Donor retention was 45.5% at the end of 2017, which is not an inspiring number. So, why should my organization be focused on donor retention?
One major reason is financial – it costs less to motivate an existing donor to donate again, versus attracting new donors. In addition, you already know that they believe in your cause and most likely still have the means to donate, since they have before. There is also a correlation between the length of time someone has been a repeat donor and the amount that they donate – and surprise, it’s higher. Even small increases in donor retention can have large financial impact over time.
When an organization is looking to attract new donors, there isn’t always a focus on developing strategies that will acquire donors that have a high potential to become recurring donors – but there should be! With a little foresight, nurturing that burgeoning relationship with intent could have major returns in the future. As personal wealth or business profits grow, so can the contribution to your cause.
In order to begin a deliberate shift towards increasing donor retention, there are questions that each nonprofit has to ask. Knowing the answers to these questions can give your organization an idea if it’s using its resources in a way that is maximizing ROI. This blog by Jessica Zim can help.