Key Term

What is Recurring Giving?

Definition

Recurring giving refers to a donation arrangement where a donor authorizes regular, automatic contributions to a charitable organization at fixed intervals, typically monthly, quarterly, or annually. This automated giving method allows donors to spread their charitable contributions throughout the year instead of making one-time donations, creating a consistent and reliable stream of funding for nonprofit organizations.

Significance

Recurring giving is crucial for nonprofit organizations as it provides predictable revenue that enables better planning and sustainable operations. For donors, it offers convenience and helps them budget their charitable giving more effectively while potentially increasing their total annual contribution through smaller, manageable amounts. This giving model also tends to result in higher donor retention rates and stronger long-term relationships between donors and organizations, as recurring donors often feel more connected to the causes they support through their ongoing commitment.