Alden Charles Associates

 

Monthly giving programs - also called pledge programs, sustainer programs and giving clubs - enable donors to give a fixed amount each month through electronic funds transfer (EFT), with a credit card payment or by check.  Harvey McKinnon, principal of Harvey McKinnon Associates (www.harveymckinnon.com) in Vancouver, British Columbia, explains that monthly donors remain loyal for longer, are more agreeable to being upgraded and are more likely to make bequests than annual and one-time donors.  Furthermore, monthly donors do not need to be recruited for each gift.  On an annual basis, they usually give two to three times more than when they were single gift donors.  Also, even if they give less than when they were annual donors, you can plan your budget more reliably around them.  Annual renewal rates should be 80 to 90 percent, he says.  A typical nonprofit can expect to ultimately convert at least 3 to 5 percent of new donors to monthly giving and convert 5 to 10 percent of current donors to monthly status over time.  While those numbers may seem small, nonprofits with monthly programs find that they add up - fast.