You\u2019re saving money by improving your donor retention<\/a>. You\u2019re also more likely to get larger gifts<\/a> from donors who give over time, so you\u2019re making more money. <\/p>\n\n\n\n The second piece of the equation is that many nonprofits struggle with donor retention. I know it\u2019s tough to hear, but the average nonprofit loses 55 to 60% of its donors each year. That\u2019s tons <\/em>of money that is being missed out on.<\/p>\n\n\n\n But here\u2019s the good news: 2025 can be the perfect year to strengthen your donor retention with clear goals<\/a>, a well-thought-out fundraising calendar<\/a>, a killer fundraising campaign<\/a> and a refined donor retention strategy to help you keep your supporters year-round. Ready? Let\u2019s make this happen.<\/p>\n\n\n\n You\u2019re probably generally familiar with the concept of donor retention<\/a>, but you may not know your own rate or the many nuances of donor retention strategies. Very simply, donor retention refers to the number (or percentage) of donors that return to give another gift in a specific time period. Most nonprofits and charities measure donor retention year over year.<\/p>\n\n\n\n A great place to start is by calculating your own donor retention<\/a> from last year. That will let you know your base level and help you take data as you move forward to see which strategies work for your donors. To do this you can:<\/p>\n\n\n\n For example, say you had 100 donors from last year that returned to give gifts again out of the total 250 donors. From these stats, you would have retained 40% of your donors, and lost 60%.<\/p>\n\n\n\n You can go even further than that simple calculation<\/a> though. You can also look at the number of first time donors from 2023 who gave a second gift in 2024 (your first-time donor retention rate). Or you can sort out those who are returning donors. On average, 19% of first-time donors give another gift while 63% of returning donors give again.<\/p>\n\n\n\n Other figures to look at are the average annual gift (if it goes up or down over time), the lifetime value<\/a> of an average donor, and your donor acquisition costs.<\/p>\n\n\n\n Now that you\u2019ve got some data, what can you do to improve your donor retention rates?<\/p>\n\n\n\n The first piece in any donor retention strategy (especially one for retaining year-end donors) is the thank you. This is the first interaction your donor will have with the organization after they make their donation. That means it\u2019s pretty important.<\/p>\n\n\n\n <\/p>\n\n\n\n This automatic thank you email is addressed to the giver, has the amount given, and tells the donor about the impact of the donation. <\/p>\n\n\n\n Once you\u2019ve thanked your donors it\u2019s time to start building an ongoing strategy <\/a>to make them into lifelong supporters. The best way to do this is segmentation<\/a>, which essentially means breaking up your donors based on similar traits. Was it because they saw their friend\u2019s peer-to-peer fundraising<\/a> post on social media? Were they forwarded a link through email from one of your clients? Did they happen to stumble across your donation page<\/a> through an online search?<\/p>\n\n\n\n Use your donation software such as a CRM<\/a> or even a spreadsheet to track and monitor this essential donor data. If you captured any other pertinent data during the donation process, be sure to document this as well.<\/p>\n\n\n\n From here you can start to build specific lists of different types of donors.<\/p>\n\n\n\n Segmenting your donors<\/a> is important because it helps you to tailor your communications to the donors. If you have a group of mid-level donors<\/a> who give at the end of each year, you\u2019ll want to approach them differently than a group of new donors who each give $10 a month. Think about how you can personalize your stewardship to each group.<\/p>\n\n\n\n Your next email or connection will then vary based on segmentation. Donors who gave $1000 or more may receive a personal phone call to learn about their interests, while $10 donors may get a welcome email series (don\u2019t worry, we\u2019ll talk more about that soon). <\/p>\n\n\n\n This is also a good time to start learning more about your donors. You may ask them to sign up for an email list, or fill out a short survey to tell you more information about themselves. Everything you know helps you build a picture of your donor.<\/p>\n\n\n\nWhat is Donor Retention?<\/h2>\n\n\n\n
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1. The Art Of The Thank You<\/h2>\n\n\n\n
![\"donor-retention-strategies-donor-thank-you\"](\"https:\/\/www.causevox.com\/wp-content\/uploads\/2021\/01\/donatin-reciept-1024x726.png\")
<\/figure>\n\n\n\n2. Segmenting Your Year-End Donors<\/h2>\n\n\n\n
Download CauseVox\u2019s Donor Engagement & Retention Playbook:<\/strong><\/h3>\n\n\n\n