{"id":55263,"date":"2021-08-12T05:00:00","date_gmt":"2021-08-12T09:00:00","guid":{"rendered":"https:\/\/bloomerang2dev.wpengine.com\/?p=55263"},"modified":"2025-08-29T16:50:07","modified_gmt":"2025-08-29T20:50:07","slug":"solving-the-donor-retention-rate-issue-the-case-for-creating-a-board-level-donor-thank-you-committee","status":"publish","type":"post","link":"https:\/\/bloomerang.com\/blog\/solving-the-donor-retention-rate-issue-the-case-for-creating-a-board-level-donor-thank-you-committee\/","title":{"rendered":"Solving The Donor Retention Rate Issue: The Case For Creating A Board-level Donor Thank You Committee"},"content":{"rendered":"

Do you know your organization\u2019s donor retention<\/a> rate?<\/p>\n

I\u2019d bet not.<\/p>\n

According to the Association of Fundraising Professionals\u2019 2020 Fundraising Effectiveness Project<\/a> (FEP), only 43.6% of the donors who made a gift in 2019 made another gift in 2020. That means more than half of donors who made a gift in 2019 didn\u2019t make another one in the following year! And 2020 is no exception.<\/p>\n

A chorus of voices has been beating the drum about the importance of donor retention through their research, in blogs, and in webinars\u2014with stagnant results.<\/p>\n

As important as it is to pay attention to donor retention, it\u2019s equally important to know how to \u201cmove the needle\u201d\u2014and we do. But clearly, not enough of us do it.<\/p>\n

It\u2019s time to make keeping your donors a board-level priority, right up there with Finance, Governance, and Development itself.<\/p>\n

The Donor Retention Crisis \u2014 and Why It Matters<\/h2>\n

In 2019, Dr. Adrian Sargent bemoaned the fact that first-time donor retention rates were below thirty percent: \u201cThe USA still holds the record for the most shockingly poor pattern of results. When did it become acceptable to lose 70% of newly acquired donors?\u201d<\/p>\n

That\u2019s right, 70% of first-time donors never gave again. And then what happened? In 2020, in the context of increased overall giving, first-time donor retention fell by another 10% such that 80% of first-time donors did not make that key second gift<\/em>.<\/p>\n

Why are first-time donors<\/a> such a big deal? Because according to the FEP, the 2020 repeat donor retention rate was 59.6%\u2014whereas the new donor retention rate was 19.3%. Get that second gift and you\u2019re well on your way to the third gift and the fourth one.<\/p>\n

From Dr. Sargent\u2019s research, we know that increasing the donor retention rate by 10% increases the value of the donor base by at least 50%. Other studies cite increases as high as 200%. This is due to the effect of compounding and the fact that some donors will go on to become major donors, loyal monthly donors, and\/or include the organization in their estate plan.<\/p>\n

We Know What to Do, But We Are Not Doing It<\/h2>\n

We know what donors want in order to be inspired to keep giving. We know specifically what to do to encourage that important second gift. You don\u2019t have to look further than Penelope Burk\u2019s research-based book Donor Centered Fundraising: How to hold on to your donors and raise much more money<\/a><\/em>, which was published back in 2003.<\/p>\n

Per Burk\u2019s research, donors want to know what you did with their previous gift before you ask for another one. Donors also want to be thanked personally and promptly. Common sense, right?<\/p>\n

But common sense is so simple to execute. It requires commitment and resources.<\/p>\n

Specifically, you should commit to an action like having a board member call a first-time donor within 48 hours of them making a gift. This is the research standard\u2014do your best. Why? Here are two reasons:<\/p>\n