Building and maintaining strong relationships with donors is vital for nonprofits striving for sustainability. Yet donor retention and boosting donor loyalty is a major challenge. According to a recent FEP report, donor retention continues to decline, dropping by 3% during the first quarter of 2024.

These numbers highlight a growing challenge for nonprofits. However, with the right approach, nonprofits can improve retention rates, keep donors engaged and facilitate long-term support. Below are some best practices for building donor loyalty, helping you cultivate meaningful and lasting relationships with your supporters.

1. Understand Donor Behavior

To effectively build donor loyalty, it’s important to understand donor behavior and motivation. In today’s digital age, donors expect more personalized experiences and want to see how their contributions are making a difference. By analyzing donor behavior—such as donation history, engagement with your nonprofit and responses to different campaigns—you can better predict what they want and when they’re likely to take action. These insights allow you to effectively cultivate donors, send appeals at optimal times and keep them engaged.

It’s also crucial to identify what drives each donor to give. Some may be motivated by personal connections to the cause, while others may seek transparency in how funds are being used. For example, consider sending data-driven donors your impact report to show them the tangible difference your programs are making.

2. Consider All Recurring Donors to Boost Donor Loyalty

Recurring donors are the lifeblood of nonprofit organizations, yet many low-level recurring donors are often overlooked. In reality, recurring donors tend to be more consistent and reliable over time, even at smaller contribution levels. About 34% of repeat donors are likely to give again, compared to just 17% of first-time donors. Nonprofits need to focus on nurturing their relationships with these valuable supporters.

Start by building a list of recurring donors. Then, leverage tools such as CRM platforms and AI to nurture relationships. That might include subscribing them to your newsletter, informing them about important organizational updates or sharing personal narratives from those you serve. Use marketing automation tools to build recurring donor segments and automate this outreach.

Read the full article about boosting donor loyalty by Raviraj Hegde at Forbes.