It’s a Balancing Act: Donor Acquisition and Retention

A fundraising strategy that prioritizes new donor acquisition while neglecting current supporters can lead to your donor base feeling unseen, unappreciated and a decline in retention. Of course resources need to be expended to acquire donors, for how else can they be retained. Yet, research shows that retaining existing donors is more cost-effective and critical for sustainable growth. 

Here’s why devoting resources to nurture current donors, thus increasing retention and income, deserve your publication’s attention and tips for success.

 

Retaining Donors Is Easier—and Cheaper—Than Finding New Ones

On average, acquiring a new donor costs five to ten times more than retaining an existing one. Consider the energy expelled for traditional fundraising, for example galas and in-person events. For crowdfunding campaign promotion, there is staff time to create, post and monitor paid and organic social media traffic. After peak activity subsides, ideally a conversion rate and cost per new donor are determined. 

Conversely, engaging current subscribers and donors requires fewer resources and often yields greater returns. Take advantage of supporter email and/or mailing addresses to show how their gifts make a difference, and how valued and appreciated they are. Consistent retention efforts can increase a donor’s lifetime value significantly as repeat donors tend to give more over time.

Tip: Focus on gratitude and relationship-building to reduce reliance on costly donor acquisition campaigns.

 

Donor Retention Drives Long-Term Sustainability

Loyal donors are your foundation for financial stability. Their commitment forecasts a predictable revenue stream and thereby enables planning for new reporters, overall growth, and ensuring funds are readily available for unexpected challenges.

Benefits of perpetual donor retention actions include increased giving, as individuals often donate larger gifts over time and are more likely to participate in special campaigns. Stalwart donors are more likely to become ambassadors for your publication by encouraging others to contribute. They are also perfect candidates for monthly giving and leaving a legacy gift, such as a bequest or endowment.

Tip: Consistently nurturing current donors offers financial stability and long-term growth. 

 

 

The Ripple Effect: Retained Donors Lead to New Ones

Happy donors are your best advocates. When supporters feel appreciated and see the impact of their contributions, they’re more likely to share your mission with their network. Their “stamp-of- approval” for your publication speaks volumes, whether given via email, social media or literally word-of-mouth. Encourage their advocacy by creating a referral program with special recognition for donors who bring in new supporters. Another option is to create a peer-to-peer crowdfunding campaign where donors share your campaign with their network. Both options may reach folks who are either unaware of your publication or need a peer’s recommendation to make a donation. 

Tip: Implement collaborative programs and fundraising avenues to reach your donors’ networks. 

 

Engagement and Gratitude Build Relationships for Repeat Giving

A donation is more than a financial contribution—it’s an act of trust and belief in your publication and mission. Acknowledging this with a genuine “thank you” reinforces and deepens the emotional connection and relationship that motivated the individual to give in the first place. 

Here’s why engagement and gratitude matter – 

• Recognition: Donors want to feel that their partnership and contributions are valued, no matter the size. Be sure to let them know how their gift will be used to create an impact.
• Trust: Regular, thoughtful communication builds confidence in your publication’s ability to use funds effectively.
• Loyalty: When donors have a sense of belonging and feel like a partner, they are more likely to be engaged and become repeat donors. 
• Survey says: Expand donors’ emotional investment and your publication’s success by offering a survey. Learn what news and features interest them, and where there may be a lack in communication. By asking for feedback, subscribers and donors feel valued and included, and you learn valuable information for potential next steps. 
• Engagement: A well-timed thank-you email, hand-written note, phone call or text keeps your organization top-of-mind for future contributions. Ideally actions are taken within 24-48 hours of the gift being made. Personal touch matters.

Tip: Increase emotional connection and donation longevity by treating your donors as partners in your publication’s growth and success.

 

Determine Your Donor Retention Rate

Ready to learn your publication’s starting point or to take an updated look? 

To do so, divide the number of donors who gave this year and last year by the total number of donors who gave last year, then multiply by 100. 

For example, if your publication had 700 donors last year and 250 of them donated again this year, your retention rate would be 35.7%. An ideal donor retention rate is 35%-45%. 

By determining and then closely monitoring retention rates, your publication can make informed decisions, set realistic fundraising goals, and adapt your fundraising strategy accordingly. 

 

 

Conclusion: Small Acts of Gratitude and Engagement Yield Big Results

Donor retention is a cornerstone for financial stability. When your publication consistently prioritizes gratitude and cultivates relationships, fundraising costs can be reduced, revenue increased, and a loyal base of donors who are deeply invested in your mission will be created. 

Now is the time to commit resources and nurture current donors, increase engagement and say “thank you.” Beyond a polite gesture—it’s a powerful tool for building a sustainable future for your publication and amplifying the impact of your work.