Some People Will NEVER Agree to Recurring Donations

I thought I was a statistical outlier in absolutely, categorically refusing to sign up for regular, monthly donations to my favorite charities. To me, the idea sounds too similar to various times when I’ve gotten a free or low-cost magazine or newspaper subscription, only to find that turning off the tap was nigh on impossible.

Apparently, however, I’m not alone in my approach. Blackbaud’s November, 2012 “Donor Perspectives” survey found that among U.S. donors, 19% said that “nothing would compel them to become a regular donor to charities to which they currently make one-off donations.”

That’s a useful thing to know, given how many charities are pushing the idea of recurring donations. And why wouldn’t they, given the possibility of an ongoing income stream from donors who might not otherwise be able to afford such a large amount?

But let’s not go overboard chasing the possibility of recurring donations; for example, by failing to offer other methods of contributing. “Who would be silly enough to do that?” you ask. In fact, I was approached on the street by a volunteer for a major environmental organization who spent a long time trying to talk me into a recurring donation plan and then, when I said I was willing to make a one-time donation only, said they couldn’t do that! That was a waste of both our time.

The survey also reminds us that talking someone into a recurring donation isn’t the end of your interaction with them. Between 20% and 30% of those surveyed said that they’d stopped making recurring donations to at least one organization in the last three years. The most common reason was personal finances, which of course nonprofits can’t do anything about.

But the second most common reason was “a feeling that the charity was not making the best use of its financial resources.” That’s something the nonprofit can certainly do something about. I’ll bet those donors weren’t doing a careful analysis of the groups’ financials and Forms 990. More likely they were simply underwhelmed by the reports they were getting back from the group — or, dare I say, were upset by getting continued appeals for more money. It’s also possible that their expectations from the group in question were heightened, given their feeling that, “I’m paying the bills for this place.” How about making sure to regularly thank the recurring donors, give them specific information on how their recurring donation helps maintain and improve your group’s efforts, and hold off on the followup appeals?