Subscriptions & Recurring Giving - Can Nonprofits Use This Model?

Subscription programs have taken the business world by storm. Taking a new customer and signing them up for monthly shipments and services is a genius business model. Every month, revenue is generated with one sign up! Everything from boxed meal kits, clothing, makeup, and pet products to video streaming services like Netflix, Disney + and Amazon Prime Video are popular for their convenience.

The same is true for offering a recurring or subscription type program for your nonprofit. Recurring, monthly donation programs will give you a regular income stream while engaging and building loyal supporters.  It’s all about taking full advantage of the convenience of online giving.  Just like a for-profit subscription business model that uses automatic billing, online services like PayPal and Venmo make it safe, comfortable, and easy to generate dependable donations. A recurring giving program makes so much sense. The hardest part is coming up with a program that pulls at your donor’s heartstrings.

Take a look at how recurring giving programs will benefit your nonprofit.

Build donor loyalty: Donors who give to your nonprofit have an attachment to your mission. They probably already volunteer or attend your events. These folks are perfect for a recurring gift program. As they donate and volunteer, they become more interested in your organization, like they are part of something good. Recurring gift programs build strong donor loyalty.

Attract Younger Donors: Your nonprofit could be missing out on an important group of donors. The younger crowd, Millennials and younger buy and pay for products and services on their mobile devices. Many of them pay their bills this way making a recurring donation program normal and attractive to them. They rarely have cash or a checkbook. They want to give online and conveniently revise and upgrade as time goes by. No checks, stamps or running to the mail box required.

Increase Donor Value Over Time: A large one-time donation might not be doable for some donors who watch their budget. But, when you break the donation down into monthly amounts through a recurring donation program, makes it easier for them to manage. Plus in lieu of a one-time donation, the monthly give will total more over the long term.

Maintain a Stable Budget: There are always fundraising activities to keep your nonprofit sailing smoothly. These events take time and energy to be successful. A recurring giving program basically runs on its own. Once it is established, promoted, and donors subscribe, you'll enjoy a constant income stream that will help you maintain a stable budget.

Elevate Donor Engagement: Now that you have donors signed up, you can communicate and collaborate on other areas of your nonprofit instead of concentrating on the ask. In addition, your donors who are giving monthly are devoted to your mission and happy to help spread the good word to other prospects, increasing your exposure.

Will you try recurring giving programs for your nonprofit?

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