In today’s technological environment, payments made through the click of a mouse or the tap or a smartphone are becoming the norm. Why not offer donors this convenience for online giving? Can adding – or upgrading – an online giving system benefit your donors and increase overall donations? Absolutely!
1.) Convenience for Donors – Donors can give through any device such as their laptop, smartphone, or tablet at their own convenience 24/7. Donors also have the flexibility to choose from multiple payment options. This includes debit card, a credit card with rewards or cash back, and secure bank transfer or echeck.
Online giving allows recurring donors the option to schedule a payment ahead of time or enroll in monthly or ongoing payments. This eliminates the need to write a check or mail an envelope. Additionally, donors who cannot attend an event or fundraiser in person can still support your cause online!
The online donor portal also allows donors to view their giving history, upcoming scheduled payments, and year-end tax statements!
2.) Increase Overall Donations – One benefit of online giving is increased overall giving. One study showed that donors who gave one-time gifts gave an average of $97 dollars in 2009. On the other hand, recurring donors averaged $220 dollars for the year. Donors can break a large gift into smaller monthly payments throughout the year, and donors who give monthly are retained at a greater rate going into the next year. This allows your office to spend less resources on retaining and seeking out a new donor base.
Monthly donors are not only loyal and committed to your organization, they’re also more likely to attend your events throughout the year and champion your nonprofit to their friends and family
3.) Improve Cash Flow – Monthly/Recurring giving improves cash flow by guaranteeing a constant stream of revenue. Normally, 30% of annual giving occurs in December, causing a surge in year-end accounting entry. With one-time giving, donations tend to drop in the months following a large fundraiser, yet expenses often remain constant throughout the year.
4.) Convenience for your Office Staff – Online giving is excellent in reducing administrative drain and streamlining processes.It eliminates the need for manual data entry and reduces clerical errors, trips to the bank, and misplaced checks. Our online giving streamlines with many popular accounting software programs as well as our online tuition payment software. Donors can log in and update their debit/credit card info without having to call your office. Year-end tax statements can be easily accessed online by the donor or emailed by your office.
Sources: https://www.classy.org/blog/top-5-reasons-to-invest-in-monthly-recurring-donations/#_ftn2
www.formstack.com/blog/2016/nonprofit-recurring-donations