Charities

Maximizing impact: How recurring donations benefit donors and strengthen fundraising

Are you leveraging the power of recurring donations in your fundraising efforts? Recurring donations are key to building sustainable revenue and engaging donors over the long term. Discover the advantages fundraisers gain by investing in technologies that allow seamless recurring donations.


Does your fundraiser understand the value of recurring donations? In the realm of charitable giving, the big question on managers' minds is how to increase sustainable revenue and donor engagement. And the answer may lie in the first question.

Recurring donations have emerged as a cornerstone for sustaining long-term positive change. These consistent contributions are crucial for giving fundraisers a stable and increased revenue stream, which is a key reason to invest in features that support recurring donations.

The advent of card-linking technology has further revolutionized this landscape, acting as a catalyst that simplifies the process of setting up and maintaining recurring donations.

This article delves into the importance of recurring donations and explores how card-linking technology enhances this model, fostering a more profound impact on fundraising initiatives.

The significance of recurring donations

Recurring donations represent a donor's ongoing commitment to regularly giving a set amount to a fundraiser organization. Recurring donations can be contributed weekly, monthly or even after every transaction a donor makes. This is known as a micro-donation, and it can quickly accumulate into a meaningful amount over time. Based on Olive’s findings, the average monthly recurring contribution per member with roundups is an additional $30!

There is a reason why fundraisers are growing their recurring donation base. In fact, the average nonprofit saw a significant increase in its recurring donor base, with a growth of 127% from 2018 to 2022. Here's why fundraisers are focusing on recurring donations:

Sustained impact

  • Long-term Planning: Recurring donations allow fundraisers to plan for the future with greater confidence, knowing they have a reliable income stream.
  • Resource Allocation: With consistent funding, organizations can allocate resources more effectively, ensuring that projects not only launch but also continue without interruption.

Building relationships

  • Donor Engagement: Regular interactions with donors through updates and reports can strengthen relationships and increase donor loyalty. This can help foster longer-term engagement from your donors.
  • Community Involvement: Recurring donors are more likely to stay informed about the fundraiser's work and the real impact of their donations. They often feel more connected to the cause they support and are more likely to advocate for the fundraiser within their communities.

Not only do fundraisers benefit from more sustainable revenue and increased donor engagement, but they also increase the total revenue. The average recurring donor will give 42% more in one year than those who give one-time gifts.

Many people are already familiar with subscription-based models like Netflix, Prime, and more, making it easier for donors to resonate with recurring giving. Here are some reasons why the recurring contribution model is beneficial to donors:

  1. Convenience: Once set up, recurring donations automate the giving process, eliminating the need for donors to remember to make their contributions regularly. In a recurring donor sentiment report conducted by Classy, 71% of donors who make recurring contributions continue to do so.
  2. Budget-friendly: In the same report, 37% of respondents said they make a recurring gift over a one-time gift because giving in smaller increments is more budget-friendly. Smaller, more frequent donations can be more manageable for donors than a larger lump sum.

In conclusion, recurring donations are powerful features for attracting and retaining donors. Fundraisers can foster deeper connections with their donors, which ultimately leads to an increase in sustainable revenue.

The role of card-linking technology

In an increasingly digital world, adapting to and implementing new technologies for driving recurring donations can be daunting and resource-intensive, but with card-linking technology, it doesn't have to be. When it comes to enabling recurring donations, card-linking technology allows a seamless transaction flow. For fundraisers, investing in a card-linking platform means they can easily integrate recurring donations and more into their model.

Once a donor links their credit card, they can easily round up the rewards they earn when they spend and directly put it toward the causes that resonate with them. Suppose one of your supporters decides to make their everyday shopping count towards your cause by rounding up each purchase to the nearest dollar. They can effortlessly connect their payment cards to your fundraising campaign through card-linking technology.

Here is why card-linking technology is beneficial to donors and can help grow your recurring donations over time:

Simplifying Donations

  • Ease-of-use: Card-linking technology allows donors to set up their donation once and continue to give regularly without additional effort. This removes the need for donors to manually make a donation each time they want to contribute, simplifying the process to just their regular shopping activities.
  • Accessibility: With this technology, making a donation becomes as easy as making a purchase, reducing barriers for people who want to contribute. This method can especially appeal to those who may not actively seek out donation opportunities but are willing to support causes passively.

Olive’s approach to fundraising

As a card-linking platform, we enable fundraisers to seamlessly implement recurring donation features into their model. Our platform makes it easier for fundraisers to convert one-time donors into lifelong supporters by enabling seamless integration into existing systems. This allows for quick customer onboarding in as little as 10-seconds without requiring sensitive banking information.

The process encourages donors to link their payment cards and set predefined rules for contributions, which are then automatically processed during their regular shopping activities. Olive’s card-linking technology not only simplifies the donation process but also helps maintain long-term donor engagement through minimal effort from both the donors and the organizations.

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