Is there an effective way I can leverage the Opportunity feature within SFDC to track a contact's residual payments?
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I recommend that the renewal be handled as a separate process from the recurring donation. Depending on your business, you'd probably want to have a email notification trigger 90/60/30 days before expiration, which you could handle as a monthly Campaign. You might even do a Campaign for outbound phone calls 0-14 days before expiration. It's hard to say without knowing more about your business.
You may want to consider joining a user group -- it's a great place to meet other saleforce users and you could pitch this question to individuals or maybe even the group and discuss face-to-face .