Fundraising Donor Retention - 9 Steps to Retaining Donors (2024)

Getting a donation is one thing, but keeping those donors coming back is something else entirely. Here’s what you can do to turn those one-time donors into long-term benefactors:

  1. Keep Service Strong

When you’re dealing with products, making sure the donation process goes smoothly helps encourage companies to continue to donate. Did you make it easy for the donor to ship their products to you, did you accept and account for those products in a timely fashion, did you promptly send out promised tax letters recognizing the donation? All those questions have to have positive responses—not just for the first donation, but for every donation. In the donor’s eyes, you’re only as good as their last interaction with you.

  1. Offer Trial Donations

For potential donors, giving them the opportunity to get their feet wet can be all that’s needed to reel them in. If they have two truckloads of products to donate, but are unsure if they want to commit the entire inventory to an unfamiliar group, suggesting a “trial donation” can help. Have them donate a small quantity, maybe just a pallet full of their products. If that donation goes smoothly, follow up to see if they’re now comfortable making a larger donation.

  1. Get Customer Feedback

To stay on top of how your nonprofit is doing, consider sending out surveys to clients asking about how the entire process went for them. Make sure the survey is complete, yet not too lengthy. The longer the survey, the less likely you’ll be to get a response. Even so, don’t expect huge returns. Ten percent or so is probably typical. Make sure someone regularly reviews the surveys and addresses systemic problems or issues specific to certain donors. You can also use the surveys as a bit of good will. Ask your donors if they want to piggy back on your public relations efforts, offering them the chance to tout their own donations in your press releases and other promotional materials.

  1. Make Communication Count

Once a company has made a donation, it’s important to keep the lines of communication open. That means honoring how and how often a company wants to be contacted. Some companies want to communicate strictly by email. But if you have a choice, phone contact is the better option, with occasional in-person meetings to really help develop positive relationships.

  1. Call Just Enough

When soliciting donations, you have to walk a fine line between keeping your organization in a company’s thoughts and becoming a pest. So how often do you call? It’s best to set up those parameters up front. When you’re first looking for product donations, ask how often companies take inventory or look to move excess product out of their warehouses. Is it on a quarterly basis, every six months? Find out, and time calls around then, when they are more likely to have items to donate.

  1. Get Past the Gatekeepers

If you make a call and a company has nothing to donate, then ask if you can call back in six months or some other set amount of time. If they say yes, then you already have a foot partway in the door. This is especially valuable with companies that have “gatekeepers.” When you are able to tell the gatekeeper that, “Joe asked me to call back,” you’re more likely to have your call go through.

  1. Build Relationships

Keeping in touch by phone and building a personal relationship with someone can help you increase your network of donors. Maybe that person will put another department that isn’t under their purview in touch with you when they notice that department has excess product. Or maybe they’ll let you know when they’re moving to another company or being transferred, so you can keep your contact list up to date.

  1. Meet Face-to-Face

In-person visits are invaluable. If you can, it’s best to avoid limiting yourself to meeting with just one person. When you’re setting up a visit, ask if there is anyone else in the company who might like to join you. That way, a meeting with one person can turn into a meeting with four or five. That not only leaves the door open to more donations, but it keeps you from having to start from square one if the one person you were dealing with leaves the company.

  1. Give Your Donors Value

Don’t assume that what a company values most is the tax benefits it receives. Many companies want to know where their donation went and how it was used. If you can provide that information, do so. It could be the best step you take to turning one-time donors into repeat donors.

Gary Smith

Gary C. Smith is the president and chief executive officer of the National Association for the Exchange of Industrial Resources (NAEIR), the oldest and largest gifts-in-kind organization in the country. NAEIR solicits and receives donations of excess inventory from American corporations and distributes the material to a membership base of more than 13,000 charities. It has collected and redistributed over $3 billion worth of new, donated supplies and equipment since its founding. NAEIR members average more than $18,000 worth of free products per year for their organizations. www.NAEIR.org

Fundraising Donor Retention - 9 Steps to Retaining Donors (2024)

FAQs

What is the formula for donor retention? ›

You can calculate your nonprofit's donor retention rate by dividing the number of repeat donors this year by those that donated last year. For example, if you have 159 donors who gave again this year, but had 300 who gave last year, your donor retention rate would be 53%.

What is a good new donor retention rate? ›

Donor Retention Statistics

The average donor retention rate across the nonprofit sector hovers between 40% and 45%. This means for every 100 donors who give to your organization in a year, only around 40 will return to do the same next year.

What is the average donor retention rate in 2024? ›

According to the Fundraising Effectiveness Project, overall donor retention rates hover between 40-45%. Our research has shown that nonprofits who embrace a digital-first approach to fundraising see an average overall retention rate of 53% across all channels.

What is the formula for calculating retention? ›

To calculate the retention rate, divide the total number of employees who stayed with your company through the time period by the headcount you started with on day one. Then, multiply that number by 100 to get your employee retention rate.

What is the formula for calculating the retention factor? ›

In thin-layer chromatography, the retention factor (Rf) is used to compare and help identify compounds. The Rf value of a compound is equal to the distance traveled by the compound divided by the distance traveled by the solvent front (both measured from the origin).

What is a realistic retention rate? ›

What is a good employee retention rate? Generally, an average retention rate of 90% or higher is what to aim for, meaning a company will want an average employee turnover rate of 10% or less. In 2022, the average turnover rate2 was around 9.3%.

How to track donor retention? ›

Calculate the donor retention rate by using the formula: (This Year / Last Year) * 100 = Retention Rate.

What is the difference between donor acquisition and donor retention? ›

Regarding fundraising strategies, two terms are often coined – donor retention and donor acquisition. As the name suggests, donor retention refers to the existing donors who continue to give, whereas donor acquirement to acquiring new donors who are willing to give.

How do you motivate and retain donors? ›

Address donors by their name, mention their donation history to remind them of their efforts, and give a detailed look into what you've accomplished thanks to their help. Incorporate visuals: Visuals make your emails pop and offer you another way to show your appreciation.

How do you keep donors happy? ›

One of the best things you can do to keep donors happy is by making things easy. For many people, a simple process to sign up as a volunteer, register for events, buy items, and more goes a long way, and it can be the difference between gaining a new donor and losing one.

What is the donor retention rate for fundraising effectiveness project? ›

Retention rates declined across all donor sizes, but the largest percentage declines were among major and supersize donors. Still, these donors' retention rates remained more than double that of donors who gave less than $100 (65.8% and 67.9%, compared with 31.4%).

What is the success rate of retention? ›

What Does Retention Rate Mean? In marketing and product management, retention rate refers to the percentage of customers who continue paying for a product over a given timeframe.

What is the average donation per donor? ›

Monthly Giving Statistics

The average monthly online donation is $52 ($624 per year) compared to the average one-time gift of $128. Monthly giving revenue increased by 40% in 2017. Monthly giving accounted for 16% of all online revenue.

What is the formula for the retention ratio? ›

The retention ratio, also known as the plowback ratio, is the percentage of net income the company keeps and reinvests in the business. It is calculated by taking net income minus dividends, all divided by net income.

What is the formula for patient retention rate? ›

With these figures, you can use the following formula to calculate your patient retention rate: [(E-N)/S] x 100 = CRR.

How do you calculate member retention? ›

Retention formula—What percentage of members do you retain each year? % Retention = (# of membership accounts at the end of the previous year - # of non-renewals at the end of the current year / (# of membership accounts at the end of the previous year x 100).

How do you calculate donor recapture rate? ›

Calculate this percentage by dividing the number of donors that gave this year by the number of donors that gave last year and multiplying that number by 100. The average repeat donor retention rate for nonprofits is 45%.

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