Nonprofits work hard to secure donations, but retaining those donors is critical for sustainable fundraising. According to the Association of Fundraising Professionals (AFP) Fundraising Effectiveness Project (FEP), the 2023 average donor retention rate was 42.6%, meaning more than half of donors did not give again the following year. Even more concerning, the new donor retention rate was only 18.4%, showing how challenging it is to turn first-time donors into long-term supporters. Gift retention—whether donors increase, maintain, or decrease their giving—was 66.4%, proving that while some donors remain engaged, many reduce their contributions over time. These numbers highlight why intentional stewardship is essential.
Why Stewardship Matters
Donor stewardship isn’t just about saying thank you—this is about building relationships that foster loyalty and deeper engagement. Donors want to see their impact, feel appreciated, and know their contributions make a difference. A strong stewardship strategy can turn a one-time donor into a lifelong supporter.
Strategies to Improve Donor Retention
1. Personalized Thank-Yous
Donors expect prompt and meaningful acknowledgments. Send thank-you emails within 24 hours, followed by a handwritten note or a phone call for major gifts. Personalized recognition makes donors feel valued. Have a defined strategy for recognizing donors based on their giving levels and include board members, program staff, and clients if appropriate to show gratitude.
2. Show the Impact
People give because they want to make a difference. Share updates on how their donations are being used. Use impact reports, donor newsletters, and short success stories to demonstrate results. Create social media graphics that can visually show the impact of donors’ gifts.
3. Consistent and Engaging Communication
The FEP shows that donor engagement drops when nonprofits only communicate when asking for money. Instead, send regular updates, share behind-the-scenes content, and celebrate milestones. Social media, email, and video messages help maintain donor interest. Have a written plan for intentional donor touch points throughout the year.
4. Exclusive Experiences
Offer donors unique opportunities, such as virtual Q&A sessions with leadership, behind-the-scenes tours, or donor appreciation events. Engaged donors are more likely to continue giving. Don’t forget to include dedicated volunteers in your stewardship activities.
5. Encourage Monthly Giving
Sustaining donors have higher retention rates than one-time givers. Promote recurring giving options and emphasize the long-term impact of consistent contributions. Make sure the process to sign up for monthly giving is easy on your website.
6. Make Giving Easy
As with monthly giving, a complicated donation process can deter repeat gifts. Optimize online giving, offer text-to-give options, and ensure donation pages are mobile-friendly. Ideally, the donor should have to make no more than three clicks, ideally only two, to start making their donation on your website.
7. Ask for Feedback
Send donor surveys to understand their motivations and interests. Engaged donors who feel heard are more likely to continue supporting an organization.
Nonprofits that prioritize donor stewardship see stronger retention rates and sustainable growth. By investing in meaningful engagement, nonprofits turn one-time supporters into long-term champions for their mission.
Cheers,
Michelle Crim, CFRE
Dynamic Development Strategies can help. We offer coaching, grant writing, and fundraising services for our nonprofit clients. We specialize in small to mid-size organizations because we understand your challenges. Please contact us for more information.