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ASU Lodestar Center Blog

The power of monthly giving for building stronger nonprofit funding


Monthly giving

In today's challenging environment, nonprofits face increasing difficulty maintaining steady revenue. While still important, traditional fundraising efforts often come with high costs and uncertain returns. One-time donations, although valuable, can be unpredictable and make long-term planning difficult. Monthly giving programs offer a more stable and sustainable path forward in this context.

Monthly giving, also known as recurring giving, involves donors committing to support an organization with a set donation each month. This approach not only helps nonprofits plan their budgets better but also reduces the time and money spent on repeatedly asking for donations. Instead of focusing efforts on continuous donor acquisition, organizations can strengthen relationships with existing supporters.

A key advantage of monthly giving is donor retention. Donors who commit to monthly contributions are more likely to continue their support over a longer period. Retention rates for monthly donors are significantly higher compared to one-time donors, which leads to more predictable revenue streams. This consistency allows nonprofits to focus more energy on mission-driven work rather than constant fundraising.

Moreover, monthly giving creates deeper engagement between the donor and the organization. Regular donors often feel a stronger connection to the cause because their ongoing contributions make them part of the organization's journey. They are more likely to respond to special appeals, volunteer their time, promote the organization within their networks, and increase their contributions over time. In this sense, monthly donors evolve from being just supporters to becoming true advocates.

A marketing-centered approach is highly effective for nonprofits interested in starting or strengthening their monthly giving programs. Successful programs are not built by chance but through intentional strategies that consider the donor experience at every step:

  • Research: Nonprofits need to understand their audience by analyzing their existing donor data. Identifying patterns, such as donors who give multiple times a year, can help target individuals most likely to join a monthly program. Focused outreach based on donor behavior makes recruitment efforts more efficient and successful.
  • Designing the donor experience: Monthly donors appreciate being recognized and valued. Small but meaningful rewards, such as exclusive newsletters, discounts on events, or thank-you gifts, can reinforce their commitment. Creating private online groups, hosting exclusive webinars, or offering personalized updates can also make donors feel connected and appreciated.
  • Effective communication: Messaging should clearly explain the impact of monthly gifts and show how donors' continued support makes a difference. Online donation forms should make the monthly option highly visible and easy to choose. Sharing stories, progress updates, and testimonials can further motivate donors to start or continue their monthly contributions.
  • Delivery: Nonprofits should involve their board members, staff, volunteers, and current donors in spreading the message. Personal endorsements from people close to the organization are powerful and can encourage others to join the monthly giving program. A well-coordinated effort across different groups helps reach a broader audience and builds credibility.
  • Ongoing analysis: Nonprofits should track key metrics such as the number of monthly donors, retention rates, average gift amounts, and overall return on investment. Listening to donor feedback and conducting satisfaction surveys can provide valuable insights for improvement. Small adjustments based on data and feedback can make a significant difference over time.

Leadership support is critical for the success of monthly giving programs. Leaders and board members must understand that these programs are not just about financial gain but about building lasting relationships with donors. Investing time and resources into nurturing monthly donors can strengthen the organization's financial foundation and enhance its ability to achieve its mission.

In conclusion, monthly giving offers nonprofits a practical and powerful tool to achieve financial stability. It creates stronger donor relationships, reduces fundraising costs, and provides predictable income. Nonprofits can build successful monthly giving programs by focusing on research, thoughtful program design, clear communication, strategic delivery, and continuous analysis. With strong leadership commitment, these programs can transform donors into lifelong partners, helping nonprofits thrive even in uncertain times.

Arata Kojima is a 2025 graduate of the Masters of Nonprofit Leadership and Management program at Arizona State University. He currently serves as the Manager of Development and Administration at Chance for Children, a public interest incorporated association helping advance educational equity in Japan. With nearly two decades of experience in nonprofit incubation and organizational development, he also holds board and advisory roles across several nonprofit and academic institutions.

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Having diverse and sustainable revenue streams is imperative to making sure your organization is able to keep doing the mission-driven work in your community. The Nonprofit Fundraising and Sustainable Financial Management Certificate can help you build those streams and implement effective, donor-centered fundraising strategies, as well as teach you the basics in accounting and financial statements. 


Arata Kojima

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