Turning the Tide

Turning the Tide

How Nonprofits Can Grow Revenue by Doubling Down on Donor Retention and Upgrading

The nonprofit fundraising landscape is shifting—and not in the direction many hoped. With fewer new donors entering the pipeline and grassroots support eroding—especially among small-dollar donors (down 8.8% according to the Fundraising Effectiveness Project (FEP) Q4 2024 report)—nonprofits are facing a critical question: How can we grow revenue when our donor base is shrinking?

The answer lies in doubling down on retention and maximizing the value of existing donors.

1. Retention Is the New Acquisition

Acquiring new donors is expensive. Retaining them is not only more cost-effective—it’s also more sustainable. Yet, many organizations still prioritize acquisition over stewardship. That needs to change.

Strategies to boost retention:
  • Personalized stewardship: Tailor thank-you messages, updates, and appeals based on donor history and preferences.
  • Impact storytelling: Show donors the tangible difference their gifts make.
  • Consistent engagement: Don’t just ask—educate, inspire, and involve.
  • Focus on the donor experience, not just donations: donors are people, not ATMs. Provide opportunities for feedback and not only listen but act on it.
  • Make giving easy as possible: Reduce friction in giving.
    • Are your donation forms optimized? Consider one-click donations.
    • Offer multiple ways to give (stock, DAFs, PayPal, Venmo, etc.)

2. Get Loyal Donors to Give More—and More Often

Your most loyal donors are your greatest untapped asset. They already believe in your mission. Now it’s time to deepen that relationship.

Ways to increase giving from existing donors:
  • Monthly giving programs: Encourage recurring gifts to build predictable revenue.
  • Special campaigns: Use matching gifts, anniversaries, or urgent needs to inspire additional contributions.
  • Exclusive experiences: Offer behind-the-scenes updates, VIP events, or insider briefings to mid-level donors ready to upgrade.

3. Use Data to Identify Upgrade Opportunities

Get Loyal Donors to Give More-and More Often

Not all donors are created equal—but many have untapped potential. Predictive analytics can help you spot donors at risk of attrition and those who are ready to give more.

Tactics include:
  • Segmenting donors by giving behavior and engagement.
  • Tracking donor lifetime value and identifying trends.
  • Using AI tools to flag upgrade-ready supporters.

The Bottom Line: Grow Smarter, Not Just Bigger

The smartest nonprofits are shifting their focus inward as donor acquisition continues to get harder and more expensive. By investing in retention, cultivating loyalty, and encouraging upgrades, organizations can not only survive this turbulent time—they can thrive.

Retention isn’t just a strategy. It’s the future of fundraising. For more tips and advice on fundraising in these turbulent times, connect with one of our experts.

Amy Agbokpanzo