ARTICLE
The Hidden Challenges Of Donor Retention—And How To Fix Them
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Updated - 02/17/2025
Many nonprofits struggle with low donor retention rates, yet the reasons supporters lapse aren’t always obvious. While financial constraints are often blamed, our research found that many donors stop giving for reasons nonprofits can fix.
We surveyed 1,000+ donors and 380+ fundraisers to uncover the hidden challenges impacting donor retention—and the small but powerful changes that can make a difference.
Why donors quietly disengage
1. Donors don’t see themselves in your story
People give because they feel connected to a cause. But that connection fades if they don’t see how they fit into your nonprofit’s impact.
Our research found that 63% of donors give multiple times a year because they feel connected to a nonprofit’s mission, yet only 36% of nonprofits provide regular impact reports. That’s a gap worth closing.
How this plays out in real life:
- A donor gives to an environmental nonprofit because they care about conservation. A year later, they haven’t received an update on how their gift helped. Their connection to the cause weakens.
- A supporter donates to an animal shelter but never sees stories of the pets they helped save. The emotional bond fades.
How to fix it:
- Use identity-based messaging. Frame impact updates around the donor’s role. Instead of “We helped 500 students get access to books,” say, “Because of you, 500 students now have books.”
- Make donors the heroes of your storytelling. Feature donor names, quotes, or community highlights in emails and reports.
2. Donor engagement feels like work
If staying involved feels complicated, donors are less likely to continue giving. Donor friction—too many steps, unclear calls to action, or outdated processes—can quietly push donors away.
What we found:
- Only 13% of fundraisers use text messaging—despite it being the third most preferred communication method for donors.
- Only 47% of fundraisers take full advantage of CRM tools to personalize outreach and streamline engagement.
- 24% of donors prefer digital wallets like Apple Pay and Venmo, but fewer than 3% of fundraisers believe donors prefer them.
How to fix it:
- Reduce friction in communication. Use text messaging for reminders, quick updates, and engagement—meeting donors where they already are and helping them stay connected.
- Make giving effortless. Offer one-click donations, digital wallets, and recurring giving options.
- Simplify donor interactions. Remove unnecessary steps in forms, confirmations, and email sequences. If a donor has to click five times just to update their gift, that’s too much work.
Want to strengthen donor relationships? Start with the right data.
Our research uncovered key insights into why donors stay engaged—and what nonprofits can do to improve retention. See the full findings in our latest report.
3. Donors don’t feel a personal connection
Strong donor relations don’t happen by accident. Donors don’t just want to give—they want to feel valued. A common but overlooked retention challenge is lack of reciprocity—when donors don’t feel recognized or appreciated.
What we found:
- 87% of fundraisers cite personalized communication as their most effective donor retention strategy—but only 50% segment their donors for targeted outreach.
- 30% of donors feel connected to a nonprofit because of personal recognition or a thank-you, yet 70% don’t expect one.
- Donors are 39% more likely to give again if they receive a thank-you call within 48 hours.
How to fix it:
- Automate personal touchpoints. Use a CRM to schedule thank-you messages, milestone acknowledgments, and personalized updates.
- Prioritize gratitude. A donor doesn’t need a grand gesture—sometimes, a simple email with their name in the subject line makes all the difference.
- Segment donors for better outreach. Strong donor relations come from knowing your supporters. Segmenting first-time donors, monthly donors, and major donors enables you to tailor outreach and strengthen engagement.
Proven donor retention strategies from nonprofits seeing results
Some organizations are making small shifts that have led to big improvements in donor retention.
- The Mara Elephant Project increased its donor retention rate by 15% by focusing on regular updates and automated outreach
- Boys & Girls Clubs of Indianapolis re-engaged 60% of lapsed major donors by leveraging donor data and personalized messaging.
- Landmark Trust USA achieved a 70% email open rate by tailoring communication based on donor preferences.
These nonprofits prove that small, strategic changes can keep donors engaged for the long haul.
The last word
Keeping donors engaged means more than tracking numbers—it’s about fostering real connections with people who believe in your work.
Overcoming these hidden relationship challenges starts with three simple shifts:
- Make donors part of the story. Reinforce their identity as changemakers through storytelling and updates.
- Remove friction. Make it easy to donate, easy to stay engaged, and easy to feel connected.
- Personalize, always. Use donor insights to make communication feel human and meaningful.
This is just the beginning. Our full report dives deeper into donor retention rates, common pitfalls, and strategies that are working for top nonprofits today.
Ready to take your donor retention to the next level?
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