Recurring gifts are increasingly recognized as a critical component of sustainable fundraising. Donor-advised fund (DAF) participants who set up recurring grants in 2024 — whether automatically or manually elected each year — contributed more than three times the amount of donors making one-time donations. This reliable support helps nonprofits maintain programs and plan for the future, even during periods that traditionally see lower giving.
The Advantages of Automatic Recurring Gifts
Automatic recurring contributions provide dependable revenue streams that can smooth out seasonal fluctuations in donations. For example, research found that automatic gifts accounted for 25% of contributions during July 2024, a month typically associated with lower giving.
Beyond the financial benefit, recurring donors often become more engaged with the organizations they support. They are more likely to volunteer, interact with board members, attend events, and, on average, increase their donations by 8% annually.
Encouraging Donors to Choose Automatic Giving
Despite these benefits, many recurring gifts are still manually scheduled. According to Vanguard Charitable, only 24% of recurring gifts are automatic, while the remainder are set manually by the donor. Frequency preferences vary: 50% of recurring grants are annual, 20% monthly, 19% quarterly, and 11% twice per year. Younger or less-wealthy philanthropists often favor monthly contributions.
Nonprofits can guide donors by clearly communicating their preferred timing and frequency. Because DAF grants are not tied to traditional year-end deadlines, organizations have the flexibility to request contributions throughout the year.
Building a Stronger Revenue Foundation
Incorporating recurring giving into your fundraising strategy strengthens financial stability while deepening donor relationships. Encouraging both automatic and manual recurring contributions helps create a more predictable revenue base and fosters long-term engagement with supporters.
At DBC, our nonprofit specialists work with organizations to design and implement recurring giving strategies that maximize donor impact and provide sustained support for your mission.
To read the original article, visit The NonProfit Times and the research from Vanguard Charitable.