When donors decide to stop giving, the decision often stems from factors that nonprofits can address through better communication, stewardship, and transparency. Despite genuine intentions to support meaningful causes, many donors find themselves drifting away from organizations. Understanding these reasons can help nonprofits strategize for better retention, nurturing long-term partnerships with their supporters.
Common Reasons Why Donors Stop Giving
Research reveals several recurring reasons why donors discontinue their support. A notable 2002 survey by Adrian Sargeant, then at the IU Lilly School, found that over 20% of donors cited financial limitations as the primary reason they stopped donating. A more recent study by Bloomerang showed that 54% of respondents could no longer afford their contributions, which may have been influenced by changing economic conditions. However, affordability is not the only barrier. The Bloomerang study highlighted other factors:
36% of donors felt other charities were more deserving.
18% reported poor service or lack of communication.
13% indicated they were not thanked for their gift.
8% were not informed on how their donation was used.
The role of communication becomes evident in these findings. Donors want to understand the impact of their contributions and feel acknowledged for their support. As I’ve shared over the years, strong stewardship is the most important of successful fundraising.
Donors Want to See the Impact
A lack of clarity on how their money is used significantly affects donor retention. According to Adrian Sargeant's research, many donors stop giving because they don’t understand the impact of their donations. Nonprofits often make the mistake of focusing on acquisition over retention, but effective stewardship can counter this.
Regular updates about an organization’s impact help foster trust and provide the transparency donors need to feel comfortable about their giving. This is a stewardship approach, which is a core element of donor retention strategy, emphasizing that consistent, impact-centered communication reassures donors that their contributions make a difference.
Practical Steps for Nonprofits
Nonprofits should consider these key strategies to foster long-term relationships:
Prioritize Transparent Communication: Inform donors how their money is making a difference. Penelope Burk’s Donor-Centered Fundraising emphasizes the importance of this, showing that when donors feel connected to the impact, they’re more likely to remain engaged.
Embrace Donor Stewardship: Nonprofits that regularly update donors on their achievements, challenges, and future goals cultivate loyalty. A simple “thank you” or a personalized note acknowledging the donor’s specific contributions can go a long way toward fostering loyalty.
Build Meaningful Relationships: Move away from transactional approaches and build relationships with donors as mission partners. This could include offering exclusive events, such as behind-the-scenes tours or impact-focused discussions, that provide donors with a sense of community and involvement.
Nonprofits looking to retain donors should recognize that today’s donor is more informed, more selective, and often seeking a deeper, more transparent relationship with the causes they support. By focusing on clear communication, stewardship, and engagement, nonprofits can build lasting partnerships with their supporters, ensuring they feel valued and involved in the 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.
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