If you’re a nonprofit development professional, you’ve likely heard the term “donor retention.” It’s one of the hottest topics of discussion in the nonprofit sector. But what is donor retention? And why is it important? This session explores the most recent data from the Fundraising Effectiveness Project, the root causes of poor donor retention rates, and the reasons why donors stay loyal. You’ll come away with several ideas for improvement based on leading research in the field.

1. Faith & Fundraising: Milwaukee 2022
The Current State
of Donor Retention
And What You Can
Do About It
Steven Shattuck,
Chief Engagement Officer

2. Steven Shattuck
Chief Engagement Officer, Bloomerang
- Author: Robots Make Bad Fundraisers
- Contributor: Fundraising Principles and Practice:
Second Edition
- Member: Fundraising Effectiveness Project (FEP)
Project Work Group, AFP Center for Fundraising
Innovation (CFI), Study Fundraising Steering Group
at the Hartsook Centre for Sustainable
Philanthropy at Plymouth University
- Fun facts:
- 1st job: producing fundraising videos
- prefers tea to coffee
- allergic to rhubarb
- won the David Letterman scholarship

3. A study of
donor retention

4. A study of donor retention

5. Average Donor Retention Rates
As of Jan 1, 2021
Source: Fundraising Effectiveness Project http://afpfep.org
43.6% 19.3% 59.6%
* All three were down from 2019 *
AVERAGE FIRST-TIME REPEAT

6. Average Donor Retention Rates
Over the past few years
Source: Fundraising Effectiveness Project http://afpfep.org

7. First-Time Donor Retention Rates
Over the past few years
Source: Fundraising Effectiveness Project http://afpfep.org

8. Positive Signs in 2020
Overall giving increased by 10.6% in 2020 as compared to 2019, spurred by
an increase in new and reactivated donors
Source: Fundraising Effectiveness Project http://afpfep.org

9. Positive Signs in 2020
Small donors led the way
Source: Fundraising Effectiveness Project http://afpfep.org

10. Q1-Q3 2020 vs Q1-Q3 2021 YoY
Mostly stable, but one opportunity
2020
vs
2019
2021
vs
2020
Source: Fundraising Effectiveness Project http://afpfep.org

11. Why donor retention is important
Higher lifetime value = higher revenue

12. Why donor retention is important
Higher lifetime value = higher revenue

13. Best bequest prospects
According to Jerry Panas
- Length of giving to your organization
(5+ years of regular giving)
- Giving to you over a long period of time (Giving may not
be year after year - but gifts have been made over a
long, extended period of time)
- Frequency of Giving (monthly credit card donors, multiple
gifts within a year)
- Is an active volunteer (at one time or now a board
member, or a volunteer in some manner)
- The Family has been involved in some way in the
organization (best if there is a long-time association)

14. Why donor retention is important
It’s easier and cheaper to retain a donor than it is to acquire one
Cost per acquisition = 5x cost per renewal
Cost per acquisition = 2-3x initial donation amount
Renewal response rates = 20x30 higher than acquisition response rates
Source: Adrian Sargeant - IU Lilly School of Philanthropy

15. Why donors lapse

16. Why donors stop giving
2001 study by Adrian Sargeant
5% - thought charity did not need them
8% - no info on how monies were used
9% - no memory of supporting
13% - never got thanked for donating
16% - death
18% - poor service or communication
36% - others more deserving
54% - could no longer afford

17. Why donors stay

18. Why donors keep giving
2011 study by DonorVoice
1. Donor perceives organization to be effective
2. Donor knows what to expect with each interaction
3. Donor receives a timely thank you
4. Donor receives opportunities to make views known
5. Donor feels like they’re part of an important cause
6. Donor feels his or her involvement is appreciated
7. Donor receives info showing who is being helped

19. Why donors keep giving
2021 study by IU Lilly School of Philanthropy
Types of communication and content that subscription donors would prefer to
receive from nonprofit organizations they support:
52% - Stories and experiences shared by the people my gifts have helped
32% - Frequent updates about organization’s programs and services
32% - Emails with my donation’s impact and heartfelt thank you(s)
25% - Educational and interactive webinar series related to the organization’s
mission and impact areas

20. How to improve donor retention
- Thank quickly + personally
- Illustrate that you know who the donor is
- Segment communications
- Tell them how gifts are used / will be used
- Tell them what comes next
- Be curious about donor motivation and solicit feedback
- Prioritize monthly giving

21. Practical retention tips

22. Heather Carroll
Executive Director at Skaneateles
Education Foundation

23. The power of segmentation
$17,000 generated from one email campaign split three ways

27. The personal touch works
Personal emails + video

28. The personal touch works
Personal emails + video

29. The personal touch works
Research into the efficacy of phone calls to first-time donors
first-time donors who get a personal thank you within 48 hours are 4x
more likely to give a second gift.
(McConkey-Johnston International UK)
a thank-you call from a board member to a newly acquired donor within
24 hours of receiving the gifts will increase their next gift by 39%.
(Penelope Burk)

30. Phone calls to first-time donors
Increases retention, speed-to-second-gift, and average gift amount

31. Phone calls to first-time donors
Increases retention, speed-to-second-gift, and average gift amount

32. Phone calls to first-time donors
Increases retention, speed-to-second-gift, and average gift amount

33. The personal touch works
Stewardship buoyed YoY customer growth in 2020

34. Why donors keep giving
2011 study by DonorVoice
1. Donor perceives organization to be effective
2. Donor knows what to expect with each interaction
3. Donor receives a timely thank you
4. Donor receives opportunities to make views known
5. Donor feels like they’re part of an important cause
6. Donor feels his or her involvement is appreciated
7. Donor receives info showing who is being helped

36. Online giving stewardship
Pay attention to:
- Confirmation page
- Automatic acknowledgement email

45. Wrapping up
- Make retention a priority
- Have a second gift strategy
- Emphasis on thanking and reporting
- Weave in phone calls, personal emails and surveys

46. bloomerang.co/demo

47. Questions?
steven.shattuck@bloomerang.com