A Guide to Recurring Donations for Nonprofits and Tips

There is a common belief that only renowned nonprofit organizations need a recurring donation process, and it's not recommended for small-scale charities.

Reality debunks it. A recurring donation system doesn't hold that kind of sanctity. Even if you are a small nonprofit project owner, you can set up a recurring donation and inspire donors and enthusiasts to contribute.

There are many benefits to setting up a recurring donation. In this blog, we will show you how to set it up, and tips to succeed with this donation model.

Recurring Donations in a Nutshell

Recurring donation allows donors to donate regularly following a cycle. That means you can set up a donation process that lets someone donate to your cause by maintaining a monthly, quarterly, or annual payment cycle.

Once, someone agrees to go for a recurring donation, a one-time agreement and processing is enough. Your system and bank or any other payment method will assure the rest.

It works like a commitment for donors, if someone agrees, he can contribute to your organization willingly. Also, you must open a room to opt out so that they can stop contributing whenever they like.

Benefits of Recurring Donations for Nonprofits

According to NPSource, recurring donors give 42% more than that of one-time donors. 57% of donors are enrolled in recurring donation programs this year, a big jump from the last year which was 46%.

Here are some of the key benefits that should help make your mind to take up a strategy to leverage this donation model –

Financial growth: You can assume how much money you can gain in a given financial year if you have a list of recurring donors. It will make your financial growth faster than usual.

Sustainability: People who love to donate to your cause want to see results. Suppose you deliver what you promise for the welfare of society. In that case, it's very likely to inspire the donor to keep contributing, and even they can motivate others to support your organization.

Reduce fund-raising costs: It's more like retention, and works the same way – retention is more affordable than acquiring new patrons. So, when you have an established recurring donation system, you will have a stable number in the donor list, and it will reduce your cost of gaining new supporters all the time.

Hassle-free administration: An automated donation system reduces the hassle for all the parties involved. You can efficiently put concentration on more productive tasks.

Build a strong community: A loyal base of donors builds your brand as a nonprofit organization. With them, you can grow your trust in your local and even global populace. You can arrange annual or half-yearly meetups, and social events, and create a strong and empathetic community that wants a better society.

When you have people who advocate your nonprofit cause, and provide monetary support regularly – your scope and possibilities expand to new heights. One-time pledges and gifts are great but to become a sustainable organization, you must initiate recurring donations.

Setting Up Recurring Donations on Your Nonprofit Website

In many ways, you can set up recurring donations on your website. Here we have drawn out some needful steps to assist you –

Step 1. Choosing a Platform

You must choose a platform to develop your nonprofit website. The website gonna help you to create a brand presence, and identity, and collect donations using online payments.

If you create your nonprofit website with WordPress, the process will be easier than you think. As, WordPress is the most popular CMS around the World, and right now 63% of global websites are built with this platform.

For example, you can choose WordPress and then install the WP User Frontend plugin to initiate recurring donations.

Step 2. Set Your Payment Gateway

After choosing a platform for your nonprofit website, setting up a payment gateway is necessary. It will ease the process of donating money, and continue with the recurring cycle.

All you need to do is link your preferred payment gateway (Paypal, Stripe, Authorize, etc) to your fundraising platform account. Thus ensure processing the transaction of your donors.

Step 3. Customizing the Donation Page

In this step, you need to design an interactive donation page for your visitors and contributors. That includes incorporating your brand logo, telling your story in short, direction or message for the donors, and finally adding the procedure of accepting donations.

The goal of a donation landing page is simple: express your mission, impress the donors, and let them easily enroll in the donation program.

Step 4. Set Donation Amount

As the idea of charity goes, you shouldn't demand anyone to provide an exact amount. The best way to keep it flexible. Yes, you can mention some options with a fixed amount, but besides that, offering a flexible amount would be more viable. That means you have the option to choose the donor to set the amount and proceed.

Also, there are ways to inspire people to contribute more willingly. On your donation page, you can showcase the total number of donations you've received so far or in a given time. Also, sharing the story and images of the charitable activities going to help your cause a lot.

Step 5. Keep Testing to Improve

77% of site owners do A/B testing to create a better site. And 57% of site owners who adopt AB testing got the expected outcome. (Boing Boing)

There's nothing more effective than testing your process to get a better result out of it. The more you experiment, the more refined outcome is inevitable. So, once you are done with creating a recurring donation don't stop there. You must keep testing what works better and what does not, and then keep the good things and get rid of the things that didn't work.

🧠 Also Read: How to Deal with Donation Forms in WordPress

How to Set Up Recurring Donations Using WP User Frontend Pro

We've already explained why WordPress is a better platform to create a charity website. And, if you do so, WP User Frontend Pro comes with all the features to empower your WordPress site with a recurring donations system, and other membership management.

Once you've created a donation page, just create a subscription pack named recurring donation with WP User Frontend Pro, and add it with a subscription button or link. That's all you need to do.

Here's how to create a recurring donation package –

1. Installing WP User Fronend Pro

After purchasing WP User Frontend Pro, you need to upload the plugin (zip file) to your WordPress. It's easy and only needs a few steps to install it.

Here's a detailed guide, where you can learn how to install WP User Frontend Pro.

2. Configuring Your Donation package

Go to the WordPress dashboard, then to WP User Frontend, and click on Add Subscription.

On the next page, put down the name of your donation pack (like a subscription), and write the pack description.

On the next section of the page, set up your donation details like the amount, and payment cycle information.

After you set all the information, save the draft for publishing it later.

3. Setting Up Payment Gateway

Go to settings, then to Payments, and give all the needed information like preferred payment gateway, currency, add donation subscription pack, payment page, etc.

After you've done all the processes, save them. Then you can publish the recurring donation pack.

Now, go to your donation page, and create recurring donations for all the amounts mentioned on the page.

To learn the process in-depth read: How to Create Subscription Pack

4 Tips for Generating More Recurring Donations for Nonprofits

1. Make the Donation Process Easier

Keep your recurring donation process simple. This will make a donor feel no pressure during the donating process. Take a look at the following examples of The Marginalian –

The knowledge-sharing platform asks the enthusiast to take part in a monthly donation program. But you can always change it to quarterly or annual.

The best thing about this page is it's so easy and minimalistic, possessing no complexity.

2. Create a Reachout Program for Potential Donors

Online is a bazaar of possibilities. Also, you can't just create a donation page and await contributors. Take some initiatives that are similar to a marketing plan and execute. Check the following steps –

• Develop your marketing plan
• Use multiple channels like email, videos, social media, off-line programs, etc
• Put more focus on email outreach
• Promote your donation page throughout your website
• You can name your recurring program (Superfan, Premium Donors), and give a special feeling to your recurring donors

3. Arrange Community Programs to Inspire Locales and Existing Donors

This might look like an old-school trick, but always works. Arrange at least one gathering a year, and invite all of your members, enthusiasts, donors, and potential personalities to increase your good numbers.

Incorporate public media and social media to spread the news. It will increase the brand value and attract more people to your support.

4. Keep Your Strategy Move and Improve

Track all of your tasks and progress. That's how you measure success and failures. The same goes for your strategies for gaining more recurring donors. Closely monitor your effort, analyze, and then amends. It's a continuous effort.

🧠 Also Read: How to Create a Nonprofit Website In WordPress & Receive Donations

Ready to Set Up Your Recurring Donations?

Recurring donations work like a true booster to any nonprofit. Because your organization can only grow bigger if you have people who are willing to support you constantly over the years.

So, are you ready to go with this donation model? We believe now you are ready to set up recurring donations on your site at ease with the best tools available in the market.