Keeping donors engaged is crucial for the sustainability of any monthly giving program. However, maintaining their loyalty doesn’t have to be complex. If you apply a simple framework, you can minimize donor churn and keep your recurring donations flowing.
In this article, we’ll walk through strategies that prevent voluntary and involuntary churn and offer actionable steps to grow stronger, long-lasting donor relationships for your organization.
Churn happens when donors stop supporting your program, whether by their own choice (voluntary churn) or unintentionally (involuntary churn, such as failed payments). Both types can severely impact your monthly revenue if not addressed.
The key to addressing churn is focusing not only on communication but also on systems and processes that keep donors engaged and their payments uninterrupted.
In fighting against churn, you should focus on four main areas:
Let’s break down each one into actionable steps.
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. So, 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. Your platform should automatically send a personalized email receipt—but make sure it does more than just confirm the payment. It 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.
Pro tip: Send monthly receipts. This reinforces that everything is running smoothly, serves as another touchpoint for gratitude, and keeps your nonprofit on their radar.
This is where many nonprofits drop the ball. The system sends the receipt, and that’s it. A personal touch can set you apart. Make the effort to send a personal welcome within 48 hours of their first donation, whether it’s through a quick email, a phone call, or even a handwritten note.
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.
Keeping donors in the loop is vital. 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.
Highlight how their monthly donations have translated into real-world impact. Share inspiring stories, updates from the field, and testimonials from other donors or individuals who benefited from your services.
Offer ways for them to engage more deeply with your cause through volunteer opportunities or events. This sort of content reinforces that they are making a difference and strengthens their bond with your organization.
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. This can be something as simple as a Zoom call, 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.
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 how they’d like to engage with the organization, what programs resonate with them, and how they feel their contribution is used.
You can also use this touchpoint to gather pieces of information that allow you to personalize future interactions—such as their birthday, or the reason they began giving to your nonprofit. Building on these insights will give your nonprofit a tailored approach, making donors feel truly valued.
Don’t forget the power of an unexpected thank you. Twice a year (or more, if you can manage it), surprise your donors with a personal thank you email, phone call, 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. Often, it’s the little things that keep people engaged in the long run.
Subscribe to the 4aGC Newsletter
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.
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) instead of credit cards. 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.
Use a service like Account Updater, which connects to 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 them 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.
Ultimately, no matter how robust your systems are, you should assign dedicated time for staff to check on recurring payments. Have a team member review flagged payments weekly, and follow up with any donor whose payment failed. Reaching out directly—whether it’s through phone, email, or a postcard—can help recover donations and remind donors of their commitment.
A great example of doing this well is the 4aGoodCause client KidWorks, a California-based nonprofit. Their monthly giving program has a stunning 97% retention rate over a 12-month rolling period. 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, regular communication, 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 nonprofits, keeping monthly donors 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.
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.
