How to Set Up Recurring Donations: A Complete Guide for Nonprofits

What if funds rolled into your nonprofit every month without delay? Imagine covering staff salaries, program costs, and operational expenses without constantly wondering where those funds will come from.

That’s not wishful thinking. That’s the power of recurring donations. In fact, 57% of donors are in a recurring giving program, and that number continues to grow each year.

For them, it’s convenient and manageable. For your nonprofit, it means sustainable revenue you can actually plan around. Moreover, recurring donors give significantly more over their lifetime, stay longer, and require less effort to retain once they’re established.

If your nonprofit isn’t set up for recurring donations yet, you’re missing one of the most dependable ways to fund your work. 

Let’s walk you through how recurring donations work and how to set them up effectively. 

What are recurring donations?

Recurring donations, also known as recurring giving or monthly giving, are automatic gifts that donors set up to repeat on a regular schedule. These gifts are often made monthly, quarterly, or annually.

Here’s how it works:

• Donors select an amount and frequency that fits their budget
• They provide payment information through your donation page
• Their chosen number of amounts automatically processes on the schedule they set
• They keep full control and can update or cancel whenever needed

Unlike one-time donations that happen sporadically, recurring gifts turn supporters into sustaining donors. It’s subscription giving for your cause, building long-term relationships rather than relying on occasional contributions.

5 compelling reasons to launch a recurring giving program today

Recurring donations do more than just bring in money. They change how your nonprofit operates, from planning budgets to building relationships with supporters. 

Here’s why they matter:

• Predictable revenue: Recurring giving creates a steady income stream and makes budgeting and planning easier, helping you confidently cover essential costs.
• Lower acquisition costs: You’re not constantly spending funds to bring the same donors back. The average recurring donor stays around for 3-5 years, which means your cost per donation drops significantly while the value keeps adding up over time.
• Higher lifetime value: Monthly donors give significantly more over time than those who contribute only once. A supporter who gives $25 monthly contributes $300 annually, often for years, which is often more effective than a one-time gift.
• Better donor retention: When a donor signs up for recurring giving, they’re far more likely to stay with you. Over 80% of recurring donors continue giving in their first year, nearly double the rate of one-time donors.
• Deeper donor relationships: Once supporters commit to monthly giving, you’ve a chance to engage them and build stronger ties. With impact sharing, exclusive event invites, and behind-the-scenes updates, you can turn these donors into partners who care about your long-term success.

Step-by-step instructions on how to set up a recurring giving program

Now that you know why it matters, let’s talk about how to build a program that offers you a reliable source of funding. 

While the process isn’t complicated, it requires some sort of planning. Here are step-by-step instructions to help you:

1. Pick the right fundraising platform 

Set up an online fundraising platform or check whether your existing one offers recurring giving. Not all platforms handle recurring payments effectively, so ensure yours has the necessary features. 

Here’s what the platform must offer:

• Automated billing that charges donors on schedule without manual work
• Donor management tools or integrations to track who’s giving and when
• Customizable donation forms that match your brand
• Easy integration with your CRM or email system
• Mobile-friendly checkout, since many donors give from their phones

RallyUp – a comprehensive fundraising platform includes all these features built-in, so you can set up recurring donations without needing technical expertise or additional plugins. 

Plus, it lets you add recurring donation options to any campaign, whether it’s a peer-to-peer, crowdfunding, or auction, expanding your program reach.

2. Define your goals and donor segments 

Before you launch, decide what you want to achieve from your recurring giving program:

• How many monthly donors do you want in the first six months?
• What monthly revenue target are you aiming for?
• What’s a realistic average gift size based on your donor base?

Next, identify who you should ask first. You can’t reach out to everyone at once, as someone who donated once last year may not be ready to commit to a monthly donation. 

Your focus should be on donors who’ve given twice or more, even if their giving is irregular. They’ve already shown repeated interest in your cause, so tailor your ask based on how they already engage with your work.

3. Set up flexible giving levels 

When you offer clear giving levels, you remove decision fatigue. Donors don’t have to figure out what’s appropriate or guess what amount makes sense. You’re guiding them toward a choice that feels right, which makes it easier for them to commit.

Here’s how to decide what those levels should be:

• Look at your average one-time donation. If donors typically give $50 as a single gift, they might commit to a monthly donation of $15-20, as people tend to consider recurring gifts in terms of their long-term budget fit.
• Offer three to five preset amounts. Something like $10, $25, $50, and $100 per month gives donors a range without overwhelming them.
• Always include a custom amount option. Some supporters have a specific number in mind, while others prefer flexibility based on their financial situation.
• Connect each level to tangible impact. “$25/month provides meals for two families” is more compelling than just listing the dollar amount.

4. Brand your recurring giving program clearly 

Don’t just add a “monthly donation” checkbox and call it done. Create a branded experience that makes donors feel like they’re joining something meaningful, not just setting up a payment.

• Give your program a memorable name that connects to your mission. 
• Add a tagline that speaks directly to what monthly supporters make possible. 
• Use visuals like a badge or logo that donors can identify with and feel proud to support.
• Build your messaging around the donor as the hero of your story. 

Charity: water does this well with its monthly giving program called “The Spring.” Monthly donors join a community of passionate world-changers working to end the water crisis. The name, messaging, and visuals all reinforce that identity, making supporters feel like insiders in the mission.

5. Create a proper donation page 

Create a dedicated landing page for your recurring program that tells the story of how monthly support helps your mission and the role donors play in it. 

Here are key things to keep in mind when designing your page:

• Keep the design clean, mobile-friendly, and concise with plenty of white space and large tap-friendly buttons.
• Display presets with levels, accompanied by brief explanations of what each amount achieves, along with an option for custom amounts.
• Add testimonials from current monthly donors or display the number of people who have already joined to build trust.
• Make cancellation easy to find by clearly stating that donors can cancel at any time and explaining the process.

If creating a separate page isn’t feasible at this time, consider adding a recurring giving section to your existing donation page instead.

Quick launch playbook to get more sign-ups for the recurring program

Here’s a 28-day timeline to help roll out your recurring plans effectively and start securing donors from day one.

Week 1: Soft launch to your inner circle

• Announce the program to your board members, volunteers, and longtime supporters first.
• Request them to become founding monthly donors and share why they joined.
• Collect their testimonials in the form of statements and videos to share in your promotions.
• Set up tracking for sign-ups so you can monitor progress from the start.

Week 2: Build your email sequence

• Plan a 4-part email series to introduce and promote your monthly giving program:
  1. Invitation email: Share the story behind your program and invite donors to join as partners in your mission.
  2. Social proof email: Share donor stories or testimonials to build trust.
  3. Impact email: Use visuals or specific examples showing what different monthly gift amounts achieve over a year.
  4. Final call: Create urgency by highlighting limited-time perks or matched gifts.
• Segment your list to personalize messaging for your different donor segments.
• Include a clear call-to-action button linking directly to your donation page in every email.

Week 3: Promote across all channels

• Launch a “Why I Give Monthly” campaign on social media using content from your founding donors.
• Add a banner or pop-up on your website highlighting the program.
• Update your email signature to include a link to the recurring donation page.
• Collaborate with loyal supporters to share posts and stories about why they joined.
• Create downloadable social media graphics for supporters to share on their own channels.

Week 4: Use nonprofit fundraising campaigns and corporate partnerships

• Include a soft recurring-gift ask in any upcoming community events, online webinars, or volunteer meetings.
• Announce a matched-gift window like “All new monthly gifts in the next 48 hours will be doubled.”
• Reach out to nearby companies about workplace giving programs where employees can donate through payroll deductions.
• Host a live Q&A on social media where people can ask questions about the program.

Keep the momentum going

• Share a monthly newsletter highlighting contributions from recurring donors or feature individual stories on social media.
• Send quarterly impact reports showing what their contributions achieved.
• Test different calls-to-action in emails and on your website to see what drives more sign-ups.
• Set up automated thank-you messages that go out with each recurring donation, personalized with the donor’s name and their specific impact.

4 smart moves to strengthen your monthly giving program 

Once your program is live, the real work begins. Here’s how to keep it growing and keep donors engaged.

1. Personalize your donor outreach

Tailor your ask based on your potential supporter’s history with your organization. Look at their past giving patterns, donation amounts, and how often they’ve contributed to shape your message. 

If someone regularly donates $50 during appeals, suggest a similar monthly amount through whatever channel they typically respond to, whether that’s email, text, or social media.

2. Check in on your program every quarter 

Look at which donation amounts get the most sign-ups and which ones don’t. If nobody chooses your $100/month option, the price might be too high, or the impact might not be clear.

Pay attention to where donors drop off, too. If sign-ups are strong but cancellations happen after three months, something’s not connecting. Use that data to adjust your messaging or donor experience.

3. Regularly engage with your recurring givers 

Once someone signs up, they shouldn’t just hear from you during payment. Be in touch with your recurring givers throughout the year. 

Send them impact updates, alerts about new campaigns, and news about what’s happening at your organization. 

When they reach milestones like a six-month anniversary or birthday, acknowledge it with a call, video message, or small token that shows you value their ongoing support.

4. Give members something extra

Monthly donors aren’t just supporters, but they’re part of your family. So, you must offer them exclusive experiences that make them feel special and valued. Here are some ways to do so:

• Invite them to virtual events or small group sessions where they can meet your team.
• Give them first access to volunteering opportunities.
• Send them branded swag like tote bags, stickers, or thank-you cards.
• Let them vote on small decisions like naming a new program.
• Offer behind-the-scenes tours of your facility if you run a shelter, food bank, or community space.

Key metrics to track success from your recurring donations 

Tracking the right numbers shows you what’s working and where you need to adjust your approach.

• Retention rate: The percentage of donors who continue their recurring gifts over time. Try to aim for a donor retention rate above 80% in the first year and around 60-70% in subsequent years.
• Average gift amount: Track the average amount your recurring donors give per transaction. Most recurring donors give between $15 and $50 monthly, though this varies by organization.
• Monthly recurring revenue (MRR): The total predictable income from all active recurring donations each month. This is your financial baseline for planning programs and budgets with confidence.
• Donor lifetime value: The total amount a recurring donor contributes throughout their relationship with your organization.
• Churn rate: The percentage of recurring donors who cancel their subscriptions each month. Keep your monthly churn rate below 5% to maintain a healthy recurring program.
• Upgrade rate: How many donors increase their recurring gift amounts over time? A healthy program sees 10-15% of recurring donors upgrading their gifts annually.

Building financial confidence with a strong recurring program

Once your recurring program takes off, you not only have a steady income but also a community of supporters who believe in your mission.

Make sure your program succeeds by nailing three things. 

• Match your giving tiers to what people already donate. 
• Tell donors exactly how their monthly contribution makes a difference. 
• Keep them connected through behind-the-scenes updates, early event invites, or public recognition.

The best part? RallyUp – an end-to-end fundraising platform makes setting up your program simple. You can create customized donation pages and combine recurring giving with other fundraising efforts from one place easily. 

Plus, send automated receipts and thank-you notes while getting a clear view of your program metrics.

FAQs on recurring giving