It's a Mistake to Shortchange Donor Stewardship During Economic Downturns
July 27, 2025
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As economic headwinds strengthen and fears of a recession loom, development teams face mounting pressure to reduce costs. But some nonprofit leaders warn against slashing the wrong line item: donor stewardship.
It costs just 20 cents to raise $1 from existing donors, but up to $1.50 to raise the same amount from new donors.
That's a 7.5x difference that makes donor retention a no-brainer.
Donor Stewardship in Fundraising
Take time to create a deeper connection that will make the donor want to stick around and give again, says Sue Citro, Chief Experience Officer at Best Friends Animal Society, who recently spoke on the Go Beyond Fundraising podcast.
"When someone supports your organization, they’re raising their hand and saying, ‘This matters to me,’ " she says.
Don't just send donors a receipt and a generic thank-you. Sue gave a great example about leaving a restaurant after a delicious meal:
Server A thanks you for coming.
Server B thanks you and asks what you liked best about your meal.
Which moment would you still remember one month later?
Nonprofit Donor Retention
At your organization, this might translate to a program officer calling a mid-level donor to share how their gift directly impacted a specific beneficiary, or sending a handwritten note from your CEO highlighting exactly which service the donor's gift will fund.
"It seems odd that we would cut off those conversations ... just to be more cost-effective," she said.
Regardless of whether we're headed for a recession, forward-thinking foundation leaders are using this moment to strengthen donor engagement and create unshakeable loyalty as tough times loom.
When the economy rebounds, they'll emerge with a more committed donor base and sustainable funding streams.
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