Donor Retention Guide: What It Is, How to Calculate It, and Why It Matters

What Is Donor Retention (and Why It’s Called the Secret Sauce of Fundraising)?

In nonprofit fundraising, donor retention is simply the percentage of supporters who keep giving year after year. Think of it as the difference between having one-time guests at your party and friends who keep showing up - and bringing dessert 🍰.

High donor retention rate means your fundraising nonprofit CRM is not just attracting donors, but it’s building long-term relationships 🤝. This is where donor management software for nonprofits makes a real difference.

How to Calculate Donor Retention Rate (The Very Simple Formula)

The formula is quite simple:

✅ For instance, if you had 600 donors last year and 400 donated again this year, your donor retention rate is 66.7%.

💡 Bonus tip: Your fundraising CRM should calculate this automatically. If it doesn’t, it might be time to explore a better fundraising platform!‍

🔑 Key Factors That Influence Donor Retention

Beyond the numbers, several factors help in calculating your rate of donor retention:

✔️Personalized communication —No more “Dear Supporter” emails 🙅
✔️Impactful storytelling—showing donors the real-world results of their gifts
✔️Easy donation process via optimized donation forms for nonprofits
✔️Timely thank-you messages , and follow-up campaigns

Your fundraising software for nonprofits should make these actions simple and consistent.

The Industry Benchmark: Where Do You Stand?

According, to the AFP Fundraising Effectiveness Project, (2024 ), the average donor retention rate hovers around 45% for most nonprofits. That means more than half of donors don’t give again. Ouch!

🌟 The good news? Strategic stewardship, when paired with the right CRM platform for nonprofits, can push your retention above 60%.

Building Sustainable Nonprofits Through Effective Donor Retention

Retaining donors costs less than acquiring new donors  —up to five times less, in fact. Strong retention helps in building predictable revenue, reduces campaign stress, and strengthens donor relationships over time.

You should think of it like a subscription model. When donors stick around with your nonprofit, you enjoy a reliable income, making it easier to plan impactful programs without scrambling for funds.

⚖️ Donor Attrition: The Other Side of the Coin

Donor attrition can be easily described as the percentage of donors who don’t give again. It can also be called the fundraising version of ghosting. Attrition often happens because of various reasons such as impersonal engagement, friction in the giving process or due to lack of communication. These pain points can be easily addressed with donation management software that helps in automating touchpoints and tracks engagement.

Wrapping It Up!

Donor retention isn’t just a metric —it is a health check for your nonprofit’s sustainability. By tracking and improving it, using the best fundraising CRM like Stratly , you can turn your one-time supporters into lifelong champions. 🏆

So the next time you run your reports, don’t just count how many new donors you gained, but celebrate the ones who stayed.
Because in fundraising, loyalty is worth its weight in gold… or dessert. 🍪

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