In the vibrant landscape of Canada’s charitable sector, small and medium-sized charities offer vital services and foster community well-being. Yet, these organizations often face significant financial challenges that can limit their ability to fulfill their missions effectively. So, why not consider developing a monthly donation program to offer stability and sustainability?

Let’s take a closer look at developing a monthly donation program, the benefits it provides and a few actionable steps to get started.

First, let’s understand the landscape in which these charities are operating.

Small and medium-sized charities play a crucial role in addressing a wide range of social, environmental, and humanitarian issues across Canada. From supporting vulnerable populations to championing local causes, these organizations serve as lifelines for communities in need. However, operating within limited budgets and resources, these charities are particularly vulnerable to fluctuations in funding and economic uncertainties.

Unlike larger charities with extensive fundraising capabilities, small and medium-sized organizations often lack the financial reserves and infrastructure to weather unforeseen challenges effectively. As a result, they may find themselves dealing with cash flow issues, struggling to maintain essential services, and facing uncertainty about their long-term sustainability.

Making the case for monthly donations

Enter the concept of monthly donation programs—a transformative approach to fundraising that holds huge potential. Unlike one-time donations, which are often sporadic and unpredictable, monthly contributions provide a reliable source of revenue, offering stability and predictability to organizations of all sizes, on an ongoing basis.

For small and medium-sized charities, the establishment of monthly donation programs represents a lifeline that can make navigating financial challenges much easier. By encouraging supporters to commit to recurring donations on a monthly basis, charities can create a sustainable funding stream that forms the foundation for their operations and programs.

Benefit #1: Stability in uncertain times

One of the primary benefits of monthly donation programs lies in the ability to provide stability and security. Unlike one-time donations, which can vary greatly in amount and frequency, monthly contributions offer a steady and consistent source of income. This stability enables charities to plan ahead, budget effectively, and allocate resources where they are needed most.

In times of economic downturns, natural disasters, or other crises, monthly donation programs serve as a financial safety net, ensuring that charities can continue their essential work without interruption. With a reliable stream of monthly donations, organizations can focus on delivering impact-driven programs and services, rather than worrying about financial uncertainties.

Benefit #2: Building stronger connections with your donor base

Monthly donation programs also foster stronger connections between charities and their supporters. By inviting individuals to become monthly donors, organizations create a sense of belonging and ownership among their donor community. Monthly donors feel invested in the charity’s mission and become active participants in driving positive change.

Through personalized communication, updates, and expressions of gratitude, charities can cultivate meaningful relationships with their monthly donors. These connections go beyond financial transactions—they embody shared values, mutual respect, and a shared commitment to making a difference in the world.

In addition to providing financial support, monthly donation programs help build trust and loyalty among donors. When individuals commit to giving on a monthly basis, they demonstrate their belief in the charity’s mission and their confidence in its ability to create positive change.

Charities, in turn, have a responsibility to steward donor relationships with care and integrity. By being transparent about how donations are used, providing regular updates on impact, and showing appreciation for donor support, organizations can cultivate a culture of trust and accountability.

Benefit #3: Amplifying impact through collective giving

Every donation, no matter how small, has the power to make a difference. Monthly donation programs harness the generosity of supporters and multiply the impact of individual contributions. How? Well, even modest monthly donations add up over time, enabling charities to amplify their impact and reach more people in need.

For small and medium-sized charities, the cumulative effect of monthly donations is transformative. It allows them to expand programs, launch new initiatives, and make a meaningful difference in the lives of those they serve. By harnessing the power of collective giving, charities can achieve greater outcomes and create lasting change in their communities.

Now that we’ve gained further insight into the benefits of monthly donations — what it is and why it works — it’s time to put all that good information to use and start developing a program!

Before getting started

The greatest thing about monthly giving is there is no one-size-fits-all approach. But, as with any fundraising activity, you need to ensure your team, your executive director and your board members are supportive. Without their buy-in, it will be challenging to implement a successful program. (Hint: use the benefits above when speaking to these groups of people!)

Consider overcoming barriers and encouraging participation

Next, consider the barriers your donors may experience when determining if monthly giving is right for them. Despite the many benefits of monthly donation programs, some individuals may hesitate to participate due to concerns about affordability or commitment. To overcome these barriers, charities can offer flexible giving options, such as customizable donation amounts and easy-to-use online platforms.

By emphasizing the importance of recurring giving and highlighting the tangible impact of monthly donations, charities can inspire supporters to become active participants in their mission. Education and awareness-building efforts can also play a crucial role in dispelling misconceptions and empowering individuals to make a difference through monthly giving.

Develop your case to donors

State your case by directly communicating why you need help and how your donors can support you. The better you tell your story and communicate your goal, the more likely you are to earn the trust and support of your donors. How do you do that? Think about the impact your charity can make when donors give continuously. Show your donors what their dollars can do, and suggest varying gift amounts that explain the tangible impact each gift can make. For example, if your charity serves people experiencing homelessness, you can let donors know that when they give a certain amount, their gift will supply 5 blankets to those in need.

One thing to keep in mind is the donation amount you are going to be asking for. Remember, if the average donor makes two gifts of $26, this adds up to $52 a year. At this rate, even a monthly contribution of $5 or $10 may seem like less, but actually means more money at the end of the year.

Draft and send your campaign

There is really no such thing as “the only way” to fundraise, and of course, this is also true in monthly giving. How you ask will be determined by what has worked well for your organization in the past, and what will be the most cost-effective moving forward. Email, direct mail, and telephone are all different ways you could choose to communicate with your donors, but oftentimes, a mix of all three works best. Consider what has worked best for your organization in the past, and start there! Once you see some success, test other channels of communication until you’ve identified the right balance.

By embracing the power of monthly donation programs, small and medium-sized charities can unlock new opportunities for growth, sustainability, and impact. Together, with the support of dedicated donors and advocates, they can build a brighter future for all Canadians, one monthly donation at a time.

For the month of March consider participating in CanadaHelps’ Make It Monthly program – an initiative to help your charity cultivate new monthly gifts. We’ve seen the enormous impact that monthly giving has had on the charities we work with and found that monthly donors give 2x as much as a one-time donor, and are 5x as likely to stick around for over three years. That’s a huge bump in a donor’s lifetime value. So for the month of March 2024, CanadaHelps will donate an extra $20 for each new monthly gift of $20 or more, or an additional $10 for existing monthly donations increased by $10 or more, when made to your charity through CanadaHelps.*