Donor retention is often a neglected metric in fundraising, with many organizations focusing more on the volume of donations or the number of new donors acquired rather than fostering long-term relationships with existing supporters. Moreover, research paints a troubling picture for most: for every 100 donors who give to an organization, 50 or more will not contribute again. This stark statistic highlights a crucial opportunity for our organizations—to rethink our approach to fundraising and donor engagement. Donor retention must become part of the larger conversation at the organizational level, and effective change management is essential in prioritizing retention.
The State of Donor Retention
Our organizations invest significant resources in acquiring new donors, but retaining them over the long term is actually more valuable. According to data from the Fundraising Effectiveness Project (sponsored by the Association of Fundraising Professionals (AFP), the AFP Foundation for Philanthropy, and the Center on Nonprofits and Philanthropy at the Urban Institute), the average donor retention rate across nonprofits is alarmingly low, often below 50%. However, what’s more concerning, is that many organizations do not track retention rates consistently. Instead, they focus on short-term fundraising metrics such as the number of proposals submitted or the total dollars raised.
The focus on acquisition rather than retention may stem from the perception that new donors are the key to growth. And yet, the cost of acquiring a new donor is significantly higher than retaining an existing one. When an organization's donor base is constantly churning, building a sustainable revenue stream takes more work. Furthermore, nonprofits that fail to retain donors may undermine the goodwill and trust they've worked hard to establish.
Why Retention Should Be a Top Priority
The true power of donor retention lies in turning one-time supporters into long-term partners. Retained donors are more likely to increase their giving over time, refer others, and advocate for your cause.
For nonprofits that want to make a real impact, donor retention should be viewed as a vital part of the fundraising process, not just an afterthought. But how do we make donor retention a central focus?
Change Management: The Key to Shifting the Focus
This is where effective change management becomes critical. Change management is the process of guiding an organization through the necessary adjustments to achieve a desired outcome—in this case, shifting focus from acquisition-centric fundraising to a more balanced approach that emphasizes donor retention. This shift requires leadership buy-in, cross-departmental collaboration, and a strategic approach that aligns all organizational efforts toward building long-term relationships with donors.
Many organizations struggle to implement change, especially when it comes to onboarding new priorities like donor retention into their daily operations. Nevertheless, with the right change management strategies, nonprofits can significantly improve their donor retention rates.
Steps for Implementing Effective Change Management for Donor Retention
1. Assess the Current Situation
Before any change can be implemented, it is essential to assess where your organization currently stands. This means taking a hard look at your donor retention data (if available), understanding your existing donor engagement strategies, and identifying any gaps or weaknesses in your approach. Are you tracking donor retention? Are you gathering feedback from your donors? Are there clear pathways for donors to deepen their involvement with your organization? This assessment will give you the baseline information you need to create a strategic plan for improvement.
2. Get Leadership Buy-In
One of the biggest barriers to improving donor retention is getting buy-in from organizational leadership. Without their support, donor retention efforts may not receive the resources or attention they need to succeed. It's important to highlight how donor retention can directly impact the organization's long-term sustainability and growth to make the case for retention. Retention should be a strategic priority, not simply a "nice-to-have" goal. Show how retention ties into your overall mission and can lead to more reliable, recurring revenue streams that fuel your programs and services.
Engaging leadership also means ensuring retention is embedded in the organization's culture. It shouldn't be the responsibility of the fundraising team only—retention needs to be part of the mindset of every department, from marketing to donor relations to annual giving.
3. Define Clear Metrics for Success
Donor retention should be treated like any other key performance indicator. Organizations need to define what success looks like in terms of donor retention. Are you aiming for a specific percentage increase in retention rates year over year? How will you track engagement beyond repeat giving (e.g.volunteer participation or event attendance)? Creating clear, measurable goals will help everyone stay aligned and focused on retention outcomes.
Once metrics are defined, make sure they’re consistently tracked and reported on. This could mean creating dashboards or reports that provide real-time insights into retention progress, ensuring that the leadership team stays informed and can adjust strategies as needed.
4. Implement Cross-Department Collaboration
Effective donor retention doesn't happen in a vacuum. To truly engage and retain donors, multiple departments need to be involved, from development to marketing to stewardship. Collaboration across these teams is essential to creating a holistic and personalized donor experience.
For instance, the communications team may focus on crafting messages that resonate with donors, while the donor relations and stewardship teams can work on ensuring donors see the impact of their contributions. Meanwhile, the frontline fundraisers are vital in maintaining relationships and ensuring donors feel valued and appreciated. By involving different teams, the organization ensures that donor retention becomes a shared responsibility.
5. Communicate with Donors
Retaining donors is all about keeping them engaged and informed. It’s not enough to simply ask for money once a year and expect donors to stay engaged. Organizations must prioritize regular—but thoughtful!—communication and create opportunities for donors to interact with your cause. Whether through newsletters, impact reports, or social media updates, consistent communication helps donors feel connected and invested.
A personalized approach can go a long way in deepening relationships. Acknowledge milestones, celebrate anniversaries, and highlight how a donor’s contribution has made a tangible difference. Donors should feel like they are part of the organization’s journey, not just passive supporters.
6. Recognize the Value of Feedback
Successful donor retention requires ongoing feedback. Solicit feedback from donors to understand their experiences, motivations, and reasons for giving. Are they satisfied with the way their donations are being used? Do they feel valued by the organization? This feedback can provide critical insights that can help refine engagement strategies and address any issues before they lead to donor attrition. And remember a golden rule—if you ask for feedback, you need to use it!
Donor Retention is Everyone’s Job
Donor retention should not be a secondary goal or an afterthought—it must be woven into the fabric of your organization's operations and culture. By using effective change management strategies, nonprofits can create a sustained focus on donor retention, leading to deeper, more meaningful relationships with supporters. When leadership buys into this shift and aligns the entire organization around retention, the results can be transformative, often ensuring long-term stability and success.
Retaining donors is about more than keeping your numbers up—it’s about building a community of passionate, loyal supporters who feel connected to your mission. And with the right change management practices in place, your organization can turn that vision into reality.
Written by Jan McGuire
