Keeping donors engaged is crucial for the sustainability of any monthly giving program.
Knowing exactly how to retain donors? That’s a different story.
However, maintaining loyalty doesn’t have to be complex. By applying a simple framework, you can minimize donor churn and ensure your nonprofit’s fundraising efforts remain consistent.
In this article, I’ll walk you through donor retention strategies that prevent voluntary and involuntary churn, offering actionable steps to grow stronger donor relationships and maintain long-term support for your organization.
Here’s what you’ll cover:
If you’re already familiar with why donor churn happens, feel free to tap here to skip ahead.
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Churn happens when donors stop supporting your program.
If you had more recurring donors last year than you do this year, then you’ve experienced churn with a decreased number of donors.
There are two types of donor churn:
Both types can severely impact your monthly revenue and donor retention rate if not addressed.
The key to addressing churn lies in focusing on communication strategies and systems that enhance donor engagement while ensuring uninterrupted payments.
One of the best ways to determine what retention efforts you need to invest in is by tracking donor behavior and attrition rates using donor management software or a CRM.
Monitoring and noticing patterns can provide insights to improve retention.
Did you know that average donor retention is 46% for one-time donors but can increase to 90% for monthly donors? Check out the monthly giving toolkit to learn how to successfully grow a recurring, monthly giving program.
When fighting against donor churn, nonprofit organizations should focus on these four pillars:
Let’s break down each pillar into actionable steps.
Nonprofit fundraising success begins with a simple, user-friendly process.
A streamlined online donation page and multiple giving options ensures an easy giving experience for new donors.
Start from the first moment a donor interacts with your organization. If your donation page is difficult to navigate, it can plant the seed of doubt about your nonprofit—especially for major donors who need assurance their investment is secure.
With that in mind, make signing up easy.
A streamlined donation form sets the tone for a future relationship that is just as smooth.
Once they’ve made their donation, the immediate response is critical. Send personalized thank-you letters or emails that include the donation amount, a heartfelt thank-you message, and a glimpse into the beneficiaries their gift supports.
Your giving platform should automatically send a personalized email receipt—but make sure it does more than just confirm the payment.
The receipt notification should feel personal, including a heartfelt thank you, a reminder of how you’ll use the donation, and information on how they can contact you.
Once that initial donation is earned, ensure the new donor’s contact information is entered securely in your donor database to make future communications a breeze.
Pro tip: Send monthly receipts. Don’t simply rely on that year-end tax statement. Regular receipts reinforce that everything is running smoothly, serves as another touchpoint for gratitude, and keeps your nonprofit on their radar. It also maintains transparency and reinforces trust.
This is where many nonprofits drop the ball. Your system sends the receipt, and that’s it.
Personalized communication can really set you apart here.
For first-time donors, make the effort to send a personal welcome within 48 hours—whether it’s an email, phone call, or handwritten note.
Using tools or templates can make this process efficient while keeping it genuine. If you can’t manage to do this manually every time, automate it thoughtfully.
There are tools that can automate a handwritten note or a personalized-looking email without it feeling robotic.
This simple gesture goes a long way and establishes an emotional connection, making donors feel like they’re part of something larger than just a transaction.
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Keeping donors in the loop is vital.
Consistent outreach is key to building stronger relationships. If you have low donor retention, try expanding your engagement strategies outside of regularly thanking donors or including them in direct mail campaigns.
Monthly email newsletters are a great way to keep donors informed about your nonprofit’s initiatives and the metrics of your (and their!) success. And a monthly newsletter is usually manageable even for a small, grassroots nonprofit with limited staff. If you can swing it, print newsletters can be highly effective as well.
Include stories of how their recurring gifts have impacted your community or the causes you serve. Honor milestones for long-time retained donors or volunteers who are deeply committed to your mission.
You can also highlight successful fundraising strategies, upcoming fundraising events, or ways to invite donors to participate further.
This connection fosters high donor retention and shows their contributions matter.
Did you know? Monthly donors are six times more likely to leave legacy gifts compared to one-time donors. (Source: Waasdorp, Monthly Giving Made Easy)
People want to feel connected to their cause and to other people who share their passion.
Every quarter, host informal and inexpensive events that help your donors come together—either in-person or virtual. This can be something as simple as a Zoom call or webinar, free trainings to increase advocacy for your cause, a small barbecue at a board member’s home, or a facility tour.
For example, one client of ours offers volunteer events that bring their monthly donors together. Donors get their hands dirty with real work, but they also build connections with each other. The community aspect keeps them involved—and successfully keeps churn rates low.
Such initiatives are not only cost-effective, but they also build a sense of community and keep donor engagement strong.
Surveys can be a powerful tool that helps your nonprofit go beyond financial transactions. Try surveying your monthly donors twice a year.
Ask for feedback on things like:
You can collect feedback on your initial donation forms, too!
You can also use a survey touchpoint to gather additional pieces of donor data that allow you to personalize future interactions—such as their birthday or the reason they began giving to your nonprofit.
Don’t forget the power of an unexpected thank you.
Twice a year (or more, if you can manage it), surprise your repeat donors with a personal thank you email, phone call, shout out on social media, or even a handwritten card. These unscheduled moments of gratitude reinforce that you truly appreciate their support.
Surprising your donors strengthens loyalty, and it’s an opportunity to say “thank you” without asking for additional support or donations.
Sharing gratitude over generous stewardship doesn’t always have to be perfectly planned. Often, it’s the little things that keep people engaged in the long run.
So what if you don’t have a large voluntary churn issue? Could there be other—sneaky—ways you’re losing donors?
Let’s talk about ways to avoid involuntary churn.
Remember, involuntary churn happens when a donor’s payment fails, often due to expired credit cards, lost cards, or even fraud alerts.
Preventing this takes some backend effort, but it’s well worth it.
Get the tools to stop involuntary churn before it starts with 4aGoodCause. Learn more.
This is a big one: Make sure to regularly check your payment gateway settings. Is your fraud detection too strict? Are legitimate payments getting blocked?
Tweaking these settings will help you allow more transactions to succeed.
Encourage your donors to use direct bank transfers (ACH/eChecks), which last longer than credit cards and reduce the likelihood of donor attrition.
Bank accounts last, on average, for 17 years—far longer than most credit cards. This reduces chances of payment disruptions and also lowers your processing fees.
ACH and bank transfers also often require less payment processing fees. That’s a win!
Use a service like Account Updater, which has integrations with banks and automatically updates expired or replaced credit card information.
When cards are updated without manual intervention, it prevents a significant portion of payment failures. It’s affordable (typically about 25 cents per update) and far more cost-effective than chasing down donors for new information.
You should see about 20-35% of cards update in your first month of using Account Updater, with about 7-8% each month after.
Whenever possible, allow your donors to handle their own account updates.
Whether their payment fails or they just want to update their information, a donor portal gives current donors control. People prefer self-service: 67% of consumers would rather handle issues themselves than talk to customer service.
Make sure your system also sends automatic alerts for upcoming expiring cards or failed payments. Giving donors a heads-up before payments fail is excellent customer service and should always be a part of your plan.
Nonprofits that use tools like 4aGoodCause can also benefit from branded donor portals that enhance the giving experience—all while reducing the admin burdens on your team.
Ultimately, no matter how robust your systems are, you should assign dedicated time for staff to check on recurring payments.
Assign a team member to review flagged payments weekly, and follow up with direct outreach through phone calls or emails to help recover failed donations.
Reaching out directly—whether it’s through phone, email, or a postcard—can help recover donations and remind donors of their commitment.
Plus, maintaining a personal touch and sense of connection is key to maintaining a high donor retention rate.
Think of flagged payment outreach as another way to connect with the people who help your organization meet its goals!
The easiest fundraising and donor management software—ever. See how 4aGoodCause can power you to reach your goals with the Monthly Giving Toolkit.
A great example of doing this well is the 4aGoodCause client KidWorks, a California-based nonprofit. Their monthly giving program has a stunning 97% donor retention rate over a 12-month rolling period.
But how do they do it?
While they have all the tech tools in place, their key to success is high engagement.
They offer numerous volunteer opportunities, facility tours, impactful, regular communication strategies, and even mentorship programs, all of which make donors feel personally invested in the cause. The more involved the donor is, the less likely they are to stop donating.
For nonprofit organizations, keeping monthly constituents via thoughtful donor retention strategies is crucial.
By following simple strategies like personal welcoming, regular communication, flexible payment systems, and proactive donor management, you can minimize churn and build a solid recurring donor base of repeat donors.
Ensure every donor feels thanked, connected, and involved. Not only does this boost retention, but it also empowers your nonprofit to have a greater, long-term impact on your mission.
If you’re serious about taking your donor retention to the next level, start applying these steps today.
Need help? Contact 4aGoodCause to see how our software can assist your retention efforts.
Ronald is the President and Founder of 4aGoodCause, the fundraising CRM that makes recurring, monthly giving a breeze for small nonprofits.
For over 25 years, Ronald has had the joy of doing what he loves, building online solutions that make a difference in the world. He’s helped raise millions of dollars online for small nonprofits across the country. Connect with Ronald on LinkedIn.
