Giving Compass' Take:
- Nonprofit organizations need to increase donor retention through varied forms of communication. As a donor, here are three ways to become a more committed donor.
- Why is it important for funders to commit to organizational support year after year?
- Read about the #HalfMyDaf challenge and how donors can unlock capital.
What is Giving Compass?
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Simply put, donor retention is the percentage of donors who continue to support an organization beyond their first gift. Conversely, donor attrition is the percentage of donors who do not continue their support after their initial contribution. Typically organizations consider these numbers on an annual basis to determine the efficacy of their fundraising strategies.
According to a study by CauseVox, the average donor retention rate in the nonprofit sector is 45.3%. That means for every ten donors supporting an organization this year, only about four will continue their support next year, and the organization will need to find six new donors to replace the ones who have moved on. And, acquiring new donors is often an expensive investment for charities.
As a donor, there are a few ways you can stop the barrage of requests. The first is by committing to the organizations you support. Of course, there will always be reasons to make one-time gifts to charities, but you should strive to commit to a handful of organizations you are passionate about and plan to give to them year-after-year.
The second is by letting the organizations you support know you are committed. The best way to do this? Tell them! Include a note with your next gift, or reach out to their fundraising team to confirm your commitment and ask for fewer communications. You can also opt-out of organizations’ digital communications rather than marking them as spam.
And, the third is by making an extra gift when possible. Have a few extra dollars? Consider making a gift outside of your regular giving schedule to reaffirm your commitment.
Charities will always need to find new donors, but by becoming a more committed supporter you are increasing their donor retention, decreasing their attrition, and helping them become more financially stable.
Read the full article about becoming a committed donor by Amanda Knox at Charity Navigator.