Donor retention is a perennial problem for nonprofit organizations. Many organizations spend a lot of time and energy on acquiring donors, concentrating more on volume, and don’t seem concerned that they’re churning through different donors year after year.

Another perennial problem is uncertainty and disruption in our world. Right now we’re dealing with cuts in federal funding, tariffs, a plunging stock market, etc, which are creating constant chaos for us. Both your nonprofit and your donors may be feeling financially strained.

Acquiring new donors is more expensive than keeping the ones you already have, so it’s important for you to keep track of your retention rate. You don’t want to lose your donors right now. Granted some may not be able to give at the moment, but just as we saw during the pandemic, many will step up and continue to support you.

There are also reasons donors don’t give again that aren’t financial. Many of these you can control. Maybe you’re losing donors because you’re either not communicating enough or communicating poorly. Fortunately, this is something you can fix, but you need to give it your full attention.

Pay attention to your donor relationships

One of the most important components of fundraising is building relationships with your donors. 

Donor relations should be easier than raising money and it can be fun, too. Make it a priority, as well as something you do throughout the year.

Follow the ask, thank, report, repeat formula and give more attention to thanking and reporting. Your donors are not ATMs. They were drawn to your organization because they felt a connection to your work. They want to feel appreciated and hear how they’re helping you make a difference for your clients/community.

If you don’t pay attention to building relationships, your donors are less likely to give again.

Pay attention to your first-time donors

The retention rate for first-time donors is around 20%. Obviously, we can do better.

If you can get your first-time donors to give again, it’s much more likely they’ll keep giving. That second donation is known as the golden donation. This is why it’s important to engage with your new donors and I hope you’ve done that with your most recent new year-end donors. 

Create a welcome plan that includes a series of messages for new donors. Recruit board members to make thank you phone calls. This is a proven strategy that results in donors giving again.

Let these donors know how much you appreciate this new relationship. If you don’t, it’s likely to be a short relationship. 

But don’t stop there, you also want to acknowledge your longer-term donors and make them feel special.

Pay attention to your lapsed donors

A lapsed donor is someone who hasn’t donated for at least a year. Make a plan to reach out to some of these donors and invite them to give again. Also, ask why they haven’t given. Maybe they forgot. Maybe they can’t afford to give right now. Maybe they were never thanked.

If a donor can’t afford to give right now, stay engaged with them. Hopefully, they’ll give again in the future. Also, some donors may choose to cut back on their giving. Don’t let them choose between an organization that does a great job of thanking them and sending engaging updates and the one that just sends a bunch of boring, generic appeals.

Donor engagement is so important. According to fundraising expert Penelope Burk, 93% of donors are more likely to give again when they feel appreciated and the organization lets them know the impact of their gifts.

Pay attention to growing your monthly giving program

I’m a big fan of monthly giving. Monthly donors have a much higher retention rate – around 90%. Getting more monthly donors is one way to raise your overall retention rate. It’s a great option for donors who are feeling financially strained, because it allows them to spread out their gifts over the year. Monthly donors are also more likely to give an additional donation.

Reach out to your single gift donors who have given at least twice and ask them to join your family of monthly donors. You can also invite donors to give monthly in your welcome package.

Pay attention to your donor communication 

Do you barrage donors with appeals and then go silent for a while? 

Ideally, you want to reach out somewhere between once a week and once a month. And not just with appeals. You need to thank donors and share updates. Remember the ask, thank, report, repeat formula. This is crucial for good donor retention. 

Try to reach out by mail at least a few times a year. It’s more personal and your donors are more likely to see your messages. It doesn’t have to be anything elaborate. A handwritten thank you card or a postcard infographic can be a quick, but effective, way to engage. 

Put together a communications calendar to help you with this. 

You also want to focus on quality. Just because you send thank you letters and newsletters, doesn’t mean you’re actually engaging with your donors. Write a heartfelt, personal thank you and create a newsletter and other updates with content they’ll be interested in.

I know a lot is going on right now, but your donors want to hear about your success and challenges.

Pay attention to your donor data

Something else that will help you with donor retention is to invest in a good CRM/database. This will let you segment donors and personalize their communication. Then you can send targeted communication to new donors, long-time donors, lapsed donors, potential donors, etc. Invest in the best database you can afford. It should pay off.

You may think that paying attention to your donor retention sounds like a lot of work. Well, so is finding new donors. In this current climate of uncertainty, it’s important to pay attention to your donor retention so you don’t lose the donors you already have.