Nonprofit Referral Programs: How to Start One [+ Top Tools]

When you think of a referral program, you probably think of one where people recommend a business to their friends, and earn rewards when their friend purchases. But referral programs are also a great way to leverage the power of community and help your nonprofit expand its reach – or help you help nonprofits meet their fundraising goals. 

Here’s how to start a nonprofit referral program.

What is a nonprofit referral program?

Nonprofit referral programs help nonprofits expand their reach, and/or raise money, through peer-to-peer referrals. They let someone share a trackable link with one of their friends who believes in what you do. When the friend takes a desired action – the link attributes the referral to the person who made it. This way, it’s easy to thank or reward them. 

There are four main types of nonprofit referral programs:

• Awareness initiative: A nonprofit uses the program to expand awareness of its services (say, to encourage registrations for educational programs, or gain new memberships)
• Giving program: A nonprofit uses a referral program to increase donations and boost fundraising efforts
• Partnership building: A nonprofit uses the program to find new partners or networks
• Donor management referral program: A charity fundraising service (donor management platform) encourages its nonprofit clients to refer other nonprofit organizations to use its services

Most of our tips apply to all of these programs. But the way each rewards referrers is different (we’ll have more on this later). 

Benefits of nonprofit referral programs

Referral programs build trust and allow you to grow your base of supporters without the need for expensive marketing tactics. Here are the key advantages of nonprofit referral programs:

Enhanced visibility: Referral programs tap into the excitement of happy supporters who share their positive experiences, effectively turning them into ambassadors for your nonprofit or fundraising aid. This natural word-of-mouth promotion not only strengthens your reputation but also boosts social proof, drawing in potential donors or clients.

Greater confidence in your services: Recommendations from friends are often seen as more trustworthy than advertisements or direct outreach from you. According to a Nielsen study, 84% of people consider referrals to be the most credible and effective form of advertising.

Find new, interested supporters: When your supporters recommend your services, they speak from experience and connect you with others who have a reason to believe in what you’re doing. So, they’re highly likely to bring in friends who will be interested in donating to you or fundraising with you.

Higher conversion rates: A personal recommendation significantly increases the likelihood that others will choose to donate or fundraise with you. Because of the trust involved, they are more inclined to engage with you. Research indicates that a personal endorsement can be up to 50 times more effective in driving a decision than traditional advertising.

Cost-effective and low-risk: Referral programs typically incur lower costs than standard advertisements. Plus, with a referral program, you only reward people when their referrals produce results for your nonprofit or fundraiser. This method is much less risky compared to ads and other marketing strategies, where you pay upfront without guaranteed outcomes.

Consistent customer loyalty: Clients who come through referrals tend to be more loyal supporters. They have a 16% higher lifetime value compared to clients or donors acquired through other channels.

Easy referral tracking: Setting up a referral program simplifies the process of monitoring referrals. With the right referral software and the links it generates, you can easily track each referral and where it came from.

Referral software for nonprofits [Free Tools]

These referral tools for nonprofits are a free and easy way to help you start your referral program.

Want a fully automated referral program for your nonprofit business? Run your referral program with us at Referral Rock. Find out how we can build your program with you (and tailor it to your unique needs)

Nonprofit referral program tips

Ready to start a nonprofit or fundraising referral program? Here’s your template to maximize your program’s success:

Make sure you’re referable

Before starting a referral program, it’s important to make sure that you have a lot of supporters, who all have a compelling reason to recommend you. Does your nonprofit or fundraiser resonate? Do people understand why your work is important, know your mission and guiding values, and have an idea of who else your work might resonate with the most?

Also, are you getting rave reviews, enthusiastic testimonials, and mentions on social media, along with recommendations prior to offering any rewards? And do you have an online presence, like a website or referral page, where you can host the program? If so, you’re ready to launch your referral program!

Find your best advocates first

Who believes in your mission the most? It’s best to roll out your referral program to your most ardent supporters first, so have a list of these VIPs ready – and let them engage with the program before everyone else. 

These VIPs might be:

• Your biggest donors
• People who have maintained their membership with you the longest
• Repeat donors or clients
• People who have attended multiple educational sessions you’ve held
• People who have already shared you with others
• People who have promoted you publicly (say, on social or in a stellar review)

Start by reaching out to these supporters with a personalized message. Thank them for how they’ve supported you already, and invite them to assist in bringing in new supporters through the program. After that, introduce the program to your wider supporter base – say, your entire email list.

Choose the right incentives

The kind of rewards you should offer depends on your type of program, so read carefully based on the kind of nonprofit referral program you’re starting.

If you’re a nonprofit that’s using the program to encourage donations, write thank you notes for both the referrer and the friend who made the donation. You can also give the referrer a useful but relatively inexpensive item, such as a cooler bag or tumbler with your nonprofit’s logo. Or, reward referrers with a small gift card.

If you’re a nonprofit trying for new memberships or educational program sign-ups, apply the reward directly towards the membership or program. Give both the referrer and their friend a discount, or credits, towards the course, enrollment, or membership when the new supporter signs up.

Or, you might give them both free educational materials instead, if your nonprofit has published them. This both encourages lots of referrals and motivates new supporters to become members or learn more.

If you’re looking for partners, gift cards for referrers are great reward payouts. If your partnership search is in conjunction with an event, why not award discounts or credits towards that event?

If you’re a fundraising platform and your clients are nonprofits, the reward should ideally be extra donations, right from your company to the nonprofits you serve. After all, they’re trusting you to help them bring in more donations, so the donation itself is clearly the most valuable reward in their eyes.

Give a double-sided reward when a referral brings you a new nonprofit client – a donation to the referring nonprofit and a donation to the new nonprofit client. This both encourages lots of referrals and motivates new nonprofit clients to sign on for your services.

Alternatively, to give the organizations the choice, you could also offer a Visa or Amazon gift card that they can spend on supplies.

Make sharing a breeze with One Click Access  

Simplifying the sharing experience can help you draw in more supporters to your program, leading to increased referrals. A great way to enhance sharing is by removing the requirement for people to log into your program.

With Referral Rock’s One Click Access links, your customers can begin sharing you instantly. They’ll be automatically enrolled in the program, skipping the need to sign up or fill out lengthy referral forms. All they need to do is provide a bit of information about their friends to send referrals.

Be sure to include One Click Access links in every email you send out to promote your referral program, including newsletters and receipt emails – not just those focused on generating referrals.

Additionally, Referral Rock allows both new and existing members to access their referral portal using popular social logins like Google and Facebook, so they won’t have to remember a password.

Simplify the sharing experience  

A key element of a successful referral program is to make the referral process as straightforward as possible. Offer users various ways to share your nonprofit referral program, such as through email, social media, and SMS, to match their preferred communication methods. In addition, create a unique referral link for each participant in your program, allowing them to share it in the way that suits them best.

Keep in mind that you’re asking your people for a favor by encouraging them to promote your nonprofit or fundraising tool. If the referral process seems too complicated or time-consuming, they may feel frustrated and give up. The goal is to minimize the number of steps involved:

• Make sure that referring someone only takes 1-2 clicks or taps.  
• On your referral program landing page, outline the program in 3-4 bullet points, highlighting the rewards and other benefits of sharing.  
• Provide pre-written messages that users can easily send to their friends, so they don’t have to come up with their own text. These messages should be friendly and come from the referrer’s perspective.
• Make sharing seamless on mobile devices, as this is where people frequently share things they love with their friends.
• If there’s more information to share, include it in a separate FAQ section to keep the main referral page clear and user-friendly.

Promote, promote, promote! 

Engaging more members significantly boosts your chances of generating successful referrals and increasing your revenue. It’s crucial to ensure that lots of people are aware of your program!

To effectively spread the word about your program, it’s important to use a mix of channels. Even if everything is perfectly set up, your referral program won’t succeed if people don’t know about it. Here are some promotional strategies to consider:

• Send out dedicated emails to all your supporters or clients about your referral program, ideally on a monthly or quarterly basis.
• Include brief mentions of your referral program in email newsletters and other regular communications.
• Add information about your program in your receipt emails.
• Mention your program in your email signatures.
• If you meet clients or supporters in person, display referral flyers where they can easily see them, complete with a QR code that directs them to your online referral page.
• Inform people about your program on your thank you page, right after they complete a donation, purchase or registration.
• If you have a portal, integrate referral promotions directly into it, providing easy access through direct links.
• Feature a prominent banner or hero image on your website’s homepage that links to your referral landing page.
• Use subtle promotional techniques on your website, like adding a link in the footer or menu, to make it easy for users to find and engage with your program.
• Share updates about your referral program in your social media posts.

Boost engagement from current sharers  

Keeping your current participants actively involved in your referral program is crucial. Those who have already joined might need a gentle reminder to continue sharing. A fantastic way to achieve this is by utilizing automated emails at strategic times.

For example, you might want to send a reminder email 3-5 days after someone enrolls in your program. Additionally, celebrate your members through email whenever they receive a reward, and make use of Referral Rock’s Monthly Summary emails, which provide a tailored overview of each member’s referral activities each month.

In addition, we suggest sending out promotional emails about your referral program at least once a month during the first year. After that, aim for quarterly updates while also considering other promotional tactics. This approach not only draws in new referrers but also keeps your program fresh in the minds of those who may have referred in the past, but have since forgotten.

Select the ideal referral software  

Referral software tools make it easy to track referrals, understand their origins, and swiftly distribute rewards. They also offer valuable insights into your referral program, enabling you to evaluate its success and implement necessary changes.

Moreover, these tools generate unique links that simplify the promotion of your program on social media and via email.

Referral Rock software enhances the creation, tracking, rewarding, and marketing elements of your referral program, making it a vital asset for anyone looking to execute a successful referral campaign.

With Referral Rock, you can:

• Easily monitor referrals: Each participant is given a unique referral link, helping you identify the source of every referral in real time. Customers can also track their referral activities through personalized dashboards.  
• Tailor your program: Select any rewards structure you prefer and customize the program to fit your brand’s requirements.
• Automate your marketing: Keep your customers engaged with automated promotional emails and make sharing simple with password-free links. Plus, rewards can be paid out instantly when earned.
• Integrate with essential tools: Connect Referral Rock effortlessly with over 50 different applications, including your CRM.  
• Evaluate program performance: Quickly gauge how your program is performing and make data-driven improvements.  
• Get started swiftly: Launch your program in just a few days, with expert support available throughout your setup and launch journey.  

Initiate your own nonprofit referral program  

A nonprofit referral program enables you to leverage personal recommendations to draw in new clients, members, or supporters. This digital marketing strategy offers numerous benefits, including easy tracking of referrals, increased visibility, and steady growth. For an effective referral program, focus on offering attractive rewards, actively promoting your program, and ensuring that sharing is as simple as possible.