What Is a Recurring Donation?
By Whit Hunter on
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One thing that nonprofits need consistently is funds. If you are running a nonprofit, you know how important it is to have a steady source of funds.
Luckily, one concept can solve this issue. Recurring donations can bring a consistent stream of funds and create a strong bond between your nonprofit and donors. Instead of a one-time boost, recurring donations for nonprofits can create a more predictable income stream.
Today, we will cover everything about recurring donations: what they are, the benefits they bring, and how to use them for your nonprofit.
Definition Of Recurring Donations or Recurring Giving
Recurring donations, also known as recurring giving, are simply donations that supporters make to a nonprofit organization. Instead of giving once, donors set up a plan to contribute a certain amount on a regular schedule, like monthly, quarterly, or yearly.
For example, a recurring donor might give the nonprofit organization $20 monthly to provide a reliable income stream. Another form of recurring donor is membership-based giving, where donors commit to a regular donation/fee in exchange for becoming a nonprofit member.
How Recurring Donations Work
Recurring donations are a simple way to help nonprofits secure a steady flow of funds. Here's how it works.
The Technical Process
When someone decides to give through recurring donations, they usually choose a set amount they want to contribute regularly. This can be weekly, monthly, or even yearly. The donor fills out an online form with their payment information. Once they hit "submit," their donation is set on autopilot.
A payment gateway processes these transactions. It's like an online bridge that safely connects the donor's bank or credit card with the nonprofit's account. This gateway ensures the donation gets through without any hassle.
Authorization and Payment Processing
Before any funds move, the donor needs to give authorization. This means agreeing to the recurring terms—how often they'll give and the amount. They might check a box or sign electronically to approve this.
Once authorized, the payment processor takes over. Each time a recurring donation is due, the processor securely charges the donor's credit card or bank account. Nonprofits then get notified of the successful transaction, and the funds are directly deposited into their account.
The Growth of Recurring Giving
Recurring giving has become an essential source of income for nonprofits, with an increasing number of donors choosing regular support over one-time contributions. This shift provides a steady income stream and creates a deeper relationship between donors and organizations.
With the ease of setting up recurring donations through digital platforms, the promotion of nonprofit monthly giving programs has become more effective.
Key Statistics on Recurring Giving
- Recurring Giving Growth (2018-2022): The average nonprofit saw a 127% increase in recurring donors and a 144% rise in revenue from these donations. (Source)
- Monthly Giving Revenue (2023): Monthly giving increased by 6%, even as one-time giving decreased by 5%. Monthly donations made up 31% of all online giving. (Source)
- Average Donation Amounts: The typical monthly gift is $24, adding up to $288 annually, while the average one-time donation is $115. (Source)
- Recurring Giving Program Enrollment: 57% of donors are enrolled in a recurring giving program, a 46% increase from 2022. (Source)
- Preferred Frequency Among Recurring Donors: (Source)
- Monthly: 94%
- Weekly: 3%
- Annually: 2%
- Quarterly: 1%
Benefits of Recurring Donations
With recurring giving, nonprofits and donors can enjoy the following benefits, ultimately leading to stronger partnerships and more significant impact.
For Nonprofits:
- Recurring donations provide a reliable income stream, which helps nonprofits plan and budget more effectively.
- Donors who give regularly are more likely to continue supporting your cause over time.
- Over time, recurring donors contribute more than one-time donors.
- Maintaining relationships with existing donors is less expensive than acquiring new ones.
- Regular donations help maintain a consistent cash flow, reducing financial uncertainty.
- Ongoing support allows for deeper engagement and connection with donors.
- With steady funding, nonprofits can concentrate more on their mission and less on fundraising.
Not sure how to ask for donations? Read our guide on How To Write Effective Short Donation Messages (+ Templates).
For Donors:
- Setting up automatic donations is easy and saves time.
- Smaller, regular donations are often more manageable than larger, one-time gifts.
- Regular contributions provide continuous support to causes they care about.
- Many nonprofits offer special updates or newsletters to recurring donors.
- Being a recurring donor can create a feeling of belonging to a group of supporters.
- Regular donations can simplify tracking charitable contributions for tax purposes.
- Nonprofits often acknowledge recurring donors in special ways, such as listing them in annual reports.
How to Prioritize Recurring Donations in Your Campaigns
Recurring donations can provide your nonprofit a steady income and build lasting relationships with supporters. Here are some strategies to emphasize recurring giving in your campaigns:
- Highlight Recurring Options: Make the option to give weekly/monthly/quarterly/yearly clear on your donation forms. Place it prominently so donors can easily choose to become recurring donors.
- Use Pop-Up Messages: After a donor selects a one-time gift, display a pop-up suggesting they switch to a monthly donation. This approach has been shown to increase monthly donations by 64%. (Source)
- Share Impact Stories: Tell stories that show how ongoing support makes a difference. Help donors to see the value of their recurring contributions.
- Offer Flexible Options: Allow donors to choose the amount and frequency of their gifts. Flexibility can make recurring giving more appealing.
- Thank Recurring Donors: Regularly thank your monthly donors. Personalized messages can strengthen their connection to your cause.
- Promote Recurring Giving: Include information about monthly giving in your newsletters, social media, and events. The more you talk about it, the more familiar it becomes to your supporters.
- Simplify the Process: Ensure that setting up a recurring donation is quick and easy. A complicated process can discourage potential donors.
- Provide Updates: Keep recurring donors informed about how their contributions are being used. Regular updates can reinforce their decision to give monthly.
Mistakes To Avoid With Recurring Donations
Recurring donations for nonprofits are like a lifeline. However, many organizations make errors that can hinder their recurring giving programs. Here are common mistakes to avoid:
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1. Not Offering Recurring Options
Some nonprofits don't give donors the choice to set up recurring donations. This oversight can lead to missed opportunities for ongoing support.
2. Failing to Prompt for Recurring Gifts
Only 14% of nonprofits ask donors to make their donation recurring during the donation process. (Source) Without this prompt, potential recurring donors might not consider the option.
3. Stopping Acknowledgments Too Soon
91% of organizations stop acknowledging recurring gifts by the third month. (Source) Regular thanks are essential to keep donors engaged and appreciated.
4. Not Handling Payment Issues
When a donor's credit card changes, 1 in 4 nonprofits don't attempt to re-secure the recurring donation. (Source) This can result in lost support that might have been retained with a simple follow-up.
5. Complicated Sign-Up Processes
Donors may abandon the process if setting up a recurring donation is difficult. Ensure the sign-up is quick and user-friendly.
6. Lack of Communication
Failing to update recurring donors on how their contributions are used can make them feel disconnected. Regular updates help maintain their interest and commitment.
7. Ignoring Donor Preferences
Not allowing donors to choose the frequency and amount of their gifts can deter them from setting up recurring donations. Offer flexible options to accommodate different preferences.
8. Overlooking Data Security
Not ensuring the secure handling of donor information can lead to trust issues. Use reliable systems to protect donor data and build confidence.
How to Accept Recurring Donations Online
While many online platforms are set up for recurring donations, finding a platform that makes the process simple, quick, and affordable for you and your donors is essential.
BetterWorld Online Donation Software is an ideal solution for recurring donations. It offers a seamless online fundraising experience that nonprofits and donors can enjoy!
The platform guides you through each step and helps you set up campaigns that make it easy to accept donations anytime. You can start receiving donations in just a few minutes!
Why choose BetterWorld?
- 5-Minute Set-Up — Customize and launch your campaign in minutes.
- Encrypted & Secure — Financial data is encrypted to PCI DSS Level 1 standards.
- Unlimited Features — No limits on campaigns or donations.
- Automated Payments & Receipts — Streamline your processes with automation.
- Privacy First — Donor data is never sold.
- No Ads — A clean, ad-free experience.
Always Free — No platform fees or hidden charges.
BetterWorld also offers a complete set of fundraising tools in one place, so you don’t need to switch between platforms. Our Free Nonprofit Fundraising and Online Fundraising & Donation Software covers all you need to fundraise the easier way.
Why wait? Sign up today to make recurring donations simple for your nonprofit and your supporters!

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