Elevate your Fundraising Strategy with a Proven Donor Retention System

Throughout the years, I’ve learned that one of the easiest ways to become a fundraising rockstar and grow your bank account is to increase donor retention. That’s why today’s blog is designed to walk you through 6 easy steps to creating a donor retention strategy that consistently puts money in the bank year after year so that you can keep making a greater impact.  

📣 Stick around until the end because I’m sharing simple donor retention email templates that you won’t want to miss!

Did you know that the average donor retention rate is about 35%? That means 65% of donors stop giving.

But what if you increased your donor retention rate?

Let’s look at a simple example… Let’s say you had 250 donors this year, and the average donation was $50. With a 35% retention rate, you’d raise only $4,400. But bump that retention up to 55%, and you’re looking at $6,900. That’s $2,500 more in your bank account just by connecting with your donors and building relationships.

Stewardship is the most forgotten phase in fundraising. 

And truly, as someone who’s been in the fundraising game for 10 years,  I think it’s the easiest and most fun! 

So, why is donor stewardship so important?

Donor stewardship isn’t just a nice-to-have in the world of fundraising—it’s a must-have. In fact, it’s the foundation upon which sustainable, long-term fundraising success is built. Here’s why:

1. Building Trust and Loyalty
   When donors give to your organization, they’re not just offering financial support—they’re placing their trust in you. They believe in your mission and expect that their contribution will make a meaningful difference. Stewardship is your opportunity to reinforce that trust by showing donors exactly how their gift is being used and the impact it’s having. Consistent, genuine communication reassures donors that their money is being put to good use, fostering a sense of loyalty and commitment to your cause.
   
   
2. Transforming One-Time Donors into Lifelong Supporters
   First-time donors are great, but repeat donors are even better. It’s much more cost-effective to retain existing donors than to constantly seek out new ones. By investing in stewardship, you’re more likely to convert those one-time givers into lifelong supporters who continue to contribute year after year. These loyal donors often increase their giving over time and may even become major donors or planned giving prospects.
   
   
3. Standing Out in a Crowded Field
   In a world where donors are constantly bombarded with requests for support, your nonprofit needs to stand out. Effective stewardship does just that. By thanking donors promptly, keeping them informed about the impact of their gifts, and showing genuine appreciation, you distinguish your organization from others. Donors remember those who treat them well, and they’re more likely to remain engaged with organizations that make them feel valued.
   
   
4. Encouraging Donor Advocacy
   When donors feel connected to your mission and appreciated for their contributions, they’re more likely to become advocates for your cause. Satisfied donors will spread the word to their friends, family, and colleagues, potentially bringing new supporters to your organization. Word-of-mouth is a powerful tool, and stewardship helps turn your donors into enthusiastic ambassadors.
   
   
5. Increasing Future Donations
   A well-stewarded donor is much more likely to give again. When donors receive regular updates about how their contributions are making a difference, they’re more inclined to continue supporting your work. They’ll see that their investment in your mission is paying off, making them eager to contribute more in the future. This is especially true when donors are thanked and recognized in meaningful ways—whether through personalized messages, public acknowledgments, or exclusive updates.
   
   
6. Strengthening Your Organization’s Financial Stability
   Consistent donor retention leads to predictable revenue streams, which is essential for planning and executing long-term projects. When you can count on a reliable base of donors who continue to give year after year, your organization is better positioned to weather economic uncertainties and invest in growth opportunities. Stewardship is key to maintaining this financial stability.

In short, donor stewardship is about more than just saying "thank you." It’s about building lasting relationships, demonstrating impact, and cultivating a community of supporters who are deeply invested in your mission. By prioritizing stewardship, you’re not only increasing donor retention but also laying the groundwork for sustained success and growth.

Now, let’s dive into the steps that make donor stewardship a breeze.

Research shows that donors want a few things to happen before they are asked to make another donation. 

• They want to receive a prompt, and genuine thank you.
• They want to know how their donation will be used. 
• They want to know how their donation created an impact

In saying that, here are a few simple steps that make stewardship a breeze!

✅ Stewardship Step #1- Tag The Donation 

When you receive a donation and add it to your database, tag it with a program or service. Don’t worry—this doesn’t mean the funds are restricted. This will be the program that you connect to the donor for updates and impact later. **NOTE: We’ll come back to this tag in Step #4! 👇

✅ Stewardship Step #2- Automate A Follow Up

Set a task to follow up with a note 3 weeks after the donation. (If you have email addresses, use them! You can automate this process and make it even simpler.)

✅ Stewardship Step #3- Genuine Thank You

Send a genuine thank you without asking for anything. Don’t mention future gifts or other ways to get involved—we’ll do that later. This is all about the thank you! 

Note!! If this is a first-time donor, ask a board member to call and thank them. Board members have the most influence on donors, other than the people you serve. This alone almost guarantees a second gift.

✅Stewardship Step #4- Stay In Communication

At the 3-week mark, update the donor with a note or an email letting them know how their dollars will be used. **HINT: Refer back to the tag from the initial donation log. Send a quick program or project update based on the tag you assigned. Just a few paragraphs will do. The intention is to connect them to the impact they are making through their donation. 

Share other ways they might like to get involved - newsletter signups, social media handles, upcoming events, and volunteer opportunities. This is the “get to know you phase.” Both for you and the donor! 

✅ Stewardship Step # 5- Donor Update Reminder

Create another task as a reminder to send the donor a final update on the program or project. Leave enough time (8-12 weeks) to have time to report some inspiring and exciting news. 

✅Stewardship Step #6-  Send The Update

Send that update, including stories, stats, photos, videos, or testimonials that share the results their donation generated. This is what the donor has been waiting for! Don’t skimp on this content. You want the donor to FEEL THE WIN WITH YOU! 

This, my fundraising friend, is the formula for donor retention success.

When you implement this strategy every time you get a donation, your donors will feel appreciated and valued. And when you ask them to give again, the answer will be a HECK YES! 😉

Now, I know figuring out what to say in donor emails can be confusing, so I’ve created some email templates to get you started. These templates are designed to make your life easier, help you build deeper connections with your donors, and keep the fundraising momentum going. So, go ahead and CLICK HERE to grab your free email templates now.

Feeling inspired? If this blog has you itching to learn more about donor retention or other fundraising strategies, I offer a FREE coaching session where we’ll dive into your current fundraising strategy and explore how to make it even better!

Until next time...

Happy Fundraising,

Julianna