Donor retention refers to how many donors continue to contribute to a charity or nonprofit year after year. Organizations with a high donor retention rate will have many loyal supporters. But charities with low donor retention rates means they must constantly find new donors. Nearly 70% of new donors only donate once. Only when a donor is retained over the long run will charities and nonprofits see the real value from their donor base. There are numerous reasons why organizations may lose donors, which include not communicating with supporters, giving thanks, nor not responding to feedback. There are aspects within the charity’s control that they can improve on while developing a donor retention strategy.

Although recruiting new donors is crucial, organizations must also focus on ways to enhance donor loyalty, so the charity thrive. It also requires a large shift in the mindset of a nonprofit organization to begin focusing on retaining donors rather than just acquiring them.

1. Showing Gratitude

Donors love being acknowledged and appreciated. Irrespective of the donation amount, always extend a personalized, sincere, and timely thank you to your benefactors. If you thank your contributors and volunteers soon after they gave their money or time, they will be very inclined to give again. We all know how it feels to go above and beyond to help and then never getting a thank you. It does not inspire people to want to give again.

2. Making donors feel great about giving

When people give to charities and nonprofits, they want it to be a positive endeavor. Donors are just like everyone else in that they like to feel informed about their decisions. They want to know that by giving to you, they made the right choice and that your use of their funds would be beneficial. Nobody wants to give and then feel regret that they were wasting their money. This experience will be nurtured through a timely, heartfelt thank you.

3. Be Transparent and Informative

When donors engage with your charity, they want to know how their money was used to help you achieve your objectives. Inform donors in a relevant way about what transpired after their contributions. Describe the impact of their donations on a person or animal.  The more relevant information you share, the more interest is generated, which results in ongoing support.

4. Build Trust and Loyalty

Donors want to believe in the charities they support and building relationships is the key to establishing trust. It’s important to get to know your donors and it is not about bombarding them with information but rather having meaningful engagements so that feel genuinely part of altruistic goals. This is especially important today where malpractice issues, charities fraud, and scams are so pervasive.

Sharing Your Message

A donor management system from Story Resonate enables NGOs, nonprofits, and charities to improve communication for effective fundraising. Today, the characteristics that a modern donor system offers can benefit charity organizations in several ways. Utilizing an all-in-one platform has the main advantage of freeing up your time so that you can focus on building relationships with your donors. Although it can be challenging, maintaining your organization’s growth depends heavily on donor retention.