TL;DR:
Recurring Giving is the key to building lasting financial resilience for your church. It provides a consistent, predictable revenue stream that boosts budgeting, fuels ministry growth, and protects against seasonal giving slumps. Recurring givers contribute 33-40% more annually and boast retention rates of over 80% after the first year. By promoting recurring giving, especially through cost-saving ACH payments, your church can enjoy financial stability—even in uncertain times.
In today’s unpredictable economy—where the stock market swings wildly and giving patterns falter—churches face a critical challenge: how to maintain financial stability. The answer lies in a powerful, often overlooked strategy: recurring giving.
In this post, we'll show you why recurring giving is essential to ensuring your church's financial health and how you can make it a core part of your giving strategy.
Why Recurring Giving Is Necessary for Financial Stability
Every church faces the problem of inconsistent weekly giving. But why is giving so unpredictable? Here are some of the major reasons:
- Fewer People Carry Cash or Checks: Digital transactions are the new norm, leaving traditional donation methods behind.
- Sporadic Attendance Results in Sporadic Giving: Even the most faithful members aren’t present every Sunday.
- Seasonal Giving Slumps: Summer vacations, holidays, and bad weather can significantly impact weekly offerings.
When giving isn’t consistent, your church’s ability to plan and budget effectively is compromised. That’s where recurring giving comes in.
How Recurring Giving Transforms Your Church’s Finances
Implementing a recurring giving strategy offers several benefits that can truly change the way your church manages its finances.
1. Financial Stability Year-Round:
Recurring giving provides a consistent revenue stream, giving you stability regardless of attendance fluctuations. Imagine not having to worry about paying the bills during the slow summer months.
2. Improved Budget Planning:
With predictable income, you can eliminate the guesswork from your budget planning. Knowing your monthly revenue helps your church plan for future projects and ministry work with confidence.
3. Empowering Ministries to Dream Bigger:
When funds are predictable, ministries can confidently plan for upcoming initiatives. Whether it’s launching a new outreach program or expanding your facility, recurring giving allows your church to dream bigger.
4. Increased Giving Amounts:
Recurring givers statistically give 33-40% more annually than one-time givers. They are more invested in your church’s mission because their giving is regular and intentional.
5. Higher Donor Retention Rates:
Recurring givers have a high retention rate. Studies have shown that new donor retention averages less than 20%, while monthly giving programs have retention rates of over 80% after the first year and over 95% after five years. 1.
6. Greater Donor Lifetime Value:
According to research from The Nonprofit Quarterly, a 10% improvement in donor retention rate can result in a 200% increase in donor lifetime value. 2.
The Psychology Behind Recurring Giving
Recurring giving is not foreign to donors. Think about how many people subscribe to services like Netflix or Spotify to make their lives easier. The same principle applies to giving—when it becomes a habit, it feels more natural.
Creating a habit of generosity is the key to building a consistent giving community.
How to Make Recurring Giving the Norm, Not the Exception
If you want to maximize the benefits of recurring giving, try these proven strategies:
1. Make Recurring Giving Easy:
Make sure your donation form prominently displays recurring giving options. This subtle change can dramatically increase the number of recurring donors.
2. Shift Your Language:
Stop saying, “Would you give?” and start saying, “Join our recurring giving community.” It’s a small change with a big impact.
3. Tie Recurring Giving to Impact:
Clearly communicate how ongoing gifts support your church’s mission. For example, “Your recurring gift funds these ongoing missions…”
4. Celebrate Recurring Givers:
Acknowledge their importance with personal notes, small gifts, or insider updates. People love to feel appreciated and included.
The Winning Combination: Recurring with ACH
At OnlineGiving.org, we make it easy for donors to set up recurring donations. When they click the "Give" button, they’re prompted to choose the option to make their gift recurring.
We also highlight the benefits of using ACH payments, a direct bank transfer method that reduces processing fees, meaning more of each donation goes to your church’s mission.
Benefits of ACH Transactions:
- ACH transactions are less expensive than credit cards, saving churches up to 1.75% per transaction.
- For example, switching $100,000 in monthly donations from credit cards to ACH can save $1,750 per month.
- Over a year, those savings grow to $21,000—enough to fund additional staff, community programs, or facility improvements.
At OnlineGiving.org, we make recurring giving with ACH giving easy by prominently featuring both options on your giving page. With just a few clicks, donors can set up recurring gifts, ensuring consistency and cost savings without hassle.
Take Action Today
Recurring giving is the closest thing churches have to financial stability in a volatile giving landscape. It’s time we stopped treating it as an optional tool and started building entire stewardship strategies around it.
Every month you delay building a recurring giving strategy, you are endangering future potential ministry. Don’t wait until the next economic downturn to act.
Ready to secure your church’s financial future? Contact us today at (615) 206-4000 or support@onlinegiving.org for a free demo. Let’s unlock the hidden power of recurring giving together!
1. https://www.bonterratech.com/blog/recurring-donations-guide?utm_source=networkforgood&utm_medium=redirect
2. https://www.issuelab.org/resources/15763/15763.pdf
