Key Term

What is Recurring Donations?

Definition

Recurring donations are regular, automated contributions made by donors to charitable organizations at predetermined intervals, typically monthly, quarterly, or annually. These donations are set up once and then process automatically through credit cards, bank transfers, or other payment methods until the donor chooses to modify or cancel them.

Significance

Recurring donations are crucial for nonprofits as they provide a steady, predictable stream of income that enables better financial planning and sustainable operations. For donors, they offer convenience and help build a lasting relationship with chosen causes while potentially making larger cumulative contributions more manageable through smaller, regular payments. This giving method has become increasingly important in modern philanthropy, as it helps organizations reduce fundraising costs, improve donor retention, and maintain consistent programming even during challenging economic times.