Online Sustainer-Giving Strategies

April 25, 2006

By Tanya Zumach

Also called recurring or monthly giving, sustainer giving creates committed and active supporters who are much more valuable than one-time givers. These programs allow donors to make automatic monthly gifts (some offer quarterly or yearly options), and typically there's no predetermined end date.

If you have 40,000 donors and can convert 5 percent of your file -- at an average gift of $15 per month -- you could realize $360,000 in revenue per year.

Other advantages:

*Loyalty and retention -- these donors tend to stay longer and feel more connected to the organization.

*Ongoing revenue -- maintaining a steady membership, you have a predictable revenue stream.

*Additional gifts -- these committed donors often give to special appeals.

*Reduced overhead costs -- online programs reduce or eliminate the need for paper appeals, updates and receipts.

*Planned-giving potential -- sustainers tend to be donors who give small gifts now but may leave big bequests later.

Additionally, you can customize these programs to fit your donor base, brand and capabilities. For instance, offer a regular monthly-giving option, and a "club" at a higher donor level with special perks.

Technical Requirements

If you can process online gifts, you can probably implement recurring gifts. Most online vendors offer this feature. They will automatically charge the donor's credit card on a specified date each month, and send receipts. You can also set up your own simple system by running the charges through your regular merchant account.

Targeting

The most obvious place to look for potential monthly givers is within your current donor base. Targeted segments that respond well are:

*Small to mid-level donors ($25 to $100 gifts);

*Multiple donors (three or more gifts per year);

*Donors that respond well to premiums; and

*Donors already enrolled in a direct-mail sustainer program.