Saturday, April 13

Why are Recurring Donations Important For Nonprofits

For any nonprofit to successfully achieve all its goals, monetary funding is essential. They will only be able to perform all their tasks and help out those in need with the help of money. The only way nonprofit organizations can generate income is through fundraisers and donations. While they may be able to provide a good influx of cash, it is not sustainable. If the nonprofit does not find a way to get a stable source of cash flow, it will not be able to function, let alone achieve its goals. 

The only way to maintain a steady flow of cash is through recurring donations. In this article, we shall take a look at what recurring donations are, why they help nonprofit grow, and how they can benefit the donors. 

What are recurring donations? 

No matter the size of the monthly donations, having recurring donations is the only way a nonprofit can expect to grow over time. Recurring donations or monthly donations are funds that are given to a nonprofit every month by a group of regular donors. These donations help keep the nonprofit running.  

Apart from the income and sustainability factor, having recurring donations also shows the belief that people have in nonprofit. Through monthly contributions, they can keep a track of the number of people that have faith in the mission and this, in turn, helps build a community of people who are dedicated to the cause. 

How do they help a nonprofit grow? 

The importance of recurring donations is sometimes understated and in this section, we aim to highlight how it helps every facet of nonprofit grow. The idea is to have people who will regularly give monthly donations. These donations can be secured through various fundraising methods. The nonprofit will also have to be persistent to get what they want. We have listed some reasons why recurring donations are helpful to a nonprofit. 

A sustainable source of income for the nonprofit

Through a consistent income, nonprofits can easily find themselves completing tasks and achieving all their goals. The regular donation also is way more advantageous long-term, as that amount will simply keep increasing and eventually supersede a big donation. Through a constant flow of funds, they will be able to organize their events and accomplish their goals faster. 

Strong relationships with the donors 

The most important aspect of having monthly donors is to build strong relationships with them. By having monthly donors, there is no need to constantly ask them for donations. Once they sign up, they remain loyal to the nonprofit’s cause. Organizations can instead focus on providing the donors with value, i.e. tell them where their money is being put. Showing them the results of their donations. People who donate regularly are also less likely to discontinue their support. 

Improved cash flow and better planning 

Through regular donations, organizations can use the money to manage everyday activities and evenly spread it. This is in direct contrast with how nonprofits usually get their funding, i.e. through fundraising events. nonprofits usually have a time period, mainly during the giving season where they accrue a majority of their funds. As the revenue from recurring donations is more predictable, nonprofits can plan the activities and budget for the coming months. 

Easier for the donors

Instead of having to give either big donations or for nonprofits to constantly go after donors, a recurring or monthly donation system works best. Donors do not have to be reminded every other day and they can also rest assured their money is being put to good use. 

Higher retention rate

Perhaps the most important aspect of having regular donors is that they stay on for longer. Being recurring donors mean that they are invested in the nonprofit’s cause. There is another benefit, as most monthly donations are smaller amounts, donors do not feel that they are parting away with large sums of money.  

How can recurring donations help your donors? 

Donors can also get a lot of benefits if they are regular. 


Nonprofits can send donors the occasional gift. It can be a small gesture or if you wish to keep them for a long time you can even send them a gift hamper. These incentives while small make donors feel like they are a part of something important. They continue to be invested in the nonprofit through incentives.


People like receiving updates and through constant communication, they feel invested. nonprofits can use this to their advantage. By providing donors with updates on their mission and the goals they have accomplished, nonprofits can make donors feel like their money has been put to good use.

Seeing results 

By bringing together the group of regular donors to see their money being put to use, you will build a strong community. nonprofits can invite donors to come and witness the results of their contributions. Such experiences can help motivate donors to continue with their contributions and perhaps even increase their influence. 

Leave a Reply

Your email address will not be published. Required fields are marked *