Let’s discover two fundraising situations. Faculty A and Faculty B are each holding month-long read-a-thon fundraising campaigns to cap off the tip of the varsity 12 months. Faculty A asks college students to gather flat donations of $10 from their family and friends. Faculty B makes use of the pledge fundraising mannequin and asks college students to gather $3 pledges for every hour spent studying from their sponsors.
Ultimately, each colleges are profitable—however Faculty B raises extra money and has higher participation from college students. It is because the scholars knew that they might increase extra to help their college just by spending extra time studying.
This information will discover how your college or nonprofit can use pledge fundraising to enhance its influence by breaking down among the high steadily requested questions (FAQs). Let’s start.
1. What’s pledge fundraising?
A pledge happens when a donor guarantees to make a present of cash, items, or providers that will probably be delivered to the group at a later date. Donations, then again, are paid instantly. Generally donors use pledges to stagger bigger funds, breaking them into extra manageable funds (e.g., pledging to provide $1,000 over six months).
However how does this course of work in observe? 99Pledges’ information to kid-friendly fundraising concepts illustrates how your group can weave this fundraising technique into your subsequent marketing campaign:
- Work with a pledge fundraising software program supplier to arrange donation pages for contributors.
- Encourage your contributors to share the donation pages on-line.
- Individuals acquire pledge donations from family and friends, normally corresponding with a unit of distance, time, or amount (e.g., $1 per automobile washed throughout a automobile wash or $3 per mile jogged throughout a jog-a-thon).
- Monitor pledges utilizing your fundraising software program.
- Acquire proceeds as soon as the occasion wraps up. Your software program ought to robotically ship reminders and acquire funds from donors.
Needless to say pledges are completely different from month-to-month giving initiatives. Month-to-month or recurring giving implies that the donor has enrolled in your sustainer program and agrees to donate a particular greenback quantity every month (e.g., $25 every month, on repeat). Whereas a donor might pay some pledged donations in installments, this doesn’t make them part of your month-to-month giving initiative.
2. Why settle for pledges?
Pledge fundraising is an efficient technique for nonprofits, colleges, and different fundraising organizations as a result of it:
- Is extra versatile. Improve your donors’ experiences and safe extra donations by providing them alternative ways to donate. For instance, throughout a walk-a-thon they could select between giving pledged donations for every mile walked or donating a flat fee. Flat charges enchantment to donors who know what they wish to donate whereas pledges might be higher for individuals who can’t or don’t want to donate instantly.
- Can enhance donors’ capability to provide. Not all your supporters can afford to provide massive quantities at one time. Nonetheless, pledge donations give them the choice to pay towards a bigger sum over a number of months. Whereas your group received’t obtain an instantaneous main reward, these small donations add up.
- Offers extra alternatives to steward supporters. With pledged donations, you’ll have at the least two alternatives to attach with them: after they make the pledge and after they donate. In the event that they plan to meet the pledge in a number of funds, you’ve much more possibilities to point out your gratitude. Ship donors heartfelt thank-you messages and share the influence that their contributions need to steward the connection.
Pledges are additionally a good way for donors to offer focused help to the causes or tasks they care about most. For instance, an afterschool program may use a sports activities group fundraising concept like a baseball hit-a-thon to boost cash for its group sports activities program. When donors pledge to donate to this marketing campaign, they’ll know precisely the place their funds are going.
3. How are pledges collected and processed?
There are various alternative ways to handle pledged donations, and it’s as much as your group to determine what works greatest. Nonetheless, there are some ideas and greatest practices to comply with that may maintain the method operating easily:
- Use pledge fundraising software program that can monitor pledges and fundraising progress throughout your marketing campaign.
- Settle for quite a lot of fee strategies like bank cards, PayPal, ApplePay, and GooglePay to make donating versatile and handy for donors.
- Leverage on-line donation pages. Since pledges are sometimes collected by means of peer-to-peer fundraising, contemplate making a donation web page for the entire marketing campaign and permitting contributors to create particular person pages.
- Select a fee processor or fundraising platform that’s secure and safe. Usually, these suppliers are PCI compliant and make use of safety measures like information encryption and two-factor authentication.
Moreover, you’ll must be sure you’re asking for these donations in an efficient means. As a result of some donors will not be acquainted with pledge fundraising, clarify how the tactic works in your asks. In case your group is holding a peer-to-peer marketing campaign, share some fundamental fundraising ideas and advertising supplies with contributors.
4. What occurs if a donor doesn’t fulfill their pledge?
Sadly, pledge attrition can occur in virtually any marketing campaign. Nonetheless, a mean of 84% of occasion fundraising pledges are fulfilled, so you’ll be able to relaxation assured that this isn’t a rampant problem that can significantly influence your success. To offset any anticipated losses, set the expectation that you simply received’t obtain roughly 10% of the full quantity pledged.
In lots of instances, pledging to donate shouldn’t be legally binding. Because of this one of the simplest ways to curb pledge attrition is thru preventative measures. Begin with clear communication—be certain that donors perceive what pledging to donate means, inform them after they might want to make the fee, and ship out reminders.
Moreover, some fundraising platforms require a donor’s card data to course of the pledge. This fashion, your nonprofit can robotically acquire the agreed-upon quantity on a particular date (and neither you nor the donor will overlook about it).
5. How can your group encourage donors to pledge once more?
You’ll must make efforts to steward your group’s relationship with donors to make sure they pledge once more sooner or later. To take action, arrange a gratitude system that features parts like:
- Sending donors thank-you messages. Share an e mail or handwritten letter expressing your gratitude for his or her help. eCardWidget’s information to thanking donors recommends including private particulars like the quantity donated, centering the donors’ influence, and making certain your message suits the reward quantity.
- Creating donor recognition partitions. Recognition partitions are mounted, public shows in your facility that characteristic the names of your high, most loyal donors. These partitions honor the donors’ contributions, bodily signify your neighborhood of supporters, and make these featured really feel deeply related to your trigger.
- Giving high donors public shout-outs. Establish the donors that pledged the biggest quantity, contributed for the primary time, or have joined in on essentially the most pledge campaigns. Then, ask in the event that they’d prefer to be featured in your web site or social media. Contemplate asking them a number of transient questions on why they help your trigger. You may characteristic their solutions within the submit.
In case your nonprofit or different group shares an influence or annual report, contemplate including a bit that acknowledges impactful donors. Unfold consciousness of your pledge fundraisers and enhance supporter retention by including a particular part to focus on the influence of pledge-based fundraisers.
Pledge fundraising permits your group to provide its supporters a distinct strategy to contribute to your trigger. The flexibility to make smaller donations over time or sooner or later can enhance your donors’ capability to provide. Unit-based pledges can empower contributors in charity races, dance-a-thons, and different occasions to go the additional mile through the marketing campaign.
To encourage each your donors and contributors to do extra to additional your mission, contemplate implementing pledge fundraising into your subsequent marketing campaign.
Concerning the Writer
Rodrigo Ramos
Rodrigo Ramos is the Supervisor of Buyer Success at 99Pledges, the #1 on-line fundraising platform for colleges, sports activities groups, music teams, and extra. 99Pledges offers organizations with an easy-to-use, web-based resolution to handle and drive success in fundraising. The platform’s strong performance can help easy pledge drives in addition to performance-based campaigns (e.g. enjoyable runs, walk-a-thons, read-a-thons, and so forth.).
