The Difference Between Give Now Pay Later & Recurring Gifts
There's one question we get from Givzey's future customers more than any other: What is the difference between Givzey and Recurring Giving?
GNPL and Recurring (or Monthly) Giving is not an either, or conversation. In fact, many of Givzey's customers use the two strategies in tandem to create amazing donor journeys that lead to increased and more consistent giving. We'll examine that partnership between GNPL and Recurring Gifts, but first, precisely establish what we mean by each giving strategy.
Recurring Giving / Monthly Giving
Recurring Giving, often set up into Monthly Giving programs are regular donation plans that automatically charge donors a specific amount of money every month. For many donors, monthly giving is a way to spread the financial commitment of giving over the course of the year, without having to fill out a form each month.
Nonprofits love monthly giving programs because they provide a pipeline of regular support each month. However, these programs do create issues, as members of the business office are often charged with chasing down payments that don't come through, asking donors to update payment details, and reconciling the books when expected pledges fall short.
Give Now Pay Later (GNPL)
Give Now Pay Later is a flexible giving solution that empowers donors to give what they want today, but pay for the gift in installments. In short, their generosity is rewarded by lessening the impact of giving on their personal finances. Donors benefit from knowing their entire gift goes to the nonprofit upfront and in full, so it can make an immediate impact.
Beyond receiving a donor's gift upfront, nonprofits benefit from GNPL solutions because they receive immediate access to capital, assume no risk to chase down pledges, see increased giving, and have zero tech lift to improve a donor's journey.
Combining Recurring Giving + Give Now Pay Later Models
A new development that the Givzey team has seen as a growing trend across the nonprofit sector is combining recurring giving with GNPL.
Monthly sustainers are incredibly important because they are financially committed and don't have to lift a finger to renew their gift. But they are also relatively difficult to find. Monthly sustainer donors fit a specific persona, they are aligned with your organization and your mission, have likely given for years, and are a part of your community.
Nonprofit leaders are using Givzey's GNPL solution to create a pipeline for their recurring giving program. Some nonprofits are strategically using Givzey to appeal to $100-$1000 donors who have given once or a couple of times over the past few years, but who have not made a consistent habit of giving. These donors are "surface scratchers," and perfect candidates for GNPL.
By appealing to these donors with GNPL flexible giving options, they get to make a gift that they will see as impactful, pay it off in small installments, and most importantly develop a ritual of monthly giving through their GNPL giving advance. Givzey's GNPL platform includes appeals to deepen the relationship with your cause and to increase their giving activity. After four months are up and the donor has finished giving through GNPL, they are incredibly open to giving at higher levels and even more often.
Donors want to be as close to the nonprofits they love and support as possible. Giving barriers often get in the way of that relationship. Givzey creates flexible giving options for donors – multiple ways they can make gifts that fit with their personal financial situation. Opening giving pathways empowers donors to give in ways that are meaningful to them and impactful for your organization.
Giving is never one-size-fits-all. Give your donors every opportunity to donate.