Monthly contribution commitments work well for individual donors because they allow them to give more than they could give in a single annual donation, by budgeting for a small payment each month. It’s also good for the organization because it improves monthly cash flow and increases the average individual donation.

Advertise

If you’d like to start a monthly giving campaign, start advertising. Put information in your newsletter and send out flyers to those who have donated in the past. Also put together a mailing list of people who have not donated to your organization, but might be willing to do so. This list can consist of people who have attended functions or asked for information about your organization. Set up a specific campaign period, to encourage donors to take action on the request, rather than putting off making their commitment. When the campaign is over, be certain to share the results with all who subscribe to your newsletter, and all who participated in the campaign.

Timing

Timing your monthly giving campaign with other activities will improve its success. If you have an annual fundraiser, for example, make monthly contributions an option for those who attend this fundraiser. Or, hand out flyers on monthly contributions at celebratory events. You’ll likely find that you have more people who are willing to make a commitment when the information is handed out face to face than through mailings. However, mailings are great reminders and follow up tools.

Payment Options

Be certain to offer payment options to your contributors. Automatic credit card payments make monthly giving simple for both the organization and the contributor and help ensure that contributors don’t forget to make their payments. (For an easy way to accept credit cards, consider PayPal.com.)

Records

It’s important to keep good records of your monthly contributors. Of course, you’ll need the information for tax records. However, you’ll also want to keep track of the ending dates for those who contribute each month for a year. You’ll want to contact contributors whose contribution period is nearing its end, to thank them and to try and sign them on for another year. Also, if they don’t sign up for another year, you want to be certain to stop any automatic payments on time.

Automatic monthly contribution programs will certainly require more administrative support than other types of contributions. However, in the long run, they can help your organization bring in more individual contributions and can help improve your monthly cash flow, making them well worth any additional bookkeeping work they require.

Especially during periods of a slow economy, charitable organizations must be creative in finding funding in order to keep contributions coming in. Automatic monthly payments help individual contributors give more-more easily. And, they help charitable organizations bring in cash every month, ensuring that the bills get paid during tough times. There’s certainly room in every organization’s donor program for simple monthly payment options that increase your chances of gaining donations from a larger number of individuals.

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What Is A Gift Program?

Gift in itself is very basic. Gifting consists of a donor donating a gift of some kind, usually financial, to an organization in need. In its simplest form, gifting is a simple cash transaction. Some people also consider in-kind gifts of goods as falling under the definition of a gifting program.

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Why Would Donors Want To Give To Your Gift Program?

Donors have many reasons for generously giving to organizations through gifting programs. Many do so purely for philanthropic reasons – they want to help those less fortunate, those in need, or give back to those who helped them get where they are today.

But there are other motivations for donors to give gifts through a qualified gifting program. Great tax advantages can be enjoyed when donations fit state and federal gifting guidelines. Private individuals are allowed to donate up to $10,000 to an organization or individual tax free. Also, donors can reduce the size of their estate, and thus their tax burden, by donating to gifting programs. Many people would simply prefer to give their money away to a worthwhile cause and know where they are doing good than to pay into a tax base and have no control over their contribution.

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Where Should I Start To Organize A Gift Program?

To begin, you’ll need the help of very knowledgeable and qualified professionals such as a lawyer and an accountant. They will help you file for appropriate non-profit designations and set up accounts into which donations can be received. They can also help you plan long-term for expenditures made with gifted donations.

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What Are Some Basics I Can Expect To Undertake To Organize a Gift Program?

To protect yourself, your organization, your donors, and your gifted funds, you can expect that you might need to file federally for non-profit status (this may not be necessary, but may to avoid losing funds to taxes for both you and your donors). You can also expect that you will need to set up appropriate bank accounts and investments to keep and grow the gift(s). Expect that your organization will have a need for excellent accounting, and plan ahead accordingly.

Once you have set up your gift program, you cannot expect to receive gifts if people do not know about your program. Write a donation request letter and contact prospective donors. Get the word out and get the funds flowing!

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