The Latest Donor Retention Trends Show Why Donor Stewardship is a Survival Strategy
May 9, 2025
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Donor retention rates are eroding, and first-time donors aren’t coming back, according to the Fundraising Effectiveness Project report for Q4 2024.
According to the Fundraising Effectiveness Project (FEP) Q4 2024 report, eight in ten first-time donors never give again, highlighting a significant deficiency in donor stewardship. While total fundraising revenue increased by nearly 4%, the donor base is shrinking, putting your long-term giving pipeline at risk.
Nonprofit organizations that act now can stabilize their donor retention rate and increase philanthropic giving before more supporters slip away.
I analyzed three years of FEP's donor retention trend data to track donor behavior across every giving level. The patterns are clear:
Although total fundraising dollars have increased by nearly 4%, the donor base and its retention rate continue to shrink.
Small donors who give less than $100 are disappearing, posing a long-term risk to the giving pipeline.
The retention rate for new donors dropped to 19%. The repeat donor retention rate decreased to 69%, underscoring the importance, and ROI, of donor retention and repeat giving.
Mid-level ($5k - $50k) and major donors ($50K+) are the only donor segments growing.
Here’s the opportunity:
If we act now to engage donors more personally, more frequently, and with more strategic intent, we can reverse donor attrition and grow donor lifetime value. The next 90 days are critical to setting that momentum.
Below are the proactive steps I’m recommending to all of my healthcare foundation clients.
1. Engage Low-Level Healthcare Donors While You Can
Small "micro" donors (those who give less than $100) made up more than half of all donors in 2024, but accounted for less than 2% of total giving. They also saw the sharpest year-over-year drop in dollars—down nearly 9% from 2023.
Without immediate action, we risk losing the donor pipeline volume needed to build the next generation of philanthropic support.
How to retain first-time donors and low-level donors:
While the new donor retention rate is just 19%, repeat donors have a retention rate of 69%. The second and third gifts are critical turning points.
Prioritize multi-channel, high-frequency touches like SMS, email, video, and storytelling to turn them into repeat givers. Small donors are highly responsive to early engagement, and inexpensive, consistent outreach is the most efficient way to increase their likelihood of giving again without overextending your team or budget.
Within the first 30 days, share 1–2 donor impact stories that show how their gift changed someone’s life. Keep the stories brief, visual, and emotional.
Ask for a second donation within 30–45 days. Keep it optional and donor-centered, framed as a chance to expand their impact. Consider A/B testing your messaging to nudge repeat behavior.
Once they’ve given twice, ask them to join your monthly giving program.
2. Keep Small Healthcare Donors Coming Back with a Timely Thank-You Strategy
Donors in the $101–$500 range often fall through the cracks; too small for mid-level donor engagement programs, but too big to ignore. This tier doesn’t need complexity, they need connection. Sending a personal donor thank-you within 30 days increases the likelihood of a second gift.
What to do:
New donors: A quick email from a team member, using their name and referencing their specific gift amount or supported program.
Returning donors: Try a short thank-you call, even if it goes to voicemail. A personal touch stands out!
Grateful patients: Send a fast, personal thank-you within 20–30 days of discharge. Keep it simple with this 90-day grateful patient engagement plan.
Early recognition is one of the most cost-effective donor retention strategies to engage donors without adding new campaigns or infrastructure.
3. Healthcare Donor Retention Soars After the Second Gift
Donors who gave three or more times per year had an average donor retention rate of 70% every year from 2022 to 2024. Getting to that third gift is your strongest predictor of loyalty.
What to do:
Segment all donors who gave more than once this year.
Launch a “Thank you for supporting us all year” donor engagement campaign.
Invite donors to join your Monthly Giving Society. Offer a small recurring giving incentive. (Don’t have a Monthly Giving program? I can help!)
In October, test a second push for your monthly giving program, perhaps with a Halloween theme, before end-of-year asks ramp up.
Here's another reason to focus on donor retention
It costs up to $1.50 just to raise $1 from new donors—and just 20 cents to raise the same amount from existing donors. WOW!
4. Build Your Mid-Level Donor Pipeline
The Fundraising Effectiveness Project (FEP) report also reveals that mid-level donors ($5K–$50K) are among the only donor segments growing. But they tend to fall through the cracks.
What to do:
Segment all mid-level donors in this range from the past 18–24 months.
Launch a mid-level donor engagement campaign this summer using email, direct mail, and personal outreach. (I can help!)
Share emotional stories about how the donor's philanthropy improves lives. Use relatable images to connect with the donor's emotions and keep the donor at the center of the story.
Assign a specific point of contact, even if it’s not a gift officer. Personal connection is key to effective mid-level donor engagement.
Create mini-VIP experiences as part of your donor retention strategies, such as insider updates, video messages from leadership, or a behind-the-scenes look at new technology.
5. Engage $50K+ Donors with a Personalized, Donor-Led Approach
These transformational supporters require hands-on engagement. They’re not looking for another campaign, they're seeking a philanthropic partnership.
What to do:
Assign a relationship lead and use permission-based asking that reflects their values and philanthropic goals.
Invite them into strategic conversations. Ask what areas of impact they care about most—and tailor future engagement accordingly.
Focus on listening, not asking. Use permission-based donor communication to stay donor-led and values-aligned.
FAQs: The Latest Donor Retention Trends
What is the donor retention rate for 2024?
Based on the Q4 2024 Fundraising Effectiveness Project data, the overall donor retention rate remains in a state of attrition, with first-time donor retention specifically hitting a dismal 19%. This means eight in ten new supporters did not return for a second gift, highlighting a systemic stewardship gap in the initial 90-day post-gift window.
How do I convert a first-time donor into a repeat giver?
The conversion from the first to the second gift is the most critical milestone in donor retention. Because only 19% of first-time donors return, you must implement a high-frequency, multi-channel welcome series within the first 30–45 days. Sharing 1–2 emotional impact stories via email or video before asking for a second gift significantly increases the likelihood of a repeat donation.
Why is fundraising revenue increasing while donor counts are dropping?
While total philanthropy revenue rose by nearly 4%, it was driven almost exclusively by mid-level and major gift segments. Conversely, the micro-donor base ($1–$100) saw a significant contraction. This trend creates a "top-heavy" pyramid, posing a long-term risk to the giving pipeline as fewer small donors are being nurtured into future major supporters.
How does donor attrition impact long-term hospital foundation growth?
High donor attrition, especially among new supporters, dramatically lowers Donor Lifetime Value (LTV). When a hospital foundation loses 80% of its new supporters, it loses the "discovery phase" for future planned giving and capital campaign prospects. Stabilizing this leakage through better donor stewardship is significantly more cost-effective than constant, expensive new donor acquisition.
Why is it important to retain small donors?
While their immediate ROI may seem low, small donors who give a second and third gift are significantly more likely to become recurring donors, mid-level prospects, or legacy giving leads. High small donor attrition creates a "top-heavy" donor pyramid that eventually collapses when major supporters age out without a new generation to take their place.
What are the most effective donor retention strategies?
The most effective 2026 donor retention strategies focus on Donor Lifetime Value (LTV) rather than raw acquisition.
Key tactics include 72-hour personalized thank-you responses, branded monthly giving programs, and dedicated mid-level upgrade paths. Hospital foundations that treat stewardship as a structured, data-driven journey rather than a one-time email, see 2x higher retention rates.
Which donor segments showed the most stability in 2024?
While new donor numbers were disappointing, repeat donors remained the strongest segment with a 69% retention rate. This data confirms that once a donor moves past the second-gift milestone, their loyalty increases significantly. For 2025, the highest ROI lies in donor stewardship programs specifically designed to convert first-time givers into multi-year supporters.
Let’s Build These Donor Retention Tactics into Your Donor Engagement Strategy
Let’s stop the churn, build a mid-level donor pipeline that performs, and grow long-term donor value. I’ll help you turn these proven tactics into high-impact campaigns tailored to your organization.
Schedule a free, no-pressure donor engagement strategy call.
You’ll walk away with 3 actionable recommendations to boost donor engagement and retention—no strings attached!
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