Live From AFP: 7 Great Reasons to Add Monthly Giving to Your Fundraising
Monthly donors stay longer
Overall, donors tend to give for 18-24 months and then drop off, and it's getting harder and harder to renew donors. But monthly donors stay much longer.
McKinnon relayed the story of when he was working with Oxfam back in the 1980s. He was working late one night, and from across the street, a few of his journalist friends saw his light still on and invited him over to the restaurant they were at for coffee — as he tells it, because they had no money and needed him to pay for their coffee.
So McKinnon picked up three monthly giving forms for Oxfam and filled out his friends' information on them. He brought them over, passed each out and told his friends he'd be happy to pay if they'd sign up for monthly giving to Oxfam. One signed up for $15 a month, another for $25 a month and the third for $40 a month.
"That was $960 a year for Oxfam in exchange for the $15 I spent on coffee that night," he said.
One person dropped off after eight years of giving, while the other two continue to give and upgrade. They've been giving for more than 35 years and have donated more than $133,000 total. And McKinnon never had to ask them again — they simply signed up for monthly giving and have given every month for 35 years.
"That's the power of monthly donors. It's not a one-off gift," McKinnon said.
Monthly giving is predictable
Since monthly donors tend to stay on for a long time and give consistently every month, it's predictable income. On top of that, you tend to unearth the attrition in the first year or two to adjust your projections and strategies accordingly.
Monthly giving saves money
Since monthly donors already give, you don't have to send as many appeals, which in turn saves money. That doesn't mean you forgo communications. You simply don't have to send as many expensive appeals to try to get them to give again since monthly donors already give more than one gift a year.