npEXPERTS: Donor Love - Thoughtful Engagement to Retain Donors by Blackbaud
In our next installment of npEXPERTS (a free eBook) we're shedding light on the incredibly poor donor retention rates in the nonprofit industry.
Donor acquisition costs are on the rise. The cost to acquire a new donor is 6 to 7 times the cost to retain an existing donor. At the same time new donor retention rates are on the decline, and have been for years. Ten Years ago average retention rates of a newly acquired donor were roughly 33%. Today it has dropped to 27%! A challenging environment for any nonprofit to exist in. But there is hope! "Improving donor retention rates by 10% can increase the lifetime value of your donor database by 200%", says Adrian Sergeant, Robert F. Hartsook Professor of Fundraising at the Center on Philanthropy at Indiana University.
The numbers don’t lie–acquisition costs are rising and retention rates are suffering. Donor retention, also known as donor love, has been hogging the nonprofit spotlight lately. Why? Because outside of doing the work your nonprofit exists to do, retaining donors is the single most important thing your organization can do to ensure your impact is felt for generations to come. Whether you rely on a handful of major donors, a massive group of small–dollar donors, or a blend of the two, every donor matters. But retaining these donors – your nonprofit’s lifeline is proving to be tough work.
Check out the free eBook packed with fundraising ideas on how to create donor loyalty and retain donors donors.