Conversations with your Board: Investing in a Monthly Donor Program
As a fundraising professional, you have long understood the value of an integrated, multi-channel monthly donor program. At Fundraising Direct we often hear about one barrier to ensuring your organization can invest in an effective program – your board of directors.
A well-crafted monthly donor program with the capacity to make a financial impact takes investment of time, team resources and budget. Fundraising Direct wants to help you frame your next board proposal with the top 3 reasons your board should be investing in monthly donors immediately.
1) Consistent, Reliable Revenue Stream
No matter how well you know your major donors or how accurately you can predict the outcome of your next cash appeal, monthly donors are still the most reliable source of individual giving income. The average time on file for a monthly donors is 4 years, that can provide your organization with the security to plan programming and impact for years to come.
2) Financial Impact
A monthly donor is 4 to 5 times to more valuable to your organization than a cash donor. The average cash donation to an organization is $124, by comparison a monthly donor gives on average $52 a month or $624 a year. While slightly more expensive to acquire, monthly donors have a significantly higher lifetime value and also require less resources to maintain. Your monthly donors should also make up the core pipeline of a robust and successful legacy giving program.
3) Donor Experience
There are two key areas where monthly giving can revolutionize your donor experience. The first is converting your donors from passive supports to active investors. Regular givers are investing monthly in the mission of your organization, appealing to them as such not only heightens their sense of impact but also increases their overall sense of satisfaction.
The second positive impact of monthly giving on donor experience is simplicity. Unlike 10 or even 5 years ago, direct debit or automatic payment is a normalized transactional behavior. If is simpler for donors to pay their phone bill automatically, why not make it simpler for them to support your organization on an ongoing basis?