3 Myths About Monthly Donors

I write (and talk) a lot about the significance of recurring giving. And nearly every time I do, someone shares that they are concerned about prioritizing monthly donors. Namely, they’re worried that doing so will backfire on them.

When I ask them to explain why, I find that their reasoning usually hinges upon some myths about this group of supporters. And if there’s one thing we all know about myths, it’s that they’re just waiting for someone to come along and bust them. 

Let’s get to it!

Myth #1: Monthly Donors Matter Less Because They Only Give Small Amounts

Yes. Most people who set up monthly gifts generally start with small contributions made on a regular basis. But that impact can add up fast.

According to The Recurring Giving Report: Data-Backed Insights for Sustainable Generosity, people who give on a monthly basis give an average of about $949 per year—they just spread that amount out over time. Is someone less valuable to your organization because they give their $949 gift over time instead of all at once?

This group’s value is even more obvious when you consider that they tend to support their favorite causes for a long time. The average donor retention rate for this group is close to 78% (compare that to a rate of around 19% for new donors), and the average donor lifetime for someone who donates this way is around eight years.

Some simple math shows us that these supporters give, on average, around $7,592 over the course of their engagement with an organization.

Monthly donors aren’t “small” donors who deserve less effort and attention because they’re not making major gifts. They’re more like mid-level donors who are giving at a significant level, even if they’re not doing so all at once.

And here’s the thing: From what we can tell, a majority of the monthly donors we found in The Recurring Giving Report seem to have created their recurring gifts despite the fact that the organizations they supported didn’t have a dedicated monthly giving program. 

What could happen if you actually prioritized them?

Myth #2: Monthly Supporters Just “Set It and Forget It”

Recurring donors aren’t “set it and forget it” supporters. Yes, this type of gift is a recurring monthly transaction. But, no, people don’t treat this like an expense or a bill. This isn’t a Netflix or Hello Fresh subscription. It’s something much more than that.

We’re not just making that up. When we looked at this group in The Recurring Giving Report, we found that nearly half of them made additional donations to the nonprofits they supported on top of their monthly gifts.

The Generosity Report: Data-Backed Insights for Resilient Fundraising found something else, too. Far from setting up a gift and forgetting about it, recurring donors actually increased their financial generosity over time.

Without getting too in the weeds (if you really want to dig in, I highly recommend checking out the report itself), what this chart shows is that people who created monthly gifts increased their financial gifts more quickly over time than other donors. 

Now, that kind of acceleration doesn’t just happen—it requires intentional stewardship and cultivation. But it’s absolutely possible.

Myth #3: Monthly Donors Won’t Support Me In Other Ways

There’s a perception that any effort put into building a base of monthly donors will result in a stagnant group of supporters whose giving will stay at the same level for years. That belief is often accompanied by the idea that monthly donors shouldn’t be invited to get involved with nonprofits’ other activities and campaigns. 

The fear—one that I encounter regularly—is that inviting monthly donors to attend events, give additional gifts, volunteer, or do anything else will make them feel unappreciated and prompt them to cancel their gift.

This, too, is a myth.

In The Generosity Report, we examined the overlapping ways that different donor groups—including people who set up recurring gifts—supported their favorite organizations. Over five years:

• More than 20% of recurring donors registered for events
  
• Nearly 11% purchased memberships
  
• 9% of them made pledges
  
• Around 2% participated in peer-to-peer campaigns
  
• More than 5% volunteered

These people aren’t just making monthly donations. They are deeply invested in the causes they love, and that investment manifests itself in a lot of ways. 

But, again, this level of dedication doesn’t just happen. If you take this group of supporters for granted—if you don’t invest time and effort into cultivating your relationship with them and celebrating their generosity—they’re far less likely to stay engaged.

With some thoughtful effort, though, monthly donors can have a tremendous impact on your organization by supporting you in many different ways.

Ignore The Myths About Monthly Donors

Don’t be fooled by these common myths. People who create monthly donations aren’t “set it and forget it” supporters whose financial generosity will remain stagnant. They are dedicated people who are passionate about the causes they support and who, with some thoughtful cultivation, will grow their support over time. 

If you really want to dispel some of the myths that surround monthly donors, check out The Generosity Report: Data-Backed Insights for Resilient Fundraising. Pages 26-30 are dedicated entirely to recurring donors! The research covers tons of other types of supporters, too.