gifts while building on your relationship with them.
It takes time, effort and energy - but it is always worth it with monthly giving. Monthly donors are the backbone of non-profit fundraising and will sustain your organization much longer than one-time large gifts (although those are wonderful as well!).
Above all, make every one of your monthly donors feel like they are part of something special.