Closing the Retention Gap

Written By: Jerry F. Smith, Founder & CEO

In November 2024, Bloomerang conducted a survey of 380 fund-raisers and 1,000 donors to examine the factors that drive donor retention. The findings revealed key insights into the challenges fund-raisers face and how nonprofits can improve their relationships with donors.

Barriers to Donor Retention

• One of the most prominent findings from the survey was that 82% of fundraisers cited limited staff and resources as a barrier to effective donor retention. Many fundraisers reported struggling to balance their workloads, with some stating, “There are not enough hours in the day,” or “I’m the only fundraiser” in their organization. These challenges create a situation where donor retention often falls by the wayside in favor of new donor acquisition or other immediate fund-raising needs.

• Only 38% of fund-raisers reported tracking first-time donor retention rates, which is a missed opportunity for nonprofits. Understanding how well they retain first-time donors provides valuable insights that can inform future fund-raising strategies and improve long-term donor loyalty.

The Key to Retention: Building Strong Connections

·         The survey found that 65% of donors remain loyal to an organization because they receive regular updates that show the impact of their contributions. These updates help donors feel more involved in the cause and highlight the tangible results of their donations.

·         63% of donors indicated they would give more when they feel they are part of an important cause. This finding underscores the importance of not only acknowledging donors but also making them feel like an essential part of the mission. Donors who understand the significance of their contributions are more likely to continue supporting an organization and increase their financial commitment.

·         One of the most effective ways to retain donors is to show them the impact of their gifts. Providing regular updates on the outcomes of donations—whether it’s through newsletters, social media, or personalized communications—ensures that donors see the real-world difference their contributions are making.

Segmenting communication to align with donor preferences is a highly effective strategy for building stronger connections. Whether it’s through email, phone calls, direct mail, or social media, tailoring communication to the specific preferences of each donor can significantly boost donor retention rates.

After being in the business of fund-raising for over 40 years, I have found that your best donors are your previous donors.

I believe the key to retaining donors is stewardship. Stewardship should be a priority, not an afterthought. Thanking donors at least five times during the 12 months following a gift or pledge will certainly help your retention rates.

It is easier to retain a donor than to find a new donor!