Why Donor Retention Matters More Than Chasing New Donors
Why Donor Retention Matters More Than Chasing New Donors
The primary difference between a non-profit that struggles with growth and one that becomes a long-lasting institution is donor retention. Nonprofits that succeed do so by keeping their supporters engaged, while those constantly searching for new donors find it hard to thrive. In this write-up, we will explore donor retention, its present state, the fundamentals of donations, and the 12 strategies to help build stronger relationships with supporters.
Present state of donor retention
Fundamentals of donations
The FEP reports reveal clear trends in donor frequency and retention, especially when comparing new and repeat donors. New donor retention consistently falls below the national average for all donors. However, securing a second gift—the so-called “golden donation”—improves retention dramatically, as repeat donors show higher loyalty.
FEP’s latest data shows new donor retention has dropped by 5.9% year over year, with just 19.4% of new donors giving again this year. In contrast, repeat donor retention declined only 3.0%, remaining strong at 69.2% annually. This stark contrast underscores why converting first-time donors into repeat supporters is key for sustainable growth.
The report also confirms a strong link between donation frequency and future giving: one-time donors have a 32.1% retention rate this year, which rises to 53.0% after the second gift, climbs to 70.7% for donors giving three to six times, and reaches 86.8% for those donating seven or more times annually.
Securing the second and subsequent gifts not only boosts retention but also increases overall fundraising outcomes. Nonprofits focusing on these donation fundamentals typically multiply their average donor retention rates, powering sustainable growth year after year.
12 Key Donor Retention Strategies
For building more lasting donor relationships, you need a strategy that works and listed below are 12 result-driven strategies to donor retention that go beyond basic tactics to drive deeper and long-term engagement.
- Concentrate on Second Gift- The biggest drop off in donor engagement happens after the first gift, and that is why it is important to secure the second gift as you convert the first-time donors to long-term supporters. You can begin by sending a thank-you right away, then follow it up with a shorter welcome series that shows the impact of the first gift and makes them associate with your non-profit’s mission. And never wait more than 90 days for making the second ask and also reference their first gift to show the impact it made and how a second one will deliver an even bigger impact.
- Personalize your communications- Always segment your audience by their gift size, frequency, and engagement history by sending tailored messages and appeals to give donors a genuine feeling. Make use of non-profit CRM to craft personalized email tracks for first-time donors, major givers, event attendees, or recurring donors. It is important to avoid using generic opening lines like ‘Dear Supporter’ and instead customize the messages by name and include impact statements. Changepond’s digital core technology makes this donor segmentation easy and lets you create automated workflows for these specific tracks so that you can personalize more messages without much hassle.
- Make a solid first impression- A donor giving for the first time simply marks the beginning of a relationship, and it is crucial to give the best first experience to that donor as it sends a strong message about your organization, including the vision, mission, and donation process. Ensure a seamless, mobile-friendly, and inclusive donation form, and proper communication about the use of the gift, a personalized thank-you letter within 48 hours after giving is made to the donor. If the donation flow is clumsy, the donor may feel like the gift didn’t matter, and this is where leading service providers like Changepond allow you to build a streamlined flow with many AI-driven capabilities for a maximized donation experience.
- Share Impact early- Donors stop giving when they are unsure about the difference their gift makes, and any lack of follow-up post giving can be damaging. That’s why communicating the impact of gift matters and doing it by sharing regular updates by letting your supporters know how their money has helped, what changed, and what comes next. Leverage storytelling, visuals, and real-world examples to help them visualize themselves in the mission.
- Sustain a Culture of Gratitude- Sending a quick confirmation email after a donation is crucial, and you can find a room to start building a connection. It is important to have consistent communication to make them your long-term supporters and make sure you do it round the year with frequent appreciations.
- Focus on recurring giving- There has been a steady increase in the number of recurring donors since 2022. Begin a monthly giving program that’s easy to join, also highlight this on every donation form by integrating it into appeals, and say how ongoing gifts will help in sustaining your programs each month. Reinforcing the idea of recurring giving is powerful, as it helps you to plan, grow, and respond more effectively to your donors over time.
- Re-engage Your Lapsed Donors- The real truth behind lapsed donors is that they might have lost touch or forgotten to give, but they still would not have lost interest. And it’s important to reactivate them, but the key to performing this action is personalization. The lapsed donor letter should reference their previous support and invite them back to the mission. Timing of this action is important as the right message will turn lapsed donors into loyal ones and boost response rates when paired with impact updates or peak giving seasons.
- Put Your Donors in the Spotlight- Donors need to be publicly or personally acknowledged, as it makes them feel more connected to the mission. List them in an annual report, send a surprise anniversary email, or give a shout-out on social media, celebrate your donors as active partners in success. When a donor receives a thank you note for a year of giving anniversary, it simply increases their association with your mission. Loyalty is a key predictor of long-term retention and is very crucial for donor retention.
- Establish a Donor Relationship Calendar- Create a stewardship plan covering the whole year, including non-appeal touchpoints like birthday emails, holiday cards, impact updates, and personal check-ins. This ensures a good balance of gratitude, engagement, and appeals.
- Collaborate with Donors on Impact and Direction- Donors must experience the feeling of collaborators and not just contributors. You can request donors to share why they give through testimonials, video interviews, or guest blog posts. This type of storytelling deepens their commitment to the mission, and you can also get feedback through donor surveys. The more a non-profit listens, the more their communication and campaign respond.
- Adopt multiple channels- Some donors prefer emails, and some may prefer texts, direct mail, or even social media DMs. You have to focus on the ability to indulge in multiple-channel communication to build relationships with donors. Adopt a multi-channel strategy to ensure your messages comfortably reach donors and also offer your donors multiple ways to engage with your mission.
- Leverage Technology to Strengthen Human Connection- Donor relationship management is going to be difficult if managed using spreadsheets. A stronger donor management system helps with understanding giving behaviour, tracking engagement, and identifying trends before they end up becoming problems. By leveraging the non-profit services of Changepond, organizations can precisely segment audiences, personalize outreach to donors, and automate workflows to keep supporters from slipping through cracks.
Non-profit organizations can manage donation memberships, events, emails, volunteers, payments, and more by adopting the services of ChangePond. Use the data to deepen relationships to understand who gave the previous year, and see which donor responds better. Digital core technology will empower even smaller teams to think and equip them to act like larger ones. And when used thoughtfully, it turns retention into a consistent, measurable, and scalable process.
Partner with Changepond to retain more donors
As your nonprofit focuses on strengthening donor retention and supporter relationships, having the right technology partner is essential. Changepond’s AI-driven Digital Core is purpose-built for nonprofits, providing a unified platform that brings together CRM, CMS, and advanced marketing automation. This comprehensive approach creates a single source of truth for all donor data and communications, empowering your organisation to deliver timely, personalised, and impactful donor experiences.
Changepond’s solutions are engineered to help nonprofits surpass retention averages, lower fundraising costs, and substantially increase donor lifetime value. With Changepond, you gain a strategic technology partner dedicated to transforming donor engagement into measurable, mission-driven growth.
