MONTHLY GIVING

A Thoughtful Next Step for a Strong Annual Fund.

By Catherine Heitz New

Most arts and cultural organizations already offer a recurring-gift option on their donation forms, and some donors use it. But a checkbox is not the same as an intentional monthly giving program. That said, let’s put first things first: Before promoting recurring gifts, an arts organization should ask whether its Annual Fund is ready to support them.

If Board fundraising is weak, major donors are not receiving personal solicitations, direct mail is inconsistent, or stewardship is falling behind, those responsibilities deserve more immediate attention. Monthly giving will not repair a neglected Annual Fund. Building a new program can also draw Development staff away from work with greater potential returns. The fundamentals of getting, keeping, and upgrading donors still come first.

Once those practices are established, monthly giving can be a worthwhile next step. It offers donors a convenient way to sustain their philanthropy and gives the organization another way to strengthen retention and long-term relationships. The goal is not to convert everyone to monthly payments; it is to offer an appropriate option to supporters who may welcome it.

Understand the Commitment

A monthly gift is an ongoing charitable commitment. The donor authorizes monthly payments until choosing to change or end the gift. Unlike an installment pledge, it has no predetermined total or end date. Nor is it the same as paying a membership in monthly installments. Membership may provide admission and other consumer benefits, whereas a monthly Annual Fund gift is philanthropic support. Arts organizations should distinguish these relationships in both donor communications and their records.

Recognition should reflect the donor’s intended commitment. Someone who begins giving $50 a month has established $600 in annualized support, even if only a few payments fall within the current fiscal year. That commitment may justify recognition at the $600 level, though the finance team must still report actual receipts accurately. Clear policies are especially useful when charitable recognition and membership benefits overlap.

The Opportunity—and the Cautions

Recent research offers encouragement, although no national study can predict the results for every arts organization. In M+R’s 2022 Cultural Cohort, average annual revenue was $346 per monthly donor, compared with $173 per one-time donor. That comparison supports taking recurring giving seriously, while leaving room for differences in donor populations and program design.

Development staff must also protect existing giving. A reliable $500 annual donor should not be encouraged to switch to $25 per month, which would reduce annual support to $300. By contrast, a donor who regularly gives $250 might welcome a $25 monthly commitment, increasing annual support to $300. Gift history, capacity, and the individual relationship should shape the invitation—not a standard monthly amount offered to everyone.

A recurring commitment also does not mean the donor has finished giving for the year. An arts organization may appropriately invite a monthly donor to support a special exhibition, an artistic project, or an educational initiative. The request should begin by recognizing the donor’s ongoing support, rather than treating that person as someone who has yet to give.

Putting Monthly Giving to Work

For an arts organization with a strong Annual Fund, a monthly giving program can begin modestly. Six practices will help Development staff make it effective without creating unnecessary complexity:

• Start with loyal supporters. Consider repeat donors, longtime subscribers, engaged members, visitors, and volunteers. Existing loyalty is a better starting point than an indiscriminate appeal.

• Make a thoughtful Ask. Review giving history and likely capacity before suggesting a monthly amount. The objective is to sustain or increase annual support, not to reduce it inadvertently.

• Recognize the full commitment. Establish consistent policies for annualized giving levels, acknowledgments, and benefits, especially when the donor also holds a membership or subscription.

• Prepare staff and systems. Make enrollment and changes easy, keep records accurate, reconcile payments, and assign responsibility for failed transactions. An expired card is not necessarily a cancellation.

• Keep stewardship personal. Thank recurring donors, show them the work their gifts sustain, and invite them into the life of the institution. An automated receipt is only the beginning.

• Measure and improve. Track enrollment, retention, annualized commitments, upgrades, and payment failures. Begin with a manageable group and adjust the program based on what donors actually do.

Automatic Payments  Automatic Stewardship

Stewardship deserves particular attention because automatic payments can create a false sense that the relationship is taking care of itself. Imagine a supporter who has given every month for four years. Would that person feel known and appreciated by the organization, or merely processed by its software? Development staff still need to listen, cultivate, and express gratitude. Predictable revenue is valuable, but the ongoing relationship is what makes it possible.

Assess, Build, Steward

Monthly giving belongs within a strong Annual Fund, not alongside it as a competing campaign. Arts leaders should begin by assessing their fundraising fundamentals, staff capacity, and data systems. If those are sound, a carefully managed monthly option can offer loyal supporters another way to deepen their commitment.

Most importantly, remember that while the payment may be automatic, the donor’s decision to continue giving remains personal.

If your arts organization is considering monthly giving or reviewing an existing program, schedule a complimentary 30-minute Zoom conversation with Catherine Heitz New, CEO of RSC Associates, to discuss how recurring philanthropy could fit your broader Annual Fund strategy.