Recurring Donations 101: A Guide for Nonprofits

A recurring donation is a scheduled, automatic gift a donor makes to a nonprofit on a monthly, quarterly, or annual basis. According to Neon One’s 2026 Recurring Donor Report—which analyzed data from 4,107 nonprofits—the average nonprofit’s recurring donor base grew 31.57% between 2023 and 2025, even as overall donor databases shrank 5.48%. The lifetime value of a recurring donor is $7,288.26, compared to $3,606.90 for a one-time donor. This guide covers how to launch a recurring giving program, what best practices drive results, and what the data says about who recurring donors actually are.

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What role do recurring donations play in your nonprofit’s fundraising strategy? And how does their impact compare to those of one-time donations and gifts from major donors? If the answers to these questions are, respectively, “not much” and “a distant third,” it’s time for a strategic realignment. 

Why? Because building a base of recurring donations should be your number one priority! In this 101 guide for nonprofits, we’ll cover why that is, how to set them up, and best practices you can follow to launch and maintain a recurring giving program. 

For an enhanced learning experience, click the ‘Play’ button on the video above to hear from recurring giving expert Erica Waasdorp!

What Are Recurring Donations? (And How Are They Different From One-Time Gifts?)

Recurring donations are a commitment by a donor to regularly contribute a predetermined amount to a nonprofit organization. These gifts are typically made on a monthly, quarterly, or annual basis. 

Unlike a pledge—where a donor promises to make a gift later but not in the present—a recurring donation means funds are donated right now and then again at regular intervals. 

Monthly giving is by far the most common frequency. The typical recurring donor makes an initial gift of around $30, but sustaining donors dramatically outperform one-time donors over time.

According to Neon One’s 2026 Recurring Donor Report—a sequel to 2024’s Recurring Giving Report (note the change in emphasis from “giving” to “donors), which analyzed transaction data from 4,107 nonprofits—the average donor lifetime value for a recurring donor in 2025 was $7,288.26, more than double the $3,606.90 lifetime value of a one-time donor.

Recurring giving programs have also bucked a troubling sector-wide trend: while overall nonprofit donor databases shrank 5.48% between 2023 and 2025, recurring donor bases grew 31.57% over the same period.

Why Should Nonprofits Focus on Recurring Donations? (6 Data-Backed Reasons)

Don’t get us wrong: One-time donations and major gifts should both play big roles in your organization’s fundraising. But if your nonprofit hasn’t pursued recurring donations, you’re missing out.

Here are six of the most important ways a recurring giving program can benefit your nonprofit and support your fundraising program.

Financial Stability

The consistent, predictable cash flow that recurring donations provide allows for more effective budget planning. The majority of sustaining donors give monthly, and the compounding effect is significant.

According to Neon One’s 2026 Recurring Donor Report, the average nonprofit raised $14,320 in recurring revenue in 2025—a 36.25% increase from 2023—and this growth occurred even as overall donation revenue softened.

Predictability

With recurring donations, you can forecast your organization’s revenue with more confidence. This predictability helps in making long-term decisions and investments.

Recurring donors stick around, too. According to the Recurring Donor Report, the average recurring donor stays engaged for 7.5 to 8 years, compared to just 1.5 to 2 years for one-time donors—a relationship that’s roughly five times longer.

Sustained Growth

The real power of recurring giving isn’t the individual gift—it’s the compounding effect over time. According to The Recurring Donor Report, the average lifetime value of a recurring donor is $7,288.26, compared to just $3,606.90 for a one-time donor.

That means a single recurring donor is worth more than twice as much to your organization as a comparable one-time supporter. For midsize nonprofits, that gap is even more dramatic: the average recurring donor lifetime value is $10,331.60.

Donor Loyalty

Recurring donors tend to be highly committed to your cause. This loyalty is invaluable, as it often results in long-term support, advocacy, and even word-of-mouth referrals to friends and family.

Our Recurring Donor Report found that recurring donor retention rates held steady between 78% and 80% from 2023 to 2025—even as retention rates for one-time donors fell from 35.75% to 32.41% over the same period.

Building a strong recurring program helps you retain more donors, and there’s no better way to increase your fundraising revenue than retaining the donors you already have.

Reduced Fundraising Costs

It is much, much less expensive to retain an existing donor than it is to acquire a new one—especially if that new donor only ends up making one gift.

And recurring donors give you more to work with: 50% of recurring donors give additional gifts beyond their regular contributions, according to Neon One’s research. Organizations that have built structured recurring programs see this play out in real numbers.

Path of Hope Rescue, a small animal rescue organization in Spokane, Washington, went from a handful of recurring donors via PayPal to more than 55 active sustaining donors through Neon CRM—generating $1,500 per month in reliable recurring revenue within just a few months of launching their Hope Heroes campaign.

Mission Consistency

When you rely on a few major donors, it’s all too easy to mistake their priorities for your own. Sustained support from a broad base of recurring givers empowers your nonprofit to stay true to its mission.

The data backs this up: in Neon One’s 2026 Recurring Donor Report, the average nonprofit raised $14,320 in recurring revenue in 2025, a 36.25% increase from 2023.

This growth happened while overall donation revenue softened—a clear signal that recurring programs are becoming the most resilient part of many nonprofits’ fundraising strategies.

How Do You Set Up Recurring Donations? (A 6-Step Guide)

Setting yourself up to take recurring donations is a straightforward process that can yield massive results. If you need to create options for recurring donations at your nonprofit, here’s a step-by-step breakdown you can follow. 

Step 1. Choose a Trusted Platform

We’re calling this “Step 1,” but it’s more like “Step 0″—your nonprofit should already be using some kind of fundraising platform to manage your giving! If you aren’t, it’s time to find one. Find a platform like Neon CRM that offers easy-to-use tools that enable donors to set up recurring contributions securely.

Your platform should support automated ACH processing and credit/debit card transactions, provide recurring giving management tools, and integrate with your donor database (CRM) so that sustaining gift data flows seamlessly. If you don’t know where to start, here’s a whole list of ones to choose from.

Step 2: Configure Your Payment Gateway

Before you can start receiving recurring donations, it’s essential to configure your payment gateway within the chosen fundraising platform. This step involves connecting your nonprofit’s bank account or financial institution to the platform to securely process donations.

By linking your preferred payment gateway provider (e.g., Neon Pay, PayPal, Stripe, Authorize.Net) to your fundraising platform account, you are ensuring that the platform can securely process your donors’ transactions.

Step 3: Customize Your Donation Page

Once your account is set up, customize your donation page to reflect your nonprofit’s brand and mission. This includes adding your logo and other branding elements like colors and fonts to the page—otherwise, a donor might think they’re getting scammed and decide not to give. 

You should also add a compelling description of your nonprofit’s mission and impact, as well as any images or videos that can help tell your story. If you want more insight into building a great donation form, take a look at this article on how to set up a donation form.

Step 4: Enable Recurring Donations

In your fundraising platform’s settings, enable the option for recurring donations. This may involve specifying the frequency (e.g., monthly, quarterly, annually) and the start date for recurring gifts. Be sure to communicate to donors the benefits of recurring giving, such as long-term impact and convenience.

Step 5: Set Donation Amounts

Offer donors flexibility by providing options for different donation amounts. You can suggest predefined amounts or let donors enter their preferred donation. Your suggested donation amounts should provide your donors with a range of gift amounts that cater to different budget levels. 

This is a great time to run some reports in your donor database and see what kind of gifts your supporters are already making. If your average recurring donor gives $30 every month, that’s a great place to start—and it’s no coincidence.

According to The Recurring Donor Report, the median initial recurring gift is around $30 per month. Setting one of your suggested monthly amounts at $30 ensures you’re meeting donors where they already are. 

For each pre-selected amount, try providing context for how each donation contributes to your mission. That will help donors understand their potential impact and make the option to give regularly more appealing. Keep in mind that 94.5% of recurring donors are everyday donors—people giving less than $5,000 per year—so a range of $15, $30, $50, and $100/month will typically reflect the reality of your audience well.

Step 6: Test, Test, Test

Before going live with your donation page, test the entire process from start to finish. Then, test it again. 

Make a sample recurring donation—or several—to ensure the transaction and email confirmations work as expected. Did it work? Great! Now, keep testing. 

The process may look different on desktops, tablets, iPhones, Android devices, and even different web browsers. Take into account what kind of device, browser, or credit/debit card your donors might be using and test them all. 

How Do You Grow a Recurring Giving Program? (4 Best Practices)

Once recurring gifts are enabled on your donation form, you can just sit back and watch the revenue roll in, right?

Wrong! It’s just the first step of a long journey. 

To get recurring donors signed up and staying on, you’re going to need an ongoing recurring giving strategy. Here are four best practices you can use to ensure that that strategy is a success.

1. Launch a Recurring Giving Program

A recurring giving option on your donation form is only the start. Next, you’ll need to create your recurring giving program that gets your donors excited and engaged. 

To ensure your program’s success, it’s crucial to have a comprehensive launch strategy that covers all your bases. Here are some of the things you should do: 

• Develop a Marketing Plan: Start by creating a detailed marketing plan that outlines how you will promote your recurring giving program. Identify your target audience and the key messages you want to convey about the benefits of recurring donations.
• Use Multiple Channels: To reach potential donors effectively, talk about your program on various channels such as email, social media, and your website. Each platform offers unique opportunities to connect with your audience and share compelling stories about the impact of their support.
• But Especially Use Email: Utilize email campaigns to reach out to your existing supporters and introduce them to your recurring giving program. Personalize your messages to show how their sustained support can make a difference.
• Throw a Launch Event: Kickstart your program with a special launch event or campaign that captures the attention of your community. This could be a virtual event, a social media challenge, or a dedicated fundraising drive. The goal is to generate excitement and encourage immediate sign-ups.
• Promote the Program on Your Website: Make sure your donation page is prominently featured on your website. Highlight the option for recurring donations and explain how these contributions provide steady support for your mission.
• Promote It on Social Media, Too: Use social media platforms to spread the word about your program. Share stories, testimonials, and impact statistics that illustrate the value of becoming a recurring donor.
• Name Your Recurring Gift Tiers: Adding names to your recurring gift program—or even individual giving tiers—can add a personal touch and make the program more relatable. The Turner Syndrome Society of the United States named their program the Butterfly Society—launching with just 11 donors and $300/month in 2017, they grew to more than 500 recurring donors and $112,000 in annual revenue by the end of 2023, with a lifetime program total of $607,000.

By following these steps and ensuring a coordinated launch, you can set the stage for a successful recurring giving program.

Make Recurring Giving the Default Ask

Here’s something that may surprise you: most recurring donors don’t give because you directly asked them to. According to Neon One’s 2026 Recurring Donor Report, 58.6% of recurring donors said they made their sustaining gift without being directly asked. And 41.6% of them gave because they noticed a nonprofit doing important work—not because they received an email or a direct appeal.

What does this mean for your program? It means visibility and storytelling matter as much as your ask mechanism. People need to see your impact consistently—on social media, in your newsletters, on your website—and know that a recurring gift is an option before they’ll choose it.

As donor acquisition expert Dana Snyder, Founder & CEO of Positive Equation, advises: make your donation form monthly-first by default and shift your messaging toward sustainability—“Join our monthly giving community to ensure no family goes hungry, every single month”—rather than one-time urgency.

2. Engage and Acknowledge Your Donors

To keep your recurring giving program going strong, you’ve got to prioritize building and maintaining strong relationships with these recurring donors. Regular engagement and acknowledgment not only foster loyalty; they will also reinforce the impact of their contributions.

Make it a priority to send personalized thank-you emails to your recurring donors expressing your gratitude for their support. Beyond saying “thank you,” keep in mind that one of the key reasons donors continue their support is the belief that their contributions are making a meaningful impact. Provide your recurring donors with regular updates and reports that showcase the outcomes of their generosity. 

Consider recognizing your recurring donors on your website or in your newsletters. This public acknowledgment not only shows your appreciation but also encourages others to consider joining the program. 

Offering exclusive perks or benefits to recurring donors can be a great way to show your appreciation and keep them engaged. This could include early access to event tickets, special updates from your leadership team, or even a small gift as a token of your gratitude.

The investment in donor stewardship pays off: According to The Recurring Donor Report, recurring donors to midsize nonprofits stay engaged for an average of 9 years, with a lifetime value of $10,331.60. Every stewardship touchpoint is a return on that relationship.

3. Foster a Community of Recurring Givers

Your recurring giving program will work best when it’s designed to build a community of donors who work together to support your cause.

Organize special events or create online communities specifically for your recurring donors. These platforms can provide opportunities for donors to connect with each other and with your organization, creating a sense of belonging and shared purpose.

Empower your recurring donors to become advocates for your cause. Provide them with tools and information to help them spread the word about your nonprofit and the importance of recurring giving.

Organizations that commit to building community around recurring giving see the results compound over time. Alzheimer’s San Diego launched their Neon CRM-powered monthly giving program in December 2015 by adding a recurring giving option to every donation form they published—while also creating a dedicated giving form specifically for the program.

Over the years, it expanded to include multiple giving tiers, including the Visionary Giving Circle, where members commit to donating $100 per month or a one-time $1,200 gift. The program now operates independently from its other fundraising efforts, and recurring giving revenue has significantly boosted its overall fundraising income.

Finally, look ahead and plan for the future growth and expansion of your recurring giving program. Set goals, explore new opportunities, and adapt your strategies to meet the evolving needs of your nonprofit and your donors. Speaking of which …

4. Monitor and Adjust Your Strategy

To ensure the long-term success of your recurring giving program, it’s crucial to regularly monitor its performance and be responsive to feedback and changing needs.

Utilize the data and analytics provided by your fundraising platform to keep track of key metrics such as donor retention rates, average donation amounts, and the overall growth of your recurring donor base.

A few benchmarks worth tracking: your recurring donor retention rate (industry standard: 78–80%), average donor lifetime (benchmark: 7.5–8 years overall, up to 9+ years for midsize organizations), and your recurring revenue as a percentage of total donation revenue (industry average is around 3%—a small share with enormous growth potential). This information will help you understand what’s working well and where there might be room for improvement.

Actually, listening to your donors—as opposed to simply analyzing data about them—is also essential. Collect feedback through donor surveys, direct conversations, or social media interactions.

Based on the data and feedback you receive, make necessary adjustments to your communication strategy and your donation process. This might involve tweaking your donation page messaging, experimenting with different email formats, or adjusting the frequency of your updates to better resonate with your donors. 

If you see new sign-ups or retention lagging, experiment with different incentives or approaches to encourage participation in your recurring giving program. This could include matching gift campaigns, exclusive content for recurring donors, or special recognition for those who commit to long-term support.

Your nonprofit’s and donors’ needs may change over time. Be prepared to adjust your strategy as needed to ensure that your recurring giving program remains relevant and effective.

Now’s the Time to Set Up Recurring Donations

Recurring donations can be a game-changer for your nonprofit. By providing sustainability, growth, and donor loyalty, a well-run recurring giving program can take your organization to the next level. And the data is on your side: even as the nonprofit sector faces declining donor bases and softening retention rates, recurring donor programs are growing—up 31.57% between 2023 and 2025, according to Neon One’s own data.

It may take a little while to build a base of recurring donors, but the payoff will be worth it. If you don’t have recurring donation options set up, what are you waiting for? Download The Recurring Donor Report: Data-Backed Insights for Sustainable Generosity today!

Recurring Donations FAQs

Still have questions? Here are answers to the questions nonprofit fundraisers ask most often about recurring giving programs, informed by Neon One’s research across thousands of nonprofits and donors.