In our previous Blog post, ‘Tapping into the Potential of Regular Gift Giving”, we highlighted the key benefits of encouraging donors to contribute a monthly recurring gift. Many nonprofits have discovered how effective a regular gift-giving campaign can be and are realizing increased fundraising revenue as a result.
With more and more donors gaining confidence in making online transactions, one of the convenient ways a supporter may choose to make monthly contributions is via a credit card. And while it’s a fast, easy and reliable way to make a donation most of the time, it does present one unavoidable challenge – expiry dates.
The Right Tech Tools Can Help
The reality is, most donors won’t automatically think to call the charities they support when their credit card expires. And in any given month, it’s estimated that 6-8% of your donors’ credit cards will expire, leaving a definite negative impact on your bottom line. To avoid a sizeable revenue loss due to credit card expiry dates, your nonprofit needs an effective renewal process in place.
Staying on top of your constituents’ credit card expiry dates can be a tedious and labor-intensive process. However, in order to benefit from a recurring gift program, tackling expiry dates is a necessary task.
While some organizations attempt to take on the task manually, it is time-consuming and requires resources that could be better utilized elsewhere. Luckily, there are technology tools that can simplify the whole process and free up staff to focus on other aspects of your nonprofit.
Cloud-based Solutions Automate Renewals
To handle their donor database, many nonprofits have already turned to Constituent Relationship Management (CRM) solutions that leverage the power of Cloud-based computing platforms, such as Salesforce.com. Because there’s no software to install or hardware to maintain, nonprofits enjoy lower costs, lower risks and see an immediate ROI.
Automating the credit card renewal process is just another task that can easily be assigned to your CRM. Here’s how:
Capture Donor Data – Your database can be as complete as you make it. Ask donors for all vital information from email addresses to credit card expiry dates. The more data you capture, the more options you’ll have when it comes to generating reports and automating processes such as credit card renewals.
Automatically Send Out Renewal Notices – Using the information in its database, your CRM solution can easily deploy automated email communication templates to notify donors when their credit cards expire.
Deliver Timely Follow-up Reminders – If a donor has not responded to the initial email notification, you can schedule a follow-up email (typically 30 days after the first communication) to remind them to provide the new credit card information.
Receive Automatic Failed Delivery Notices – Sometimes email addresses will fail due to people moving jobs and changing emails or switching email platforms. A CRM solution can notify internal staff immediately when an email fails so that they can follow up using another method.
Send Prompt Thank You Notes – A CRM solution can also automate the task of sending out acknowledgements. As soon as a donor renews their credit card information, they’ll automatically receive a ‘Thank-you” letter for updating their information and their continued support.
Cloud-based CRM solutions can make it easier and more affordable for nonprofits to better manage expiring credit cards and, in turn, capture more revenue.