FEP's New Donor Retention Trend Report Shows Urgent Need to Engage Small Donors

August 4, 2025

By Wendy Johnson

More than half of the average donor base is quietly slipping away, requiring urgent action before the year-end push begins, according to the Fundraising Effectiveness Project's (FEP) Quarterly Fundraising Report for Q1 2025.

Micro donors ($1–$100), who make up 57% of the average donor file, dropped by 11% in the first three months of 2025. 

True, this group accounts for just 2.5% of dollars raised, but...they’re critical for long-term sustainability. These grassroots donors help fuel community engagement, future mid-level and major gift growth, and campaign reach.

Other Key Findings on Donor Retention Trends

• Donors dropped 1.3% in Q1 2025, driven by sharp losses among small-dollar givers.

• Retention slipped slightly. Year-to-date donor retention fell from 18.3% to 18.1% 

• Dollars are up, but donors are down. Fundraising revenue rose 3.6% year-over-year, but the number of donors declined by 1.3%, continuing a downward trend.

So, what should healthcare foundations do now? 

FEP doesn’t mince words in its #1 recommendation: 

Start rebuilding your donor pipeline through intentional small-donor acquisition. The steepest declines came from donors giving $1–$100. If they keep slipping away, so does your pipeline.

Here are the critical action steps the FEP recommends:

1️⃣  Start rebuilding your small-donor pipeline now to stop the steady trickle that’s draining your donor base.

• Use human storytelling, accessible giving levels, and multi-channel outreach

• Test monthly giving or first-gift incentives to boost conversion

2️⃣  Engage donors early to strengthen your year-end campaign

• • Run a mid-year stewardship push for 2024 donors who haven’t given in 2025

  • Focus on gratitude, not solicitation, to reignite connection ahead of Q4

3️⃣ Review your 2024 results now, before planning your next campaign 

• Where did you see the strongest results for acquisition, retention, and upgrade?

• Which segments or channels underperformed?

• What worked last year may not work this year, especially due to expected drops in government funding