Why Donor Retention Is the Real Crisis in Fundraising for Nonprofits

Are you spending more time chasing new donors than keeping the ones you already have? It’s a mistake that’s costing nonprofits more than they realize.
While nonprofits often obsess over reaching new people, they often overlook the supporters already in their ecosystem. And that’s a problem. Research indicates that the average donor retention rate ranges from 40% to 45%, while the recapture rate for lapsed donors is a disappointing 4%. Translation? Once someone stops giving, they rarely come back.
So why is this happening, and what can you do to stop it?
Glad you asked!
Often, new donors feel neglected. While younger donors tend to value consistent communication and authentic relationship building, many nonprofits seem to act as if they are too busy to engage with new donors. Or they assume the value of a donor based on the first amount given, despite the fact that donors who give a second time tend to triple the amount given the first time.
Communication is a key factor in building trust with donors, especially new ones. Emerging donors crave involvement, and that sense of inclusion is what fosters long-term loyalty. Yet too often, nonprofit communication is one-sided. Many organizations still rely on a monologue approach, speaking at donors rather than engaging with them. This lack of dialogue can make supporters feel disconnected. Today’s donors don’t just want to know that you’re doing good work; they want to see the direct impact of their contribution and engage in an ongoing, two-way relationship with your organization.
If nonprofits want to improve their donor communication, they must shift from transaction-focused campaigns to relationship-focused communication. That means investing in stewardship as much as solicitation. It means thanking faster, sharing more stories, and making donors feel like partners.
Retention is where long-term sustainability lives. It’s not sexy. It doesn’t always show immediate ROI. But it’s the backbone of growth. Because while new donors might give once, retained donors give more, advocate for your cause, and stay invested for years.
If your nonprofit is ready to move beyond the churn-and-burn donor cycle, the time to prioritize retention is now.