Recurring Donations Catch Consumers Off Guard: How to Spot and Prevent Them

Nonprofit organizations increasingly rely on recurring donation models, often catching donors unaware. Consumer advocates warn these automated contributions—sometimes as small as $5-$15 monthly—can accumulate significantly over time. The Federal Trade Commission advises donors to scrutinize forms for pre-checked recurring donation options, a practice particularly prevalent in political fundraising campaigns.

John Breyault of the National Consumers League highlights how easily small, repeated charges go unnoticed. "These micropayments seem insignificant individually," he notes, "but compound into substantial sums annually." The issue mirrors problems with forgotten subscription services, now extending into the philanthropic sector.

Consulting firms actively promote recurring donation strategies to nonprofits, while consumer protection agencies emphasize vigilance. Best practices include reviewing bank statements for unfamiliar charges and understanding cancellation policies before committing to ongoing contributions.