Donor retention rate: what it is and how to work out yours
Donor retention rate is the share of last year's donors who gave again this year. To calculate it, divide the number of donors who gave in both years by the number who gave in the earlier year. It matters because returning donors are what make most marketing pay off over time.
Worked example. Change any number to use yours.
Your donor retention rate
45.0%
That's about 5 in 10 donors giving again.
How did we get this? 180 ÷ 400 × 100 = 45.0%
Use this in the full worth-it calculator →Why retention changes the math
If a new donor gives $100 once and never again, they're worth $100. If 4 in 10 give again each year, the same donor is worth more over time, so marketing that brings in donors can lose money in year one and still pay off. Raising retention is often cheaper than finding new donors.
Worked example
Hypothetical: 400 people gave in the earlier year. 180 of them gave again the next year. 180 ÷ 400 = 45%, or about 4 or 5 in 10.
Ways to keep more donors
- Thank every donor quickly and personally.
- Show what their gift did, with a story or a number.
- Invite first-time donors to give monthly.
- Ask again, kindly. Many donors stop simply because no one asked.
Questions people ask
How do you calculate donor retention rate?
Take the donors who gave in both of the last two years, divide by the number of donors in the earlier year, and multiply by 100.
What's a good donor retention rate?
The useful comparison is your own rate over time. If it's going up, your stewardship is working.
Should we count monthly donors separately?
It helps. Monthly donors often behave differently, so track their retention on its own if you can.
About the builder
Built by Paul Watley
Paul is the Director of SEO at Tandem Theory in Dallas, Texas. He builds websites and helps them get found through search and digital marketing. He is originally from Nebraska and now lives in Dallas with his wife, their three kids, and Sunny, their dog.
He built this free tool because nonprofits get the same sales pitches businesses do, with less money and less time to check the math. Put in your own numbers and decide for yourself.