When you’re brimming with wealth, giving back makes a lot of sense. It can be seen as a status symbol, one that can hardly be afforded by the have-nots. What’s important is giving back to society helps the underprivileged.
So it’s no accident nonprofit organizations thrived during the early 1900s America was experiencing a decade of prosperity. And yet, it was also the time of social and political reform dubbed as the Progressive Years. In these times, the right to suffrage for women was enforced, so did child labor laws. True enough, the early 20th century saw the rise of one of America’s most iconic nonprofits that are still standing alive and well today: the YMCA.
What sets YMCA apart is its out-of-the-box fundraising. Led by two of its legendary leaders, Frank L. Pierce and Charles Sumner Ward, the youth organization grew by leaps and bounds establishing a chapter all over the American nation. And what set it apart is its never-before-seen systematic method of raising funds, advertised well and ready to go big rather than go home.
At a time when nonprofits more than ever are struggling, it’s but timely to strengthen your fundraising capabilities. Taking a page from the YMCA school of fundraising would be wise.
Definitely, your fundraising pursuit would make you sweat a lot lesser if you factor in monthly recurring payments in your program. Sometimes it’s hard to appreciate the beauty of regular payments from donors. If that’s you, read on. Listed below are five key reasons why recurring payments are saving your nonprofit from going under.
Boost Overall Revenue
If you talk about donation methodologies, having a one-time donation may be substantial. But when it comes to the total amount, recurring donations trump one-time donations by a mile. As statistics would show, a donor who does recurring donations results in 4 % more per year than someone who gives a one-time donation.
Think about the overall stability of recurring donations gives. In fact, these regular monthly donors are bound to give a lifetime revenue that’s 600% to 800% higher than those who give once a year only. Plus, it’s not heavy on the wallet for donors. Many may be hesitant to give a $100 one-time donation but would not have qualms about giving $10 per month.
Rev up Donor Retention
The YMCA fundraising system was a wake-up call for everyone in the nonprofit industry. Pierce and Ward really raise the stakes higher. Not only did they ask for bigger donations, but also they made sure the fundraising process is advertised — raising awareness like never before. It’s like big companies themselves doing aggressive advertising.
Keeping that in mind should bid you well. Know that 70% of donors who donate are bound to fade away and never come back. But when you employ a monthly recurring donor payment system, the retention rate could rise as high as 80% in the first year.
The key to making recurring monthly payments happen is convenience. It’s why a suitable online donor payment system can go a long way in making these repeat payments work. When the donor experience is seamless, regular donations become a lot more attractive.
Minimize Operating Costs
When your monthly donation program is healthy, the need to recruit new donors is not as pronounced. It means you won’t have to spend tons of effort and resources trying to woo donors to your side. As a result, your operating costs need not be as big as before.
But if you have a weak monthly payment program, you will have to focus your attention more on constantly soliciting more donors to come to your aid. It’s a taxing process that’s bound to cause you a lot of sleepless nights and worry.
Greater Convenience for Donors
It’s worth noting that recurring payments provide greater convenience for donors. You might think of the many advantages recurring payment put on the table for your end. But it’s also a big win for donors. Quite simply, monthly payments make their lives a lot easier.
Already, monthly payments define your donors’ lives with such monthly responsibilities as paying the power and internet bills. So it certainly makes a lot of sense to employ it in your nonprofit donation program.
It may interest you to know that millennials in particular are especially fond of monthly donations as opposed to the one-time big-time donations.
With recurring donations, your conversation can take off from mere solicitation to how financial aid is making a positive change in the lives of people. You won’t have to bother your donors too with a lot of convincing. It’s truly a win-win scenario for both sides.
Best of all, it may just be the kind of relationship your nonprofit needs to sail through the pandemic in flying colors. And help more people in the process.