6 Major Considerations to Improve Donor Retention
First published March 1, 2023. Revised September 8, 2023.
No matter the size of your organization, donor retention is key. No donations, no nonprofit.
More than that, getting donors to sign up for a recurring donation is the dream. Otherwise you can write whatever number you want in the budget, and you just hope that similar donations come in at the usual fundraising efforts.
But the bottom line is that there is a donor attrition rate, and if you can find your way to improve the donor retention rate and increase the lifetime value of a donor, you'll set your nonprofit organization up for success in the future.
Donor data shows that each person gives to an average of 4.5 organizations. How do you become someone’s choice for a recurring donation–or at least help them remain loyal to your cause?
Here’s 6 items to remember for every public communication that can strengthen your donor retention strategy.
More than that, getting donors to sign up for a recurring donation is the dream. Otherwise you can write whatever number you want in the budget, and you just hope that similar donations come in at the usual fundraising efforts.
But the bottom line is that there is a donor attrition rate, and if you can find your way to improve the donor retention rate and increase the lifetime value of a donor, you'll set your nonprofit organization up for success in the future.
Donor data shows that each person gives to an average of 4.5 organizations. How do you become someone’s choice for a recurring donation–or at least help them remain loyal to your cause?
Here’s 6 items to remember for every public communication that can strengthen your donor retention strategy.
1) Urgency Increases Donor Retention
You know how it is: if you don’t respond to something right away, it’s likely to end up on the bottom of your to-do list, and from there, it never surfaces.
We’re bombarded by a nonstop stream of to-do items.
Your donors are the same, and that can kill you retention efforts.
If they hear from you, but forget to donate right away (or whatever other action you want them to take), it might not happen until the next time they get news.
And that’s very bad news if you’re not reaching out to them often. So make the most of what you do send to them, and be clear about your urgent needs. Include that donation form. Talk about the immediate situation of the organization, and get people to respond right away with a clear picture of their impact, no matter the gift amount.
We’re bombarded by a nonstop stream of to-do items.
Your donors are the same, and that can kill you retention efforts.
If they hear from you, but forget to donate right away (or whatever other action you want them to take), it might not happen until the next time they get news.
And that’s very bad news if you’re not reaching out to them often. So make the most of what you do send to them, and be clear about your urgent needs. Include that donation form. Talk about the immediate situation of the organization, and get people to respond right away with a clear picture of their impact, no matter the gift amount.
2) Transparency Increases Trust & Donor Retention
It’s important to be transparent for many reasons.
First of all, it’s your responsibility to use your donations wisely and as promised (Form 990, anyone?). Transparency is key. Provide annual (or more) financial updates.
And for the purpose of improving your donor retention rate, transparency about funds and mission makes your message more detailed. And details are persuasive.
A fundraising strategy shows that if you tell people that you pay $79 for internet each month, it is easier to find a donor. With a specific amount and goal, donors know what you need, they know what it’s for, and they might be willing to donate more than they usually would if there's a close price point.
First of all, it’s your responsibility to use your donations wisely and as promised (Form 990, anyone?). Transparency is key. Provide annual (or more) financial updates.
And for the purpose of improving your donor retention rate, transparency about funds and mission makes your message more detailed. And details are persuasive.
A fundraising strategy shows that if you tell people that you pay $79 for internet each month, it is easier to find a donor. With a specific amount and goal, donors know what you need, they know what it’s for, and they might be willing to donate more than they usually would if there's a close price point.
3) If You Make It Easy to Give, Donor Retention Improves
We live in an age of personal preference, and our generous donors aren’t any exception.
They want to donate, but they want to pay by cash or by card or in person or online – the list goes on.
Discover the donor information relevant to your organization. Track it in donor management software if you have to -- but make it as easy as possible for people to give you money.
Stay up to date on payment trends and offer buttons, easily visible on websites and newsletters, to all the major platforms. The gift amount taken online increased 12.1% last year, and there’re always new preferences arising in how people give. If it increases your overall donation amount, it’ll be worth the investment of diversifying your giving locations.
They want to donate, but they want to pay by cash or by card or in person or online – the list goes on.
Discover the donor information relevant to your organization. Track it in donor management software if you have to -- but make it as easy as possible for people to give you money.
Stay up to date on payment trends and offer buttons, easily visible on websites and newsletters, to all the major platforms. The gift amount taken online increased 12.1% last year, and there’re always new preferences arising in how people give. If it increases your overall donation amount, it’ll be worth the investment of diversifying your giving locations.
4) Donor Retention and Community Go Hand-in-Hand
Communication to donors isn’t just about telling them what’s going on.
You want to build a community: help them to feel like they know the staff, the clients (as much as appropriate, of course!), and other supporters. Run social media channels separately for clients and for donors, and put links to them in your outreach.
But why? Why can’t you just provide a list of statistics of how many people you’re helping?
First of all, because people prefer stories, not numbers. That you provided X number of services to Y number of clients is great, but it’s powerful to say how you transformed so-and-so’s life by doing THIS, and that’s what you do every day.
Second, you want to increase your “Know, Like, Trust” value. Donor acquisition is even more difficult than donor retention. But if someone feels like they know you and your staff, they will be much more likely to recommend your services or invite friends to also become donors.
Nonprofits serve their communities, so keep that as the guiding star of your outreach.
You want to build a community: help them to feel like they know the staff, the clients (as much as appropriate, of course!), and other supporters. Run social media channels separately for clients and for donors, and put links to them in your outreach.
But why? Why can’t you just provide a list of statistics of how many people you’re helping?
First of all, because people prefer stories, not numbers. That you provided X number of services to Y number of clients is great, but it’s powerful to say how you transformed so-and-so’s life by doing THIS, and that’s what you do every day.
Second, you want to increase your “Know, Like, Trust” value. Donor acquisition is even more difficult than donor retention. But if someone feels like they know you and your staff, they will be much more likely to recommend your services or invite friends to also become donors.
Nonprofits serve their communities, so keep that as the guiding star of your outreach.
5) Personalized Donor Retention Efforts Repay Dividends
Even though you are writing to every donor at the same time, you don’t want to sound like you are.
People are taking time and money out of their personal lives to help you. Use your donor information to be personal back.
What can that look like?
People are taking time and money out of their personal lives to help you. Use your donor information to be personal back.
What can that look like?
- Include a handwritten note to your highest tier donors.
- Write your pieces like you’re writing for only one person. Put up a picture of one of your donors on your desk while you’re working if it helps.
- Merge in first names and other personalized data from your donor database.
- Find ways to put reminders in your system – wish them a happy birthday, or send content relevant to a particular segment. Send particular messages to people who are recurring donors, others who donate one time, others who attended (or not) the last event, etc…
6) If You Recognize the Donor, Retention Follows
If you think donors are going to return simply for the sake of making a difference, you’re mistaken.
Retention rate is good when donors feel valued and involved. They consider themselves ambassadors.
Of course they like to know that their money is helping people.
But like all people, they also want to be heard. They want to give feedback. They want you to take them as partners, not moneybags. See them as another fundraising expert.
91% of organizations stop thanking people for recurring donations by the 3rd month -- do you think that's good for donor retention rate? Is the money no longer helpful?
Whenever you talk with donors, don’t only tell donors what you’re doing. Tell donors what they’re doing and thank them for that. Ask for their feedback. Tell them how they can become ambassadors for your organization.
And that step should help you build longer lasting relationships and a stronger giving program.
Retention rate is good when donors feel valued and involved. They consider themselves ambassadors.
Of course they like to know that their money is helping people.
But like all people, they also want to be heard. They want to give feedback. They want you to take them as partners, not moneybags. See them as another fundraising expert.
91% of organizations stop thanking people for recurring donations by the 3rd month -- do you think that's good for donor retention rate? Is the money no longer helpful?
Whenever you talk with donors, don’t only tell donors what you’re doing. Tell donors what they’re doing and thank them for that. Ask for their feedback. Tell them how they can become ambassadors for your organization.
And that step should help you build longer lasting relationships and a stronger giving program.
Strategize Your Donor Retention Journey Regularly
Before you send out your next donor communication, remember these guidelines.
In fact, use this checklist to develop an entire donor journey.
From initial outreach to donor retention (and even the delicate subject of a legacy gift), many best practices for communication are always the same–you are dealing with a human being, full of worth and dignity, who wants their voice to be heard and their preferences to be respected.
If you keep that in mind, your donor relationships will go far.
In fact, use this checklist to develop an entire donor journey.
From initial outreach to donor retention (and even the delicate subject of a legacy gift), many best practices for communication are always the same–you are dealing with a human being, full of worth and dignity, who wants their voice to be heard and their preferences to be respected.
If you keep that in mind, your donor relationships will go far.
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