{"id":6946,"date":"2022-12-15T10:00:57","date_gmt":"2022-12-15T02:00:57","guid":{"rendered":"https:\/\/sgsupport.com\/?post_type=resource&p=6946"},"modified":"2023-04-17T16:25:53","modified_gmt":"2023-04-17T08:25:53","slug":"when-non-profit-regular-give-meets-subscription-economy","status":"publish","type":"resource","link":"https:\/\/www.sgsupport.com\/th\/resources\/when-non-profit-regular-give-meets-subscription-economy\/","title":{"rendered":"When Non-profit Regular Give Meets Subscription Economy"},"content":{"rendered":"

Who doesn\u2019t want a gift that keeps on giving? Well, that\u2019s why non-profits are increasingly looking to reduce their reliance on ad-hoc gifts and prioritise increasing their regular giving stream instead.<\/p>\n

Also known as sustainer giving, monthly giving, recurring donations, this model is an important source of long-term revenue for many non-profits because it is predictable, cost-efficient and mission driving.<\/p>\n

In many cases, the implementation of a regular give programme has helped many smaller charities grow, and enabled non-profits to scale the impact of their mission.<\/p>\n

If regular give is so good, why aren\u2019t all non-profits on it?<\/strong><\/h2>\n

To begin reaping the benefits of regular give, non-profits would need to first acquire a donor base. Scaling this donor base is often the biggest stumbling block. Doing acquisition campaigns at a large scale can come with a large upfront cost, and not every charity has the financial capital, risk appetite, nor board approval to do so.<\/p>\n

Then comes the retention capabilities to ensure that your donors are well managed. From donation processing, data handling, security and compliance, audit capabilities, CRM (Customer Relationship Management), communication to analytics \u2013 let\u2019s just agree that it can be extremely process orientated with many moving parts.<\/p>\n

On top of it all, charities will require time to reap the benefits of regular give. Time to grow and learn, and to keep investing into growing the programme. With time being a precious commodity, those that persevere see a renewed ability to drive their mission.<\/p>\n

Now what\u2019s the buzz about Subscription Economy?<\/strong><\/h2>\n

In this day and age, do you know anyone who isn\u2019t subscribed to something? <\/em>The subscription economy<\/a> has found its way into nearly every aspect of our everyday lives. And we, the users, wholly welcome the convenience, flexibility, and personalisation that comes with it.<\/p>\n

Just think about how many subscription services you are personally signed up for. From groceries to entertainment, the subscription model helps consumers plan their finances monthly, in return for goods or a needed service. Subscribers spend smaller amounts and avoid a big one-time fee barrier.<\/p>\n

Businesses too benefit, as they not only have a way to create repeat business that is predictable. Understanding how their consumers interact with their prescribed consumer journey gives insights to their behaviour.<\/p>\n

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The established subscription economy and science brings upon multitudes of learning for non-profits. From acquisition campaigns to retention processes, for-profit organisations constantly push new boundaries in the subscription economy, enabling non-profits to benefit from their learnings. Despite the similarities, inherently, the Subscription Model is different to the Regular Give model. Here\u2019s why:<\/p>\n

Subscription in for-profit <\/strong><\/h2>\n

Tangible benefit<\/strong><\/h3>\n

Millions of consumers pay regularly for specific tangible benefits. Hypothetically, let\u2019s say Sara has signed up with a movie streaming service. The value of the benefit is fixed and Sara chooses this subscription over other alternatives as she perceives it suits her wants and needs better.<\/p>\n

Emotional benefit<\/strong><\/h3>\n

At the heart of it, subscription in for-profit fulfils a need that is functional, rarely emotional driven. Most emotional attachments, if at all, are the after-effect of usage, which ranges from the feelings created when using the item\/service, to being empowered by the access to a handy solution, or even in creating a societal image that the user wants to portray.<\/p>\n

Cancelling a subscription<\/strong><\/h3>\n

The reasons for cancellation vary from the availability of alternatives, to no longer being useful, or financial reasons. When cancelling, the consumer loses the tangible benefit, and makes way for a similar alternative option, or a change in personal habits. For example, if Sara says bye to her chosen movie streaming service, she will either subscribe to another that better suits her wants, or change the way she watches movies.<\/p>\n

Regular give in non-profit <\/strong><\/h2>\n

Tangible benefit<\/strong><\/h3>\n

Donors give in support of the non-profit\u2019s vision. The value is flexible and based entirely on the generosity and means of the donor. There is no direct tangible return for the donor as the donation benefits the needs of others.<\/p>\n

Emotional benefit<\/strong><\/h3>\n

For donors, the ability to fulfil an altruistic need is a pull factor. Monetary donations enable people to contribute to a mission that aligns to their values without having to compromise on time or schedules. Sara pledges and gives on a regular basis to a cause she believes in, as it helps her feel that she\u2019s doing a part in creating a better world.<\/p>\n

Cancelling a regular give<\/strong><\/h3>\n

Financial constraint is the most common cited reason for cancellation. If Sara cancels on her gift, she is not entirely a lost donor. As the underlying reason to donate in the first place was an emotional fulfilment, non-profits that continue to engage and \u2018nurture\u2019 the sentiment stand a greater chance at reviving the gift when circumstances improve.<\/p>\n

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1. Make it all about the experience <\/strong><\/h2>\n

There is arguably nothing more important than your donor\u2019s experience, which shapes their wish to continue donating. Without their support and donations, non-profits will struggle to fulfil their missions.<\/p>\n

A Mckinsey research concluded that a key driving retention factor in the subscription economy lies in \u201cexperiential elements\u201d<\/a>. Hence, in a regular give programme, retaining your donors well also stems from a great donor experience. And that experience begins even before they become your donor.<\/p>\n

What counts as a good donor experience:<\/strong><\/h3>\n

Was it easy to look for information on what you do? Was it easy to sign up? Is your cause articulated with the donor AND beneficiary in mind? Are you making your donor feel heard? Are you putting your donors\u2019 best interest first?<\/p>\n

How to act on it:<\/strong><\/h3>\n