Picture this, you set a crowdfunding campaign and captured the hearts of donors with your mission. The community rallies around your cause and donations pour in. But, as time ticks by, many of those initial donors fade away, leaving you puzzled and disheartened. What went wrong? The first gift is just the beginning.

Donor retention is simply how many donors continue to donate to your organization year after year, and is integral to all nonprofit organizations. With the time and the cost it takes to acquire new donors, it is simply easier to retain the current donors that you have, and especially for smaller organizations. This is why focusing on retaining your donors is important, as it’s much more cost effective for your organization in the long run.

Your donor retention rate is a simple calculation; however, it can have a big impact in your fundraising efforts. You can calculate your donor retention by measuring the donors who continue to give after their first gift. For example, if your organization had 100 donors last year, and this year, 50 out of the original 100 donors donate again, your donor retention rate would be 50%.

Donors that donated last year and this year/Donors that donated last year = 50/100 = 50%

According to CanadaHelps, the donor retention rate for charities in Canada is 50.8%. So, you may think that since the organization in this example was able to keep half of its donors, that’s not bad, and in line with other charities in Canada. However, if the organization maintains that retention rate, in two years out of the 50 donors that gave, only 25 will remain. This is a decrease in 75 donors from the original group. And I think we can all agree that would be a concerning reality for that organization.

If your nonprofit would like donors to continue to support your organization, here are nine strategies:

Determine your current donor retention rate. It is hard to improve your donor retention rates without establishing the current rate. Take the time to discuss the importance of evaluating your current donor retention rate, and how to calculate it so that you have a starting point in your strategy.
Identify the reasons why your donors did not give again. There are many reasons why donors decide to stop supporting an organization. Some of the more common reasons are; lack of communication, unsure of how their gifts were used, a long-time staff member that donors had a great relationship with left the organization, or their interests may have changed over time. Take the time to understand why your donors did not give again so that you can correct it in the future.
Welcome first-time donors. In general, retention rates for first-time donors tend to be low. When communicating with first-time donors use it as an opportunity to educate them about your organization, and make a good first impression.
Provide your donors with opportunities to get involved. Finding ways to keep your donor up-to-date and interested in the activities of your organization. For example, inviting the donor to upcoming events, or offering volunteer options that target donors’ interests and skills.
Use technology to help manage your donor relationships. Donor management software is not only to record a donor's gifts, but it can also help you manage your donor relationships. Your software can help you review all the interactions with your donors such as their gifts, volunteer hours, and communications between the donor and the organization.
Let donors know about your monthly gift program. If you have a monthly gift program let your donors know. This can be communicated on your website, a newsletter, or even on social media.
Use segmentation to personalize donor communications. Donor segmentation allows your organization to focus your resources, and tailor your communications to different groups of donors. The goal is to recognize donors that may be more invested in your mission, and by personalizing communications, you can help build stronger relationships with those that support you.
Share the impact of your donors' gifts. One common reason donors do not give again is because they are unsure of how the gift is being used. Share with your donors the impact of their donations. This can be done in several ways such as; creating an impact report, sharing stories of the community being served, using your newsletter to keep donors informed or informing donors through your social media channels.
Thank supporters for their gifts. Those two little words can go a long way in building relationships with your donors. Every current donor to your organization should receive a thank you that follows their donation, and is appropriately customized according to their giving level or your relationship to that donor. If you are not currently thanking your donors, determine how implementing a system that includes, thank-you messages, can help increase donor retention.

No matter how wonderful and important your cause is, your organization will lose donors along the way. However, by implementing some of the strategies outlined above, you can avoid losing valuable donors, and instead create a strong sense of trust with donors who are committed to supporting your cause that will hopefully last a lifetime.

9 Strategies to Boost Donor Retention