Subscription-style business models have broken into popularity in recent years in all sorts of industries, services, and ideas. Dollar shave club, Bark box, even something like a meal plan, you get the idea. You don’t charge much, but you charge repeatedly, and it adds up. Fast.
Can you transfer the same thing to Nonprofits? Organizations like Chimp and CanadaHelps sure seem to think so. A part of their service of collecting donations for charities is taking a small fee, so it’s in their best interest as well. Both these organizations, among others, offer the option to donate an amount regularly to a charity, instead of one lump sum.
And it is a great idea, after all. Many people feel they can easily afford five dollars a month, instead of 60 dollars a year. It’s hugely beneficial for the charity to make any amount of donation over none at all if they don’t want to give a lot at once and feel five dollars once wouldn’t make any difference.
Adapted from one of Bernie Warren’s lectures in Busn 6060: Strategic MIS.