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What Is a Donor Experience Officer? The Ultimate Guide

January 31, 2024/in Donor communications /by Adam Weinger

If you’re a nonprofit professional, you know how important it is to retain your donors from year to year. While you’ll sometimes need to acquire new donors for growth, donor retention is more cost-effective and builds a reliable support base for your mission.

However, in the nonprofit sector, the average donor retention rate is less than 35%. To break the mold, your organization needs to provide such a good donor experience that supporters will be happy to come back year after year. One of the best ways to accomplish this is by creating a dedicated donor experience officer position at your nonprofit.

In this guide, you’ll learn all you need to know about donor experience officers, including:

What is a donor experience officer?
Benefits of Hiring a Donor Experience Officer
Responsibilities of a Donor Experience Officer
Essential Tools for Donor Experience Officers

Whether you’re considering bringing on a brand-new staff member or moving an existing employee into this position, a donor experience officer can take your engagement and retention efforts to the next level. Let’s get started by defining exactly what this role entails.

What is a donor experience officer?

A donor experience officer is a nonprofit professional whose job is to ensure supporters have a positive, meaningful experience when contributing to your organization. Their role combines donor relations with aspects of fundraising and marketing.

The most important qualities of a good donor experience officer include:

A passion for the organization’s mission. This is a key characteristic of many nonprofit professionals, including donor experience officers, and it should be evident in all of their interactions with supporters.
Strong communication skills. Donor experience officers need to be adept at both writing and holding conversations so they can effectively reach every supporter through their preferred communication channel.
Strategic thinking and problem-solving abilities. Your donor experience officer is also essentially a customer service provider for your nonprofit, meaning they’ll need to address a range of issues supporters might have as they engage in your mission.
Being an active listener. Donors bring a variety of motivations, concerns, and suggestions when they contribute to your nonprofit. Your donor experience officer should ensure they feel heard, understood, and valued.

Donor experience officers often serve as leaders at their organizations, so they should also have prior experience with nonprofit fundraising and/or communications that they can bring to the role.

Benefits of Hiring a Donor Experience Officer

Of all the nonprofits out there, the ones that are most likely to consider hiring a donor experience officer would be mid-sized organizations planning for growth in the near future. Large nonprofits often have whole teams dedicated to donor engagement, while small organizations may not yet have the budget to hire this type of professional or complex enough needs to warrant one.

If your organization is in the right place to think about hiring its first donor experience officer, here are the main advantages to doing so:

Stronger Donor Relationships

When donors have a good experience giving to your organization, they’re more likely to deepen their support over time. Their memories of your nonprofit will be favorable thanks to your donor experience officer’s engagement strategies and stewardship efforts.

Plus, your donor experience officer can get to know donors on an individual level and then make tailored recommendations to help them get more involved. For instance, if a recurring donor mentions to the officer that they enjoy running, your nonprofit could send that donor a personalized invitation to your upcoming 5K fundraising event so they can engage in a new way that matches their interests.

Increased Supporter Satisfaction

Some donors will remember their experience giving to your organization positively because everything went smoothly thanks to your donor experience officer’s efforts. However, if an issue comes up in the process, the supporter might still leave with a good impression of your organization if it’s resolved effectively.

Let’s say a supporter alerted your donor experience officer that your online donation form wasn’t loading properly. The officer quickly elevated the concern to your nonprofit’s technology specialist to fix the issue and emailed the supporter individually to notify them that the form was working again and apologize for the inconvenience. Despite the issue, the donor may still remember their experience positively because the officer took such care to solve the problem.

Expanded Fundraising Capabilities

With their nonprofit background and strong understanding of your donor base, your donor experience officer can work closely with your organization’s fundraising team to:

Brainstorm new giving opportunities that would appeal to your donors.
Figure out the root causes of issues with existing fundraisers and recommend solutions.
Gather supporter feedback to incorporate into your fundraising strategy.

For example, let’s say your fundraising team decided to add corporate matching gifts to your nonprofit’s revenue generation model, and your donor experience officer backed this idea because they knew of many donors who worked for companies with matching gift programs. However, your organization found that donation matching rates were still low after the revenue stream had been in place for six months.

To investigate the problem, the donor experience officer could send out a supporter feedback survey on matching gifts. If multiple respondents expressed that they didn’t know about the opportunity, the officer might suggest marketing matching gifts more strategically to spread awareness and boost your organization’s revenue totals.

Responsibilities of a Donor Experience Officer

Your donor experience officer’s day-to-day tasks will depend on your nonprofit’s priorities. These professionals might work on a wide variety of donor communication and fundraising tasks at some organizations, while at others, they’re much more dedicated to specific projects like building a monthly giving program or stewarding mid-level donors.

However, there are five categories of duties that donor experience officers are most commonly responsible for at nonprofits, which we’ll discuss in more detail in the following sections.

Donor Relations

The term “donor relations” refers to all of the efforts your nonprofit makes to cultivate relationships with supporters. Because the kind of donor experience your organization provides is a key factor in your ability to form lasting connections, your donor experience officer will be at the forefront of donor relations. For instance, they might:

Get to know individual donors through one-on-one meetings or by chatting with them at events.
Strategically choose and share tailored engagement opportunities with different donor segments.
Assist your major gifts team with identifying and reaching out to donor prospects.
Respond to questions and concerns raised through the contact form on your nonprofit’s website, feedback surveys, or a generic email address.

For many supporters, your donor experience officer will become the face of your organization, which is why it’s so critical for them to be passionate about your mission and demonstrate good customer service skills.

Donor Recognition & Stewardship

Sometimes grouped with donor relations, donor stewardship is specifically concerned with encouraging continued support by expressing gratitude for contributions to your nonprofit. To do this, your donor experience officer may employ a variety of recognition strategies, such as:

Sending donation thank-you letters, emails, or eCards.
Picking out gifts for more dedicated individuals like recurring donors or mid-level supporters who might upgrade.
Choosing loyal donors to feature in marketing materials like testimonial videos or social media posts.
Compiling the customary list of contributors for your nonprofit’s annual report.
Creating a donor wall, sign, or plaques to commemorate major donors.

Appreciation is a vital part of the donor experience because it shows supporters that your organization sees them as individuals, not just sources of revenue. When donors feel valued in this way, they’re more likely to remain invested in your nonprofit’s success.

Database Management

Your nonprofit likely collects a lot of data on its donors and stores it using a database or constituent relationship management (CRM) solution. However, this data is only useful for donor cultivation if it’s properly managed. To accomplish this, your donor experience officer should:

Develop a system to organize information within the database.
Update donor profiles with accurate contact details and engagement history.
Stick to a regular schedule for database cleaning and maintenance.

While some of these activities will require assistance from technical specialists (either on your team, from the software company, or through third-party providers like data append services), your donor experience officer should know their way around your database well enough to maintain it day to day.

Reporting & Analytics

From the information in your nonprofit’s database, your donor experience officer should be able to configure and analyze reports to draw actionable insights from them. For example, these reports might cover:

Demographic and engagement data on individual donors that identifies them as a potential major donor or a likely participant in your monthly giving program.
Results of specific fundraising campaigns or events so you can see what went well and where you could improve.
Holistic annual metrics for your organization, such as your donor acquisition rate, donor retention rate, and cost per dollar raised.

Not only do these reports help your donor experience officer in their supporter engagement work, but they can also inform other team members’ decision-making in their roles.

Interdepartmental Collaboration

To effectively complete all of the activities outlined above, your donor experience officer will likely work closely with the following staff members at your organization:

The fundraising team to plan and fine-tune campaigns, events, and stewardship activities.
Marketing and graphic design professionals to create high-quality donor communication materials.
Information technology specialists to resolve technical issues within the donor journey and manage your organization’s donor database.
Your nonprofit’s leadership to ensure their donor engagement efforts are in line with the organization’s strategic plan.

Although it’s useful to have one person take the lead on creating a positive donor experience at your organization, it takes a whole team to fully engage nonprofit supporters. Working collaboratively is essential to make the most of having a donor experience officer on your team.

Essential Tools for Donor Experience Officers

In addition to hiring a donor experience officer with the right qualities and providing support through collaboration, your organization should set this individual up for success with the right tools. Here are a few software platforms you should have in your tech stack:

A robust CRM with comprehensive donor profiles and integration capabilities to allow for seamless data transfer.
Automated communication tools to make sending emails and text messages to donors a breeze.
A survey design platform for easy feedback-gathering and analysis.
An online donation form with a secure payment processor so supporters can trust your donor experience officer with their data.
Specialized fundraising solutions so the officer can help plan and troubleshoot various giving opportunities like crowdfunding, peer-to-peer campaigns, and events.
Matching gifts software to help them boost revenue and improve the donor journey through employer donation matching.

To help your officer provide an even better donor experience, look for a matching gifts platform with auto-submission capabilities. This way, instead of having to fill out a separate form to get their employer to match their donation, donors can just enter their work email address to automatically submit the request. Check out the video below to learn more about auto-submission:

Wrapping Up: Additional Donor Experience Resources

Donor experience officers can improve a wide range of supporter-related processes at your organization, from outreach to stewardship to data analysis. With a dedicated individual working to make your donors’ experience as positive and fulfilling as possible, you’ll be well on your way to seeing more and more donors come back every year.

For more information on improving the donor experience at your nonprofit, check out these resources:

Donor Recognition: When & How to Acknowledge Supporters. Explore our top strategies and methods for effectively recognizing your supporters’ contributions at all levels.
How to Start a Donor Retention Program for Your Nonprofit. Discover how your nonprofit can benefit from having a dedicated donor retention program and the process for launching one.
Nonprofit Basics: Nonprofit Jobs. In addition to a donor experience officer, there are many other roles to fill at your nonprofit—learn more about these essential positions.

Engaging Multigenerational Donors [With Workplace Giving]

December 13, 2023/in Learning Center, Marketing Strategies, Learning Center, Donor communications /by Adam Weinger

Tons of companies offer workplace giving programs as a way to incentivize employees to give back to their communities. To make the most of these philanthropic initiatives, qualifying nonprofits are taking increasingly proactive steps to drive supporter participation. But with a need for engaging multigenerational donors in the workforce, promoting the opportunities is not a one-size-fits-all task.

Instead, we recommend exploring effective strategies as you tailor your approach to each age group. And you’ve come to the right place to do so! In this guide, we’ll explore everything you need to know about engaging varying generations of supporters, including:

The Unmatched Value of Multigenerational Donor Engagement
Top Fundraising + Workplace Giving Strategies by Generation
Collecting Donor Data to Segment Your Engagement Strategy
Our #1 Recommendation for Engaging All Generations: Automating Workplace Giving

Remember: the more you adjust your fundraising approach to your intended audience, the more likely the segment is to actively engage with your efforts.

Ready to create impactful and inclusive workplace giving programs that resonate with every generation in your supporter base? Let’s dive in.

The Unmatched Value of Multigenerational Donor Engagement

Your organization is likely backed by a wide range of donors of all ages, races, genders, backgrounds, and more. But do you take a universal approach to engagement? How exactly does a person’s stage in life factor into their relationship with your organization? Where do employee giving opportunities come into play for any age group?

These are the questions you should be asking yourself if you’re looking to develop a multigenerational engagement strategy.

And doing so is essential. After all, facilitating long-lasting connections with supporters of all age ranges empowers your organization to build a sustainable donor network.

As of findings from 2022 annual giving, the estimated generational giving breakdown is as follows:

Matures ⁠— 20.2%
Baby Boomers ⁠— 40.8%
Generation X ⁠— 22.9%
Millennials ⁠— 13.9%
Gen Z ⁠— 2.2%

Meanwhile, the makeup of the current workforce looks like this:

Matures ⁠— 1.3%
Baby Boomers ⁠— 25.6%
Generation X ⁠— 33.1%
Millennials ⁠— 35%
Gen Z ⁠— 5%

All in all, workplace giving programs continue to go significantly underutilized, with an estimated $4 to $7 billion in corporate funds going unclaimed from matching gifts each year⁠—with volunteer grants and other employee giving initiatives falling short as well.

Ultimately, a strategy that focuses too narrowly on the older generations is likely to miss out on the immense opportunities made available by the up-and-coming (and, in many cases, already here) younger donors in your network. Conversely, centering too much on younger donors can cause missed potential from older generations who remain and still possess invaluable experience, deep connections, and a strong commitment to philanthropic support.

The answer? A well-balanced, multigenerational fundraising and workplace giving strategy that prioritizes the strengths of each group to maximize overall success.

Top Fundraising + Workplace Giving Strategies by Generation

With different characteristics defining each segment, effective workplace giving efforts can vary accordingly. Here, we’ll provide an overview of the five generations currently in the workforce⁠—and partaking in philanthropy⁠—and our recommended practices for engaging with the group.

Source: Giving USA’s Special Report – Giving by Generation

The Matures

Age in 2023: 77 years and older
Key Characteristics: Dependable, straightforward, and reliable
Influenced by: Tradition, loyalty, recognition, and authority
Preferred Communication Channels: Direct mail, phone calls
Preferred Giving Methods: Direct mail, check/cash donations

Born prior to 1946, the Matures (also known as the Traditionalists or the Silent Generation) exhibit strong values of loyalty, discipline, and respect for authority. They have a powerful sense of duty and often prioritize stability and tradition. Though the causes they support are widespread, the Matures tend to be drawn to established institutions with long-standing, positive reputations.

Though the vast majority of the Mature generation is now retired, the group continues to give generously to the organizations they care about. In fact, retirees contribute an estimated 42% of all charitable dollars in the U.S. each year.

Our Top Tip: Familiarize yourself (and your team) with matching gift and volunteer grant programs that are inclusive of retirees!

Luckily, a lot of companies include retired employees in their workplace giving programs⁠—such as ⁠the Coca-Cola Company, Johnson and Johnson, Chevron, Gap (and its subsidiaries), and many more.

However, there’s a good chance that eligible retirees (or even those still working for the companies) remain unaware of these programs. Thus, it’s a good idea for your organization to research available programs and communicate the opportunity to your audience.

Baby Boomers

Age in 2023: 59 to 77 years old
Key Characteristics: Optimistic, driven, and value personal growth
Influenced by: Social change, civil rights, and economic prosperity
Preferred Communication Channels: Meetings, phone calls, Facebook
Preferred Giving Methods: Online donations, check/cash donations

Born between 1946 and 1964, Baby Boomers are a generation known for their strong work ethic and dedication to social causes. This group believes in making a tangible impact on specific communities or individuals through their charitable contributions. Plus, they often seek opportunities to actively engage with causes they care about.

When engaging Baby Boomers in workplace giving, it is crucial to emphasize the outcomes and measurable results of their doubled donations. Recognizing their long-standing commitment to making a difference and providing volunteer opportunities can also resonate well with this generation.

Our Top Tip: Highlight the opportunity for Baby Boomers to leave a lasting (and multiplied) legacy through workplace giving.

As this group approaches or enters retirement age, Boomers often take the time to reflect on their life’s accomplishments⁠—and the impact they want to have made. By emphasizing how their contributions, combined with corporate funding, can create a meaningful and enduring impact on the causes they care about, nonprofits can tap into their desire to leave a positive mark on the world.

Be sure to provide tangible examples and motivational stories that demonstrate how matching gifts and volunteer grants have made a difference for your organization!

Generation X

Age in 2023: 43 to 58 years old
Key Characteristics: Independent, adaptable, and familiar with significant changes
Influenced by: Authentic storytelling and tangible giving outcomes
Preferred Communication Channels: Email, social media
Preferred Giving Methods: Online donations, event-based giving

Born between 1965 and 1980, Generation X is known for their independent, resourceful, and self-reliant nature. Gen Xers often seek causes that align with their personal beliefs, and they appreciate efficiency in communications. Plus, this group values flexibility and giving experiences that provide a sense of meaning.

When engaging Generation X donors in workplace giving, it’s a great idea to offer options that cater to their individual wants and needs. Providing customizable and streamlined ways to get involved with matching gifts, volunteer grants, and more, highlighting tangible outcomes, and offering opportunities for skills-based volunteering that align with their professional expertise can be effective ways to engage with this generation.

Our Top Tip: Harness Gen X’s desire for financial efficiency by promoting the potential to double their donation impact through matching gifts.

Generation Xers, who are often at the peak of their earning potential, appreciate maximizing the value of their giving. Highlight the fact that their donations can be matched by their employers, effectively doubling the impact they make on the causes they care about. And it’s all without reaching back into their own wallets at all!

Millennials

Age in 2023: 27 to 42 years old
Key Characteristics: Tech-savvy, socially conscious, and outcome focused
Influenced by: Peer-to-peer communication, transparency, and impact
Preferred Communication Channels: Email, text messaging
Preferred Giving Methods: Online donations, peer-to-peer fundraising

Born between 1981 and 1996, Millennials are a generation characterized by their tech-savviness, passion for social justice, and desire for meaningful experiences. They grew up in the age of technological advancements and are often highly connected through social media and other digital platforms.

Overall, this group values transparency and tangible impact and is typically more motivated to give to causes rather than specific institutions. Millennials saw a 40% increase in average annual household giving from 2016 to 2022⁠—the only generation with a positive change in the period. Providing opportunities for hands-on involvement, peer-to-peer fundraising, and highlighting the collective impact of their contributions can further engage this segment.

Plus, the group is already highly involved in workplace giving, with more than 86% of Millennial employees donating to nonprofit causes. Not to mention, a 2020 study reported that 58% of young professionals had given through an employee giving program, compared to only 37% overall.

Millennials also volunteer at a higher rate than any other generation, which means that volunteer grants are an excellent opportunity to pursue.

Our Top Tip: Mention workplace giving opportunities in your Millennial-focused donation appeals to incentivize giving in the first place!

A recent study indicated that while 64% of donors say that the presence of a matching gift is likely to motivate them to give, Millennials are more likely to be impacted by a match (over 78%) than any other generation.

Not to mention, younger generations of donors are increasingly likely to work for socially conscious companies that offer matching gift and volunteer grant programs, thus elevating their chances of eligibility.

Gen Z

Age in 2023: 11 to 26 years old
Key Characteristics: Tech-native, prioritizes diversity, and values social justice
Influenced by: Desire to create social change
Preferred Communication Channels: Messaging, texts
Preferred Giving Methods: Online donations, crowdfunding, monthly giving

Gen Z represents the youngest group entering the workforce and, subsequently, becoming potential donors. Born between 1996 and 2012, Gen Z is often overlooked for its relatively limited capacity to give. However, this group currently has the “fastest growing economic power across all generational cohorts.”

With an estimated $360 billion in disposable income in 2021, Gen Z is expected to grow its aggregate income to over $33 trillion by 2030. As their disposable income grows, organizations can expect donation amounts to follow. And securing them as supporters now can go a long way in the end!

Also worth noting is that Generation Z is the most likely to opt for monthly giving (62%), which is often attributed to their familiarity with paying for subscription-based services. They favor regular communications as well, typically preferring monthly updates from the organizations they support.

Our Top Tip: Communicate the potential of workplace giving initiatives to further amplify recurring donations.

A common misunderstanding surrounding matching gift programs is that recurring donations do not qualify for employer matching. But in most cases, that’s generally not true! Make an effort to research your monthly donors’ corporate giving guidelines and communicate relevant information to your supporters.

By participating in their employers’ philanthropic initiatives, recurring donors can make an even greater impact on the causes they care about. You just need to break down the myths that are holding your match potential back and take a proactive approach to marketing workplace giving opportunities to your youngest donors.

LEARN MORE ABOUT CONNECTING WITH YOUNG DONORS

Collecting Donor Data to Segment Your Engagement Strategy

As with any effective segmentation strategy, you’ll need the right information to inform your organization’s efforts. As you aim to elevate your workplace giving initiatives with generational data, you’ll need two key types of details.

Demographic Information

What is it? Defined as “quantifiable attributes of a population, group, or individual,” demographic information includes details such as age, gender, income, education level, marital status, location, and more. Regarding multigenerational engagement, the most essential metric you’ll need is your donors’ (as well as volunteers’ and other supporters’) age groups.

Why does it matter? Having this information will allow you to target your workplace giving strategies accordingly! For example, you might determine that a top matching gift opportunity falls into the “Mature Generation” category. In that case, you may decide to send a direct mailing that highlights the opportunity and shares the information they need to participate rather than rely solely on digital outreach.

How can I get it? The easiest way is just to ask. But you don’t have to come right out and ask for their exact age. Instead, add an optional donation form field that prompts donors to enter their date of birth (hint: you can also send a birthday card!).

Or, ask supporters to check a box for the age range they fall into (ex: 18-24, 25-34, 35-44, 45-54, 55-64, 65+).

Employment Data

What is it? The other key information you’ll need to market workplace giving strategies effectively has to do with your supporters’ employment data. Though the companies your audience works (or worked) for is the most essential piece, it can also help to know their working status⁠—such as full-time, part-time, or retired.

Why does it matter? This information will help your team (or your software) identify available opportunities for workplace giving programs. When you see that your donors work for companies that match gifts or your volunteers work for companies that provide volunteer grants, you’ll want to follow up with information about how they can get involved.

How can I get it?Add another field to your donation form that prompts supporters to enter the name of their company, or embed our employer search tool directly into your giving page or confirmation screen. With Double the Donation, you can even enlist follow-up messaging to provide another opportunity for donors to share the information with ease. Jump to the next section to learn more about how automation helps drive results!

Top tip: When you provide context for the ask (e.g., “See if your company will match your gift! Select your employer here.”), donors typically respond particularly well. On the other hand, a data appending service can help fill in the blanks for those who don’t provide it themselves.

Our #1 Recommendation for Engaging All Generations: Automating Workplace Giving

When it comes to engaging multigenerational donors in workplace giving, there is one strategy that stands out above the rest… And that is automating the process.

Workplace giving automation not only streamlines the process for your team behind the scenes but also enhances convenience, accessibility, and engagement for donors across all age groups.

Here’s how automation elevates matching gifts and volunteer grants:

Increases awareness of the opportunity for all supporters.

There’s a significant knowledge gap regarding workplace giving programs among every generation. In fact, an estimated 78% of eligible donors have no idea that their employer matches. Luckily, workplace giving technology automates marketing and promotions around the opportunity, ensuring that every donor receives information regarding the programs. When supporters are aware of their chance to stretch their impact further with matching gifts and volunteer grants, they’re often eager to participate!

Facilitates easy personalization.

Individuals of all generations appreciate personalized outreach. From seeing their name in an email subject line to being provided with insights for their employer’s giving program, tailored messaging strengthens relationships⁠—and produces results. With a matching gift tool, the software fills in the blanks in customizable templates, providing highly specific communications with no added effort.

Appeals to all levels of tech savviness.

In today’s digital age, younger generations, such as Millennials and Gen Z often prefer digital engagement. After all, they tend to have ample experience with online transactions. And while older generations may not be as familiar with the technology, an automated tool can go a long way in helping guide them through the process with detailed assistance and step-by-step instructions. Now, they won’t need to go searching in their company’s intranet for a matching gift form to complete⁠—because they were provided with a direct link to the submission portal in their email.

Tracks and drives more matches to completion.

Ultimately amplifying giving with more matches making it across the finish line, automation allows for seamless matching gift tracking and follow-ups. The end result is fewer matches left unclaimed and more corporate funds available to your organization. And when supporters of all ages see the impact of their contributions being multiplied, they’ll become increasingly engaged with your cause.

Final Thoughts

Engaging multigenerational donors is a dynamic and multifaceted process that requires careful consideration of your audience. After all, each segment plays a key role in your overall fundraising and workplace giving success. Thus, you’ll want to account for the diverse needs and preferences of every generation.

The better you understand the primary characteristics, values, and motivations that describe each group, the more effectively your organization can tailor its giving programs. Plus, there are a few key strategies that can lend themselves to powerful workplace giving results across all generations⁠—such as investing in dedicated matching gift and volunteer grant technology⁠—that you certainly don’t want to miss.

In the end, your nonprofit will be better funded, your donors feel strengthened connections to your cause, and the communities you serve experience greater programming made available through workplace giving revenue.

Best of luck!

Sources:

This article discusses donor retention basics and strategies you can use to strengthen your donor relationships

Donor Retention: A Comprehensive Guide + 9 Strategies

June 5, 2023/in Donor communications /by Adam Weinger

When nonprofits grow their donor base, they gain access to more revenue that can be used to launch new initiatives, expand current programs, and generally advance their mission. Growth requires acquiring new donors, but effective growth also means keeping current ones.

Nonprofits with high donor retention rates are sustainable nonprofits, and with that sustainability comes the ability to grow, try new projects, and weather setbacks.

With retention rates for both new and existing donors falling, now is the time to reassess your nonprofit’s retention strategy or create one if you haven’t yet. In this guide, we’ll answer essential questions nonprofits have about donor retention before diving into our top strategies for retaining donors.

Donor Retention FAQ

What is donor retention?

Donor retention measures how many donors who previously gave to your nonprofit continue to do so. Your donor retention rate is the percentage of donors who continue to contribute to your organization. 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%.

Donor Retention Rate = ((number of donors at the end of a period – number of new donors at the end of a period) / donors at start of the period) x 100

Donor retention is also useful for determining how financially healthy your nonprofit is. While nonprofits with poor finances can have a higher-than-average donor retention rate and vice versa, nonprofits that maintain their donors generally have the stability to expand their operations, make reliable fundraising estimates, and recover from financial setbacks.

How does donor retention fit into the donor lifecycle?

Consider your nonprofit’s view of the donor lifecycle. Is it a process wherein donors become familiar with your nonprofit, learn more, donate, and then are finished? Or does the cycle repeat?

Retained donors will go through the process of giving many times throughout their engagement with your nonprofit. Let’s compare the lifecycle for one-time donors, which even nonprofits with high retention rates will always have, and retained donors.

Donor acquisition involves marketing your nonprofit to prospective supporters and guiding them to make their first gift. This usually involves creating and maintaining outreach materials, such as your website, social media posts, flyers, and letters. Prospective supporters use this information to learn about your nonprofit and eventually navigate to your donation page to give.
Donor cultivation is the process of building relationships after their initial gift. From their first donation, you now have their contact information and can reach out to them to thank them for their support, invite them to participate in other activities, and provide updates on the campaign they contributed to.
Donor upgrade refers to when donors who have given to your nonprofit several times in the past increase their support level. For the average supporter, this usually entails a slight increase in their routine donations. However, this is also where donors you’ve identified as prospective major donors may begin to make major gifts.
Donor lapse occurs when a donor no longer gives to your nonprofit. Many supporters are interested in only giving once and will lapse immediately after their first gift. Nonprofits can take steps to retain more of these donors, but even the most sophisticated, donor-focused nonprofits won’t have 100% retention rates. Donor lapse is primarily a concern if many of your previously recurring donors begin to drop their support.

Nonprofits have the term “the golden rule of donating,” which refers to securing a second gift from donors. This is because, on average, only 20% of donors give again after their first gift, whereas 60% of donors continue giving after their second gift. This means donors who give multiple times are the most likely candidates for continuing to give far into the future.

Why is donor retention important?

We’ve already touched on a few positives of donor retention, and there are essentially no downsides to continuing to collect donations from the same supporters repeatedly.

However, there may be even more benefits to donor retention than you first assumed. Let’s look at just a few reasons nonprofits should focus on their retention rates:

It’s cost-effective: Consider how much it costs to acquire a single donor. This includes the expenses of buying advertising space, creating marketing materials, and spending time reaching out to prospective supporters. Ultimately, it’s much cheaper only to spend the cost of acquiring a donor once and continue to receive support from them than spending it again and again to find new donors to replace lapsed ones.
It prepares your operations for the future: When donors consistently give to your nonprofit, you can rely on their support as a regular revenue source. This makes planning your monthly budget easier as you can accurately predict how much you’ll bring in through donations. Plus, in the event of a setback, such as economic turbulence, you can likely hang on to the donors who are already committed to your cause.
It supports a positive reputation: Your donors don’t just give your nonprofit money; they also give you a positive reputation. Each supporter has the power to enhance your outreach through word-of-mouth marketing. When it comes to marketing channels, recommendations from friends and family are the most trusted source, with 93% of consumers choosing word-of-mouth as one of their most trusted sources of information. This also applies to nonprofits since individuals looking for good causes to support are likely to ask their friends and family for advice.

Nonprofits often prioritize donor acquisition and not without good reason. By attaining new donors, the nonprofit can increase revenue, gain more attendees for events, and have more supporters out in the world spreading awareness of their cause.

However, don’t think of donor acquisition and retention as opposites. Nonprofits don’t have to focus exclusively on one over the other. Rather, the two supplement each other to grow your donor base overall.

Key Donor Retention Metrics

Along with donor retention rate, your nonprofit should keep an eye on a few other metrics to ensure you are maintaining your donor base.

In particular, let’s look at two key measurements: donor lifetime value and donor attrition rate.

Donor Lifetime Value (DLV) calculates the projected total value of a donor’s contributions over their lifetime. It considers average gift size, donation frequency, and length of donor relationship. Nonprofits use this metric to identify high-value donors and determine when to request a donation upgrade.

DLV = Annual Donation Amount x Length of Relationship

Donor Attrition Rate measures the number of donors lost within a specific period as a percentage of the total number of donors at the beginning of that period. To find your attrition rate, you must first determine how many donors were lost over the course of the measured period. If this calculation results in a negative number, you have actually gained donors. However, be conscious that just because growth outpaces attrition does not mean donors are not lapsing.

# of Donors Lost = # of donors from last year – # of donors from this year

Donor Attrition Rate = (# of donors lost / # of donors from last year) X 100

Incorporate these metrics into your fundraising goals. Beyond raising a certain amount, set specific objectives related to decreasing attrition or raising donors’ lifetime value. For instance, you might set a goal of hosting more annual engagement events to strengthen donor relationships and encourage a certain percentage of existing donors to give more.

9 Strategies to Increase Donor Retention

1. Provide more ways to give

Offer donors a choice for supporting your nonprofit. This makes it more convenient for donors to give and provides them with more agency in the decision-making process, increasing retention rates. Select a payment processor that allows donors to give via credit and debit card, ACH check, PayPal, Apple Pay, and other options.

Additionally, consider different ways supporters can contribute to your nonprofit outside of normal donations. Expanding your giving opportunities helps retain supporters who may be unable to make regular donations while also creating methods to increase support value for those who can give more.

For instance, you might discuss planned giving with older donors who have been with your nonprofit for several decades, or you can promote real estate and stock donations to high-value donors.

For the average donor, take time to educate them about matching gift opportunities. Matching gifts are a form of corporate philanthropy in which companies match their employee’s donations at a 1:1 ratio. This can increase each donor’s impact and propel your nonprofit to new fundraising heights.

2. Offer recurring gifts

Recurring giving options make it simple for donors to become long-term supporters. Donors agree to make these gifts automatically on a recurring basis, usually monthly.

If your organization doesn’t already, offer a recurring giving option on your donation form, so new supporters can easily opt into making multiple donations without going through the donation process each time.

Try using these strategies to encourage supporters to become recurring donors.

Create suggested giving amounts. Encourage donors to choose a recurring gift rather than a one-time donation by creating suggested giving amounts for both options. Recurring giving options will be significantly lower than one-time amounts, subtly pushing donors towards recurring gifts. Consider how research on donor behavior found that when presented with multiple suggested giving amounts, the majority of individuals pick the second lowest option.

Make opting in easy. The process for becoming a recurring donor should be as easy as possible. On your initial donation form, provide a checkbox or button that allows donors to join your recurring gift program in a single click.
Provide perks. Recurring donors are your most reliable donors, and you can keep them around by showing your appreciation. Provide them with early access or discounted tickets to events, free merchandise, or even just a unique name for their group to make them feel special.

Not all donors will be interested in a recurring giving program right away, and that’s ok. Look for donors who have already given to your organization annually or on an irregular basis. Then, reach out to them with information about your recurring gifts program, including all of its perks.

3. Thank donors regularly

Not being acknowledged is one of the top reasons why donors churn. It’s not that donors are looking for a pat on the back. Rather, the lack of a thank-you message often causes donors to assume the causes they gave to don’t need their support.

Don’t let that happen! Instead, make an effort to show your appreciation, emphasize that each gift matters, and build relationships with your donors. You can do this through:

Appreciation emails. Email is the quickest way to get in touch with your supporters after they give. Set up your communication tools to send a thank-you message right after a supporter gives. This confirms the donation was received and gets your appreciation across immediately.
Mailed thank-you notes. Direct mail still has a place in nonprofit marketing, especially when it comes to your donor appreciation strategy. Send personalized cards and letters that donors will want to hold onto. Then, every time they see it, they’ll think of your nonprofit and potentially be motivated to give again.
eCards. eCards combine the best of email and direct mail. eCards can be delivered electronically in seconds via email, text, or social media, and they also contain fun, eye-catching designs your supporters will want to save. Partner with an eCard platform that lets you create custom designs that represent your nonprofit.

Thank-you videos. Record quick videos for supporters. These videos don’t need to be long—between 15 and 30 seconds should be more than enough time. Find a nice background, ensure your audio quality is clear, and record large batches of videos for loyal recurring supporters back-to-back.
Phone calls. A one-on-one chat on the phone with a supporter can go a long way toward building a connection. Create a script volunteers can use when making these calls, and designate which donors you want to go this extra mile for.
Donor walls. For your major recurring donors, you need to provide a lasting thank you. Donor walls are permanent physical constructions that express your nonprofit’s gratitude to a select number of donors.

Whatever method you use, be sure to thank donors promptly. Fundraising professionals advise that your first thank-you should be within 48 hours after a gift, usually through a text or email, and your second thank-you should be five to seven days after, often through slower forms of communication like mailed letters. Of course, there are exceptions to this, like donor walls.

Elevate your donor appreciation strategy with eCards.

4. Share impact stories

Donors want concrete details about how their gifts are furthering your cause. For instance, if your mission is to build wells to provide clean water for families in need, update donors on how many wells your team has built and how many families have clean water access because of your supporters’ generosity.

Keep your impact stories personal and tangible. Anecdotes you collect from beneficiaries are unlikely to be structured, emotionally resonating stories right off the bat. Use what they tell you to construct stories with meaningful details, a followable structure, and the right emotional response.

Then, check whether beneficiaries approve of the story you’ve written. Editing is a natural part of storytelling, but avoid inventing new details, conflating supporter stories, or otherwise misrepresenting your beneficiaries’ experiences.

In addition to the stories themselves, help donors visualize how their contributions are affecting positive change by adding:

Beneficiary photos and quotes (with permission)
Video evidence of your team’s progress
Statistics showcasing impact

You can include these elements in your marketing materials such as weekly newsletters, social media posts, website pages, and blog posts. Doing so will prove to donors that your team is dedicated to goals, strengthening their trust in you.

5. Invite donors to get involved in your nonprofit outside of donating

Envision a supporter who donates to two nonprofits. Nonprofit A sends them regular requests for donations, thank-you messages for those donations, and little else. Nonprofit B also sends donation requests and thank-you letters but also highlights upcoming events, volunteer opportunities, how their advocacy campaigns are progressing, free workshops they’re hosting, and invitations to check out the latest news on their blog.

Which nonprofit do you think the average supporter has a better relationship with? Most donors will likely prefer organizations like nonprofit B that offer multiple ways to interact and learn more about their cause outside of donating.

In your messaging cadence with supporters, include invitations to explore other parts of your nonprofit. The more a supporter interacts with your organization, the stronger a connection they will feel, and the more likely they are to continue giving long-term.

6. Personalize communication

Your donors are individuals, and they’re more likely to stick with a nonprofit that treats them like they are. Of course, even small nonprofits still building their donor bases will find crafting unique messages for every supporter challenging.

Fortunately, there are a few personalization strategies any nonprofit with basic communication and marketing software can use:

Greet the donor by their preferred name. Use your donor database to organize your supporters’ personal information. Then, when you create your thank-you emails or letters, you can pull the correct names and physical or email addresses automatically.
Specify each contribution’s impact. Be specific about how you intend to use donors’ gifts and how they will make a difference for your cause. For example, a food bank might share how many families were fed, or a medical research foundation might emphasize how every bit of funding gets them closer to a cure.
Include compelling visuals. Communicating impact through text alone can be challenging, so make your donor thank-you letters more meaningful with visuals. Add infographics and photos related to the specific campaigns they contributed to. For instance, if an animal shelter’s donor specifies they are a big dog lover, they should prioritize sending stories about and pictures of dogs they’ve recently helped and maybe cool down on the number of cats included.

One way you can make personalization easier is via segmentation. Divide your donors into groups based on shared characteristics that are relevant to your messaging strategy. For instance, you might make a segment for new donors who only started giving this year and one for recurring donors.

The new donors would then get messages that focus on introducing them to your nonprofit and thanking them for their choice to support you. In contrast, recurring supporters might receive messages emphasizing brand new opportunities or highlighting how much fun an event was last year, along with being reliable partners your nonprofit can count on.

7. Leverage self-service donor tools

Sometimes donors lapse not out of a desire to stop giving but because their credit card on file expired. Alternatively, they may have moved or changed email addresses. When these life events happen, donors may simply forget to update their information. Plus, if they have to contact someone at your nonprofit to resolve the issue, they may put it off and potentially forget to do so.

One way you can prevent this is by putting the control in donors’ hands. With self-service tools, donors can manage their contact information and recurring giving amounts. This saves your team time updating information manually and enables donors to feel like active agents in how and when they give.

8. Analyze donor data

Your nonprofit fundraising software should integrate with your constituent relationship manager (CRM) to track donor information. With this information, you can better refine your communication strategies, know the optimal time to ask for donation upgrades, identify matching gift-eligible donors, and spot donors at risk of lapsing.

The recapture rate for lapsed donors rests at just 4%, meaning your best strategy is to identify donors and intervene before they make their exit. A few signs to look for in your data include:

Reduced engagement
Decreased giving or have not given for several months
Negative feedback

Use this data to find patterns among at-risk donors. Do they tend to lapse after taking certain actions? Do the donors have anything in common? Have similar re-engagement strategies worked for multiple at-risk donors?

Remember, when reaching out to donors at risk of lapsing, it’s not the time to ask for another donation. Instead, emphasize their importance to your cause and invite them to get involved again in other ways.

9. Ask for feedback

The people who can provide you with the best perspective on what it’s like being a donor for your nonprofit are your donors. Reach out to new and long-term donors alike to request their feedback about how you can improve the donor experience.

Send them short surveys and ask questions like:

Why did you choose to support our mission?
How did you first learn about our organization?
Have you attended any of our recent events, and if so, how was your experience?
Is there anything we can do to improve your overall experience?
Are you satisfied with our communication cadence and depth?
What areas of our mission would you like to know more about?

When your nonprofit surveys your existing donors, it indicates that you value their opinions and will make changes to serve them better. Even if you can’t implement every suggestion, you may get some direction for how to improve your programs.

Additional Resources for Improving Donor Retention

Keeping donors invested in your cause is essential to your nonprofit’s growth. Focus on implementing the strategies we shared to practice careful donor stewardship and engagement tactics. Remember to provide compelling updates and convey genuine appreciation, so you can establish your nonprofit as one that highly values its supporters.

To learn more about improving the donor journey, check out these resources:

Donor Stewardship: How to Retain Support Effectively. Donors who have a relationship with your nonprofit are more likely to stick around. Discover how to forge connections that will last.
7 Key Steps for Championing Your Grateful Patient Program. Hospitals and healthcare organizations rely on retaining donors just like any other nonprofit organization. Learn how to turn grateful patients into lifelong donors.
Matching Gift Auto-Submission + CSR Platforms: What to Know. The easier your matching gift process is, the more donors will participate. Check out the connection between auto-submission and CSR platforms to enhance your knowledge of this cutting-edge technology.