A monthly donation program is a fundraising strategy employed by non-profit organisations to receive regular, predictable donations from individuals. Monthly donors commit to making recurring donations to support the non-profit’s mission and work.
Monthly donation programs are becoming increasingly popular among non-profits as they offer a consistent and reliable revenue stream.
Benefits of a Monthly Donation Program
There are several benefits to implementing a monthly donation plan for non-profit organisations, including:
1. Predictable Income: Monthly donation programs offer a predictable income stream. They allow organisations to plan and budget more effectively.
2. Increased Donor Retention: Monthly donors are more likely to continue supporting the organisation over a longer period than one-time donors. It leads to increased donor retention.
3. Cost-Effective Fundraising: Monthly donation programs are cost-effective as they require less fundraising efforts, such as direct mail campaigns or special events.
4. Building Stronger Relationships: Monthly donors feel more invested in the organisation’s mission and work. It leads to a stronger relationship between the donor and the non-profit.
How to Launch a Monthly Donation Program
Launching a successful monthly donation program requires careful planning and execution. Here are some steps to follow:
1. Determine Goals: Define the organisation’s fundraising goals and how much revenue the monthly donation program should generate.
2. Set Monthly Giving Levels: Decide how much donors can contribute monthly. Also, provide different giving levels for donors to choose from.
3. Create a Campaign Plan: Develop a marketing plan to promote the monthly donation plan. Include email campaigns, social media promotions, and website promotions.
4. Offer Incentives: Offer incentives for donors to sign up, such as exclusive content or recognition on the organisation’s website or social media.
5. Follow Up: Follow up with donors after they sign up. Also, provide them with regular updates on the organisation’s work and impact.
6. Thank and Acknowledge Donors: Thank and acknowledge donors for their contributions, showing appreciation for their ongoing support.
How to Measure the Success of Your Monthly Donation Program
Monthly donation programs have become increasingly popular among non-profit organisations. They provide a stable and reliable source of income to fund their operations and programs.
However, to ensure the success of a monthly donation plan, it is vital to measure its effectiveness and adjust strategies accordingly. In this article, we will discuss how non-profit organisations can measure the success of their monthly donation plan.
1. Monthly Donor Retention Rate
The monthly donor retention rate is a crucial metric that non-profit organisations should track to measure the success of their monthly donation program. This metric measures the percentage of donors who continue to donate every month after their initial donation.
A high monthly donor retention rate indicates that the organisation successfully engages donors and maintains their support over time. To calculate the monthly donor retention rate, divide the number of donors who donated in the current month by the number of donors who donated in the previous month.
Then multiply by 100. For example, if an organisation had 100 donors in January and 80 of those donors continued to donate in February, the monthly donor retention rate would be 80%.
2. Monthly Revenue
Another vital metric to track is the monthly revenue generated by the monthly donation plan. This metric measures the total amount of donations received monthly. By monitoring monthly revenue, non-profit organisations can determine if their monthly donation program generates sufficient funds to support their operations and programs.
Add the total donation amount received in a given month to calculate monthly revenue. Tracking this metric over time is essential to identify trends and patterns in giving behaviour.
3. Monthly Donor Acquisition Rate
Non-profit organisations should also track the monthly donor acquisition rate to measure the success of their monthly donation program. This metric measures the number of new donors who sign up for the monthly donation plan each month.
A high monthly donor acquisition rate indicates that the organisation successfully attracts new donors and expands its donor base. To calculate the monthly donor acquisition rate, divide the number of new monthly donors in a given month by the total number of donors in the previous month, then multiply by 100.
For example, if an organisation had 100 monthly donors in January and 20 new monthly donors in February, the monthly donor acquisition rate would be 20%.
4. Average Monthly Donation Amount
The average monthly donation amount is another important metric to track to measure the success of a monthly donation program. This metric measures the average amount of money donated by each monthly donor.
A high average monthly donation amount indicates that the organisation is successful in engaging donors and inspiring them to make larger donations. To calculate the average monthly donation amount, divide the total monthly revenue by the total number of monthly donors.
For example, if an organisation had 100 monthly donors and received Rs 80,000 in donations in a given month, the average monthly donation amount would be Rs. 800.
5. Cost of Acquisition
The acquisition cost measures the money spent on marketing and other activities to acquire new monthly donors. It is important to track this metric to determine the efficiency of marketing efforts and the return on investment for fundraising campaigns.
To calculate the acquisition cost, divide the total amount spent on marketing and other activities to acquire new monthly donors by the total number of new monthly donors. For example, if an organisation spent Rs. 8,000 on marketing and acquired 20 new monthly donors, the acquisition cost would be Rs. 400 per donor.
6. Monthly Donor Engagement
Non-profit organisations should also track monthly donor engagement to measure the success of their monthly giving program. This metric measures the level of interaction and involvement of monthly donors with the organisation’s activities and programs.
A high level of engagement indicates that the organisation successfully builds strong relationships with donors and inspires them to become advocates mission for a long time.
Tracking this metric can provide insight into the effectiveness of the organisation’s communication and engagement efforts. A high monthly donor engagement rate suggests that the organisation successfully engages with its monthly donors, builds a sense of community and encourages ongoing support.
Conversely, a low monthly donor engagement rate may indicate that the organisation needs to improve its communication and engagement strategies.
7. Lifetime Value of a Monthly Donor
The lifetime value of a monthly donor measures the total amount of money a monthly donor is expected to contribute throughout their lifetime. This metric can help organisations understand the long-term impact of their monthly donation plan and predict future revenue streams.
A high lifetime value of a monthly donor suggests that the organisation’s monthly donors are likely to continue supporting its mission for a long time.
Why Choose Ketto For Your Monthly Giving Program?
As a non-profit organisation, launching a monthly donation program can effectively build long-term relationships with your donors and generate consistent revenue to support your mission.
However, choosing the right platform to manage your monthly giving program can be challenging. Many different platforms are available, each with its features and pricing plans.
Ketto is a popular fundraising platform non-profit organisations have used to launch and manage successful monthly giving programs. In this article, we’ll explore some of the key reasons why Ketto is a great choice for non-profit organisations looking to launch a monthly giving program.
1. Recurring donation options
Recurring donations are a key feature of any successful monthly giving program, and Ketto makes it easy for donors to set up recurring donations monthly. This option allows non-profit organisations to generate steady revenue streams and build long-term relationships with donors.
Ketto’s recurring donation feature is easy to set up and manage. Donors can select the frequency of their donation, the amount they want to contribute each month, and the duration of their commitment. Ketto sends automatic reminders to donors when their monthly donation is due, making it easy for donors to stay committed to their giving.
2. Multiple payment options
Ketto supports a range of payment options, including credit cards, debit cards, net banking, and mobile wallets. This allows donors to choose the payment method that is most convenient for them, increasing the likelihood that they will sign up for your monthly giving program.
By offering multiple payment options, Ketto also helps reduce the number of failed transactions, ensuring that non-profit organisations receive the full amount of each monthly donation plan.
3. Donor management tools
Ketto provides non-profit organisations with various donor management tools to help them build long-term relationships with their donors. These tools include donor profiles, donation history, and automated receipts.
Non-profit organisations can use these tools to track and analyse donor behaviour, send personalised communications, and thank donors for their ongoing support.
By building strong relationships with donors, non-profit organisations can increase donor retention rates and generate more revenue from their monthly giving programs.
4. Reporting and analytics
Ketto provides non-profit organisations with robust reporting and analytics tools that can help organisations track the success of their monthly giving program. These tools allow organisations to track key metrics like total donations, donor retention rates, and average donation size.
They provide valuable insights into the performance of their fundraising efforts. By analysing these metrics, non-profit organisations can identify areas where they can improve their fundraising strategies, refine their messaging, and adjust their campaigns to generate even more revenue.
5. Social media integration
Ketto allows non-profit organisations to promote their monthly donation program on social media platforms like Facebook and Twitter. This makes it easier for organisations to reach a wider audience, engage with potential donors, and drive more traffic to their donation pages.
Social media integration also allows non-profit organisations to share stories and updates about the impact of their monthly giving program, which can help increase donor engagement and encourage more people to sign up for the program.
Overall, Ketto provides a range of features and tools that can help non-profit organisations launch and manage successful monthly giving programs. By leveraging these tools, organisations can build long-term relationships with their supporters and raise the funds they need to achieve their mission.
Conclusion
Measuring the success of a monthly donation plan is essential for non-profit organisations. Non-profit organisations can track various metrics to measure the effectiveness of their monthly donation programs.
These metrics include the monthly donor retention rate, monthly revenue, monthly donor acquisition rate, average monthly donation amount, cost of acquisition, monthly donor engagement, and lifetime value of a monthly donor.
By analysing these metrics, non-profits can make data-driven decisions to improve their monthly donation programs. This approach can help non-profits to continue to make a positive impact on society and further their mission.
Ketto is a popular crowdfunding platform that allows individuals, organisations, and non-profits to raise funds for various causes. In addition to helping people raise funds, Ketto offers various resources, including fundraising tips, marketing support, and crowdfunding consulting services.
