Posts tagged ‘monthly giving program’

March 6, 2018

3 Powerful Ways to Get Your Monthly Donors to Give More

A few weeks ago, I published the post “How to Get Last Year’s Donors to Give More this Year.” Guest blogger Joe Garecht shared some great advice for increasing giving. However, the post did not specifically address the issue of monthly giving. That led to a reader comment.

Larry Little, President of Guardian Angel Basset Rescue, raised some important questions:

Our revenues are in the $300k range but approximately 30% of that comes through our monthly giving program. My question is about asking monthly donors to increase their amounts. How often should that be done? And should you segment your list and ask that segment every 18 months?”

First, I want to congratulate Little for having a robust monthly-giving program. Well done!

Second, I thank Little for inspiring this week’s post. While I could have given him a quick, brief response, I realized the topic deserves more attention and that it would likely be of interest to many of my readers. So, I invited expert Erica Waasdorp, President of A Direct Solution and author of the best-selling book Monthly Giving: The Sleeping Giant, to share her wisdom to help us better understand how to inspire greater giving from monthly supporters. I thank her for her insights:

 

It’s wonderful to see how much the focus is shifting to monthly giving, and it’s starting to really pay off for nonprofit organizations. Here are just two recent statistics from the most recent Blackbaud Luminate Online Benchmark Report:

Expanding relationships with existing supporters was the name of the game this year as we saw a 20.4% growth in sustainer revenue.”

Viewing online revenue as one great big pie, we saw a larger slice of the pie—8.4% more—coming from sustainer gifts in 2017.”

Today, I’m not going to write about how to convert your donors to give monthly. Today, I’m going to focus on how to generate more money from your existing monthly donors.

Just because they’re now giving more money than as single-gift givers doesn’t mean it ends there. Oh no! There are three ways you can actually ask your monthly donors to give more money:

1.      Ask for a monthly upgrade.

2.      Ask for an additional gift.

3.      Ask for a legacy gift.

Ask for a monthly upgrade.

People typically ask me two questions: A) How soon after a donor starts giving monthly can I ask for an upgrade? B) How often can I ask for an upgrade?

Before I address the timing questions, let me just point out that donors upgrade because they have been stewarded effectively. Totally true. And this also pertains to monthly donors. That’s why I always “hammer” on the importance of sending a hard-copy thank-you recognition letter even if the monthly donor came in online.

So let’s assume that you’ve done this part right. And let’s assume that your donor gives monthly through his or her credit card. And let’s assume that you send the donor a quarterly newsletter with some great stories and updates on how the donor’s giving makes a difference.

I’ve seen organizations that started to upgrade right away. I’ve seen organizations that started to upgrade three months after a monthly donor joined. Frankly, I think that’s just too soon. Yes, you may get some donors to upgrade when you ask, but I think you’d also come across as much greedier than you may wish to. That could alienate some supporters.

Your donor has just started to get used to giving monthly. They’re just getting acquainted with your stewardship efforts. They have just started to realize the convenience of giving this way.

You pay taxes typically once a year; you update your budget once a year, so I suggest asking for an upgraded amount once a year, ideally between 10 to 12 months after the donor gave monthly for the first time. That’s when you can make a legitimate case for the increase in cost for xyz service, and ask the donor if he can “give just a few dollars more a month” to help the children/client/animals.

And, as Joe Garecht mentioned in his earlier post, the four elements of asking monthly donors to increase their monthly gift are indeed:

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January 24, 2014

Is There a Relationship Between Monthly Giving and Bequests?

From time-to-time, I will invite an outstanding, published book author to write a guest post. If you’d like to learn about how to be a guest blogger, click on the “Authors” tab above.

Monthly Giving Cover - Erica WaasdorpThis week, I have invited Erica Waasdorp, a self-proclaimed “philanthropoholic,” President of A Direct Solution, and author of the best-selling book Monthly Giving: The Sleeping Giant. Erica explains why nonprofit organizations should have a monthly donor program, explores trends in monthly giving, and provides plenty of useful how-to tips all in a mercifully brief, 131 page book.

Jerry Huntsinger, a direct-response fundraising guru, said of Erica’s book, “Good job! It’s the best resource book I’ve ever seen on the subject. You certainly put a lot in it.”

I agree with Jerry. As I read Erica’s book, I was reminded of the first time I wrote on the subject. In 1989, I wrote an article for Donor Developer that predicted that every charity would have a monthly donor program within five years. I believed in monthly giving and its power to help transform nonprofit organizations. I still do. Sadly, my prediction was wrong. It’s now a quarter-century later, and most nonprofits still do not engage in a robust monthly giving program. Nevertheless, they should.

In the 2011 State of the Nonprofit Industry Survey, Blackbaud asked philanthropy researcher Adrian Sargeant:

Where do you see the largest opportunities for nonprofits to make an impact on their operations as we enter the next year?”

Sargeant responded:

Two words: monthly giving. Regular/monthly or sustained gift programs are currently revolutionizing the economics of fundraising. If your nonprofit doesn’t have one — it should get one. Lifetime values are 600-800 percent higher than would be the case in traditional annual fund giving. It’s also more resilient in the face of changes in the economy.”

Now, Erica shares some of her insights with you including a revelation about monthly and bequest giving:

 

You should know right off the bat that I’m a true advocate for monthly giving, aka sustainers, aka recurring gifts. Not surprising, because it’s really a great way to generate loyal donors for your organization. What is not to like about the ongoing revenue you will see coming in month after month after month?

I have been fortunate to be involved with large monthly giving programs generating millions of dollars of reliable income. It truly sustained organizations after major disasters such as September 11, 2001, Hurricane Katrina, Super Storm Sandy, to name a few, where all focus and attention and individual giving was elsewhere. Yet, that sustainer revenue kept coming in.

When you look at whom to target for monthly giving, there’s certainly an interesting mix of sources:

• Existing donors, who have been giving $10 or more and made two gifts in the past year.

• Existing donors, who have been giving one gift a year for the past few years.

• New donors, who are willing to try this convenient way of giving right away (yes, this does work!).

• Reactivated donors, who just came back into the fold and they used to give several gifts in the past.

Is there anything you recognize here? 

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