From Transactional to Transformative Giving: How Committed Giving Programmes Can Help Charities Make a Lasting Impact

For charities, a focus on committed giving (often referred to as a regular giving programme) is key when building sustainable income. In a committed giving programme, donors pledge to give a specific amount of money to an organisation on a regular basis, which may be monthly, quarterly or even annually, for an extended period of time, often through direct debits, standing orders or payroll. While once-off donations can also play a significant role in enabling organisational impact, particularly in the case of larger gifts, by focusing on committed giving you can build a more sustainable and reliable source of income for your organisation. For a donor, it also demonstrates their commitment to the cause; no matter the size of the recurring donation.  

5 Reasons to Prioritise Committed Giving: 

1. Predictable Income for Greater Impact:  

Committed giving ensures a dependable income stream for charities, enabling effective planning and budgeting. With a clear understanding of expected income from committed donors, organisations can better plan initiatives, plan for the longer term, and deliver more sustained impact for their beneficiary groups. By encouraging regular donations, charities empower donors to make a greater difference in the causes they're passionate about - even small contributions accumulate over time and have a tangible impact on the people and communities that an organisation supports. 

2. Easy and Effective for Both Charities and Donors:  

Recurring donations offer an easy and effective solution for not-for-profits and donors alike. By spreading contributions throughout the year, donors can manage their own finances while increasing their overall annual support. This approach is particularly beneficial for committed supporters who may not have the means to make significant one-time donations but are keen to make a tangible impact. From the not-for-profit's perspective, monthly donations provide a less intimidating way to ask for larger commitments. Instead of requesting a larger lump sum annually, organisations can ask for smaller monthly amounts that accumulate to a substantial annual total.

*Note: In Ireland, if your organisation has held a charitable tax exemption (CHY Number) for at least two years, you can avail of The Charitable Donation Scheme (CHY 2 status). This means that if an individual taxpayer in Ireland makes a minimum donation of €21 per month or €250 or above in the year to your Committed Giving Programme, your organisation can claim a refund of tax paid on that donation by the donor. Find out more on the Revenue website. 

 3. Improved Cash Flow:  

Recurring donations offer significant operational benefits for charities. Many organisations experience a concentration of income during specific seasonal donation periods, such as Christmas. This can create operational challenges, particularly for smaller organisations, as their revenue becomes heavily concentrated in certain months while operating costs remain consistent throughout the year. As a result, there may be insufficient funds during slower periods. By establishing a predictable revenue stream through encouraging monthly donations, not-for-profits can address this imbalance and receive support during traditionally less active periods, helping to ensure adequate resources even during slower months.  

4. Increased Donor Loyalty and Retention:  

Committed giving can help to build a deeper relationship between a charity and its donors. Regular communication and updates on the impact of their donations can help to keep donors engaged and invested in a cause. By focusing on regular giving, charities can improve their donor retention rates and build a more sustainable base of support. Additionally, regular donors are often willing to take additional actions for your organisation in addition to their monthly donations: Of all one-time donors who return to start a recurring giving subscription, 25% go on to make an additional one-time gift on top of their recurring gift. Of those recurring donors, 51% return to also give through a different campaign type (Source: The State of Modern Philanthropy 2020).  

5. Reduced Fundraising Acquisition Costs in the Longer Term:  

While recruiting donors to a regular giving programme can take a significant investment of time and resources initially, by nurturing long-term relationships with committed donors, charities can reduce the need for costly and continuous donor acquisition efforts. This can help them to focus resources on other areas of their work. Through the RAISE Programme, a capacity-building programme which OKC delivers on behalf of the Arts Council, we have worked closely with a number of arts and cultural organisations - who in many cases don’t have the budget for large direct mail or face-to-face fundraising campaigns often utilised by mid-to-large sized charities – to take initial steps to embed committed giving into their donor development programmes. 

Case Study: Crash Ensemble’s Crash Circle 

Through the RAISE Programme, OKC were delighted to work with Crash Ensemble on the development of their Regular Giving Programme, Crash Circle.  

Crash Ensemble is Ireland's leading new music ensemble. As a committed giving programme, Crash Circle is an opportunity for supporters to invest in the unique creative process, which enables Crash Ensemble to nurture creative talent; develop new ideas; explore new ways of presenting music and create new adventures for their audiences. OKC worked closely with the CEO and the wider Crash Ensemble artistic team, to identify the key areas of their work, and how to frame different giving levels, focusing on what a regular donation would enable for the organisation and the wider ecosystem of contemporary music in Ireland. In an exploratory workshop with the entire team, four distinct levels of giving were identified, which align with the entire lifecycle of Crash Ensemble’s work, from incubation to production. Those are: 

• Crash Seed – Support the incubation of new ideas  

• Crash Catalyst – Support the development of new work 

• Crash Adventurer – Support the production of work

• Crash Live Wire – Support the life cycle of work 

The team at Crash Ensemble identified unique opportunities to offer supporters the chance to get closer to the work of Crash Ensemble, through a series of bespoke benefits focused on the creative process, from access to exclusive content to invitations to Open Crash rehearsals, a ‘money can’t buy’ experience. Developing a committed giving programme in this way, ensures that the entire team feels ownership of the programme, will champion and promote it and encourages engagement at all levels within the organisation.  

Other examples of regular giving programmes in the arts sector include Children’s Books Ireland’s Leading Lights and ICO’s €21 in ‘23 (which began as €21 in ‘21’). 

If you're considering setting up a committed giving programme, here are some tips to help you get started: 

1. Develop a clear and easy-to-use donation platform:  

Make it easy for donors to sign up for regular giving by developing a clear and user-friendly donation platform. This could include options for direct debit or payroll giving among other avenues. 

2. Develop a clear identity for your Regular Giving Programme:  

Choose a name that reflects the essence of your programme and resonates with potential donors. Develop a distinct visual identity through a logo, colour scheme, and design elements that align with your overall branding. 

3. Craft a compelling narrative:  

Tell a powerful story about the impact of recurring donations and how they contribute to your organisation's mission. Highlight the long-term benefits and outcomes that committed donors will enable. 

4. Offer and communicate incentives and recognition:  

Consider offering incentives or recognition to donors who give regularly. This could include joining a Friends Club or Donor Circle, exclusive updates, an invite to a donor reception or annual thank you event with an opportunity to meet key team members. Clearly outline the advantages of participating in your Committed Giving Programme.  

5. Communicate regularly with donors:  

Keep donors engaged and informed about the impact of their donations by communicating with them regularly. This could include updates on your work, success stories, or personalised thank-you messages. 

Conclusion 

Establishing a committed giving programme takes time and effort, but if done well, it’s an effort that can pay off in the long run, and it begins with taking these small, actionable steps. Over time, the return on investment from each monthly donation can play a key role in the long-term sustainability for your organisation. In some cases, your regular donors of today can become your major donors or legators of tomorrow if you have a good donor stewardship programme. At OKC, we regularly work with not-for-profits from a variety of sectors on developing sustainable fundraising strategies that requires a shift from transactional to transformational giving. We firmly believe that committed giving can play a key role in helping charities make a lasting impact, and we’re here to help you make this funding avenue a priority. Find out more about how we can support your impact here.