For nonprofit organizations that depend on membership fees providing them with a reason to renew for revenue, drumming up support for memberships and subscriptions in 2023 has emerged as one of the most difficult challenges for managers. With inflation remaining the wrench thrown into the economy, many members and subscribers look to cutting renewal fees as the first expense to remove from the monthly or annual budget. In addition, the negative economic impact generated by the COVID-19 pandemic continues to be a drag on the finances of many subscription and membership-based nonprofit organizations.
Although achieving a healthy membership renewal rate is currently a tremendous fiscal challenge, you can take several steps as a nonprofit manager to keep your organization’s membership renewal rate above the industry average.
Create an Automatic Reminder
Sometimes, all your members need is a gentle nudge to get them to sign up for another year as financially contributing members of your nonprofit organization. The passage of 12 months can make most of us forget about an annual financial contribution such as renewing a membership pledge. With the availability of automated email messages, your nonprofit can send out reminders well in advance of the renewal date to every member who financially contributes to your organization.
Make your email membership renewal reminders stand out to avoid having them immediately sent to a member’s spam folder.
Keep Members Engaged All Year Long
Although membership fees represent a type of charitable donation, most of your members still want to get something out of contributing to your nonprofit organization. This can include attending one or more special events hosted by your nonprofit throughout the year and/or getting involved in the planning of a fundraising drive that addresses a specific operational need.
If your members feel like they are getting something out of contributing to your nonprofit, they should be more likely to renew their memberships.
Offer Incentives
Most of your members address the membership renewal question at the last minute. You can reduce the number of last-minute renewal decisions by offering incentives that motivate members to take action before their memberships expire. For example, your nonprofit organization can offer a membership fee discount to members who recruit at least one new member a year. Another way to incentivize your nonprofit’s membership renewal drive involves running a contest for every member who renews before their respective deadlines.
Although you do not have to spend a considerable amount of money to incentivize your membership renewal drives, allocating a little cash to an incentive program can deliver a huge return on the investment.
Implement a Flexible Membership Program
A one size fits all membership program might not be ideal for many of the members that financially contribute to your nonprofit organization. The alternative is to implement a membership program that offers different contribution options. You can establish a membership program in which members pay a fee twice a year, or instead, choose to have a monthly fee automatically taken out of their bank accounts. Another way to customize nonprofit membership fees involves offering different perks for different contribution amounts.
At Ernst Wintter & Associates LLP, we provide comprehensive audit, review, examination and compilation services as well as tax services that fit your business needs. Our professionals have specific expertise in the financial services industry, nonprofit sector, and employee benefit plan audit requirements. Please contact us today.