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What every nonprofit should know about recurring donors

Discover how recurring donors work, strategies to attract more of them, and how to build a donor base that keeps on growing.

Kate Romain
January 30, 2025
Nerd Mr Butter

Recurring donors are essential for nonprofits to increase their revenue. Acquiring new donors through multiple one-time gifts can be time-consuming and expensive. But with recurring donations, you only need to make that acquisition once. 

Your recurring donors believe in your cause. With the right support and resources, they can become real advocates for your nonprofit and even help recruit additional fundraisers. 

Below, weโ€™ll explore how to set up recurring donations, how to get the most from your recurring donors, and best practices for nurturing these relationships. 

What is a recurring donor? 

A recurring donor is someone who commits to donating a set amount of money to your nonprofit regularly. These contributions occur on a set scheduleโ€”usually monthly, quarterly, or annually. 

Quick stats about recurring donations

According to Giving USA, recurring donations have seen significant growth and impact in recent years:

  • Recurring donations have grown by 127%.
  • The average recurring donor gives about $940 per year.
  • Recurring donors continue to give for an average of eight years.
  • The retention rate for recurring donors is 77% (compared to 34% for one-time donations).
  • 50% of recurring donors go on to make additional donations.

How do recurring gifts work, exactly?

Most recurring donors sign up online after being inspired by a fundraising email campaign or an event. 

At sign-up, recurring donors specify the amount and how often they would like to give. With a fundraising platform that includes a recurring donations feature, supporters only need to complete the process once.

Thanks to easy-to-use fundraising platforms like Givebutter, the number of people becoming recurring donors has increased in recent years. So, if youโ€™re looking to convert recurring donors, thereโ€™s really never been a butter time! 

Recurring gifts provide nonprofits with steady, reliable support. Because of this, many organizations put special efforts into cultivating strong, lasting relationships with their recurring donors. 

Benefits of recurring donors

Recurring donors not only make up a significant part of many nonprofitsโ€™ donor base, but they can also help shape your mission and direction. 

Think of them as dependable advocates for your causeโ€”advocates who also play a key role in stabilizing your finances. 

Advantages of recurring donors

โœ… Financial predictability: Because recurring donors agree to give a set amount of money at regular intervals, it leads to predictable cash flow and greater financial stability, and makes monthly budgeting much easier.

โœ… Sustained growth: With multiple recurring donations, you can count on sustained growth over time. Your nonprofit will feel future-proofed, allowing you to plan strategically. Itโ€™s a great example of how slow and steady wins the race. 

โœ… Increased revenue: Itโ€™s much cheaper to convert one recurring donor than it is to convert multiple one-time givers. Even better, data shows that 50% of recurring donors go on to make additional gifts

โœ… Donor collaboration and loyalty: Unlike donors who may offer large but infrequent gifts, you can be confident that recurring donors almost always have a personal belief and commitment to your cause. Fostering a collaborative community among these loyal supporters can help your nonprofit stay true to its mission. 

โœ… Make life easy for your donors: Once a supporter has signed up to become a recurring donor, they (and you) can sit back and relax, knowing when and how much they will contribute. Even better for them, recurring donations are tax deductible. 

How to set up recurring donations

Now that you know the benefits of recurring donors, youโ€™ll want to ensure your nonprofit is set up for success. Luckily, with a platform like Givebutter, accepting recurring donations has never been easier. 

Follow these four steps to create a seamless, optimized recurring giving process for both you and your donors. 

Step 1: Choose your platform ๐Ÿ’ป

If your nonprofit isnโ€™t using a fundraising platform currently, make sure to select one with a recurring donations feature. 

Givebutter offers a completely free plan that includes a full suite of fundraising features, like recurring donations. However, there are many other great fundraising sites to compare. Read up on your options to find the right fit for your organization. 

Step 2: Customize your donation form ๐ŸŽจ

Now that youโ€™ve chosen a platform, itโ€™s time to customize your donation form. Decide which intervals youโ€™d like to offer and select a default intervalโ€”whether monthly, quarterly, or annually. Of course, you can keep one-time donations as an option, so thereโ€™s a choice that works for all your supporters. 

Step 3: Launch your recurring donation campaign ๐Ÿš€

Launching a recurring donation campaign can be as simple as setting up your central fundraising page to accept recurring donations. But we recommend going the extra mile.

Dedicate some time to cultivating donors by identifying which of your existing supporters are most likely to become recurring donors. Then, launch a targeted fundraising campaign. Spread the word through all available channels: social media, email, SMS, and more!

Step 4: Monitor, adapt, and grow ๐Ÿชด

By now, youโ€™ve had a few supporters sign up to make regular donations. Congratulations! Youโ€™ve come a long way. Itโ€™s time to monitor your wins and identify areas for growth. 

Analyze your conversion data. How much, and how frequently, are donors choosing to give? Which communication type brings the highest conversionsโ€”email, text, or direct mail? Once youโ€™ve identified some patterns, adapt your strategy accordingly. 

Struggling to keep your donors engaged? Learn retention techniques to help your supporters remain invested in your cause. 

How to increase recurring donations

Recurring donors have chosen to make a financial commitment to your nonprofit, so itโ€™s usually safe to assume theyโ€™re invested in your success! In return, it's important to invest in them. 

By practicing the donor relations tips below, you can help ensure a long, happy, and mutually beneficial relationship with your recurring donors. 

Name your gift tiers ๐Ÿ† 

Friend, advocate, championโ€”these are all powerful names for giving tiers. This highly effective naming strategy encourages recurring gifts and fosters a sense of belonging. 

Designate funds ๐Ÿ’ฐ 

Let your supporters choose where their donations go. $50 per month might provide toys for a refugee family, while $100 could help send one child to school for a month. 

Celebrate wins & get specific ๐ŸŽฏ 

Keep donors updated on your wins and donโ€™t shy away from the specifics. The more detailed you are, the clearer they can visualize the real-world impact of their contributions. Supporters who feel a sense of achievement and belonging are more likely to keep giving. Studies show that after one year, recurring donor retention rates average 80%. After five years, they can increase as high as 95%.  

Send a thank you note ๐Ÿ’Œ  

A simple thank you note is one of the easiest and most powerful ways to show donors theyโ€™re appreciated and strengthen relationships. 

Foster community ๐Ÿซ‚ 

Create communication channels or events specifically for recurring donors to build a sense of community. Ask for feedback with online forms, emails, or phone calls, and engage with your supporters to show you care. This will go a long way in maintaining a loyal donor base. 

Offer resources ๐Ÿ“’

Empower recurring donors to become advocates for your nonprofit. Provide the information and resources they need to spread the word about your work.

Make donations easy ๐Ÿ˜Š 

Keep the process stress-free for your donors by linking directly to your recurring donation page when they click to give. Ensure your fundraising page is easy to locate on your website and that youโ€™re set up to accept debit and credit cards. Your supporters will thank you for a seamless giving process. 

Secure more recurring donors with Givebutter

Recurring donations can be game-changing, and we encourage every nonprofit to build a recurring donor base. The first step is as simple as setting up your fundraising page to accept recurring donations. From there, you can launch your recurring donor campaign and refine your strategy over time. 

Start collecting recurring donations today

Fortunately, Givebutter makes fundraising both easy and affordable. Sign up for a free Givebutter account and start securing donations today. 

Recurring donors FAQ

What is a recurring donation?

A recurring donation is a regular, agreed-upon contribution of a set amount, typically made by an individual to a nonprofit or charitable organization. Unlike a pledge, which is a promise to give a certain amount of money in the future, a recurring donation represents a commitment to consistent support. 

What is the average recurring donation?

According to recent data, the average recurring donation is around $25 per month, totaling $300 annually. 

How do you acknowledge recurring donations?

Curious how best to thank recurring donors? Sending a thank you letter to acknowledge your donors immediately after their contribution helps build strong relationships. We also recommend sending a quarterly note with updates on the impact of their gift.  

What does recurring contribution mean?

A recurring contribution is another term for a recurring donation. It refers to a set amount of money that is regularly given to an organization at a specific time interval. 

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