Donor retention rate is a key metric for nonprofits. It measures the percentage of donors who give to your organization again within a specified time period. A high donor retention rate means that your nonprofit is effectively retaining its donors and providing them with a positive experience.
There are a few different ways to calculate donor retention rate. The most common method is to take the number of donors who give in a specified time period and divide it by the number of donors who gave in the previous time period. For example if your nonprofit had 100 donors in January and 50 of those donors gave again in February your donor retention rate would be 50%.
Another way to calculate donor retention rate is to take the number of donors who gave in a specified time period and divide it by the number of donors who gave in the previous time period minus the number of new donors. This method is often used when calculating donor retention rate over a longer period of time such as a year. For example if your nonprofit had 100 donors in January and 50 of those donors gave again in December but you also had 20 new donors in December your donor retention rate would be 60%.
There are a few things to keep in mind when calculating donor retention rate. First it’s important to use a consistent time period. For example if you’re calculating donor retention rate for a year you should use the same time period (January to December) every year. Second remember that donor retention rate is a percentage so it will be a number between 0 and 100.
If you’re looking to improve your donor retention rate there are a few things you can do. First make sure you’re thanking your donors and keeping them updated on how their donations are being used. Second create a system for tracking donor contact information and engagement. Finally consider implementing a donor loyalty program.