Some years have more disruptions than others. As fundraising teams prepare for the year ahead, one of the most strategic moves they can make is prioritizing recurring giving. Monthly donors provide a reliable, predictable revenue stream, reducing financial uncertainty and strengthening donor relationships. But how do you encourage recurring gifts, and what’s the best way to handle receipts?
Here’s everything you need to know to maximize recurring giving for your charity.
How Your Charity Would Benefit
1. Increased Revenue Over Time
While recurring donors typically contribute smaller amounts per gift, their average donor lifespan value (DLV) is much higher than that of one-time donors. The DLV is calculated by:
Average number of years donors give X Average donation value X Average number of gifts/donor/years
📌 Canadian Context: Charities in Canada can leverage this strategy by partnering with local businesses for matching donations, encouraging recurring donations among members of the organization, or providing exclusive contact points for monthly donors.
2. Recurring Giving Simplifies Donations for Donors & Charities
Many donors prefer smaller, manageable monthly contributions rather than a large one-time gift. This makes giving more sustainable and increases donor retention.
🚀 Automation makes it easy! Platforms like CanadaHelps, Zeffy, or DonorPerfect handle automated payments, donor reminders, and even receipting.
📌 Example: The United Church of Canada’s Pre-Authorized Remittance (PAR) program has successfully enabled recurring donations since 1976, reducing admin work while increasing donor retention.
💡 Charity Tip: Offer flexibility. Let donors choose between monthly, bi-weekly, or even weekly giving.
3. Improved Cash Flow for Charities
A steady flow of monthly gifts helps stabilize finances, ensuring your charity can continue its work even during slow fundraising seasons or economic downturns.
🔎 Key Benefit: Predictable revenue allows you to plan for operational expenses, program growth, and emergency needs without relying on inconsistent one-time gifts.
💡 Charity Tip: Use donor segmentation tools in your CRM to track and forecast recurring revenue, allowing for better financial planning.
4. Long-Term Planning Becomes Easier
When you know how much recurring revenue your charity can expect, you can confidently:
- Hire new staff
- Expand programs
- Develop new initiatives
💡 Charity Tip: Many charities use a donor lifespan analysis to determine how long the average recurring donor stays engaged, helping them forecast future budgets and resource allocation. This analysis is done by critically reviewing changes over time in the variables that make up the DLV formula.
5. Cost-Effectiveness & Donor Retention
Recurring donors are more cost-effective to maintain than one-time givers. Acquiring new donors is expensive, but keeping engaged monthly donors requires less ongoing fundraising effort.
💡 Charity Tip: Keep donors engaged through personalized emails, impact stories, and exclusive updates. Small touchpoints can significantly improve donor retention and lifetime value.
How to Receipt Recurring Donations in Canada
The Canada Revenue Agency (CRA) allows charities to issue a single cumulative receipt for all recurring donations within a tax year. This benefits both donors and charities:
- For Donors: A single tax receipt simplifies their tax filing.
- For Charities: Reduces administrative workload, paper, and mailing costs.
📌 Important Note: This applies only to cash donations. Gifts-in-kind, such as securities, still require individual receipts.
Steps to Implement Annual Cumulative Receipting
Track all recurring donations in your donor management system throughout the year.
Generate cumulative receipts in January or February of the following year.
Break down each donation on the receipt for transparency.
Ensure compliance with CRA rules, including:
- Charity’s name and registration number
- Donor’s full name
- Total amount donated in the year
💡 Charity Tip: Automate this process using Client Relationship Management (CRM) systems.
What You Need to Know About Donation Platforms and Receipting
If your charity uses a third-party platform to handle recurring donations, here are key considerations:
- Platform Capabilities – Ensure it supports annual cumulative receipts in line with CRA regulations.
- Customization Options – Can you personalize receipts with branding, donor appreciation messages, or impact reports?
- Record-Keeping Features – Does the platform provide easy access to donor data for audits or donor inquiries?
- Donor Communication – Let donors know in advance that the platform will issue their receipts.
💡 Charity Tip: Conduct periodic audits of your receipting process to ensure accuracy and timeliness.
Next Steps for Your Fundraising Team
- Promote your recurring giving program in year-end appeals and online giving campaigns.
- Educate donors on the tax benefits and ease of automated giving.
- Ensure your receipting process is efficient, compliant, and donor-friendly.
By investing in recurring giving strategies, your charity can secure long-term sustainability, reduce administrative overhead, and build stronger donor relationships.
Are you ready to take your recurring giving to the next level?
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