Why Invest in Monthly Donors?
Nonprofit organizations are always looking for ways to increase donor retention and fundraising revenue. One of the most effective strategies is growing a monthly donor program.
At Newport ONE, we’ve seen firsthand how monthly donors (sustainers) can provide long-term, sustainable funding for nonprofits. Are they worth the extra effort?
The answer is a resounding YES! Here’s why:
Higher Donor Lifetime Value: Monthly donors, also known as sustainers, are always more valuable to nonprofits. Their donations, although often smaller, add up significantly over time resulting in a higher donor lifetime value (the total amount of money a donor gives over their entire time of giving to an organization) than many annual donors. Plus a portion of them (23% according to a report by Classy.org) will make an additional one-time gift above their monthly support.
Increased Donor Retention: Sustainers are usually the most loyal donor group for nonprofits. The average retention rate for monthly donors is often over 90%, nearly double the average overall donor retention rate.
Stronger Planned Giving Prospects: Long-term commitment builds trust. Sustainers are top candidates for future planned giving and bequests.
Case Study: How a Nonprofit Grew Their Monthly Donor Program
It would make sense that with all the “pluses” a monthly giving program brings to the table that organizations would want to focus on growing their sustainer base. To this end, Newport ONE decided to conduct our own internal study of one organization’s monthly donor program growth and the resulting increase in income.
For this case study, our team worked with a client on a focused, strategic approach using digital media to promote their monthly donor program overall and also upgrade existing sustainers. The plan included initiating various strategies to grow the monthly donor file including:
Email Series: Targeted email campaigns encouraged new donors to enroll in the monthly giving program.
Website & Social Media Promotion: Integrated branded graphics, landing pages, and CTAs to highlight the impact of sustaining gifts.
Monthly Donor Upgrade Campaign: Existing sustainers received personalized emails asking them to increase their monthly donation amount.
A/B Testing for Optimal Ask Amounts: We tested different donation tiers—$10, $20, $50 vs. $12, $25, $50—to find the best-asking amount.
Website Pop-Ups & Lightboxes: Strategically placed donation prompts throughout the year encouraging both new and existing donors to support the nonprofit with recurring gifts.
The Results: A 23% Increase in Monthly Donors
Overall, the organization experienced a steady increase in monthly donors over the test time period, with an overall increase of 23% in total monthly donors and a 25% increase in revenue.
Our test of a lower initial first and second ask amount ($10, $20, $50) versus a slightly higher first and second ask ($12, $25, $50) yielded interesting results! The lower ask amounts converted more people to sign up as monthly donors without lowering the overall average gift.
The Key Takeaway: Digital Promotion Works for Sustainer Growth
Investing more heavily in a monthly giving program is definitely a strategy nonprofit organizations should consider. One of the more effective ways to reach potential new sustainers and current monthly donors is digital marketing (emails, website promotion, social media promotion, etc.). Phone calls work well too.
To build a strong sustainer program, nonprofits need to be willing to play the “long game” and understand that growth in monthly giving programs is usually slow but steady. While the “wins” are not immediate, the long-term payoff is substantial!
Interested in learning more about how Newport ONE can help your organization launch or build a monthly giving program? Reach out to us and let’s talk!
