Sustainer giving: Benefits of building reliable nonprofit support

On top of appealing donation requests and compelling marketing campaigns, your nonprofit can benefit when it secures one response from donors that helps lock in reliable and long-term support: sustainer giving.

Sustainer giving is when a donor pledges an amount they will donate regularly. You might also know this term by its more common name, “monthly giving,” which refers to reoccurring pledged gifts.

According to CharityEngine, recurring giving indicates a nonprofit’s health—the healthier the sustainer program, the healthier the nonprofit. Many successful nonprofits attribute their financial stability to successful sustainer programs, as this regular and dependable revenue allows them to forecast more accurately, set attainable goals, and build their programs.

Wondering how sustainer giving impacts your nonprofit’s health? Here’s a breakdown of the top benefits of building reliable support through a recurring giving program:

1. Increased donor retention

It’s often said that it’s easier to retain an existing donor than add a new one, and while this is true, it’s also a good argument for developing a solid sustainer program. If a donor commits to monthly payments, they indicate a level of commitment to your nonprofit, which means they’re likely not going anywhere soon.

Just as a nonprofit commonly uses data to learn more about donors and connect with them on a personal level, you can use repeated interactions with recurring supporters to build meaningful relationships with them and keep them coming back. This data includes:

• Donation history including details about their first gift and the campaigns they support
• Communication preferences for insight into the best way to contact them
• Personal interests to understand what motivates the donor to give

Over time, you’ll get to know your donors better, just as they get to know your nonprofit more deeply. Donors who become sustainers become emotionally connected to your nonprofit and mission. This encourages long-term donor engagement and increases donor retention.

2. Predictable and steady revenue stream

Most donors set up recurring payments to be automatically charged to their credit cards. This significantly helps your retention rate, as automatic payments are inherently more reliable than someone remembering to write a check or visit your website on a scheduled date.

This reliability means nonprofits can confidently forecast budgets and allocate resources more efficiently and effectively. Here’s how:

• Improved financial planning: Your nonprofit can confidently plan for future expenses with a steady stream of income from recurring donations. Your fundraising software can also track and measure your sustainer program’s performance to help you make data-backed financial decisions.
• Flexibility in resource allocation: When planning significant nonprofit campaigns, allocating resources is critical to the seamless and successful execution of tasks. Having a portion of your fundraising already accounted for allows you to allocate the resources where they’ll be most impactful.
• Focus on long-term goals: Regular donations sustain your nonprofit, freeing you to do other things than worry about cash flow. You can confidently plan for the future and begin crafting long-term goals.

This predictable and steady revenue stream ultimately supports impact growth for nonprofits. Planning multi-year strategies that include the development of your sustainer program, your nonprofit, and the impact your activities will have can ensure a bright future.

3. Stronger donor relationships

The mere act of contributing each month reinforces the good your nonprofit does and makes donors feel good about supporting your work. Not to mention, donors who participate in monthly giving programs are more loyal. This fosters stronger connections between your nonprofit and your supporters.

As in any relationship, showing appreciation is key to maintaining a strong bond. As this guide to thanking donors explains, “Donors who feel like they’re a valuable part of your nonprofit are much more likely to continue their support year after year.”

Showing appreciation can look like:

• Showing gratitude promptly
• Personalizing thank-you messages
• Specifying the impact of their gift
• Choosing an appropriate thank-you gesture
• Providing ways to give feedback
• Offering other involvement opportunities

Whether you spotlight monthly donors on your website or social media, send them emails with impact stories, or even offer them exclusive access to events or content, you’re reinforcing their importance to your mission and your appreciation of their efforts. As a result, recurring donors won’t just be another donation page conversion—they’ll become long-term members of your nonprofit’s support community.

4. Increased donor lifetime value

A metric often measured by nonprofits is Donor Lifetime Value (DLV). This estimates how much a donor will contribute to a nonprofit over their lifetime. While it’s imperfect (since donors rarely contribute to any nonprofit for a lengthy lifetime), monthly donors often contribute more financially over time than one-time donors.

The long-term impact of monthly giving on your mission is substantial. Predictable revenue allows you to reach higher fundraising goals and increasing your sustainer program can increase your revenue quickly. Over a year, every monthly donor you bring in could contribute at least 12 times their initial donation, which means your nonprofit can significantly impact your mission.

5. Lower fundraising costs

Most nonprofits seek ways to raise the most money at the lowest cost possible, and sustainer donations can help. The more extensive your monthly giving program, the fewer dollars you must raise through other campaigns to reach your goals. This saves time and resources and lowers your per-dollar fundraising costs.

While retaining an existing donor can be easier than recruiting a new one (though both are important), it’s also less expensive. To secure recurring gifts, you might only incur a few of the following costs:

• The price of the nonprofit fundraising software you invest in
• Marketing and donor outreach expenses
• The cost of donor recognition and retention efforts

Lower fundraising costs mean more dollars put toward your nonprofit’s mission, increasing your impact (and the impact of your donors). It’s an added benefit of focusing on creating and building a strong sustained giving program.

The benefits of a sustainer giving program are undeniable, but it’s your nonprofit’s responsibility to achieve them. Be sure to keep an updated tech toolkit to unlock the full potential of sustainer giving. With the right tools in place, your organization can streamline its operations and enhance its donor engagement efforts to attract and retain as many recurring donors as possible.