9 Expert Donor Retention Tips For Long-Lasting Support

Nonprofits know they need to attract new donors to increase fundraising and grow their mission, but an equally important (and beneficial) task is keeping the donors you already have. After all, keeping a donor is easier and less expensive than recruiting a new one.

But without a strategy, it's not easy to retain these donors. According to a study by the Fundraising Effectiveness Project, the news isn't what nonprofits want to hear:

• Donor retention has decreased by 4.6% year-over-year
• Nonprofits only retain 13.8% of new donors YTD
• All donor segments experienced decreases in retention:
  • Micro donor retention decreased 6.4%
  • Small donor retention decreased 7%
  • Mid-size donor retention decreased 6.5%
  • Major donor retention decreased 5.7%'
  • And supersize donor retention decreased 4.9%

Implementing effective donor retention strategies can improve these numbers. You can also convert one-time or occasional donors into recurring donors and identify major gift prospects or those connected to corporate grants or donor-advised funds.

In this article, we will cover donor retention from a few different angles:

• Why Donor Retention Matters
• How to Calculate Your Donor Retention Rate
• Top 9 Donor Retention Strategies
• What Your Nonprofit CRM Can Do For Donor Retention

Retention is just one (very important!) piece of the donor journey. If you're looking for support in every stage of the donor journey, from acquisition to retention to stewardship, we've got you covered there, too!

Why Does Donor Retention Matter?

While it may seem obvious - who doesn't want to keep their donors? - there are many benefits to strong donor retention.

• Cost and resource efficiency: Recruiting new donors takes time and money. Keeping existing donors engaged reduces marketing and acquisition costs while maximizing ROI.
• Increased donor LTV: When donors give over time, their lifetime value (LTV) is higher. Retained donors are more likely to upgrade their gifts, become monthly donors, and leave planned gifts.
• Stronger advocacy: Repeat donors are loyal ambassadors! They spread the word about your mission, volunteer, and even get their friends to give or support events.
• More predictable revenue: Higher retention rates mean more donors, which means a more stable and predictable revenue stream. This makes your nonprofit more able to withstand market ups and downs.
• Better fundraising results: A cadre of engaged donors will jump to support you on GivingTuesday or during a capital campaign.

Focusing on donor retention is not only a smart financial strategy, but it's also a smart way to build a foundation of success, lasting impact, and a team of engaged supporters.

How to Calculate Your Donor Retention Rate

Understanding your donor retention rate is essential for knowing how effective your fundraising and stewardship efforts are. If your donors are a leaky bucket, it's critical that you focus on retention immediately, and the best way to keep tabs on the health of your donors is by monitoring how many donors continue to give year over year.

If your nonprofit had 1,000 donors last year and 600 of them donated again this year, your retention rate would be 60%.

A high retention rate indicates strong donor relationships and sustainable fundraising efforts. It might also indicate your nonprofit has a powerful monthly giving program. A lower rate suggests you might want to improve engagement and stewardship efforts, or perhaps build your monthly giving program.

Studies show that:

• The average donor retention rate is usually around 40% to 45%. 
• Retaining existing donors is much more cost-effective than recruiting new ones. Some studies suggest that it costs five times as much to acquire a new donor as to keep an existing one.

The strategies we've discussed—segmentation, personalization, prompt thank-yous, impact updates, and multichannel communications—are all excellent ways to improve a low donor retention rate.

But what if you have donors who have lapsed, and you want to bring them back? We've got some proven ideas!

Top 9 Donor Retention Strategies

1. Personalize Your Outreach

We emphasize personalization in nearly every article we write for nonprofits on best practices, technology, fundraising, and donor engagement. It’s the most crucial way to strengthen donor relationships! Personalization involves more than just calling donors by name; it also involves understanding how likely donors are to respond. This encompasses knowing when to request a donation, how much to ask for, and how engaged a donor is.

Start with donor segmentation. By grouping donors based on shared characteristics, you can design tailored messaging that resonates with each audience. Consider segmenting donors based on:

• Donation amount: Major, mid-level, and small-gift donors may require different engagement strategies.
• Donation frequency: One-time donors, monthly givers, and annual contributors each have unique motivations and should receive relevant messaging.
• Giving history: Prospective donors, first–time donors, and long-time supporters will respond best to different types of outreach.

Technology is the foundation of personalization. A robust CRM can track donor behaviors, highlight trends (such as seasonal giving patterns), and store valuable details like birthdays, anniversaries, and preferences.

This data empowers your team to:

• Time appeals strategically (such as reaching out to donors who always give on the first of the month)
• Customize donation asks based on past giving behavior
• Recognize and celebrate milestones, reinforcing donor connections

When donors feel seen and valued, they’re more likely to stay engaged, give generously, and advocate for your mission.

2. Share Your Impact

How are donations helping your mission? Sharing regular impact stories can remind your donors that their contributions are changing something they want to change.

In addition to formal impact reports, get granular and draw a line between donations and results on your donation page. For example, you might share that:

• A $50 donation feeds two families
• A $150 donation saves an acre of the rainforest
• A $500 donation builds a well for clean drinking water

Quantifying the specific amount allows individuals to understand the difference they can make. Including the results of slightly higher donation amounts can encourage them to increase their contribution next time.

Use this approach in your acknowledgment emails as well. This helps build loyalty.

Try something like, “Karen, thank you for your generous $100 donation to our animal shelter’s general fund. Thanks to your kindness, we were able to purchase new ‘Adopt Me’ bandanas for all the dogs in our care. These bandanas go a long way toward getting our pups noticed and finding their fur-ever homes!”

How to share impact stories? Use your newsletter, annual report, and social media channels. Share stories, case studies, photos and videos, and statistics. Put yourself in their shoes: What information would impact you the most? The goal is to communicate the value of every contribution, no matter the size.

3. Embrace Multichannel Outreach

People consume information through many different channels: direct mail, telephone, email, text, social media, and sometimes radio and television. Maximizing as many of these channels as you can—using multichannel fundraising—is your best bet for sharing your message with a broad audience.

Most of us aren’t restricted to interacting with only one channel, even if there is one that's our preference. So should you worry about cannibalizing your fundraising? Nope.

According to Double the Donation, 48% of donors say that regular email communications are most likely to keep them engaged and inspire repeat donations. This is followed by:

• Social media communication (18%)
• Print communication (16%)
• Handwritten notes (12%)
• Phone calls (6%)

And 39% of people say they're either extremely likely or very likely to respond to an advertising promotion when they see it across multiple channels.

Tying this into personalization, ask your donors or mine the data to uncover which channels are the most effective with different audience segments. When you send them impactful, personalized messages on the channels they prefer, you maximize smart communication strategies.

4. Regularly Recognize Donors

Donor recognition isn’t just about thanking your biggest givers—it’s about making every supporter feel valued. A strong donor recognition plan ensures that contributions, no matter the size, are acknowledged in a meaningful and timely way.  

Key Elements of an Effective Donor Recognition Plan  

To create a thoughtful approach, nonprofits should define:  

• Objectives: What is the goal of donor recognition? Strengthening relationships, increasing retention, or encouraging upgrades in giving?

• Donor segments: Recognizing first-time donors, recurring givers, major donors, and lapsed donors in ways that resonate with them.

• Recognition methods: Choosing the right channels and approaches for different donor types.

• Giving levels: Defining tiers of recognition to ensure equitable and scalable appreciation.  

• Tracking and timing: Ensuring acknowledgments are prompt and consistent across all giving levels.

What Works? 

The most effective donor recognition strategies feel personal, timely, and meaningful.

Some proven methods include:  

• Handwritten thank-you notes: Especially impactful for major donors or longtime supporters.  
• Personalized emails: Automated thank-you emails should feel genuine, not generic. Use the donor’s name, reference their contribution, and share the impact of their gift.
• Public recognition: Spotlights on your website, newsletters, social media, or digital donor wall can make supporters feel valued.
• Exclusive invitations, updates, or content: Inviting donors to behind-the-scenes tours, virtual briefings, or impact reports helps them feel connected to your mission.  
• Loyalty programs: Acknowledging milestones (such as a giving anniversary) can reinforce long-term commitment.

What Doesn't Work?

• Delayed acknowledgements: A thank-you that arrives weeks later loses its impact. Aim for real-time or next-day recognition.
• One-size-fits-all messaging: Sending the same generic email to all donors can feel impersonal. Tailor messages based on giving history. This is automatic and easy with the right CRM!
• Public recognition without permission: Some donors prefer private acknowledgment; always ask before featuring them in a public space.
• Transactional gratitude: "Thank you for your donation" shouldn't be followed by another ask. Nurture your donors and ensure they feel appreciated.

And Don't Forget Volunteers!

5. Offer Opportunities for Involvement

Often, donors will click to donate, and that’s the end of it—but you’d stand out from the crowd if that wasn’t the end of it. What are some other ways you can involve donors?

• Invite donors to events, such as a member appreciation lunch
• Ask donors to volunteer with hands-on tasks, such as organizing supplies at a food bank
• Request donor feedback on strategic decisions through town-hall-style meetings or online surveys
• Offer tours of your facilities
• Invite a group of donors for lunch with your board

The more you can include your supporters, the more they’ll be engaged and likely to stay around.

6. Make it Easy to Give

Consider the different ways a donor can support your nonprofit online and offline. Go through each process by donating a small amount to ensure it is smooth and easy, and that immediate appreciation is built into it.

Many channels lead to your online donation form, so be certain you’ve optimized it. Minimize your required fields, keep plenty of white space, lead with your value proposition, and have a clear call to action. Offer different ways to give, such as virtual wallets, and make it easy for supporters to toggle to a monthly gift.

If you offer a phone number for donations, call and test it. This person-to-person interaction should be warm, friendly, and quick. A texted appeal should take just a few clicks to complete. If you can’t accurately assess the experience, ask a friend to donate or solicit feedback from some loyal donors.

7. Be Transparent with Finances

Trust is the foundation of any donor relationship. Without it, attracting and retaining supporters is nearly impossible. Transparency about your nonprofit's financial health reassures donors that you're a responsible steward of their contributions.

These strategies will show your donors you're serious about transparency.

• Share an easy-to-read annual report or summary detailing your revenue and expenses and the impact on your mission.
• Post financial documents, such as IRS forms, financial statements, or budget documents, in your member portal so they're accessible.
• Show how programs are allocated. What percentage goes to overhead, what goes to programs, what goes to fundraising?
• Regularly communicate how funds are being used and the impact they're having.

What Information Should You Share?

Nonprofits are required to disclose certain financial documents, but you can go beyond what's required to build trust. Consider sharing:

• Income and expense reports
• Program impact reports
• Leadership compensation tables
• Financial projections and goals

If concerns are raised, address them. It would be better if you could address them proactively. For example, you might need to explain why overhead costs are high or why fundraising was increased to build a sustainable program. Lead with honesty, and you'll be rewarded with loyalty and trust.

8. Re-Engage Past Donors

Let's be honest: It's easy to apply these donor retention strategies to supporters who are involved in and excited about your organization's mission. It's harder to reach those who have fallen out of touch with your organization, but sometimes, these are the supporters who need engagement the most!

Here are some easy ways to try to get past donors fired up about your mission and re-engaged with your nonprofit.

• Verify their contact information. By verifying and updating donor contact information, you can avoid wasting resources on mailings sent to outdated addresses. More importantly, reconnecting with donors and capturing current details opens the door to renewed engagement and future giving opportunities.
• Lean on email. Launch a personalized, targeted email campaign that’s triggered when a regular donor misses more than one donation. The content should note recent gifts and communicate how they’ve been used; it’s important to draw a direct line from a gift to a benefit.  
• Pick up the phone! In this world of speedy texting, the old-fashioned handwritten note or phone call always makes an impact. If you have a list of targeted donors, divide it among your board members and have each person make a few calls. Here are some talking points we recommend: 
  
  • Call them by their name and thank them for their support.
  • Talk about the impact their donations have had.
  • Be honest and tell them you are hoping they will restart their support.
  • If they can’t keep donating the regular amount, ask if they can choose a smaller amount.
  • Regardless of their answer, be gracious and let them know you’ll keep them up to date on what your nonprofit accomplishes. 
• Remember that direct mail still works. Handwritten notes, personalized letters with a QR code leading to your donation page, and other forms of physical mail can reignite a lapsed donor's excitement about your nonprofit's cause. You can also use a reply/pledge card or include a stamped and addressed envelope. 
• Don't overdo it. After you’ve sent a letter and a personalized email, consider following up with a call to deepen the connection. If there’s still no response, you can try reaching out again after a few months. Should the donor remain unresponsive, retain their information but move them to a less active segment of your database—avoid overwhelming them with further attempts.

Focus on building a relationship rather than viewing it as a transaction. If you successfully reconnect, ask about their experience and listen for any concerns.

Building donor engagement and thoughtfully managing each donor’s journey are critical for securing support for your mission. Past donors are more likely to contribute again, so after you’ve reconnected, always confirm their current contact details and preferred communication methods. If a donor declines to re-engage but the conversation remains positive, consider asking if they’d be open to being introduced to other missions that align with their interests.

9. Go Beyond Donor Retention

While it is crucial to intentionally steward all donors, it is especially important to assign team members to manage relationships with your largest supporters. Major donors are both relative and unique to your organization, meaning that what qualifies as a major gift may vary based on your budget, fundraising goals, and donor base. To maximize engagement and retention, nonprofits should evaluate their resources, identify key donors, and develop tailored stewardship plans.  

Create a Stewardship Matrix for Major Donors  

A stewardship matrix is a structured framework that helps nonprofits determine how to engage major donors at different giving levels. This tool outlines the type and frequency of interactions, ensuring that donors receive meaningful recognition and relationship-building efforts.  

Here are the steps to follow to create a stewardship matrix:

1. Define Giving Tiers—Categorize major donors into different levels based on their contributions (i.e., $10,000+, $50,000+, $100,000+). 
2. Assign Relationship Managers – Designate specific team members to oversee each major donor, ensuring personalized communication.
3. Outline Stewardship Activities – Plan intentional engagement methods based on giving levels. Some examples include: 
   • $10,000+ donors: Personalized thank-you calls, handwritten notes, exclusive updates.
   • $50,000+ donors: Invitations to private events, one-on-one meetings with leadership, impact reports.
   • $100,000+ donors: VIP experiences, behind-the-scenes access, strategic partnership discussions.
4. Set a Communication Cadence – Establish how often donors should receive updates, personal check-ins, or invitations to exclusive experiences.
5. Track Interactions – Use a CRM to document touchpoints and ensure consistency in stewardship efforts. 

A major donor stewardship plan should also include a designated point of contact whom the donor can reach out to with questions or concerns. This relationship manager is responsible for:  

• Regular touchpoints, checking in beyond just asking for donations, such as sending program updates, impact stories, or personal notes.  
• Seeking feedback and engaging donors in conversations about their interests and preferences to tailor future outreach. 
• Providing exclusive perks and offering benefits like reserved seating at events, branded gifts, or an invitation to a lunch-and-learn with your leadership team.  

Although donor retention is essential for all supporters, a strategic stewardship plan is crucial for major donors to maintain strong, long-term relationships. By implementing a stewardship matrix, your nonprofit can ensure that high-impact donors feel valued, engaged, and invested in your mission for years to come.  

What Can Your Nonprofit CRM Do For Donor Retention?

Let’s get down to brass tacks. If you have a nonprofit CRM (ours, or anyone else’s), here are five ways the platform can help you bring back lapsed donors:

1. Find missed payments. Configure reports to identify sustainers who miss one or two payments. Call them! Make sure they’re okay. If they missed the payment because a spouse is having surgery, make a note in the CRM to follow up and check on them in a few weeks. Proactively manage these donors and touch base with them before they’re officially lapsed.
2. Build your sustainer program. Again, using advanced reporting functionality, find those donors who give consistently but aren’t yet sustainers. Ask someone who gives $100 in every year-end giving campaign to switch to monthly $10 donations. Incentives work particularly well in these cases! Your goal is to use personal outreach to nurture these supporters and turn them into sustainers.
3. Use your dashboards. Configure your CRM to show you a sustainer dashboard. This is the easiest and fastest way to identify those donors we’ve talked about, and to monitor the health of your sustainer program on an ongoing basis. The earlier you can identify sustainers who are dropping off, the faster you can jump in and bring them back.
4. Watch the payment information. Whether your system offers automatic credit card updating or can alert you to impending expiration dates, use the technology to keep uninterrupted donations coming. If you can, set up a reminder communication series that leads donors to a self-service portal where they can update their credit card information; your sustainers will stick around.
5. And speaking of self-service portals....when donors can pop into a portal and manage their payments, you’d be surprised at the actions they’ll take. If, for example, that $50 a month is getting hard to manage, they might react to your outreach by lowering it to $30 a month instead of walking away. This anti-pressure tactic gives them complete control to decide about how, when, and how much they give.