The Donor Retention Formula Every Nonprofit Needs

Send a text

Donor retention is a measurable strategy, not just a fundraising hope. Plus, how to calculate donor retention for nonprofits. On this episode of Fundraisers Friday, Julia Patrick and Tony Beall take on one of the most serious business challenges in the nonprofit sector: donor retention. Their conversation makes clear how fundraising success is not only about bringing in new names, it’s about keeping the people who have already said yes to your mission and building systems that help them stay connected.

The discussion begins with a hard truth: average donor retention is far too low, and many organizations are not even measuring it consistently. Julia frames the issue in plain terms, calling it “a crisis,” while Tony brings context by showing how retention can vary by subsector. Faith-based groups and higher education may see stronger rates, while arts, culture, and human services organizations often face a steeper climb. That contrast alone reminds nonprofit leaders that benchmarking matters, but strategy matters even more.

One of the most focused parts of their conversation is the simple donor retention formula. Julia makes the case that this number belongs in board meetings, CEO reports, and regular management conversations. Retention is not a side note. It is a core operating measure. As she puts it, “It should be present with everyone so that you know what is going on.”

Tony then moves the conversation from math to management. He explains that donors leave for understandable reasons: delayed thanks, weak impact reporting, too many asks, and too little human connection. His line captures the heart of the episode: “We’re not talking about transactional fundraising. We’re talking about relationship-driven fundraising.” That idea turns donor retention from a development task into an organizational discipline.

They also link retention to stewardship cost, long-term donor growth, monthly giving, and next-generation philanthropy. Monthly donors, in particular, are shown as a promising path for building a more stable base. Julia and Tony encourage leaders to study patterns, review donor journeys, and make practical choices with limited resources.

00:00:00 Welcome to Fundraisers Friday
00:02:31 Why Donor Retention Is a Nonprofit Crisis
00:03:14 Retention Rates by Nonprofit Sector
00:06:18 Why Donors Stop Giving
00:08:00 Relationship-Driven Fundraising Strategies
00:10:10 The Donor Retention Formula
00:12:44 Using Data to Find Donor Patterns
00:16:16 Why Keeping Donors Costs Less
00:20:20 The Business Value of Monthly Giving
00:23:07 Donor Journey and Strategy Shifts
00:25:07 Planning Beyond a Big Fundraising Year

#TheNonprofitShow #FundraisersFriday #DonorRetention

Find us Live daily on YouTube!

Find us Live daily on LinkedIn!

Find us Live daily on X: @Nonprofit_Show

Our national co-hosts and amazing guests discuss management, money and missions of nonprofits!
12:30pm ET 11:30am CT 10:30am MT 9:30am PT

Send us your ideas for Show Guests or Topics: [e-mail]
Visit us on the web:The Nonprofit Show