The sustainer debate

One interesting aspect of our line of work is settling disputes. Recently, the debate was about whether sustained giving is the way to go... and whether $5/month sustainers have value, or are insignificant to your efforts. 

There is no debate.  Monthly sustained giving is now a definitive best practice in nonprofit organizations nationwide. And most successful organizations are aggressively pursuing sustainers. 

Why?

Membership retention continues its slow decline.  And fewer people are entering the ranks as new donors. Add to that, new generational behavior, and the impacts of new technology, and we have shrinking donor files, diminishing revenue, and higher costs to acquire donors from a smaller pool of prospects.

Sustained giving can improve your net revenue bottom line far into the future.

Here’s an example: Let’s say 40% of your first-year members typically renew for a second year. This means that every year, you must work to fill up the hole that was left by the 60% who don’t return. This is difficult, time consuming, and expensive.

On the other hand, an average of 90%+ of your sustainers stick with you from year to year. This not only increases your gross revenue, but also adds to your bottom line since you’ve eliminated the need to spend money trying to renew them.

Additionally, sustainers are likely to give a higher average gift than they would if they were not sustainers (sometimes as much as 40% higher), which also boosts your revenue.

Research shows that donors are only likely to become sustainers to a maximum of four or five organizations, which is why it’s imperative to secure them now for your organization before all of your best prospects are tied up elsewhere.

Sustained giving is an exceptional tactic to employ, and is positively changing the revenue picture.

**Up next – is $5/month too low?