Nonprofits devote significant time, energy and resources to finding new donors. That work matters. But acquiring a donor is only the beginning. Improving donor retention starts with what happens next.
The real return on donor acquisition comes when that first gift becomes a relationship.
Recent data from the Fundraising Effectiveness Project illustrates just how important that distinction is. Of donors who made their first gift in 2024, only 18.9% gave again in 2025. By comparison, 59.3% of previously active repeat donors gave again. Once a donor makes a second gift, the likelihood that they will remain part of an organization’s donor base increases dramatically.
That makes the second gift one of the most important milestones in the donor relationship.
Acquisition Is Only the First Step
Donor acquisition can be expensive. In some cases, the cost of identifying, reaching and engaging a new donor may exceed the value of that donor’s initial gift. That does not make acquisition unsuccessful. It simply means the return on that investment should not be measured by the first transaction alone.
A first gift signals interest. A second gift begins to demonstrate commitment. The financial value of those relationships is significant. In 2025, 60.8% of charitable dollars came from repeat retained donors.
Yet donor retention remains a persistent challenge. Overall donor retention has declined over time, falling from approximately 50% in 2008 to about 43% in 2025.
For nonprofit leaders, that creates both a warning and an opportunity.
Focus on the Space Between Gift One and Gift Two
In the Fundraising Effectiveness Project data, roughly four out of five first-time donors did not give again the following year. That makes the period immediately following a first gift especially important.
The temptation can be to thank a donor, add them to the database and wait until the next annual appeal. But effective stewardship requires a more intentional approach.
Timely follow-up matters. After a significant first gift, consider:
- A personal thank-you call
- A handwritten note
- A meaningful acknowledgment from leadership
- Follow-up that shows the donor how their gift made a difference
Depending on the size and circumstances of the gift, that may mean outreach from the CEO, development director or a board member rather than simply an automated receipt.
Stewardship should also be about more than preparing for the next ask. Donors need to hear what their support made possible and why their connection to the organization matters.
For more on making donor cultivation and stewardship intentional, see Funding Your Mission: From More to Meaningful.
Don’t Assume the Next Gift Has to Wait a Year
Traditional annual giving patterns can encourage organizations to think in 12-month cycles. But donors do not all behave the same way.
Some donors may prefer an annual gift. Others may respond to a timely need, an impact story or an opportunity to become a monthly donor. The goal is to continue cultivating the relationship rather than waiting for the calendar to dictate the next interaction.
Monthly giving can be especially powerful because it moves an organization into a donor’s regular budget. But recurring donors still require stewardship. They should hear from the organization for reasons other than an expiring credit card or another request for support.
The communication channel matters, too. Donors may receive a direct mail piece and choose to give online. Text messaging is also becoming increasingly relevant across generations. The lesson is not to rely on one channel, but to understand how donors prefer to engage and make it easy for them to respond.
Look Beyond the Overall Retention Rate
Overall donor retention is a useful benchmark, but it does not tell the whole story. First-time and repeat donors behave differently and often require different strategies.
To better understand where opportunities exist, organizations should track:
- First-time donor retention
- Repeat donor retention
- Donor acquisition cost
- Progression from a first to a second gift
- Lifetime donor value
Breaking these measures down by donor segment can help reveal where attention is most needed.
The Goal Is Not Just Another Gift
Donor retention is best understood as the outcome of many things an organization does well: communicating impact, expressing gratitude, building trust, engaging donors and giving them meaningful reasons to stay connected.
The strongest donor programs do not simply maximize the value of an individual gift. They maximize the lifetime value of a relationship.
For nonprofit leaders looking to strengthen long-term fundraising performance, one of the most useful questions may therefore be surprisingly simple:
What are we doing to make sure a donor’s first gift is not their last?
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