Over the past five years, donor retention has fallen by a staggering eight percentage points.
That’s not just a minor dip—it’s a full-blown crisis that threatens nonprofit sustainability.
Avid’s real-time benchmark data from 100+ nonprofit organizations confirms it:
At the same time, individual giving is declining. The latest numbers from Giving USA show a concerning downward trend in charitable giving. Many organizations felt a surge in 2021—what some called the “COVID bump”—when giving rebounded after a rocky 2020.
But the big influx of giving in ‘21 was an anomaly. Since then, individual giving resumed its steady decline.
And when you factor in inflation, the real impact is even worse.
You have to raise 21% more in 2025 to make the same level of impact that you had in 2021. And many organizations are struggling just to raise the same dollars—let alone more.
So, the big question is: If we have better tools and strategies than ever before, why is donor retention still dropping?
Our acquisition obsession is hurting long-term growth
The nonprofit sector spends an incredible amount of time, energy, and budget on acquisition. The conversation is relentless:
- What’s the next best tactic to grow acquisition?
- What’s the ideal cost to acquire a donor?
- How much should we spend on acquisition this year?
- How do we start to bring in new Gen Z donors?
Acquisition is essential, but here’s the reality:
Investing in acquisition while ignoring retention, is like riding a stationary bike.
You’re working hard, but you’re not going anywhere.
If we don’t stop donors from walking out the back door, it doesn’t matter how many new ones we bring in.
Yet, in many organizations, donor retention is still an afterthought. That has to change—before the damage becomes irreversible.
The numbers are sounding the alarm—are we listening?
When donor retention declines, nonprofits are forced into an endless cycle of replacing lost donors just to stay even.
And it’s getting harder.
The Facts:
- Retention has dropped 8 percentage points in just five years. That’s thousands—if not millions—of donors disappearing from nonprofit databases annually.
- Acquisition costs are rising. With competition for attention increasing and digital ad prices climbing, it costs more to replace every lost donor.
- Inflation is squeezing nonprofits. Even if your fundraising revenue remains flat, inflation means your impact is shrinking.
Take a look at the chart below: It shows how individual giving has dropped since 2021 when adjusted for inflation (data from Giving USA).
The result? A growing crisis that could cripple fundraising efforts if left unchecked.
3 donor retention questions every fundraiser needs to ask—right now
How do you turn things around for your organization?
It starts by putting donor retention front and center.
Here are three critical questions every fundraiser should be asking today:
1️⃣ How much of your 2025 development budget is focused on donor retention?
Retention isn’t a “nice-to-have” strategy—it’s a core component of sustainable fundraising.
❌ If your budget is only allocating advertising and media spend toward acquisition, expect retention to keep declining.
But fixing retention doesn’t only mean spending money on ads.
It could be investing in staff to create more capacity for retention & stewardship initiatives. It could be dedicated funds for a campaign to potential 2nd year donors to try and get them to renew.
The point is: growth won’t happen organically. You have to make a plan.
2️⃣ What initiatives can you test next to influence donor retention?
Small adjustments can yield massive results.
The things that move the needle don’t always have to be ground-breaking innovations.
- Can you implement personalized new donor onboarding plan?
- Can you create more automated ways to check in with donors in an authentic way?
- Can you run a high-touch campaign focused on upgrading donors?
💡 Start experimenting now. The earlier you take action, the bigger the impact.
If you wait around for the next big conference to discover an “experts” magic retention formula—you’ll have wasted precious time where you could be learning what works for your specific donors.
3️⃣ Have you considered the long-term revenue impact of even a small retention improvement?
A modest increase in donor retention can dramatically improve your long-term revenue. It’s not just about keeping more donors—it’s about maximizing lifetime value.
In the example below, powered by the Avid Scorecard, you can see the retention rate trends of a nonprofit. In the top example, their retention rate is down by 18%. At this rate, they’re projected to lose $0.3M over the next 3 years.
What if they could slow the decline of their retention rate to just a 9% decrease? Their forecast radically changes. Now they can actually grow by $3.5M over the next 3 years.
That’s a $3.5M difference in additional mission impact—just by slowing retention decline.
📌 The takeaway? Retention isn’t just about keeping donors—it’s about maximizing lifetime value.
Don’t have a tool to visualize the long-term impact of retention improvements?
Book an Avid demo to see how the Scorecard can help you make more strategic decisions to ensure the long-term health of your mission.
Retention is the future of fundraising
Donor retention isn’t a feel-good initiative—it’s a survival strategy.
It’s also a mission multiplier.
If the current trends continue, nonprofits will face even greater financial instability in the years ahead.
But there’s hope.
Organizations that prioritize retention will emerge stronger. That means investing in donor relationships, personalizing communications, and create meaningful engagement.
This means more loyal donors, higher value donors, and ultimately more stable funding to make greater impact.
The question is: Will you act before it’s too late?
🚨 The alarm bells are ringing. It’s time to stop ignoring donor retention and start making it a top priority.
