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P2P Predictions: Subscription Models

by Sean Staggs

As we jump into 2023, and start looking towards what is in store for the new year, growing sustained giving, or recurring giving, can be a great way for non-profit organizations to increase their revenue and support their ongoing efforts. And the on-going rise in popularity of the subscription service model in the overall economy will continue to shape nonprofit revenue portfolios.

Possibly prompted by the pandemic, the world has seen a huge spike in the availability of, and reliance on, subscription services. From home delivery services, streaming sites, socks, razors, and even premium features for automobiles including Mercedes, businesses know that a person’s lifetime value to the company increases when they can get someone into a subscription service with them.

In the nonprofit world, that translates to sustained giving, or recurring giving. My prediction is that the growing consumer acceptance & familiarity with the subscription model will lead to a continued increase in sustainer giving revenue by non-profits, as well as a more focused effort on this revenue stream by nonprofits. Sustainer giving as a revenue channel for nonprofits has been on the rise:

Classy reported a 37% increase in new recurring donations on Giving Tuesday for 2022 compared to 2021.
M+R’s 2022 Benchmark reported that monthly giving increased by 24% & accounted for 22% of all online revenue for nonprofits in 2021.
Prior to GivingTuesday this year, Meta announced that Facebook would match any recurring donations made to nonprofits on their platform for GivingTuesday.

If your nonprofit would like to ride the wave & grow this revenue stream, the key is to make sustained giving easy and rewarding for donors to support your organization on an ongoing basis. By doing so, you can build a stable source of funding that can help your organization achieve its goals and make a lasting impact.

Onward to 2023

As we step out of the past and venture into the future, we hope these predictions can brighten up your 2023. And with that thought, the Charity Dynamics consulting team wishes everyone of you the best for a successful year to come! And check out more informative blogs from Charity Dynamics here.

Learn more about how Charity Dynamics can help bring your organization into the future.

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