Why Donor Retention Matters

The average donor retention rate in 2024 was just 42.9 percent, meaning 57.1 percent of donors did not give again. That is a staggering number, yet that is the industry standard. This is called attrition. This means if your donor base is 6,000 names, you can expect to lose 3,426 donors by next year, and you would have to acquire roughly 286 new donors a month to sustain your donor base of 6,000 accounts. And to grow your list, you would need to acquire even more.

Retention programs are always more effective than acquisition programs, so let us dig into some cost-effective strategies to keep those donors who believed in you and your mission and rebuild their loyalty and trust.

• Cost Efficiency –Acquiring a new donor can cost up to five times more than retaining an existing one
• Revenue Stability –Even a 10 percent increase in retention can boost an organization’s revenue by more than 200 percent
• Stronger Relationships –Loyal donors often become advocates, volunteers, and legacy supporters

Benchmarks: What “Good” Looks Like

• Overall Retention: 42.9 percent in 2024—down 2.6 percent from the prior year, marking the fifth consecutive year of decline
• New Donors: Only 4 percentof those who gave for the first time in 2023 made a gift again in 2024
• Repeat Donors: Established supporters (those who gave in prior years) had a 2 percent retention rate—over three times higher than new donors
• Major Donors: Retention for gifts over $5,000 stays north of 60 percent, underscoring the value of personalized stewardship
• Digital-First Organizations: Nonprofits embracing digital channels report retention closer to 53 percent, suggesting that omnichannel engagement and online convenience pay dividends

Building Your Donor Retention Program

A successful retention program marries data insights with human-centered outreach. Follow these five pillars:

Pillar 1 – Segment Your Donor Base

• By Tenure: New vs. repeat vs. lapsed
• By Gift Size: Micro ($1–$100), small ($101–$500), mid ($501–$5,000), major ($5,000+)
• By Engagement: Event attendees, volunteers, newsletter readers

Why it matters: Targeted messaging increases relevance and giving.

Pillar 2 – Craft a Welcome and Onboarding Series

• Welcome Packet: Send a heartfelt “thank you” email and physical letter within 24 hours
• Storytelling Sequence: Over the first 90 days, share impact stories, team profiles, and ways to get more involved
• First-Gift Confirmation Call: A five-minute phone call from a board member or program leader adds a personal touch that digital can’t replicate

Why it matters: For new donors, if there is no second gift in the 90 days after their first gift, there is a 10 percent chance they will ever give to your organization again.

Pillar 3 – Develop a Year-Round Stewardship Calendar

Why it matters: A consistent cadence prevents donors from slipping through the cracks.

Pillar 4 – Leverage Multi-Channel Engagement

• Email: Automated drip campaigns for each segment
• Social: Targeted ads to remind past donors of ongoing needs
• Text Messaging: Short, urgent asks for time-sensitive campaigns
• Personal Outreach: Phone calls or handwritten notes for mid- and major-gift donors

Pillar 5 – Measure, Learn, and Iterate

No retention program is complete without a rigorous feedback loop. By continuously tracking performance, testing new ideas, and listening to your donors, you’ll uncover what truly moves the needle—and what falls flat. Here’s how to make measurement a living part of your donor stewardship:

1. Track the Right Metrics

• Retention Rate by Segment – Go beyond the overall retention figure to see how different groups behave. Compare new vs. repeat, micro- vs. major-gift, or event attendees vs. non-attendees. If you notice a particular segment slipping, you can intervene early with targeted outreach.
• Donor Lifetime Value (LTV) – Estimate the total revenue you expect from a donor over the time of their relationship with you. Monitoring LTV helps you decide how much to invest in onboarding and stewardship for each segment. For instance, if a mid-level donor’s LTV is $1,200, it justifies a certain level of personalized outreach.
• Recapture Rate – Measure the percentage of lapsed donors you win back each year. A strong reacquisition strategy can boost this rate, whether through special “we miss you” appeals, targeted surveys, or limited-time matching challenges.

2. Embrace A/B Testing

• Subject Lines and Send Times – Even small tweaks—like adding a donor’s first name to the subject line or shifting send times from morning to afternoon—can yield measurable lifts in open and click-through rates.
• Ask Amounts and Appeals – Test different gift levels and framing: “Your $50 gift provides X” vs. “Your gift of any size changes lives.” Use two variants in parallel and see which resonates.
• Creative Formats – Compare a plain-text email to a graphic-rich newsletter, or a video message from your executive director vs. a written case study. Rotate tests quarterly, and let the data guide your design choices.

3. Build Continuous Feedback Loops

• Donor Surveys – Send short, 3–5 question surveys asking about motivations (“What inspired you to give?”) and barriers (“What would make you more likely to give again?”). Keep it under two minutes so response rates stay high.
• Post-Campaign Interviews – For a small subset of major donors, schedule brief phone or Zoom check-ins after a big appeal. Ask open-ended questions about their experience and suggestions for improvement.
• Analytics Review Cadence – Set a monthly dashboard review with your team. Look for trends—spikes and dips in giving behavior—and brainstorm one experiment to run before the next meeting.

By embedding these measurement practices into your workflow, you’ll transform gut-feel decisions into evidence-based strategies. Over time, this cycle of data, experimentation, and donor feedback will sharpen every element of your retention program—and build a stronger, more resilient supporter community.

Putting It All Together

In short, a standout retention program blends data-driven automation with authentic human touches. Start by mapping your donors’ entire journey to identify gaps, then tailor your messages by segment—whether they’re new, repeat, or major supporters. Leverage your CRM and automation tools to deliver timely, relevant communications, and equip your team with the skills to add personal warmth—think thank-you notes and check-in calls. This mix of smart technology and genuine connection will keep more donors coming back and transform one-time givers into lifelong champions.

For more information on how to set up a retention program that works, click here or call us today at 724-733-1200.

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Haley Mollica

Client Success Manager at Infinity Concepts

Haley leads with enthusiasm and excellence in all she does. Her passion is to help ministries and organizations fulfill their God-given mission and vision.

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