Donor Management

Donor Retention Rate

By: Alec Hollingsworth

Updated:

July 2, 2025

Definition:

Donor retention rate measures the percentage of donors who continue to give to a nonprofit over a set period, reflecting engagement and loyalty.

Donor Retention Rate is a key nonprofit metric that measures the percentage of donors who continue to give to an organization over a specific period, usually year over year. It is calculated by dividing the number of returning donors by the total number of donors from the previous period, then multiplying by 100. A high retention rate indicates strong donor engagement and satisfaction, while a low rate may signal a need for improved stewardship or communication strategies. Monitoring this rate helps organizations evaluate the effectiveness of their donor relations, prioritize relationship-building efforts, and forecast future fundraising potential.

Key Takeaways

Measures ongoing donor engagement and loyalty
Helps forecast fundraising revenue
Lower cost than acquiring new donors
Guides stewardship and communication efforts

Why It Matters

Retaining donors is more cost-effective than acquiring new ones and ensures consistent support for your mission.

Real World Example

A local animal shelter tracks its donor retention rate annually. Last year, 500 individuals gave to the shelter. This year, 300 of those same people contributed again, resulting in a 60% retention rate. By analyzing this metric in Keela, the shelter identified that donors who received personalized thank-you messages and program updates were more likely to continue their support. The organization focused on these stewardship practices, leading to higher retention and a more stable funding base, allowing them to better plan for ongoing animal care and outreach efforts.

How Keela Helps

With Keela, nonprofits can easily track donor retention rates, segment lapsed donors, and automate personalized follow-ups to boost loyalty. Keela’s analytics help organizations spot trends and optimize engagement strategies, ensuring every opportunity is taken to retain and nurture valuable supporters.

Frequently Asked Questions

How is donor retention rate calculated?

Divide the number of returning donors by the previous year’s total donors, then multiply by 100 for the percentage.

Why is donor retention important for nonprofits?

Retaining donors is less expensive than acquiring new ones and helps ensure stable, long-term funding.

How can Keela help improve donor retention?

Keela provides tools to track retention, automate follow-ups, and segment donors to personalize communication, increasing retention rates.

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