Donor Retention Strong for Non-Profits

Are we becoming more compassionate by nature or are non-profit marketing tools becoming more effective at donor retention? When a plethora of news articles and business reports state that the economy is still on the feeble side, in an ironic turn of events many charitable organizations are only getting stronger.

In a report recently published by the Fundraising Effectiveness Project, more non-profits gained new donors or re-established a relationship with past donors than the amount of donors they lost. “The FEP, a report of the Association of Fundraising Professionals (AFP) and the Center on Nonprofits and Philanthropy at the Urban Institute, compares gains and losses of donors and donation amounts. More than just a look at total revenue and the total number of donors to a given organization, the FEP indicates year over year growth by comparing how many new donors are acquired with how many stopped giving, and the donation levels of each…Organizations saw an average net increase of 1.7 percent in the number of donors. This compares favorably to a -3.2 percent average net loss of donors in 2009.”

Although donation levels are not at the rate that they were at during previous years, the numbers are rising steadily. “For every $5.35 that organizations gained in gift dollars in 2010, $5.54 was lost through donor attrition, for an average net loss of -1.9 percent… In 2009 there was a much steeper average net loss of -17.7 percent (a median net loss of -8.1 percent).”

It is also interesting to note that organizations that raise over $500,000 had an increase of 8% net gain. Organizations that brought in between $100,000 and $500,000 had a net gain of 2.3% and organizations under $100,000 had a net loss of -12.2%. The greatest increase in giving came from new donors and the greatest losses were due to donors who once gave and chose not to that year.

So what do these numbers tell us? It is of the upmost importance to retain the donors you already have. It costs less time and money to motivate people who already know about your cause and have given than to inspire a new group of individuals. Rather than getting random funds, nurture the relationships you have. A onetime gift of $100 is still less than someone who gives $10 a month for five years. Plus the longer they give the more likely they are to volunteer, share the passion for your charity with friends and become a greater advocate for your cause.

Want to maximize your donor acquisition and retention for your non-profit and increase your donations? Create a free account on Fundly today, and utilize our social fundraising tools to increase your organization’s success.