When it comes to maximizing donations, timing is everything. Some donors may feel trepidation when faced with the prospect of having to produce their donations immediately after agreeing to give. By giving donors the opportunity to pay in small installments over a period of time, fundraisers can put donors at ease and even boost revenue above what a donor may have been inclined to give as a lump sum.
There are two main forms of time-based donations: pledges and recurring donations.
Pledges
Pledged donations are funds promised by a person or organization to be paid at an agreed-upon time. This can take the form of either a single lump sum paid at some point down the road or a series of installments adding up to a designated amount. Once the promised amount is given, the donor is under no obligation to give further. This can be a great way for an organization to attract a business sponsor whose donation covers a series of fundraising events or one large event like a 5K or golf outing.
Recurring donations
Recurring donations are gifts given repeatedly, according to an agreed-upon schedule. There is no set amount that completes the commitment made by the donor – instead, donors have the choice to end the arrangement at their leisure. Monthly Giving Campaigns is a growing fundraising trend – a preferable form of recurring donations for many non-profits. Donors benefit from contributing a set amount monthly, requiring minimal effort on their part. Non-profits like recurring donations because they are a reliable source of revenue. In addition, the average lifetime value from a monthly donor increases compared to those that give in bulk throughout the year.
Both options of donating to a cause offer its advantages. Pledges may allow a fundraiser to boast higher revenue over a shorter period of time. Recurring donations may help with annual budgeting and ultimately result in greater revenue. If a non-profit is interested in focusing on a monthly giving program, it can utilize social media and web pages to include a recurring gift option on their donation page which will prompt donors to set a monthly amount to give. In the end, both donors and nonprofits win big!
