How do you know that your work in donor relations is making a bottom-line fundraising impact? One (sometimes loaded) word: metrics. I like to think of metrics as the numerical measurement of impact. Not something that I’m trying to “meet,” per se, but rather how I can demonstrate the return on investment of the work I do year round. Knowledge of this impact is essential when advocating for additional resources and getting that proverbial seat at the table with organizational leadership. Here are the five key metrics every donor relations professional should track—and why they’re essential.
Donor Retention Rate
Think of donor retention rate as the “north star” for all donor relations professionals. Every aspect of our work in donor relations impacts retention. From the thank you notes we send to the recognition events we plan, and everything in between. Why does it matter? Retaining donors is far more cost-effective than acquiring new ones– acquisition efforts can total up to $1.50 to raise $1, while retention weighs in at a lean $0.20 or less to raise $1. You read that right–nonprofits actually acquire donors at a net loss. Talk about unsustainable! And think about this: if we can’t retain our donors, then we never get the opportunity to cultivate them for future giving opportunities. Our friends at EverTrue recently published a study of 9,600 major donors who gave $50,000 or more in a single year. Of this group of donors, 58.1% took 6+ years to move from first gift to first major gift. If we can’t hold on to our donors past their first year of giving, how can we ever expect them to make their first major gift? According to AFP’s Fundraising Effectiveness Project, the overall donor retention rate averages out to somewhere between 40 and 50%. According to that same data set, the national first-time donor retention rate averages to about 18%. YIKES! However, rather than taking a more pessimistic viewpoint of this dismal trend, I choose to see the silver lining and think of all the room for improvement! Even small, sustained growth in your organization’s overall donor retention rate can make a huge difference in future fundraising performance. The graphic from Bloomerang below illustrates this principle in action. But to be able to improve donor retention rates, we need to know them. Do you know your organization’s? If not, make that a goal for 2025!
Pledge Fulfillment Rates
Donors who are informed about their giving are donors that continue to give. That’s a proven fact, thanks to visionaries like Penelope Burk. In her seminal work, Donor Centered Fundraising, Burk shares that 93% of individual donors would definitely or probably give again the next time they were asked if a charity 1) thanked them in a prompt, personal way, and 2) followed up later with a meaningful report on the program they had funded. The secret to repeat giving, and pledge fulfillment, is in the first two of the 4 Pillars of Donor Relations–stewardship and acknowledgment.
Thanks to data from AFP’s Fundraising Effectiveness Project, we know that pledge fulfillment rates fall anywhere from 80-90%. That means that 8 or 9 out of 10 pledges will ultimately be fulfilled. This is a pretty good number, right? But think about this in the context of our ever-growing fundraising campaigns. The illustration below shows the revenue difference between an 80% pledge fulfillment and a 90% pledge fulfillment in the context of a $1B campaign. The revenue loss is compounded, of course, in the context of big campaigns, but the financial impact of pledge fulfillment impacts all nonprofits, all the time. Donor relations is the difference maker in this area and once again donor relations professionals have the opportunity to make a financial impact in our work. So keep that pledge fulfillment data top of mind when considering metrics.
Donor satisfaction on annual endowment reporting
Reporting is a cornerstone of donor relations programs, providing transparency to donors (which builds trust) and demonstrating the impact of a donor’s gift (which inspires increased giving). Reporting is also a costly organizational undertaking in terms of resource and time dedication. When considering the investment involved alongside Penelope Burk’s data above, providing a survey to donors each and every reporting cycle is a must-do activity. Simply put, there is no stronger metric to measure the impact of your stewardship efforts. We have created an “Annual Endowment Report Survey Template” that is ready to be adapted into your organization’s brand guide and implemented in this round of reporting. However, if you’re looking to create your own, consider asking:
Whether or not the donor, having read the report, is better able to understand the impact of their giving to your organization
Specific questions about the presentation or design of the reports
Whether or not the donor wishes to continue receiving the reports
Don’t be sad or upset if people say “no”! You may be sending reports to distant relatives of fund donors who simply aren’t engaged with your organization. Their “no” means you have additional time to report to donors who are ready and willing to be engaged!
Include this survey as the final page of your reports, whether they are sent digitally or via direct mail. When you get the data back, share the results with your leadership team along with ideas on how to improve survey scores for next year. Remember to tie your metrics back to fundraising success–donors who know about their gift’s impact are donors who keep giving, and often give more each consecutive time!
Donor satisfaction with events
Speaking of costly and time intensive–oh hey there, events! :) All jokes aside, events are an important tactic in recognition and engagement efforts–the third and fourth Pillars of Donor Relations. Penelope Burk’s Donor-Centered Fundraising notes that a whopping 87% of donors were influenced to give after attending a recognition event, with 31% of attendees making an unsolicited gift soon after the event.
I recently had the privilege of working with a higher-ed client to survey their donors about the organization’s recognition programming. We asked donors in each recognition society “Of the potential ways to engage with <<Organization>>, which most interests you? Please select one only.” The results are below. As you can see, events were far and away the preferred method of engagement with this particular university. So do yourself–and your organization!—a favor and survey your donors after each and every event. Consider the following (and the great definitions in this SurveyMonkey article):
The event strengthened my connection to the organization. (Likert agreement scale)
Which aspect of the event was most meaningful? (open-ended response)
What is one thing we could do to make the event better? (open ended response)
Based on your experience at the event, how likely are you to attend future events? (net promoter score)
Measure event objectives
For example “Attending <<event name>> inspired me to give to <<organization>> (Likert agreement scale)
As with your reporting survey, once you have this data, think about how you can improve upon these scores for the next event. Whether that’s programming changes or taking the event in an entirely new direction, you’ll be glad to have data to drive your decision-making process. And data to show your leadership how your events programming is deepening donor connections and inspiring future giving.
Putting Metrics Into Action
The true power of these metrics lies in how you use them. Here’s how to make metrics work for you:
Share Often: Share these metrics in your donor relations team meetings and in meetings with leadership. This will keep the value of your work front and center while also providing a built-in reminder for you to refresh the data. To that end, consider developing dashboards or self-service reports that allow you to pull numbers in real time.
Segment by Audience: As an example, many nonprofits are pushing for growth in the leadership annual giving donor segment as a means of expanding the major gifts pipeline. Donor relations can (and should!) analyze the metrics above by donor audience, or donor segment, to ensure that their programming is effective with key organizational audiences. This alignment will underscore the value of your donor relations program, and make it easier for leadership to say “yes” to requests for additional resources.
Leverage to Make Strategic Decisions: Too often donor relations professionals rely on anecdotes to guide decision making. By tracking the metrics above, you can fine-tune your program to be as effective and resource efficient as possible. Tracking metrics allows you to notice trends that make it possible to make small adjustments early rather than costly overhauls later.
Metrics are more than just numbers—they’re the proof points that showcase the real impact of your donor relations efforts. When you use metrics to connect donor relations to fundraising success, you position yourself as an indispensable part of your organization’s mission and future growth.
Colton Withers, Director of Operations, is a consultant and educator who has helped clients inspire donors through exceptional communications, building and implementing innovative programs, designing and analyzing surveys, and training employees on the art and science of donor relations.
If you’d like to learn more about metrics in donor relations, check out our recent webinar, Developing Metrics for Effective Donor Engagement. In this previously recorded webinar, you will:
Explore practical strategies for integrating metrics into your daily operations. Discover how data can inform decision-making, donor segmentation, and personalized engagement strategies.
Learn the process of defining, developing, and measuring KPIs specific to donor relations.
Discover effective strategies for bringing together necessary partners to align metrics and outcomes for a unified approach.
