Episode Summary: How To Get More Monthly Givers with Erica Waasdorp

In this insightful episode of Nonprofit Nation, host Julia Campbell engages with Erica Waasdorp, the president of A Direct Solution and a recognized expert in monthly giving and donor retention. Together, they explore effective strategies to attract, retain, and maximize the impact of monthly donors for nonprofit organizations.

1. Introduction to Monthly Giving

Julia Campbell introduces the episode by emphasizing the significance of monthly giving programs in providing sustainable financial support for nonprofits. She welcomes Erica Waasdorp, highlighting her extensive experience despite her relatively young age. Erica is renowned for her books Monthly Giving, the Sleeping Giant and Monthly Giving Made Easy, and her practical approach to donor retention.

2. Evolution of Monthly Giving Programs

Erica Waasdorp reflects on the transformation of monthly giving over the past three decades. “When I first wrote my book in 2012, like monthly giving, the Sleeping Giant, it was only mail and phone” [03:13]. She notes the significant shift from traditional fundraising methods to digital and social media platforms. The advent of online tools has made it easier and more cost-effective for nonprofits to cultivate and maintain monthly donors.

3. The Importance and Benefits of Monthly Donors

Erica underscores the long-term value of monthly donors, citing a Neon One study that reveals “the average lifetime of a monthly donor is eight years” [06:00]. This longevity translates to substantial cumulative donations compared to one-time gifts. Monthly donors often exhibit higher loyalty, are more likely to upgrade their giving levels, and contribute to legacy gifts through wills, thereby offering sustained support to organizations.

4. Overcoming Myths and Misconceptions

A prevalent misconception addressed in the episode is the fear that monthly donors might cannibalize major one-time gifts. Erica counters this by explaining that monthly giving complements rather than competes with larger donations. “If a major donor says, I can’t write a thousand-dollar check, but I can do a hundred dollars a month,” Erica illustrates, demonstrating how recurring donations can lead to significant long-term contributions [13:50].

5. Strategies for Acquisition of Monthly Donors

Erica provides actionable strategies to attract more monthly givers:

• Integrate Monthly Giving Options: “Adding a ‘Give Monthly’ button on the homepage… it doubled the number of monthly donors,” Erica shares [11:48]. Simple additions like this can significantly boost monthly donor acquisition.

• Launch Focused Campaigns: Utilizing specific times such as awareness months or holidays can enhance campaign effectiveness. For instance, a Valentine’s Day drive with postcards, targeted emails, and social media outreach successfully exceeded goals by securing 65 new monthly donors against a target of 50 [21:18].

• Leverage Multiple Channels: Ensuring that all communication channels—emails, social media, and websites—consistently promote monthly giving options increases visibility and accessibility for potential donors.

6. Retention and Engagement of Monthly Donors

Retaining monthly donors is crucial for sustained fundraising success. Erica outlines key practices for ensuring donor loyalty:

• Personalized Communication: Sending handwritten thank-you notes or personalized messages makes donors feel valued. “No matter how they came on board… making sure that my $10 a month gift is valued,” Erica emphasizes [16:58].

• Consistent Impact Reporting: Regularly updating donors on how their contributions are making a difference reinforces their commitment. Erica cites an example where a donor receives monthly stories showcasing the tangible impact of their gifts [19:01].

• Stewardship Programs: Combining retention efforts with stewardship ensures that donors remain engaged and connected to the mission. Erica mentions organizations that excel in this area, such as Best Friends, which effectively cultivates monthly donor relationships through virtual events and personalized upgrades [19:03].

7. Conveying Impact and Donor Motivation

To address donor hesitations about the perceived insignificance of small monthly donations, Erica advises nonprofits to shift their focus from large-scale metrics to individual stories:

• Highlighting Individual Impact: Sharing specific stories, such as how “a $10 a month donation provides a meal for a child,” makes the contribution feel meaningful and direct [29:20].

• Accessible Messaging: Erica recommends using relatable narratives that demonstrate how even minor, recurring gifts can lead to substantial change over time. For example, framing donations as part of a community effort where each contribution “makes a difference to this one young girl who’s now safe,” appeals to donors' desire to see tangible outcomes [32:37].

8. Future Opportunities and Trends in Monthly Giving

Looking ahead, Erica identifies key trends and opportunities for the growth of monthly giving:

• Adoption of Modern Payment Methods: “The lifetime value of a Starbucks customer is $15,000,” Erica draws parallels to emphasize the potential of recurring contributions [34:11]. She advocates for integrating digital wallets and direct debit options to facilitate easier monthly donations.

• Continuous Optimization: Ensuring that donation forms are up-to-date with the latest payment technologies can enhance donor convenience and retention. Erica stresses the importance of “activating everything you possibly could activate” to accommodate evolving donor preferences [34:11].

9. Conclusion and Resources

In wrapping up the episode, Julia and Erica encourage nonprofits to take proactive steps toward establishing and enhancing monthly giving programs. Erica reiterates the simplicity of starting with small changes, such as adding a monthly giving button or sending personalized thank-you notes.

• Call to Action: “Just start,” Erica urges, emphasizing that even incremental efforts can lead to significant growth in monthly donations [37:41].

• Resources: Listeners are directed to visit Erica’s website at Direct Solution for her books, blog, and newsletter signup, providing additional tools and guidance for implementing successful monthly giving strategies.

Notable Quotes with Timestamps

• Erica Waasdorp [03:13]: “When I first wrote my book in 2012, like monthly giving, the Sleeping Giant, it was only mail and phone.”

• Erica Waasdorp [06:00]: “The average lifetime of a monthly donor is eight years.”

• Julia Campbell [07:34]: “We're afraid of anything that we think might be an imposition, even though it's probably easier and a better experience for a donor.”

• Erica Waasdorp [11:48]: “Adding that button on the homepage… it doubled the number of monthly donors.”

• Erica Waasdorp [13:50]: “If a major donor says, I can’t write a thousand-dollar check, but I can do a hundred dollars a month.”

• Erica Waasdorp [16:58]: “No matter how they came on board… making sure that my $10 a month gift is valued.”

• Erica Waasdorp [19:01]: “Your monthly support makes this possible.”

• Erica Waasdorp [29:20]: “Your monthly gift makes a difference to this one young girl who’s now safe.”

• Erica Waasdorp [34:11]: “The lifetime value of a Starbucks customer is $15,000.”

• Erica Waasdorp [37:41]: “Just start.”

Final Thoughts

This episode of Nonprofit Nation provides a comprehensive guide for nonprofits aiming to enhance their monthly giving programs. Erica Waasdorp’s expertise offers valuable insights into effective donor acquisition, retention, and engagement strategies, emphasizing the profound impact of consistent, recurring donations. Nonprofit leaders and fundraisers are encouraged to implement these strategies to build a stable and passionate community of monthly givers, ensuring long-term sustainability and mission impact.

For more resources and to connect with Erica Waasdorp, visit Direct Solution. Don’t forget to subscribe to Nonprofit Nation on your favorite podcast platform to stay updated with the latest episodes and insights.