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—at any time, says Sue Citro, Chief Experience Officer at Best Friends Animal Society, who recently spoke on the Go Beyond Fundraising podcast.
Donor Stewardship in Fundraising
Take time to create a deeper connection that will make the donor want to stick around and give again. "When someone supports your organization, they’re raising their hand and saying, ‘This matters to me,’ " she said during the podcast.
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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