If you’ve ever wished you could wave a magic wand to help your favorite nonprofit organization, here’s your chance! Becoming a monthly donor can be magical for nonprofit organizations and an easier way for you to give.
Budgets are a fact of life for individuals and organizations. But unfortunately, unlike an individual receiving a regular income, it can sometimes feel like they’re playing a guessing game to determine their reliable income for many nonprofit organizations.
While all donations are greatly appreciated at any time by nonprofit organizations to advance their mission, monthly donations can have an enormous impact. In addition, monthly giving or scheduled recurring gifts can benefit organizations and donors.
Depending on the source, end-of-the-year giving can account for 30 to 50 percent of the gifts that fill charities’ coffers. Approximately 12 percent of that money is donated in the last three days of the year.
Other special opportunities, like Giving Tuesday, provide a funding boost for some organizations. In 2021, Americans opened their hearts and wallets for another record-breaking Giving Tuesday, generating $2.7 billion—a nine percent increase from 2020.
Many nonprofit organizations also implement annual fundraising events, appeal to donors with annual giving drives, or hold special campaigns to generate income. While organizations can make educated predictions of the funding they’ll receive based on past experiences, they are estimates. It would be similar to not knowing the amount of your paycheck, making it challenging to budget.
Monthly Giving Benefits for Organizations
There are several advantages to monthly giving for nonprofit organizations:
Better Budgeting Capabilities
Although nonprofit organizations are grateful for any influx of funding, it can make budgeting tricky. Although revenue may be confined to only a few months a year, operating costs are usually spread out evenly throughout the year. That can lead to cash flow issues, which can affect operations. Monthly giving enables organizations to develop a predictable revenue stream to keep the organization on track all year with monthly bills.
Monthly recurring gifts also protect nonprofit organizations in uncertain times and emergencies. As the COVID-19 pandemic made abundantly clear, unforeseen circumstances can happen at any time, creating a significant cash flow problem. Donations from a monthly giving program can provide much-needed stability.
Better Long-Term Planning Capacity
Because revenue from recurring donations is more predictable than revenue from one-off gifts, it enables nonprofit organizations to anticipate income for budgeting purposes more accurately. For example, an organization can commit to hiring staff or launching a pilot program knowing it can cover the costs with recurring income.
Nonprofit organizations often make significant investments of staff time and money to spread the word about their missions and recruit potential donors. However, if a nonprofit organization amasses enough monthly donors, they can spend less finding donors and shift money to their mission.
Monthly Giving Benefits for Donors
Not only do organizations reap the benefits of monthly giving, it also offers advantages to donors:
Monthly donations are automatic. So, once you sign up, you won’t have to worry about remembering to support your favorite organization. Simply enter your credit card information once, and you’re all set!
Less Overwhelming, More Manageable
Making smaller donations throughout the year is generally more manageable for the average donor. Spreading out your donation means it won’t put a strain on your monthly budget, but your monthly contribution will still have a significant impact.
Fewer Asks, More Updates
In many instances, when an individual makes a one-time donation, they receive repeated requests for additional donations. However, a monthly donor should receive fewer asks but can receive updates on the progress of the organization’s work.
Become a Magical Dream Maker for SOS Illinois
The innovative SOS Illinois Village model of care builds safe, stable, loving, and nurturing homes for children, which enable them to make solid connections and supports to guide them as they become adults. Your donations are a lifeline for SOS Illinois.
We welcome all donations, but one of the most impactful ways you can help is becoming a Dream Maker—a monthly giving program that sustains our work to help the children and families we serve. The Dream Maker program ensures that our children have access to three essential services.
SOS Illinois regularly achieves a 100 percent high school completion rate, with more than 75 percent of those graduates pursuing college degrees. In addition, the SOS Illinois model ensures that children are not subjected to frequent new home placements.
Health and Wellness
Built-in access to on-site supportive services, recreational facilities, and peer support ensures that children have physical and psychological medical attention.
The stability offered by the SOS Illinois model allows children to get involved in cultural and community activities.
SOS Illinois Dream Makers are magical!