Because they don’t exist in the same spotlight as your major donors, it can be easy to leave mid-level donors out of your stewardship plans. However, their reliable support can contribute substantially to your nonprofit’s success. 

Learn how to identify this donor group and build a compelling program to retain their support in this comprehensive guide. Here’s what we’ll cover:

• Who are your mid-level donors?
• How can you identify mid-level donors?
• Why should you create a mid-level donor strategy?
• How to create a mid-level donor program
• Best practices for mid-level donor retention

By strengthening your relationships with mid-level donors, nonprofits can eventually deepen their connection to this consistent, generous donor type. Over time this can benefit your organization by garnering regular contributions or by transforming, mid-level donors into major donors

Who are your mid-level donors?

Defining mid-level donors

Mid-level donors or recurring donors refer to the category of supporters who give more than the average donor, but less than major donors or sponsors. Visually, this group of donors falls in the middle of the donor pyramid between first-time donors and planned givers:

The amount that defines this in-between donor category will differ depending on your nonprofit’s size and should be updated regularly based on your donor data. However, a general estimate of mid-level donation amount would range from $1,000 to $10,000 given annually. 

Importance of mid-level giving

Mid-level donors can easily be overlooked in the stewardship process because they don’t fall into the major donor category and usually aren’t an integral part of your nonprofit’s donor acquisition strategy. Don’t make this mistake! Mid-level donors can be game-changing for your nonprofit in several ways. Check out these statistics to learn why:

• Mid-level donors can account for 40-50% of revenue (NonProfit PRO)
• Two-thirds of major donors start in annual giving (NonProfit PRO)
• Donors who give $1,000 to $10,000 represent only 1% of donors at many charities, but they often give more than a third of the money raised (Philanthropy.com)

Characteristics and giving patterns of mid-level donors

Mid-level donors have recognizable giving characteristics and patterns that set them apart. Here’s how you can spot one: 

• Donation history. Mid-level donors typically give more than the average donation but still haven’t scratched the major gift levels. 

• Gift frequency and amount. As mentioned, mid-level donors typically give between $1,000 and $10,000 through regular amounts rather than one-time gifts. 
• Engagement patterns. Usually, mid-level donors have another connection to your cause either through volunteering, event attendance, or social media engagement.

To make these characteristics more tangible, let’s look at an example mid-level donor profile:

Name: Sarah Mitchell

Giving History: She typically donates between $500 and $1,000 per year to your organization. Her contributions have steadily increased, starting with a modest $250 donation when she first discovered your organization.

Background and Involvement: She attends your annual fundraising gala and participates in volunteer events organized by your nonprofit. She has also signed up for your monthly newsletter and follows your social media updates to stay informed about your initiatives.

The above profile indicates that this donor has the affinity and capacity markers that would define her as a mid-level donor. Mid-level donors also tend to be more involved with your cause than the average one-time donor.

Mid-level donors vs. major donors

Because mid-level donors can be on the cusp of becoming major donors, it can sometimes be challenging to tell them apart. Fortunately, a few key distinctions can help you differentiate between mid-level donors and major donors.

Major donors typically migrate up the giving pyramid more quickly than mid-level donors. They also tend to give larger gifts less frequently. On the other hand, mid-level donors settle into giving over time and renew their gifts consistently or choose to give through multiple channels. After some time, mid-level donors usually stay at their giving rate and they rarely lapse.

How can you identify mid-level donors?

Your nonprofit CRM or donor database plays a pivotal role in identifying mid-level donors. You can segment your existing database and get a better understanding of who your mid-level donors are. For instance, you can use the following markers to characterize this group:

• Donation history analysis
• Gift amount and frequency
• Behavioral and engagement analytics

In addition to using your CRM, you can also leverage a matching gift database like Double the Donation’s to identify match-eligible donors collect even more data, and create on-demand actionable reports. With help from Double the Donation, you can identify upcoming trends, optimize mid-level donor communication channels, and establish realistic fundraising goals for every donor type. A few reports Double the Donation offers include:

• Repeat Donors Report that shows donors who have submitted requests for previous donations, but have other gifts that have not been matched.
• A General Statistics Report that indicates email open rates and click rates matches identified donations by month and provides a status breakdown to determine where your donors are in the conversion process.
• Eligible But Not Submitted Report that indicates the most valuable groups of donations that are eligible, but have not submitted matching gift requests.

Despite these benefits, many nonprofits skip cultivating mid-level donors so they can focus their time and energy on stewarding major gifts or planning direct marketing efforts. A mid-level donor program can help you intentionally steward this group. Let’s explore the basics in the next section.

Why should you create a mid-level donor strategy?

You should prioritize stewarding mid-level donors for the following reasons:

• Revenue stability. Mid-level donors offer a consistent level of support that can stabilize funding for your programs when major donors lapse or donor acquisition efforts return unfruitful. This gives your nonprofit a steady revenue stream it can build on.
• Increased giving potential. Because of their consistency and familiarity with your cause, mid-level donors have the potential to increase their giving levels or donate through planned gifts or legacy giving.
• Engagement and loyalty. Mid-level donors are reliable. A survey by Brown and Halvorsen found that two-thirds of mid-level donors surveyed said that they had supported the same nonprofits for 5+ years.
• Foundation and corporate support. Mid-level donors involved in CSR or employee engagement programs are a direct link to corporate support. Their engagement can result in increased corporate matching gifts, in-kind donations, and sponsorships.
• Networks and referrals. Mid-level donors can offer valuable connections through their personal and professional networks. For instance, a board member may be a mid-level donor and their involvement could spark the interest of friends and family.

Despite these benefits, many nonprofits skip cultivating mid-level donors so they can focus their time and energy on stewarding major gifts or planning direct marketing efforts. This is where a mid-level donor program can help you intentionally steward this group. Let’s explore the basics in the next section.

How to create a mid-level donor program

1. Define mid-level donors

Using your CRM, segment your donors to find mid-level donors that fit your predefined criteria. Choose relevant indicators such as donation amount, frequency, and involvement. For example, you might ask the following questions to identify your mid-level donors:

• Have any of your donors brought community members to events?
• What is their recurring gift status?
• How often do they volunteer?
• Have they increased their giving over time?
• Have they expressed interest in learning more about your programs or mission?
• Would they be interested in increasing their donation amount if approached in the right way?

Consistently review and update your donor profiles based on this information. As giving habits evolve, be sure to update a donor’s status, such as when a mid-level donor has achieved a major donor status.

Additionally, the criteria with which you identify your mid-level donors will change as your organization grows. Therefore, be sure to check your nonprofit’s objectives and align your team on which characteristics they can count on to spot a mid-level donor.

2. Create personalized communication plans

Personalize your communication to connect with mid-level donors in a way that acknowledges their level of giving and demonstrates impact. Take a multi-channel marketing approach to invite donors to take the next step in engaging with your organization. For example, you might launch the following initiatives as a part of your mid-level donor cultivation strategy: 

• A social media campaign showcasing the results of your recurring gifts program and thanking donors who made it happen.
• An email campaign that offers a vision for your nonprofit’s future and invites mid-level donors to partner with you by volunteering or learning more in a webinar series.
• A direct mail campaign that thanks mid-level donors for their continued support and includes a brochure of how their gifts have made a difference.
• An exclusive event where beneficiaries share first-hand impact stories and guests get a sneak peek of upcoming projects and initiatives.

Rely on your donor data to pinpoint which communication channels your mid-level donors are most likely to respond best to. Find out where most of them are located as well. For instance, if most of your donors are local, an in-person gala could offer a memorable way for them to engage with you.

3. Offer exclusive access

Distinguish your mid-level donors by providing events or exclusive content that are just for them. This will encourage first-time donors to increase their engagement while recognizing the impact of mid-level donors. Some examples of this may include:

• Early access or exclusive previews of an upcoming nonprofit event.
• Free parking or prime seats at your next event.
• Behind-the-scenes tours of your new facilities.
• Exclusive “boots on the ground” content from your volunteer team.

By offering these perks and benefits, you can effectively retain mid-level donors. Just be sure to distinguish your mid-level donor stewardship program from your major gifts stewardship program. For instance, you may dedicate more formal, exclusive galas to major donors and plan quarterly volunteer workshops and lunches for mid-level donors.

4. Promote relevant opportunities

Once you’ve consulted your database, you have a better idea of your mid-level donors’ giving capacities and interests. Tailor your program to highlight relevant giving opportunities that your mid-level donors would likely agree to. 

For example, if a mid-level donor has been offering a recurring gift for multiple years, you might approach them to discuss how planned gifts could help them leave a lasting legacy.  Or, if a mid-level donor has a substantial social media following, you may invite them to participate in your next peer-to-peer fundraising campaign. Another option would be to invite a committed mid-level donor onto your nonprofit board to involve them in your decision-making processes. 

Each of these next steps will differ depending on a donor’s giving and engagement history. However, it’s always a good idea to invite donors to get more experience with your cause to deepen their understanding and connection. 

5. Use metrics to measure progress

To measure your program’s success, identify which metrics you’ll track. This will help you assess your mid-level giving program’s return on investment and help you adapt your program over time. Key metrics to keep an eye on include:

• • Mid-level donor retention
  • Conversion rate from low-level giving to mid-level giving
  • Event participation rate
  • Recurring gift program participation rate
  • Matching gift participation
  • Mid-level giving program benefits utilization

In addition to these metrics, you may also choose to calculate donor lifetime value, which estimates a mid-level donor’s value based on their potential future contributions. This metric is especially relevant to assess the long-term impact of your program and can convince your team to hone their mid-level cultivation strategy.

Best practices for mid-level donor retention

To properly select and cultivate mid-level donors, there are a few techniques to keep in mind. Following these will save your team time while maximizing each connection you make and leading your donors further down the pipeline. Let’s review them below!

Lean into automation

Planning and executing informed marketing campaigns can take time. That’s why nonprofits should lean into automation to do some of the heavy lifting for them. Email marketing, social media posting, and SMS messaging are all examples of automated marketing you can tap into to get your messages across promptly.

Another game-changing automated process is matching gift auto-submission. This technology facilitates the donor-matching gift submission process by embedding directly into a nonprofit’s donation form. All donors have to do is provide their company email address and the software will handle the rest of the matching gift process on their behalf. Check out this video for a quick overview of  Double the Donation’s automation platform:

As the video explains, matching gift auto-submission has an easy setup with integrations, no developer time, no custom coding, and no additional complications. Plus, recent statistics indicate that auto-submission is projected to yield an 80% increase in matching gift revenue.

By incorporating auto-submission into your nonprofit tech stack, you can make donating matching gifts easier than ever and retain more mid-level donors.

Demonstrate impact

By reminding mid-level donors of how their giving translates into real-world impact, you’ll foster greater transparency and trust among them. Here are a few strategies you can use to effectively demonstrate impact:

• Impact reports. These comprehensive annual reports outline how your team used incoming funds to advance your mission. Specifically, they cover your organization’s activities, goals, and achievements. The report should be stocked full of progress metrics and can even be interactive with multimedia like videos, charts, and infographics inviting readers to take a deeper look at your mission.
• Testimonials. With permission, you can use volunteer, staff, and beneficiary testimonials to drive more mid-level donor support. For instance, a homeless shelter may use volunteer and beneficiary testimonials to drive home the value of a functional warming center during the cold winter months.
• Real-time statistics. To keep your audience updated at all times, you can use real-time statistics that play up your campaign’s urgency. For example, if you choose to run a time-sensitive matching gift challenge campaign, you can use fundraising leaderboards or thermometers that update matching gift progress automatically.

These techniques will keep your mid-level donors informed and excited about offering their support. And, over time, you can inspire your mid-level donors to pursue major gift status by keeping your mission top of mind.

Prioritize recognition

Did you know that 41% of donors will give again when they receive personalized outreach on the impact of their support? Providing recognition goes hand in hand with demonstrating impact and can show that your nonprofit is grateful for gifts of all sizes.

Recognize your mid-level donors as soon as the gift is received or within a 48-hour window to show your appreciation in a timely manner. An easy way to make your recognition both prompt and personalized is by using digital eCards. A platform like eCardWidget’s easy customization makes it the perfect donor recognition tool.

For example, look at how Youth For Understanding’s colorful thank-you eCards illustrate the level of creative freedom you can get with the platform:

Use quick and meaningful updates like these to thank donors, invite them to dedicated events, or even send them a happy birthday message to signal their importance to your organization. 

Conclusion + Additional Resources

Mid-level donors are often the loyal sustainers of your organization. Their consistency can help you stay afloat or level up your existing programs. Use the tools and techniques listed in this article to zero in on your mid-level donors and launch an engaging program that keeps them enthusiastic about your cause.

Did you enjoy this guide to mid-level donor programs? Check out these related resources to learn more:

• Donor Retention: A Comprehensive Guide + 6 Strategies. Learn all things donor retention-related and add new strategies to your existing retention plan in this guide.
• Donor Stewardship: How to Retain Support Effectively. Learn how to make stewardship an ongoing iterative process that builds lasting relationships in this guide.
• Digital Marketing for Nonprofits: The Ultimate Guide. Make your digital marketing communications count with actionable advice from this guide.

Two of the most common challenges nonprofits face include operating under unfavorable economic conditions and combatting staff burnout and low retention. Funding—or a lack thereof—is one of the main culprits. Particularly, a lack of diverse and reliable funding sources can have negative effects on nonprofit operations and burden staff with more work. If your development team is always chasing the next donation, staff members could suffer from stress and burnout.

This is why it’s so important for nonprofits to set up programs that inspire donors to give regularly. In this guide, we’ll discuss recurring giving and how your organization can set up a program to diversify your funding sources:

• What is recurring giving?
• What are the benefits of recurring giving?
• How can your nonprofit start a recurring giving program?
• Do recurring gifts qualify for company matching?
• What are some examples from other nonprofits?

Did you know that 40% of Millennial donors are enrolled in a monthly giving opportunity, while 49% of Gen X and Baby Boomer donors participate as well? According to Nonprofit Source, that stacks up to approximately 45% of donors currently enrolled in a recurring donation program.

Consistent, monthly funding from recurring giving programs can enable you to pay for more projects and help more beneficiaries. But before you can get there, it’s key to understand what these programs are and how to set one up. Let’s get started!

What is recurring giving?

Recurring giving occurs when a donor opts to make regular donations to a nonprofit each month, making it a great way for nonprofits to fundraise. These recurring payments can be automated to make participating more convenient for the donor.

There are a variety of ways to implement recurring giving at your organization. In a basic monthly giving program, donors simply agree to donate a certain amount each month, often via automated payments. Another option is to create an exclusive club or membership program for monthly donors and offer some kind of incentive to join (e.g., branded merchandise or early access to event tickets).

What are the benefits of recurring giving?

A robust recurring giving program can be a game-changer for your organization and supporters. Specifically, these benefits include:

• Reduced strain on your staff. To recruit recurring donors, staff only need to put in the legwork of securing the first donation—from there, donations are made automatically without their help. However, it’s important to keep in mind that you will need to prioritize donor retention to keep participants engaged.
• Consistent donations. When you have a recurring giving program, you can count on a certain amount of funding coming in each month. This makes it easier to plan and budget on a shorter timeline, and you have more liquid cash available for emergencies and other special circumstances.
• Higher retention rates. Because your nonprofit only needs to secure one donation, you’ll see fewer lapsed donors when they are involved in your recurring giving program. Additionally, donors involved in recurring giving programs tend to be more loyal than passive donors when nonprofits have proper stewardship policies in place.
• More convenience for donors. Most supporters appreciate it when donating is as quick and easy as possible, which is why 63% of donors prefer giving online. Recurring giving programs allow donors to provide consistent support to their favorite cause without needing to lift a finger after the first donation.

Recurring giving programs can also be more cost-effective. Your nonprofit won’t need to spend as much time and resources on marketing initiatives to secure donations—in other words, your cost per gift will decrease.

Additionally, donors could end up contributing more to your nonprofit in the long run. For example, a donor might only remember to donate $100 twice a year, giving a total of $200. However, they may join your monthly giving program, commit to donating $25 each month, and give a total of $300 that year.

How can your nonprofit start a monthly giving program?

Starting one of these programs won’t cost your nonprofit much beyond your time and a little hard work. However, there are some preparations you’ll need to make to ensure the program runs smoothly.

Before you launch a program, make sure you have:

• Your leaders’ and board members’ approval
• A dedicated program manager
• A functioning, accessible website and donation page that integrate with your CRM or fundraising software
• Any necessary marketing tools
• Merchandise, gifts, or exclusive content (if you plan to offer program incentives)

Next, you’re ready to start developing the program. Here are the basic steps to follow:

Identify your target audience.

To recruit recurring donors, you can look both internally at your current donors and externally at potential supporters. Because you already have an established relationship with them, however, current donors are more likely to participate in the program.

Whether they’re an existing or prospective donor, those willing to join your recurring giving program must have the right:

• Affinity for your cause. This refers to a donor’s personal connection to your cause. For example, do they donate to similar organizations or fund political initiatives that align with your values?
• Capacity to give. Capacity indicates how much a donor is able to give. Estimate this metric by tracking wealth indicators like net worth and stock and real estate holdings. Remember that the donor needs to have enough discretionary income each month to participate in the program.
• Likelihood of participating. This refers to a donor’s propensity or tendency to do something. You can track a donor’s history with your nonprofit to better understand their giving habits and even look at their interactions with other organizations.

The way your supporters show their dedication to your cause depends on the involvement opportunities you offer. However, in most organizations, the ideal target audience for a recurring giving program will be made up of your most loyal, dedicated supporters. This could include those who’ve been donors for multiple years and those who donate often.

Additionally, remember to look for donors who get involved in other ways like volunteering or serving on a committee. Volunteers are 66% more likely to contribute financially and they’re showing a deep commitment to your cause by spending their time furthering your mission.

Segment your supporters.

Once you’ve identified the donors who are most likely to participate in a recurring giving program, look out for patterns and shared traits among them. While everyone in this audience may be interested in donating monthly, they won’t all resonate with the same messages.

This is why it’s important to segment your donors based on specific traits. By creating these groups, you can craft personalized, targeted appeals that speak to their interests and reach them on the right communication channels.

For example, let’s say you run an animal shelter and are ready to start your recurring giving program. Here’s how you can segment your audience and tailor communication strategies to each group’s preferences:

• Interests and affinities: Your supporters have varying affinities under the umbrella of animal welfare. You decide to create three segments based on the most common distinctions: dog people, cat people, and those who like both. Communications with cat people feature images of kittens, emphasize that their funding will help your TNR program, and tell stories about specific cats you’ve rescued in the past.
• Communication preferences: Each of your donors has one or two communication channels they engage with most often. You track responses to past marketing campaigns in your CRM and create segments for each major communication channel, such as email, direct mail, social media, and text.
• Demographics: Your audience consists of a variety of ages, so you create generational segments. Older generations respond best to more personal communication channels like email and phone calls while your Gen Z supporters would rather receive a short text message or like your Instagram posts.
• Engagement level: You create segments based on how often supporters interact with your nonprofit, such as by making a donation, visiting your website, or engaging with a social media post. You send communications with your most active supporters more frequently while less active supporters receive occasional updates.

After you get your program up and running, you may need to refine your strategies and add or remove segments. Remember to frequently check key performance indicators (KPIs) such as email open rates, click-through rates, and conversions to determine whether your messaging resonates with each group.

Promote the program.

Now, you’re ready to start promoting the program to your selected audience. To get started, you need to craft a compelling, overarching message for the campaign. In other words, why should your supporters want to become recurring donors?

This message will be different for each nonprofit, and you’ll need to tweak it for each of your audience segments. To get you started, here are some of the main reasons why donors may be inspired to donate on a regular basis:

• They can make a sustained impact—for many donors, making single, large donations is not realistic.
• Recurring giving programs make donating as convenient as possible.
• Monthly donors may form an exclusive community, making participants feel a sense of belonging.
• They may have access to perks like free merchandise, priority access to events, invitations to staff or board meetings, etc.
• Providing recurring donations allows your organization to use resources (e.g., staff time) more efficiently to work toward your mission.

Once you’ve crafted a unique appeal to prospective recurring donors, you’ll need to share it across multiple channels. Consider creating educational content about the program for your website. For example, you might write a blog post announcing the program and build a dedicated landing page that lays out the process of joining, how funds are used, any incentives you offer, and an FAQ section.

Then, share your message across your donors’ preferred communication channels. Make sure to tailor the format to the channel you’re using. While emails can be as long as 400 words, Instagram graphics should only contain a few lines of text at most. Additionally, prioritize eye-catching graphics for fast-paced channels like social media to ensure donors notice and engage with the content.

For a more information about how to market opportunities to get involved, check out our dedicated guide.

Create a donor retention strategy.

Once you’ve recruited donors into your recurring giving program, you might feel like your work is over. While you won’t need to secure each donation they make, you will need to make an effort to keep them enrolled in the program.

To retain donors, make sure to implement stewardship strategies such as:

• Asking donors for feedback. Send out surveys to your recurring donors asking for their honest feedback on the program. Include questions asking them to rate how satisfied they are and what they think you could do better. For example, perhaps donors are happy to support you each month but would like to hear more about the impact they are making.
• Thanking them for their support. This step is essential. Frequently send donors thank-you letters or emails that acknowledge their donations and express your gratitude. Make these messages personal by greeting them by name, mentioning the amount they give each month, and highlighting the sustained impact they have. Always thank them for the commitment they’ve made to support you each month.
• Offering incentives. As we’ve mentioned, you can offer gifts and exclusive experiences to donors to motivate them to join your monthly giving program. However, incentives don’t have to be tangible or cost your organization anything. Instead, you might give them a place on your donor recognition wall, mention them in your annual report, or highlight their support in your newsletter.

The donors engaged in your recurring giving program are your most passionate, dedicated supporters. Avoid taking this loyal support for granted by frequently showing your gratitude for their ongoing support.

Do recurring gifts qualify for company matching?

Although every company ultimately makes its own rules and criteria that define its program eligibility, the good news is that recurring donations generally do qualify for corporate matching. However, there are a few possible routes that recurring donors can choose from when it comes to requesting their matches.

These include the following methods:

😔 A recurring gift donor submits a match request for the expected annual total at the time of initial commitment.

😐 A recurring gift donor submits a separate matching gift request each month (or another cadence, depending on the frequency of their contribution).

😊 Donors wait and submit aggregate donations once per quarter or year, depending on their employer’s matching gift guidelines.

Of the options, the third (batching donation requests) is the most efficient for all parties involved in the process: including your fundraising team, the initial donor, and the donor’s employing company. Meanwhile, the second (separate match requests for each gift) is generally an accepted practice, though it can require a bit of additional effort to process. The first option, however, is typically not approved by matching gift companies that aim to match funds contributed rather than simply pledged.

As more recurring givers secure more matches on your organization’s behalf, your impact will continue to multiply. Just remember: whether submitting the expected yearly total, making monthly match requests, or aggregating contributions for a single request, donors play a pivotal role in facilitating matching gift requests. Make sure your audience is well aware of corporate match opportunities and how they can get involved—regardless of whether they contribute a one-time donation or pledge a generous monthly gift.

What are some examples from other nonprofits?

If your nonprofit has never had a monthly giving program before, you may not know the best ways to promote it to your supporters. Here are a few examples from top nonprofits to inspire you:

St. Jude Children’s Research Hospital

St. Jude Children’s Research Hospital funds research for childhood cancer and other life-threatening diseases.

One of the ways that St. Jude promotes its monthly giving program is by adding a “Monthly” button to their donation form. This makes joining the program extremely quick and easy for donors. Additionally, it makes anyone donating aware that St. Jude’s has a monthly giving program without requiring them to sift through their website or seek out a sign-up page.

National Wildlife Federation

The National Wildlife Federation (NWF) is an American conservation organization that fights for conservation values and seeks to give wildlife a voice.

This organization provides two excellent examples of ways to inspire donors to join a recurring giving program. First, it offers members-only benefits to those who give $15 or more each month. The page includes images of the items members will receive throughout the year and breaks down all of the perks of the program, such as discounts on merchandise.

This organization also breaks down the impact that various donation amounts will have and divides the total monthly contribution into daily gifts. This highlights how a small, daily sacrifice adds up to a significant total impact.

PAN Foundation

The PAN Foundation offers financial assistance to those with serious medical issues, helping them afford treatment.

To encourage monthly donations, the PAN Foundation created an exclusive community of recurring donors known as the PAN GEMs. GEM stands for “Give Every Month,” and these donors receive exclusive newsletters, invitations to virtual meetings, recognition in PAN publications, and opportunities to share feedback and personal stories.

To educate donors about the GEM community, the PAN Foundation created a dedicated landing page that explains what a GEM is, features calls to action, lists the benefits of being a member, features stories and testimonials, and notes that a monthly gift of just $50 covers treatment costs for an entire year.

Wrapping Up

Recurring giving programs deliver exactly what your nonprofit needs: consistent funding. Not only do these programs help lighten your staff’s workload and help you raise more money throughout the year, but they’re also more convenient and rewarding for donors who want to make a difference.

As you get more comfortable running your recurring giving program, consider branching out to other funding sources to boost your revenue. With CSR initiatives like matching gift programs, for example, donors’ employers will match donations they make to your nonprofit. This can double the donations you receive from donors without them needing to contribute each month.

For more help improving your nonprofit’s recurring giving program and maximizing revenue, check out these resources:

• Donor Retention: A Comprehensive Guide + 6 Strategies. Discover more strategies for retaining both monthly and one-time donors.
• Hiring a Google Grants Agency in 2024: A Guide & 5 Agencies. Considering using Google Ads to market your recurring giving program? See how working with an agency can boost your results.
• How to Market Matching Gifts: The Comprehensive FAQ Guide. If you’re curious about other ways to grow your revenue, check out this guide to learn how to promote matching gifts and increase your CSR earnings.

Every nonprofit professional’s dream is to cultivate a donor community full of lifelong supporters. However, achieving this goal requires lots of long-term strategic moves and outreach from your team. 

These activities represent donor development, a critical process for nonprofits looking to establish a foothold in their community. Prioritizing donor development can significantly improve your acquisition rate, retention rate, and growth potential. 

In this guide, we’ll review the key components of donor development so you can launch your own strategies, including:

• Donor Development: Key Terms to Know
• Donor Development FAQ
• Donor Development: 15 Strategies

Let’s explore the importance of donor development and how you can improve your current approach. 

Donor Development: Key Terms to Know

Before we get into the details, let’s define some essential terms you need to know relating to donor development:

• Prospect research is the process of identifying potential donors and gathering information on them that can inform your ask.
• The donor lifecycle refers to the various phases that a donor goes through while supporting your organization. We’ll go into the stages in greater detail later, but generally, the donor lifecycle starts when your nonprofit first makes contact with a potential donor. 
• Donor cultivation involves building and cultivating connections with potential donors to persuade them to contribute to your nonprofit. 
• Donor stewardship involves maintaining and strengthening existing supporter relationships to secure future gifts.
• Donor development is the overarching approach your nonprofit takes to attract, retain, and upgrade donors. It encompasses donor cultivation and donor stewardship activities. 
• Donor retention rate is the percentage of donors that give again after their initial gift instead of churning. 
• Legacy commitments refer to planned gifts that donors have pledged for the future through their will or estate plan. These contributions can include bequests, trusts, property, gifts of stock, and more.

Now that you know these important terms, let’s answer some of the questions you might have about donor development.

Donor Development FAQ

Why does donor development matter?

These statistics illustrate the importance of donor development in your nonprofit’s overall financial health and stability:

• It costs about five times more to acquire one new donor than it does to retain an existing one.
• The average repeat donor retention rate for nonprofits is 40%.
• Total giving declined 3.4%—from $516 billion in 2021 to $499 billion in 2022.

As you can see, retention is a more cost-effective way than acquisition to secure revenue from your donor community. And with total giving decreasing, it’s more important than ever to optimize your donor development approach and secure consistent fundraising revenue. 

What are the phases of the donor lifecycle?

Understanding the donor lifecycle can help structure your donor development efforts. You can break the donor lifecycle into the following actions and stages:

• The donor makes their initial donation to your nonprofit. The donor learns about your nonprofit and mission via marketing materials or their network. Once they donate, your nonprofit has officially acquired them as a supporter.
• The donor renews their support. Once the donor has been in your community for some time and has decided to donate again, they move into the retention phase. 
  • If the donor does not give again, they’re considered lapsed, which entails a different re-engagement strategy.

• The donor deepens engagement with your nonprofit. For example, they might join your volunteer program, spearhead a peer-to-peer fundraising campaign on your behalf, or become a public advocate for your cause. These engagements signify that the donor feels a strong connection to your organization, making them a good candidate for a gift upgrade.
• The donor becomes a lifelong advocate for your cause. Once a donor has expanded their involvement with your mission, your team likely knows how to keep them emotionally connected with your nonprofit in the long term. 

The goal is to grow your donor’s commitment to your organization over time. That being said, the donor lifecycle looks different for every nonprofit based on your goals, budget, and fundraising capacity. Adjust this general donor lifecycle layout based on your objectives. Throughout the process, track donor engagement in your CRM and tailor your strategy to their preferences.

What’s the difference between donor cultivation, stewardship, and development?

While similar, all of these terms represent a different area of donor relationship management. This Venn diagram can help you understand what these terms commonly encompass and what sets them apart:

All of these terms are important to creating an overall donor development strategy. As we discuss how to plan your own, keep in mind your current activities for each of these processes and how you can improve them.

How can you gauge your current approach to donor development?

Establishing a baseline benchmark for your donor development program improvements is crucial for gauging performance. You can gauge the effectiveness of your current donor development strategies by:

• Mapping your nonprofit’s average donor lifecycle. Consult your CRM to access data about how the average donor’s relationship with your nonprofit would evolve. Then, supplement your quantitative data with qualitative feedback from donors. Survey longtime and new donors to collect additional insight into their journey with your nonprofit. Once you have all relevant data points, create an updated donor lifecycle for your organization and work from there. 
• Evaluating your donor segments. Your nonprofit likely segments your donors to conduct personalized outreach, a crucial aspect of donor development. However, as your nonprofit’s donor community changes over time, so should your segmentation approach to accommodate new preferences. For example, you might have received an influx of younger donors in recent years who prefer SMS communications from your nonprofit.  
• Establishing key performance indicators (KPIs). Leveraging KPIs is a helpful strategy for standardizing what success means to your nonprofit based on your unique goals. Pertinent KPIs that your nonprofit might track for donor development include cost per dollar raised, retention rate, acquisition rate, and donor lifetime value (the total amount of revenue you can expect to receive from a donor over their entire relationship with your nonprofit).

You’ll need a comprehensive donor database to execute these activities effectively. If your CRM isn’t customizable, scalable, or otherwise doesn’t fit your reporting needs, you should research and implement alternative solutions. 

Your job doesn’t end with finding an effective CRM, through! Once you’ve started using a solution that supports your donor development efforts, ensure you implement and stick to data hygiene practices. NPOInfo’s guide to data hygiene for nonprofits recommends adding these activities to your regimen:

• Standardize data formatting.
• Regularly audit and back up your data.
• Invest in data appends.

Improving your data hygiene practices helps you keep your donor development data reliable and useful. This consistency makes it easier to detect and react to data trends, not just during the initial benchmarking phase but continuously over time.

Donor Development: 15 Strategies

General Donor Development Strategies

Implement these tactics into any donor development strategy, no matter how much the donor gives or how long they’ve been with your nonprofit:

• Personalize communication. As previously mentioned, adding a personal touch to your communications is critical for keeping donors engaged with your nonprofit. Besides addressing each message recipient by name, you can boost personalization by sending messages to relevant sections of your supporter base with segmentation. 
• Provide impact reports. Your donors want to know that their investment in your mission is making a real difference. Convince them to continue contributing to your nonprofit by creating impact reports that illustrate what fundraising revenue has supported. A common format nonprofits use to convey impact is a public-facing annual report, but you can report impact to donors more frequently via email. 
• Offer engagement opportunities. Your donors want to make an impact on your beneficiaries, so offer them the chance to expand their engagement with new opportunities. For example, you might ask an annual donor if they’d like to join your volunteer program to give back differently. Or, you might encourage donors to submit a matching gift request to their employer to multiply their impact.
• Show appreciation. Every donation puts you closer to achieving your mission, no matter its size. Thank all of your donors for their support to show how much they mean to your organization and your beneficiaries. Every donor should receive a thank-you email expressing your team’s heartfelt gratitude and pledging to put their gift to good use.

Encourage feedback. Optimizing the donor development journey is easier with suggestions straight from the segment that you’re trying to optimize. Welcome feedback from donors so you can access new insights that you can use to adjust your strategies. You can collect feedback formally using a survey, or informally by letting donors know that you’re always available if they have ad-hoc suggestions.

Mid-Tier Donor Development Strategies

Mid-tier donors are those who have the potential to upgrade and become lifetime donors. These strategies help you funnel them through more advanced stages of the donor lifecycle:

• Create specific impact reports. Unlike general annual reports, you should break down mid-tier donors’ impact in greater detail. You might make specific impact reports for a donor when they hit a certain milestone, such as an anniversary of supporting your organization or a certain dollar amount crossed.
• Host donor stewardship events. Donor stewardship applies to mid-tier donors because they already have a history of supporting your nonprofit. Host events where you can talk casually with mid-tier donors, such as a luncheon or mixer. This allows you to collect information that can inform your stewardship approach, such as personal milestones and other preferences. 
• Conduct one-on-one outreach. Besides inviting them to larger donor stewardship events, engage your mid-tier donors with occasional one-on-one outreach. For instance, you might call them on a special day in their life, such as their birthday or first day of retirement. Casual one-on-one outreach demonstrates that you care about your donors as people, not just a source of money for your cause. 
• Offer representative positions. Mid-tier donors have likely been loyal members of your nonprofit’s community for a while. You can foster their investment in your cause by offering them positions as nonprofit representatives. For example, you might start an Ambassador program where mid-tier donors can act as advocates for your nonprofit to their networks and have special responsibilities. This shows them that you view them as a positive contributor to your community and could yield upgraded gifts. 
• Host meet-and-greets with beneficiaries. Once your donors reach the mid-tier stage, you should try and deepen their emotional connection with not only your cause but also your beneficiaries themselves. Invite select mid-tier donors to a meet-and-greet event with beneficiaries where they can build unique relationships with them and solidify their commitment to your cause.

Major Donor Development Strategies

Once your donors have entered this stage, they’ve firmly established their loyalty to your nonprofit and have demonstrated a large capacity to give. These tactics can help you secure a significant lifelong commitment from them:

• Hold regular meetings. Major donors should have a greater say in your nonprofit’s activities since they pledge a significant amount to your programs. Organize regular chats with major donors where you can ask for their thoughts about causes that they support. As long as you clarify that your team has the final say, this can be a beneficial opportunity for both you and your major donors to shape your daily operations. 
• Offer matching gift opportunities. If your major donors are looking for ways to expand their impact on your fundraising efforts, pitch a matching gift drive to them. In a matching gift drive, the major donor will pledge a matched contribution of whatever individual donors contribute up to a certain amount. For instance, a major donor could pledge to match all gifts up to the $10,000 benchmark. This not only gives the major donor a creative way to give back but also encourages other people to contribute.
• Provide exclusive access. Make your fundraising events and programs even more interesting for major donors by offering exclusive perks. For example, you might offer them a VIP table at your charity auction or invite them to shadow your programming in progress. Just remember to secure permission from your beneficiaries first if you want to show major donors a beneficiary-facing activity.
• Offer advisory roles. Whether it’s a position on your Board of Directors or a turn as the head of your Ambassador program, your major donors will likely appreciate new ways to get involved. If you have many major donors who are interested or if the role makes significant decisions for the nonprofit, host interviews to make sure they’re suited for the job. Also, remember to communicate the time commitment for the role before they start so they can adjust their schedule accordingly.
• Promote legacy giving. This truly unique giving opportunity allows donors to continue supporting your nonprofit even after they’ve passed away. With a planned giving program, your major donors can pledge money from their estate to your organization. Planned giving can be highly personal and sensitive, which is why it’s best to pitch to major donors who are already comfortable with your team and who are extremely passionate about your mission.

Wrapping Up + Additional Resources

While implementing these suggestions provides a foundation for your donor development, you should customize your tactics based on your community and strategic plan. As long as you take the approaches that best suit your donors’ needs and provide creative ways to give back, you can boost your donors’ lifetime value and cultivate an ideal donor lifecycle for your nonprofit.

• How to Market Matching Gifts: The Comprehensive FAQ Guide. Matching gifts is an easy and effective way to give that can deepen your relationships with donors. Here’s how to market them to make a big impact.  
• How to Make Every Word Count in A Donation Thank You Letter. Learn how to turn donor thank-you letters into a retention tool with this guide.
• 9 Donor Engagement Strategies to Transform Your Outreach. Engaging donors allows your supporter base to feel more like a community. These tips can help you launch your own efforts.