Report Shows Recurring Donors Are a Nonprofit's Most Valuable Asset
From 2023 to 2025, recurring donor retention rates remained steady between 78% and 80%. Meanwhile, non-recurring donor retention – those donors who gave one time – dropped more than three percent from 35.75% in 2023 to 32.41% in 2025.
Neon One shared some impressive statistics in its April research report The Recurring Donor Report: Data-Backed Insights for Sustainable Generosity that show why recurring donors are the future of nonprofit fundraising.
Donor Retention Fuels Nonprofits
The astounding donor retention statistic above shows that if you take even a little bit of time to do some proper donor stewardship, you could turn a one-time supporter into a recurring donor that you retain 80% of the time.
Whats' more, when asked why they were compelled to make a recurring gift, donors overwhelmingly responded that they “wanted to provide ongoing support to a cause I care about.”
People don't just donate with their wallets, they donate with their hearts. In fact, 58.6% of respondents said they started making a recurring gift to a nonprofit without being asked to do it.
Now, that's not to say you don't have any work to do. As we discussed, donor stewardship will always be important. But it does show just how invested donors can be in a cause they love.
It's pretty obvious looking at this data how important it is for every nonprofit to have an actual donor stewardship system in place. It goes beyond just sending a thank-you note and checking the box.
One-time supporters transform into recurring donors because they receive consistent touchpoints months after that initial gift and it provides a built-in reason for them to stay engaged with the nonprofit.
Three Key Donor Stewardship Plan Pieces
A proper donor stewardship plan has many elements that all work together to satisfy and retain existing donors. Let's touch on three today and not just talk about what they are but why they are so important to the process.
The Second-Touch Plan
The Neon One report also detailed that a majority of donors said they did not give a recurring gift to a nonprofit if they weren't properly thanked for the first gift or told how their contribution would be used.
Most organizations are great at making that first impression with a thank-you note in the form of an immediate receipt or confirmation of the donation. But it's the ones who follow through with the second touch who stand out the most.
Again, the “second touch” isn't another ask, it's a second acknowledgment of the donor's gift. And if it can be a personalized and humanized acknowledgment (versus an automated receipt), it will carry an even greater impact.
I know you and your staff are pressed for time but something as simple as a handwritten note or a personal email will go a long way toward making a donor feel like their donation truly made a difference to your organization.
The 90-Day Stewardship Sequence
The first 90 days in the life of a donor are crucial. The 90-day sequence helps you make three distinct touchpoints over the first 90 days after the donor's gift.
Within the first 2-3 weeks after the donation, send that initial personalized thank-you note or email.
About a month later, follow up with an impact update about your nonprofit. Make this a genuine outreach and do your best to personalize it by mentioning something specific about their gift or the program that they contributed to.
Once you've hit the 10-12-week mark since their donation, use your third touchpoint to start building a deeper connection with the donor. Send them a no-pressure invitation to something with your nonprofit. It could be to sign up for updates on a program, attend a special event or follow along on the journey of someone your organization is helping. Again, this outreach is an update and not another ask for money.
You can certainly still save time by automating this sequence using your donor CRM. The important thing is to make the messaging as personalized to each donor as possible and to invite them to build a relationship without mentioning a second donation.
The Monthly Giving Logic
When donors continue to give to a nonprofit monthly, it all ties back to delivering the right message to them at the right time. Their continued support is built on developing a consistent outreach schedule that isn't just tied to their gift.
The ultimate logic of monthly giving isn't the gift itself but the reason behind why the donor chose to give it. When donors feel like they hear from you consistently with information that is more than just asking for a donation, they will stick around and be loyal to your organization.
You may not convince every donor to make a recurring gift, but if you do your best to show them how much you value them, it will go a long way toward building the goodwill you need to reach 80% donor retention.
Donor Retention Gives Nonprofits Stability
I keep hammering it home but it's so important to remember that, as this research showed, people love to feel like they are a part of something bigger than themselves when they make a donation to a nonprofit.
In the article announcing its report, Neon One summed it up perfectly:
“At a time when donor bases are shrinking and retention rates are low, recurring donors offer something increasingly valuable: stability. They are passionate, resilient, and ready to invest in the causes they care about.”
What is your nonprofit doing to conduct proper donor stewardship and what impact is it having on your donor retention?
Which of the three donor stewardship plan pieces are you going to try first?
I'd love to hear your success stories and thoughts.