Don't let donor drift happen to you!

Why Donor Retention Matters (and What Nonprofits Can Do About It!)

By: Evelina Erickson

April 2026

If your organization feels like it’s constantly chasing new donors just to stay in place, you are not alone.

Across the nonprofit sector, donor retention remains one of the most persistent—and costly—challenges that non-profits face. Research from the Fundraising Effectiveness Project shows that, on average, nonprofits retain only about 40–45% of their donors year over year. That means more than half of donors are lost annually!

Even more concerning, first-time donor retention often hovers around 20–25%.

These numbers should give every non-profit leader pause. Why? Because, while donor acquisition is important, retention is where sustainability—and real growth—happens.

The Hidden Cost of Losing Donors

It can be exciting to focus on bringing in new supporters. But, as many non-profit leaders know, acquisition is expensive—often significantly more so than retaining existing donors.

Studies highlighted by Association of Fundraising Professionals and partners like GivingTuesday consistently reinforce a core truth: It costs far more to acquire a new donor than to retain an existing one.

Here is what happens when donors give once and never return:

• Poof - Your marketing and outreach investments are lost,

• Staff time yields minimal long-term value, and

• Revenue is unpredictable and harder to forecast.

In contrast, retained donors:

• Tend to give more over time,

• Are more likely to upgrade their giving, and

• Are significantly more likely to become major or legacy donors.

Retention isn’t just a fundraising metric—it’s a long-term revenue strategy.

Retention is the Gateway to Major and Planned Gifts

Data from Giving USA shows that the majority of charitable giving in the U.S. comes from individuals—not institutions. Within that, transformational gifts tend to come from donors who have an established relationship with an organization.

Similarly, planned or legacy gifts are rarely spontaneous (though it is a joy-filled and humbling moment when a surprise legacy gift is received). Research and industry experience—including insights from National Philanthropic Trust—show that these commitments are typically made by donors who:

• Give consistently over time (10+ years),

• Feel a strong sense of trust and connection with your organization, and

• See themselves as part of the success of the organization’s long-term mission.

If you’re not retaining donors, you’re not building a pipeline for major or planned gifts.

Why Donors Don’t Come Back

Understanding retention starts with understanding why donors leave.

Every organization is different; however, several common themes emerge across sector research:

• Lack of meaningful acknowledgment - Did you send a form letter or email with no personalization or follow-up?

• Little or no communication after the gift - A quick call from a program officer or board member just to check in with a donor can make a donor feel appreciated.

• Unclear or invisible impact - Can you share a story about how their support has made a difference?

• Over-solicitation without relationship-building - If your organization is guilty of this, you are not alone. Still, its time now to start reaching out to donors with simple text messages, emails, and/or phone calls. Of course, personal visits with donors are ideal to develop relationships, just make sure that the ROI is there.

In many cases, donors don’t actively decide to stop giving—they simply drift away. (Yes, I am raising my hand. I have stopped giving to organizations because they didn’t help me to feel connected with them.)

That is what makes retention such an opportunity. You and your organization can make small, intentional changes that have an outsized impact.

A Shift in Mindset: From Transactions to Relationships

Improving retention doesn’t require a larger team or a bigger budget. It requires a shift in how we think about fundraising as well as what members of the organization we involve.

Too often, fundraising is treated as a series of transactions: 1. Send appeal, 2. Receive gift, Send receipt, and Repeat.

Donors aren’t transactions—they’re people looking for connection, meaning, and impact.

Organizations that prioritize retention tend to:

• Thank donors quickly and sincerely

• Communicate regularly (not just when asking)

• Share stories that demonstrate real impact

• Invite donors into a deeper relationship with the mission

This is not about perfection. It’s about consistency and intention.

Where to Start

If your organization is looking to strengthen donor retention, start simple:

• Audit your thank-you process—how fast and how personal is it? Is your executive director or a member of the board calling to thank your donors?

• Look at your communication cadence—are you only reaching out to ask or are you sharing updates about a recent accomplishment?

• Consider how you are communicating with donors. The next generation of supporters (elder millennials) often prefer text or social media over email. (Though, I dare say that everyone these days loves to receive a hand-written thank you note via USPS. It beats junk mail or yet another solicitation.) 

You don’t need a complex system to begin. You need a commitment to building relationships, one touchpoint at a time.

In a sector that often emphasizes growth, retention is sometimes overlooked. Organizations that thrive over time understand this - Sustainable and long-term growth isn’t built on constantly finding new donors. It’s built on keeping the ones you already have.

If you’re interested in assessing your donor retention rates or building a practical, right-sized strategy to strengthen donor relationships, reach out to me and let’s talk.