Donor Retention Strategies for Nonprofits: 6 Proven Tips in 2025
You’ve worked tirelessly to attract donors to your nonprofit, investing time and resources into your fundraising campaigns, only to see them walk away after a single contribution. Sound familiar?
You’re not alone, it’s a universal problem. It is an open secret that most nonprofits struggle with donor dropoff, and it doesn’t matter whether you’re a small nonprofit or an established one.
Donor retention has become one of the biggest challenges for nonprofits. In fact, studies show that retaining just 10% more donors can increase lifetime donor value by up to 200%.
But with the right strategies, you can change the scenario and turn your one-time donors into lifetime advocates.
In this article, we’ll discuss 6 practical and cost-effective donor retention strategies for nonprofits focused on building relationships and forming a loyal community of supporters.
What is donor retention?
Donor retention is an indicator that tracks the number of donors who donated to your organization in a consecutive year. For example, Sam donated to your nonprofit last year and has contributed this year, too. So, Sam is one of your retained donors.
It’s a mix of strategies that nonprofits often use to retain donors. Donor retention rate is the measurement of the percentage of total retained donors.
A good donor retention rate indicates that your nonprofit has a sufficient number of recurring donors, which ensures the organization’s stability. It also means you’re successful in keeping donors engaged and encouraging repeat contributions.
Why is donor retention important?
Acquiring new donors is essential, but keeping them engaged and inspiring them to give again is even more important. Once a first-time donor donates, it’s up to your organization to make them feel like a valued part of your mission and encourage their continued support.
Nonprofits need committed donors who will support their mission in the long term. If you can cheer up new donors to become regular contributors by applying different types of donor retention strategies, you can transform them into your ambassadors.
This will bring sustainability and stability to your organization. Also, nonprofits should be very aware of their investments in marketing and advertising. Acquiring new donors is much more expensive than retaining the old ones.
Whenever you invest your time and effort in onboarding new donors, the ultimate aim should be to retain them for ongoing and repeat contributions. Reaching out to the retained donors is more affordable, and they’ll be more likely to upgrade their giving level as well.
Moreover, repeat donors contribute 40% more than one-time donors.
If you have a solid base of retained donors, it’ll provide a reliable foundation for planning your monthly budget for the upcoming campaigns.
One of the biggest benefits of having a good donor retention rate is that it will bring credibility and create a positive reputation for your organization.
A large number of engaged and loyal supporters will help potential donors to believe in your cause and motivate them to be a part of your mission as well.
92% of consumers trust recommendations from friends and family more than any other form of advertising, and 74% say Word-of-mouth plays a crucial role in their decisions.
Your regular donor will do that Word-of-mouth marketing for you.
However, acquisition and retention aren’t opposite concepts. Nonprofits should always try to attract new donors and provide a positive first-time giving experience that encourages them to give again.
6 Best donor retention strategies to increase repeat giving
The first job of a non-profit organization is to acquire the maximum number of donors on the board. The next and most important part is to retain them as much as possible. Donors won’t give regularly if they don’t feel like giving.
Here, you should play a vital role in inspiring them, communicating in different ways, and improving their giving experience. To do so, you should utilize some strategies to retain new donors.
Recurring donation program
The most impactful donor retention strategy is to run a recurring giving program. This is the most convenient way for donors to donate regularly.
It allows donors to donate a specific amount at regular intervals through automatic payments. Donating $50 each month is much easier and affordable for anyone rather than $300 for one time.
It’s a win-win situation for your organization and the supporters. Donors won’t need to fill out the donation form every time, they don’t need to remember the donation date. Every donation will be taken automatically.
On the other hand, recurring donors bring stability to any nonprofit. It offers a consistent and predictable stream of income for your organization that allows you to do better budgeting and planning.
It also reduces the efforts and time to reach out to the donors every month or year to collect the funds.
All you need to do is choose a WordPress donation plugin, set up a recurring donation campaign, and reach out to your potential donors.
Appreciate your donors
Appreciating your donors for their contribution is one of the most powerful nonprofit donor retention strategies to keep them engaged and committed to your cause. You should always let your donors feel valued for every little contribution.
Put yourself in the donor’s shoes; what will you expect after donating? At least a simple thank you note!
Let’s be honest—everyone loves to be appreciated. In fact, one of the top reasons donors stop giving is simply because they don’t feel acknowledged. A little gratitude can go a long way in making them feel valued and encouraging future support.
So, each time someone donates, put a little effort into genuinely appreciating their generosity and respecting their time and money.
Display a thank you popup for their gifts and definitely send an appreciation email mentioning their name and donation amount and, if possible, specify exactly how their contribution will be used.
“We need to value donors as much as we need value from them”
Reinier Spruit
Ask for feedback
Engaging donors isn’t just about asking for contributions—it’s also about listening to their thoughts and experiences. When donors feel heard, they’re more likely to stay connected and continue supporting your nonprofit.
Asking for feedback shows that you value their opinions and are committed to improving their experience.
Whenever you receive negative feedback, try to work on it and update them. This will make them feel that their opinions are valued, which can inspire them to turn negative feedback into positive experiences.
Feedbacks are the best ways to find the gaps and improve your fundraising strategies for donor retention.
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Share impact stories
As a donor, you’d love to see the impact of your contribution and how it drives meaningful change. Your donors feel the same—they give because they believe in your mission and want to make a difference.
To keep them engaged, share the stories behind your fundraising successes. Storytelling is one of the most powerful ways and a great donor retention strategy to influence donors to give again.
As a donor, you’d want to see the impact of your contribution and how it drives meaningful change. Your donors feel the same—they give because they believe in your mission and want to make a difference.
For example, if your goal is to provide 500 school bags to underprivileged children, keep your supporters updated on your progress. Let them know how many bags have been distributed so far.
Using facts and figures makes your impact more tangible and helps donors see the real difference their support is making.
Positive first-giving experience
You probably heard that the first impression makes the last impression. The first giving experience matters the most in determining whether a donor will give again.
A seamless, engaging, and rewarding first interaction sets the foundation for a long-term relationship between the donor and your nonprofit.
If the process is complicated, asks for too much information, or redirects to another page for checkout, it is considered a bad experience. It frustrated a donor and more likely to never come back to donate again.
There is a high chance of abandoning his first contribution as well. To create a hassle-free, smooth, and donor-friendly experience, follow this:
- Optimize your donation page properly
- Only ask for essential information
- Provide on-page checkout
- Check for mobile friendliness
- Provide a range of payment options
- Immediately send a thank-you letter after receiving a donation
Some WordPress donation plugins offer built-in donation forms to reduce your workload.
Personalize communication
Personally communicating with your donors is considered one of the best donor retention strategies. Personal communication doesn’t mean sending a good morning text every day.
You may send updates on your fundraising campaigns, about the goal, how their contributions make an impact, etc.
It’ll make them feel valued, connected, appreciated, and more than just transactions. Donors love to be a part of your journey, so you should let them in.
You may create a community or group on social media with your one-time and recurring donors. Share updates on how the campaign is running, and share images and videos; that way, donors can visualize their contributions.
It’ll help you to build an emotional connection that encourages ongoing support.
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How to calculate donor retention rate?
Donor retention strategies for nonprofits will help you retain new donors and make them regular supporters. But how would you calculate the donor retention rate?
Using the donor retention rate formula, you can track whether you’re doing everything right or if you need to make changes to your strategies.
To calculate donor retention rate, identify the number of donors from last year who also contributed this year. Divide that number by the total number of donors from last year, and then multiply it by 100 to get the percentage.
The donor retention rate formula:
(This year’s donor who also donated last year / Last year’s donor) x 100 = Retention rate
For example, if 50 out of 100 donors from last year donated again this year, your retention rate would be 50%.
You might wonder, what is a good donor retention rate? The average donor retention rate for nonprofits is around 40-45%. If you’re hitting this mark, it’s a strong sign that you have a healthy relationship and meaningful connections with the donors.
If your retention rate is lower, it’s time to double down on the strategies for donor retention alongside onboarding new donors.
Another way of improving donor engagement is by calculating your donor churn rate. A low churn rate indicates strong donor engagement and long-term support.
How Paymattic can help to retain new donors
Paymattic is a WordPress plugin that is dedicatedly designed for collecting donations worldwide. It’s packed with features that make a donation campaign pretty easy to set up and handle effortlessly.
Paymattic offers everything that will help you retain your one-time donors. You can easily set up a recurring donation campaign and start collecting donations with Stripe, PayPal, Square, and Moneris.
It offers region-based 13+ payment gateways, including Razorpay, Flutterwave, Vivawallet, Xendit, Paystack, Payrexx, and Mollie, covering Asia, Europe, and Africa.
If you don’t want to create a donation form to save time and reduce workload, it offers some cool designed and well-optimized built-in donation templates for you.
The donor dashboard allows your donors to manage their donations. The donor profile will provide you with all the necessary donor information.
Integration with multiple CRM platforms like FluentCRM, Mailchimp, and ActiveCampaign lets you send thank you letters whenever a donation is made.
You can use this plugin as a part of your donor retention strategies for nonprofits to connect, engage, and improve the retention rate.
Wrapping Up
Donor retention isn’t just about keeping funds flowing—it’s about building relationships with the people who believe in your mission. By implementing these strategies, your nonprofit can create a donor experience that feels personal, meaningful, and rewarding.
From heartfelt appreciation and impactful storytelling to personalized communication and engagement, every interaction counts.
Today, donor expectations are evolving, and nonprofits that prioritize connection, transparency, and engagement will thrive. The key is to show donors that their contributions truly matter—not just with numbers but with real stories.
