5 Reasons a Monthly Giving Program Might be Right For Your Nonprofit

There are so many reasons to consider a monthly giving program, or to put additional effort into growing your program. Monthly giving programs provide a reliable and consistent source of revenue for nonprofits, leading to increased donor retention, cost-effectiveness, and donor engagement.

The best monthly giving programs include a few things:

  • A unique name: treat your donors like the VIPs they are. A fun name makes them feel special and more connected to your organization.
  • Value no one else gets: from a separate newsletter to branded swag to early access to tickets, when you offer your monthly donors something special it encourages them to join the program.
  • Relatable impact at various levels: clearly defining how much impact a $20, $100, $500 etc makes to your organization encourages people to give at bigger levels.

Is a monthly giving program really worth the effort for your organization? Yes, it does take some time to build and grow your program. If you put the right effort into it and stay consistent it can help your nonprofit see financial sustainability!

Here are some statistics that highlight the benefits of monthly giving programs!

Reason #1 – Monthly Donors Give More

According to a study by Nonprofit Source, monthly donors give 42% more annually compared to one-time donors. This is because monthly donors have committed to supporting the organization on an ongoing basis, and they are more likely to increase their giving over time.

It is very common for monthly donors to give an additional gift on top of their monthly gift for things like a year end gift, at an event etc.

Reason #2 – Higher Donor Retention Rates

Monthly giving programs have higher donor retention rates than one-time donors. The average retention rate for monthly donors is 90%, while the retention rate for one-time donors is around 27%. This is because monthly donors have made a longer-term commitment to the organization, and they feel more invested in the nonprofit’s mission.

To keep donor retention rates high, make sure to stay engaged with them. You can do this with a specialized email newsletter, phone calls when they reach milestones, special monthly donor perks, etc.

Reason #3 – Predictable Revenue

Monthly giving programs provide a steady and predictable source of revenue for nonprofits. According to a report by Blackbaud, monthly giving programs account for an average of 16% of nonprofit revenue. Imagine knowing each month that you have 16%+ of your cashflow covered. This can help relieve stress from the reactive fundraising and help you be more strategic.

Also, as time goes on, your monthly giving program can continue to grow adding more and more revenue to your organization. This also doesn’t include the extra gives that monthly donors tend to give on top of their monthly contributions.

Reason #4 – Cost-Effective Fundraising

Monthly giving programs are often more cost-effective than other forms of fundraising. According to a study by Classy, the cost to acquire a monthly donor is around $30 to $40, compared to $100 or more to acquire a one-time donor. 

Remember that your monthly giving program will be more successful when you make them feel like VIPs. With things like specialized newsletters, VIP virtual events, early access to event tickets, you can provide a lot of value that is easy to execute whether it’s one monthly donor or 1,000.

Reason #5 – Growing Trend

Monthly giving programs are becoming more popular among donors. According to a report by M&R Benchmarks, the number of monthly donors increased by 32% in 2020. This indicates that donors are increasingly interested in making a longer-term commitment to the nonprofits they support.

More and more companies are adding a subscription or monthly service to their existing product line, why shouldn’t nonprofits. Start looking at your favorite companies and what their doing and draw inspiration there.


Overall, monthly giving programs offer numerous benefits for nonprofits, including increased revenue, donor retention, cost-effectiveness, and donor engagement. By offering a monthly giving program, nonprofits can build stronger relationships with their donors, ensure a more predictable source of funding, and focus on achieving their mission.

Want more resources for monthly giving? Check out Episodes 198 – 201 of Digital Marketing Therapy for a deep dive into all things monthly giving. 

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