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The team from Charity Navigator, the nation's largest independent charity evaluator and leading donor advocate, shares their thoughts on emerging nonprofit-sector issues and offers tips to better inform your intelligent giving decisions.

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Wednesday, November 22, 2017

5 Reasons Monthly Giving Rocks!

Nonprofits rely on their donors to provide them with the funding that they need to deliver on their missions. It is no secret that the vast majority of donations are made during giving season, the last few weeks of the calendar year when most people sit down to make their annual charitable contributions. However, there are many benefits in setting yourself up as a monthly donor to a cause that you believe in. Here are 5 reasons that monthly giving rocks:
  1. Investment: By choosing a recurring gift you are demonstrating that you are truly invested in the ongoing work that the organization’s of their choosing are performing on a daily basis.
  2. Stability: Donors that choose to give on a recurring basis recognize that the need for funding is not seasonal, but rather an organization is most successful when it can count on consistent, predictable revenue.  
  3. Efficiency: Because recurring donations provide greater stability, organizations ultimately spend less on fundraising to renew recurring donors. This also gives the organization greater freedom to focus on communicating their achievements and impact to the you, the donor.  
  4. Engagement: A recurring investment in a cause you believe in helps to strengthen a lasting desire to remain truly engaged with the organization and the work that they are doing.  
  5. Ease: By setting up an automatic recurring donation, you can rest assured that your chosen organizations are receiving critical funding on a regular basis with minimal effort on their end.


For these reasons and many more, we encourage donors to consider becoming recurring monthly investors in the causes that they truly believe in!

Written by Zach Weinsteiger, Associate Program Analyst at Charity Navigator.

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5 comments:

Shirley McGreal said...

The International Primate Protection League totally agrees with the post on why monthly giving really matters! We care for 36 primates who need to eat every day. Most of their food consists of perishables and monthly donations from caring supporters provide for the purchase of food as and when needed. Thank you for these thoughtful comments. Shirley McGreal, President, IPPL

K.H. said...

Is it true that if I were to add up all the donations I've given sporadically to a particular charity over the course of the year, then divide that total by 12 to arrive at a monthly recurring donation going forward, it would be more appreciated by the recipient organization?

HB said...

@K.H. As a board member of a nonprofit, I would say yes and no. The blog post makes some great points, especially about predictable revenue and reduction of workload. But my .org is small and its list of donors is short. We need to maximize every donation and take advantage of opportunities that may or may not be predictable. For example, if a matching challenge stipulates that donations must be made on a certain date (e.g.: Giving Tuesday) or through a particular donation channel (e.g.: Facebook or Razoo), typically recurring donations are NOT matched. If a dedicated donor like yourself pays attention to the opportunities, that's win-win.

Anonymous said...

Completely agree with your post. Most of the nonprofits cannot function without volunteers. Thus, you can engage yourself in volunteering with the organizations like mission humanitaire (http://www.mission-humanitaire-afrique.org), Where volunteers are continuously striving for the betterment of the people.

Myles Moriarty said...

I try and give $100 per month to a charity. Monthly giving is not so much a show of more support to an organization, but a a new concept being pushed by charitable organizations. The one monthly plan I switched over to this year offered ad free access - a perk. But I have given to this organization every year for at least ten years.

I understand the stability dimension of such support. AS a contractor I am very happy to have service contracts that I can depend upon to provide an absolute income bottom line, especially when I have enough of them to cover my basic operating costs. Not that I have had to be concerned with my monthly revenue in a number of years, but there is something at least cognitively about having scheduled income.

Unfortunately, it seems there is never truly an ultimate limit to required donations, so that raising donations is always an issue. If you work in the donations department in a non-profit, you are the last one to be released. I certainly do not receive less requests for donations from that one recurring donation organization.

I give to an organization because I believe. A recurring donation just gives that charity my credit card number so that they can take until I say stop. Many subscription services will confirm that this is a way to lock in long term cash streams because the inertia needed to stop the process is pretty large for many people, so that it only seems like a increased commitment. That is also why companies offer discounts for recurring membership payments.

I organization is ultimatly in control of what it spends its revenue on. It is one of the criteria I base my choices on to determine who I give to; wasteful and greedy are equal detractors of company ratings, no matter how good their intentions or the cause.

Lastly, for individuals, I was under the impression that unless you are able to itemize your deductions so that they are greater than the standard deduction, things like charitable contributions are not really tax deductible. I know I have never been able to take a tax deduction for my charitable contributions. Have I missed something? Not that it matters. I give what I can because, it gives me purpose? If I could choose how my tax dollars were utilized, I would probably be willing to pay more.