The Importance of Recurring Giving in 2022
‘I want to make it easier for my employees to get involved in charitable giving.”
We hear it all the time, and yes, here at CyberGrants, we have a solution. Recurring giving programs have proven to be one of the most effective means of maximizing donations and improving donor engagement year-round. Here are the top reasons you should be offering recurring contributions - and how to do it.
When it comes to recurring giving, there are a lot of benefits for both the donor and the nonprofit. Offering recurring donations through a credit card is a great way to make it easy and convenient for donors to give. Recurring giving can also help nonprofits build a more reliable source of income. Here's how.
Five Reasons Why Offering Recurring via Credit Card is a Genius Move:
1. It's easy and convenient for donors.Employees can set up a recurring gift through their credit card in just a few clicks. This makes it easy for donors to give regularly and helps them stick to their giving goals. Ease and convenience makes donors flat out give MORE.
Did you know recurring donors' lifetime giving amount is 440x larger than one-time donors’?
The average one-time gift amount is $120, but the average monthly donation is $38. That balances out in about 3 years' time, but studies also show recurring donors are unlikely to cancel their donations.
FACT: Very few cancel their donations (even with a solution that notifies the giver every time it's debited), CyberGrants data shows that even though monthly donations are generally for smaller amounts, the total over a lifetime adds up to far more than the average one-time donation.
2. It helps nonprofits build a more reliable source of income.Recurring employee giving can help nonprofits build a more reliable source of income. When donors set up recurring gifts through their credit cards, it's easier for the nonprofit to forecast their income and budget for the year. This can help the nonprofit be more effective in their work.
Nonprofits are fighting an uphill battle with increasing overhead costs and decreasing federal funding. In the last five years, nonprofits have seen a 25% decline in individual gifts, while annual fundraising budgets stay stagnant or decline as well. Those who offer recurring monthly donations help bridge this gap -- returning donors pledge an average of $520 annually as opposed to one-time donors, who only pledge $50 on average.
3. It helps donors stay engaged with the nonprofit.Recurring giving helps donors feel more connected to the work of the nonprofit. When donors are able to see how their recurring gift makes a difference in the life of those being impacted. On top of generating more donations over time, recurring contributions create opportunities for more people to get involved. Regular gifts are great for younger donors who want to help but aren’t in a position to give large amounts at one time. This also puts less financial strain on your donors and helps incorporate giving into their budget.
Donors want to give in the way that is easiest for them. Meet them where they are, in the most convenient way by offering more solutions for giving! If there seem to be options that fit their lifestyle, they’re more likely to consider a donation.
4. It's tax-deductible.
Recurring giving through a credit card is also tax-deductible. This means that donors can get a deduction on their taxes for the recurring gifts, which are made through a credit card., and easy for them to track on their statements.
5. It's easier to match.
You can make this one step, enabling employees to give and qualify for gift matching simultaneously, plus remove the need for NPO confirmation.
Donors may be looking to give recurring AND get your matches, but as is, it isn’t convenient to go back and forth. On the other hand, you may already offer a matching program for offline donations, but are your employees thinking of using it?
Automate your employee donation matching and more. Check out these five reasons why offering recurring giving is a genius move.Click to Tweet
How To Implement Credit Card Recurring Giving for Your Employees
Simple. CyberGrants offers solutions so you can accept credit card giving and it’s easy to activate. It’s completely safe and secure and provides an annual donation summary available at the end of the year. Even better? Matching can be built into the process.
There are many reasons employees might be amenable to the idea of giving via credit card. Whether they’re mile-collectors, points aficionados, or simply want to automate their giving to causes that matter to them, it’s a great and convenient option to ensure no employee cause goes unfunded.
It’s the perfect time to get started. Recurring gifts are more likely to be initiated in January than in December, where end-of-year one-time gifts are highest.