Recurring Donations

Building a Recurring Donations Program: How Payment Tech Boosts Donor Retention

If you are running a donations program and not leveraging recurring giving, you’re leaving serious money on the table. Recurring donations aren’t just a nice-to-have; they give your organization consistent, predictable revenue and help build long-term relationships with your most loyal supporters.

Nonprofits with recurring giving programs bring in an average of $52 per donor every month. Plus, monthly donors give 42% more over time than one-time givers. It’s funding you can count on to drive real impact. But before you start, there are critical elements you need to get right. Let’s break down exactly what it takes to build a successful, sustainable recurring donations program.

What Is a Recurring Donations Program?

Recurring donations are subscriptions set up by donors to automatically contribute a fixed amount to a nonprofit at regular intervals – most commonly monthly, but also quarterly, semi-annually, or annually – without needing to reauthorize each gift. Donors choose an amount that fits their budget and authorize their payment method just once, making giving a seamless, “set-and-forget” experience.

Unlike a pledge, where a donor promises to give later but the nonprofit must track down fulfillment, recurring donations deliver funds immediately and on the agreed schedule, reducing administrative follow-up and ensuring organizations receive support exactly when they need it.

Why Monthly Donors Matter?

Why Monthly Donors Matter

The impact of a well-run recurring giving program goes far beyond convenience. A 2025 report found that 29% of first-time donors who convert to sustainers do so within 90 days of their first gift, and once established, they are over 9× more valuable to nonprofits than one-time donors. Not only this, another report notes that revenue from monthly giving rose by 6% in 2023 to represent 31% of all online donations—up from 27% the previous year – this mirrors the fact that sustainers stabilize cash flow and amplify long-term mission impact.

Here are some compelling reasons highlighting why monthly donors matter today:

1. Sustained, Sector-Wide Expansion of Recurring Programs

Between 2018 and 2022, the average nonprofit witnessed a staggering 127% increase in its recurring donor base—rising from just 11 sustainers to 25 on average—a trend mirrored across small (< $1 M revenue), midsize ($1 M–$5 M), and large (>$5 M) organizations. This growth occurred even as overall supporter counts fell for many nonprofits, underscoring that the most engaged contributors are doubling down on their commitments.

This jump isn’t accidental—it’s driven by streamlined digital onboarding, personalized stewardship, and the ease of automatic payments. As you embed “giving” into donors’ monthly habits, organizations reduce churn, lower acquisition costs, and build a loyal cohort that forms the backbone of sustainable fundraising efforts. It’s a clear signal – if your organization hasn’t prioritized recurring giving, you’re leaving stability and mission impact on the table.

2. Explosive Revenue Gains Power Long-Term Planning

Recurring donation revenue soared by 144% between 2018 and 2022, transforming modest monthly streams into fundraising powerhouses. On average, nonprofits saw their sustainer revenues jump from under $10 K to over $24 K annually, with midsize organizations enjoying a 154% spike (from $7,874 to $20,003), large nonprofits 143% growth (from $21,726 to $52,921), and small charities 135% uplift (from $3,220 to $7,556).

This upsurge delivers predictable cash flow, enabling boards and finance teams to forecast budgets with confidence and invest in multiyear programs rather than firefighting. For smaller shops, this means the difference between patchwork annual appeals and having the freedom to pilot new initiatives, hire dedicated staff, or deepen community partnerships—all made possible by scaling small, reliable gifts into substantial impact.

As the sector faces economic headwinds, this kind of dependable revenue stream is a strategic imperative, not a nice-to-have. If your recurring program isn’t delivering this scale of growth, it’s time to audit your donor experience and upgrade your giving platform.

3. Steady, Substantial Annual Support from Average Sustainers

In 2022, the average recurring donor contributed an impressive $949.19 over the year, about $79.10 per month, with a median gift of $35, reflecting both generosity and affordability. While major gifts still capture headlines, it’s these dependable contributions that provide the engine for nonprofit operations, covering core expenses from program delivery to staffing.

Whereas, one-time donors give roughly $165 annually (accounting for an average of 1.2 gifts per year), highlighting that although single gifts can be larger, they don’t match the cumulative power of sustainers. Cultivating and stewarding these recurring supporters—through targeted communications, exclusive impact updates, and easy upgrade paths—can elevate monthly givers into mission champions and amplify your organization’s financial resilience.

4. Exceptional Donor Lifetime Extends Impact

Recurring donors stick around for the long haul—an average of 8.08 years—versus just 1.73 years for non-recurring givers, according to recent data. That translates into a lifetime value of approximately $7,669 per recurring supporter (8.08 years × $949.19 annual gift), compared to about $3,728 from one-time donors (1.73 years × $2,155.10 annually).

Dig a little deeper, and midsize organizations see sustainer tenures of 8.89 years, while large nonprofits average 7.20 years of consistent giving—evidence that scale doesn’t dilute loyalty. This longevity underpins a multiplier effect: the true value of recurring programs lies not just in individual gift amounts but in the sustained relationships that fuel strategic growth, program expansion, and community trust over nearly a decade.

5. Rock-Solid Retention Rates Near 83%

Donor loyalty is the name of the game, and recurring programs deliver. The latest analysis shows that recurring givers are retained at an average rate of 83%, nearly doubling the 45% retention of single-gift donors. This retention premium slashes fundraising costs, as acquiring a new donor can be 5–7 times more expensive than renewing an existing one.

Plus, high retention provides a more accurate revenue forecast, allowing teams to shift resources from donor reacquisition toward deeper engagement strategies, like impact reporting, matching gift drives, or upgrade campaigns. In an environment where donor attention is increasingly scarce, sustaining a core community of committed monthly supporters is the single most reliable engine for growth and mission continuity.

6. Nearly Half Add Extra Gifts Beyond Their Commitment

Recurring donors aren’t passive—they actively champion causes beyond their scheduled pledge. Nearly 49% of sustainers make at least one additional, one-off gift each year, demonstrating readiness to support special appeals, capital campaigns, or peer-to-peer fundraising events. This indicates that once donors commit to a recurring plan, they’re primed for targeted upgrade appeals and stretch goals.

Nonprofits that segment these supporters and tailor messaging, acknowledging ongoing contributions and showcasing specific funding needs, can unlock significant incremental revenue per donor. If your organization treats sustainers as “set-and-forget,” you’re missing half of their giving potential. The data is clear: recurring programs are not a cap on giving but a catalyst for even greater generosity.

Technology for Sustainer Programs

Technology for Sustainer Programs

1. PCI-Compliant Tokenization & Smart Retries

Modern gateways like Stripe tokenize card details on first use, turning sensitive data into secure, PCI-compliant tokens that power all future charges without ever re-entering numbers.

Coupled with “Smart Retries” that automatically reattempt failed payments at optimal intervals, nonprofits see a dramatic reduction in declines and virtually eliminate manual dunning workflows, reclaiming hours of staff time each week.

2. Automated Expiring Card Alerts

To stop silent attrition when cards lapse, leading platforms dispatch automated email reminders weeks before expiration, complete with one-click update links.

Classy’s proactive Expiring Credit Card alerts and Stripe’s built-in notifications have been shown to cut lapses due to outdated payment details by as much as 50%, all without a single outreach call from your team.

3. Donor-Controlled Self-Service Portals

Rather than fielding endless support tickets, donors manage their recurring plans via secure dashboards—whether Stripe’s Customer Portal or Donorbox’s donor accounts. Supporters can update cards, adjust amounts, pause giving, or switch frequencies in real time, slashing helpdesk volume and freeing your staff to focus on high-value stewardship rather than routine admin tasks.

4. Fully Automated Workflows to Slash Admin Overhead

By automating every step—from token storage and scheduled billing to retries, reminders, and donor-initiated updates—nonprofits virtually eliminate manual payment reconciliation.

Features like iATS’s Automatic Collections and Stripe’s recommendation to “automate as much as possible” streamline operations, reduce human error, and let teams invest their time in mission-driving work instead of chasing down failed transactions

Maximizing Retention of Recurring Donations

Retention of Recurring Donations

1. Define Your Recurring Giving Strategy and Choose a Robust Platform

Before you even think about buttons and forms, get clear on your goals: Are you looking to build a base of micro-donors, secure mid-level sustainers, or cultivate long-term major supporters? Once you know who you’re targeting—and why—you need a platform that can grow with you. Look for software that offers seamless CRM integration, flexible reporting dashboards, and a frictionless donor experience. Leading providers today offer built-in tools for segmentation, automated appeals, and real-time ROI tracking—so you can pull a list of lapsed sustainers in seconds and launch re-engagement campaigns in minutes.

Avoid “one-trick” tools or DIY solutions that bolt on recurring gifts as an afterthought; your platform should center sustainers as a first-class feature, not a checkbox on a one-time form.

2. Implement Secure, Compliant Payment Processing

Trust is non-negotiable; that’s why donors need to know their financial data is safe, and compliance teams need audit trails. Connect your platform to a modern gateway that supports PCI-compliant tokenization, Strong Customer Authentication (SCA), and a variety of payment methods—credit/debit cards, ACH, digital wallets, and even bank-to-bank transfers for high-value sustainers.

Don’t forget to configure failure notifications and retry logic, so a card expiration or temporary hold doesn’t mean you lose a donor after one missed payment.

3. Design a Mobile-First, Conversion-Optimized Donation Page

In 2025, over 60% of giving happens on smartphones, so a desktop-only form is a non-starter. Use responsive templates that adapt to any screen size, minimize load times (under three seconds ideally), and ensure accessibility (WCAG 2.1 AA). Place recurring options front and center: a simple checkbox or toggle with a one-click monthly gift can boost conversion by up to 30%.

Incorporate smart defaults—like pre-selecting a reasonable monthly amount based on visitor behavior—and use clear, impact-driven microcopy (e.g., “$25/month feeds one family weekly”) to make the value tangible. Offering preset monthly levels and allowing easy profile updates increases long-term engagement. Finally, A/B test button copy, color contrasts, and form fields regularly to squeeze out every drop of performance.

4. Offer Flexible Frequencies, Gift Amounts, and Personalized Journeys

One size does not fit all. While monthly giving remains king, allow quarterly, semi-annual, and annual options for donors who prefer less frequent billing. Provide a “custom amount” field alongside tiered suggestions anchored to your average sustainer gift—currently about $79/month ($949/year) according to 2024 data—and reference how each tier translates into impact.

Empower donors to manage their own frequency and payment methods via a secure portal: giving control drives retention. Consider intelligent ask-amount tools that surface personalized gift tiers based on past giving patterns, boosting average donation by 10–15% without alienating smaller supporters. By combining flexibility with data-driven recommendations, you respect donor preferences and maximize lifetime value before you even send your first thank-you.

5. Automate Stewardship and Retention Workflows

Acquiring a recurring donor is only the start; keeping them is where the true ROI lives. Configure automated email and SMS sequences triggered by each successful payment: immediate receipts, a 30-day impact update, and quarterly “state of your support” briefs. Use your CRM’s workflow engine to flag failed payments for quick outreach, and set up milestone awards (e.g., “You’ve given 12 months of support!”) to reinforce commitment.

Features like built-in tax receipt and thank-you email automation are a solid baseline, while a clean dashboard helps you spot retention dips in real time and launch reactivation drives before donors lapse. Personal touches—like video messages or behind-the-scenes content—go a long way; the goal is to make sustainers feel seen as partners, not just recurring line items.

6. Monitor Key Metrics and Iterate Relentlessly

A recurring giving program isn’t “set and forget.” Track critical KPIs like conversion rate (industry average: ~12% on donation pages), monthly donor growth, and sustainer churn in a central dashboard. Drill into donor segments – how are new sustainer cohorts performing versus legacy supporters? Which acquisition channels (email, social, peer-to-peer) yield the highest LTV? Use A/B tests to optimize form fields, page layouts, and communication cadences—and let the data guide your next experiment.

Quarterly reviews should lead to actionable roadmaps: cut underperforming channels, double down on high-value touchpoints, and continuously refine your give-now, give-later pathways. When you pair a culture of measurement with agile execution, your recurring program becomes a self-sustaining engine for predictable, mission-fueling revenue.

Conclusion

Recurring donations are no longer optional—they’re essential. The data makes it clear: donors who give on a regular schedule stay longer, give more, and cost less to retain. A strong recurring program creates stability, improves forecasting, and frees up time and resources to focus on the core work of your mission.

But results like these don’t happen by accident. Success depends on having the right technology in place—from secure payment processing and smart retries to user-friendly portals and automated stewardship. It also requires ongoing attention to strategy, donor experience, and performance metrics.

If your organization wants reliable revenue and deeper donor relationships, recurring giving isn’t just a feature—it should be a core part of your fundraising model. With a thoughtful setup and the right tools, you’ll build a program that pays off month after month, year after year.

Frequently Asked Questions

  1. What are the benefits of a recurring donation program for nonprofits?

    It provides steady, predictable income and higher donor retention. Monthly donors tend to give more over time and are easier to keep engaged.

  2. How do we set up recurring donations on our website?

    Most donation platforms offer a “make this monthly” option. Just enable it on your form, and the system will handle billing, receipts, and card security.

  3. What happens if a recurring donor’s payment fails?

    Modern systems automatically retry payments and send reminders for expired cards. You can also follow up manually using donation reports.

  4. How can we encourage more donors to give monthly?

    Highlight how monthly giving creates a lasting impact, make the option easy to select, and offer small perks like updates or thank-you gifts.

  5. Is it hard to manage a lot of recurring donors?

    Not with the right tools. Donation platforms track payments, send receipts, and reduce manual work. You just need to review reports and stay in touch.

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