If donor retention is a major problem at your nonprofit, you’re not alone. According to the Fundraising Effectiveness Project’s 2022 reports, about 86% of new donors will not make another donation the year after making their first gift. Fortunately, there are research-supported methods you can implement at your nonprofit to increase donor retention.
In this article, I’ll share six research-supported tips for improving your donor retention rates. Then I’ll explain how you can implement donor retention practices with a regular routine.
6 Research-supported donor retention tips
Set attainable fundraising goals — Donors want to be on a winning team! When you announce your next fundraising goal, be sure it’s ambitious yet attainable. When donors see that you can successfully meet your goals, they’re more likely to support your future fundraising campaigns because they want to be on your winning team.
Send a personalized thank-you message to donors within 24 hours of their gift — Donor engagement research shows that donors are more likely to give a second gift if they receive a personalized thank-you message within 24 hours of giving their first gift. This means you shouldn’t send out a blanket thank-you message to all donors at the end of the year… Instead, address each thank-you message to individual donors by name as soon as you receive their gift.
Communicate the impact of donors’ gifts — Go beyond the standard thank-you message and tell donors exactly what impact their gift has on your beneficiaries. Instead of saying, “Your gift supports children in need,” try saying, “Your $100 gift provides two hours of free tutoring to a student who needs support at school.”
Offer more engagement opportunities — Donors become more excited about your cause when they feel like they’re truly part of your team. After someone gives a gift, let them know you have available volunteering opportunities, committee seats, or event tickets.
Ask about donors’ motivation to give — After a donor gives their first gift, ask what inspired them to donate. You may be surprised at the answer! Once you know what part of your mission resonates with your donors, you can craft individualized messages to help them understand how their gift impacts the specific program they care about most.
Invite donors to become recurring donors — Instead of simply asking donors to give once or twice per year, invite them to set up recurring monthly gifts. Their credit card can automatically be charged once per month so they don’t have to remember to give at certain points throughout the year. Most donors can afford to give in greater amounts throughout the course of year versus through a one-time gift at the end of the year.
How to incorporate donor retention into your regular routine
Donor retention may seem overwhelming at first. How can you possibly steward every relationship to its full potential when you have so many other things on your plate? Here are some tips for incorporating donor retention activities into your regular work routine:
As soon as someone makes a donation
ALWAYS: Send a personalized thank-you message within 24 hours.
BONUS: Send a thank-you video from your executive director, board chair, or a person who benefits directly from the gift
BONUS: Have a board member or volunteer call the donor to say thank you
once per week
ALWAYS: Post a mission update, impact story, or educational tidbit about your mission on 1-3 social media channels
BONUS: Send an email newsletter with a mission update, impact story, or educational tidbit about your mission
once per month
ALWAYS: Send an email newsletter with a mission update, impact story, or educational tidbit about your mission
BONUS: Set up one-on-one meetings with 10% of your nonprofit’s biggest donors to get to know them better as individuals
BONUS: Host a simple, non-fundraising event, such as a Lunch & Learn or Volunteer Orientation
once per quarter
ALWAYS: Send out a fundraising appeal
BONUS: Invite donors to “level up” their engagement by participating in a specific activity, such volunteering for a particular project, securing a matching gift from their employer, or sharing a social media post from your profile
once per year
ALWAYS: Provide donors (especially major donors) with an annual report describing their impact for the year
ALWAYS: Evaluate donor data to get insights about how you can continue improving both donor acquisition and donor retention next year
ALWAYS: Ask donors for feedback about their experiences with your nonprofit
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