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This month is all about donors and how as a non-profit you can thank and retain your existing donors to keep them engaged and help you support the causes that are the reason your non-profit exists in the first place.

Our last post was all about donor thank you’s and while it’s true, some people donate anonymously and not for a thank you. Both thanking your donors and keeping your donors engaged so they will donate to your cause, again and again, are crucial.

So yes, people should give purely for the sake of giving, however, your donors are human beings and not saints as well as valuable assets and not just dollar signs. Without donors, your non-profit can’t help the people, the communities or the other causes it supports.

You’re spending too much money chasing after new donors.

According to a non-profit fundraising company, Fundly’s guide to donor retention, most nonprofits are spending between 2 and 3 times more on recruiting new donors than the same donors will donate. What’s more, that donor’s first donation will probably be their only one. But the fact is, new donors cost on average, 5 times more for your nonprofit to acquire than it does to retain an existing donor. I’ll say that last bit again:

You’re spending 5 times more to acquire each new donor than it costs to retain an existing donor!

As you can see, if all you do is spend time & money chasing after new donors, you’re not only missing out on potential revenue for your nonprofit that will help you help more people or fund more services, but you could be spending more money than you ever raise acquiring donors who will never give again because you spend little to no effort or money on retaining them. It’s a bit topsy-turvy, isn’t it?

The importance of donor retention goes beyond cost-effectiveness.

Having an effective donor retention strategy for your organization has so many benefits beyond costing you less money, money that needs to go towards your cause. Those benefits include:

How can you retain your existing donors?

Now that you’re convinced of how important is to make donor retention part of your fundraising efforts, what are some examples of effective programs for keeping your donors once you’ve found them?

Retaining your donors doesn’t mean spending lots of money

To bring everything back together, remember, retaining donors costs significantly less than acquiring new donors, 5 times less actually on average. Furthermore, your donors are more than just donors and dollars. Your donors are your volunteers, your ambassadors and sometimes future board members. They’re human beings who are just as invested in the cause your nonprofit organization supports.

Remember to thank them often, keep them informed of the organization’s efforts, give them plenty of opportunities to get involved as well as set up monthly donation programs and not just one-time donation opportunities. For inspiration, look to existing nonprofits and charities who have effective donor retention programs in place, such as PBS, Random Acts, and others. By improving your donor retention rate and getting more people involved, you’ll be amazed at what your organization can accomplish.

Know someone who this post would help?

Share it with your friends and with organizations you support who could use some help.

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