How Better Stewardship Improves Donor Retention and Fundraising Results
-By Bill Stanczykiewicz, Ed.D.
Nonprofits have more donor information than ever before.
Giving histories. Event attendance records. Email engagement reports. Wealth screenings. Volunteer participation data. Dashboard after dashboard filled with donor insights.
Yet many organizations continue to face the same challenge: retaining donors.
The problem is not a lack of information.
The problem is what happens after the information is collected.
Consider two donors who make identical gifts to the same organization. Both donors receive an automated receipt. One donor hears little from the organization until the next fundraising appeal arrives. The second donor receives updates about program impact, invitations to engage with the mission, opportunities to volunteer, and communications tailored to personal interests.
Both donors appear in the database.
Only one donor experiences meaningful stewardship.
That distinction often determines whether a donor gives once or gives again.
A recent episode of First Day from The Fund Raising School explored this challenge through a conversation with Lindsay Marciniak, Managing Partner at CCS Fundraising, about findings from the latest Philanthropy Pulse Report. Based on responses from 618 nonprofit organizations across 47 states and 18 countries, the report offers a snapshot of the fundraising landscape and the strategies organizations are using to navigate current challenges.
One finding deserves particular attention. According to Marciniak, "69% of organizations plan to support donor retention through targeted digital outreach."
That statistic reflects a growing recognition across the nonprofit sector: stewardship is becoming a strategic priority rather than a post-gift activity.
Fundraisers have long focused on acquiring new donors. New donor acquisition remains important, but donor retention often generates greater long-term value. When organizations fail to engage supporters between fundraising appeals, donor relationships weaken. When organizations consistently communicate impact and create meaningful opportunities for involvement, donor relationships grow stronger.
The distinction may sound simple, but the implications are significant.
Strong stewardship is not defined by a thank-you letter alone. Strong stewardship helps donors understand the difference their philanthropy is making. Strong stewardship demonstrates accountability. Strong stewardship creates opportunities for donors to see themselves as partners in the mission rather than sources of revenue.
Data play an important role in that process.
Donor information can help organizations identify supporters who are increasing engagement, donors who may be at risk of lapsing, communication preferences, volunteer interests, and giving patterns. However, information alone does not strengthen relationships. Stewardship transforms information into action.
Questions such as these can help guide stewardship efforts:
- Which donors have become more engaged over the past year?
- Which supporters have not heard from the organization recently?
- What program outcomes are most meaningful to different donor segments?
- How can communications become more personal and relevant?
Organizations that consistently ask and answer those questions are often better positioned to improve donor retention and strengthen fundraising results.
These challenges increasingly surface in conversations throughout The Fund Raising School's courses and certification programs. Fundraising professionals today are expected to combine relationship-building skills with strategic decision-making. Successful stewardship requires both. Data help fundraisers understand donor behavior. Stewardship helps fundraisers respond in ways that deepen trust and strengthen commitment.
Donors do not give because a nonprofit has a sophisticated database.
Donors give because they believe in a mission and want to make a difference.
Data provide understanding. Stewardship creates connection.
When nonprofits combine both disciplines effectively, donor information becomes donor engagement, and donor engagement becomes long-term philanthropic support.
Bill Stanczykiewicz, Ed.D., serves as director and Rosso Fellow of The Fund Raising School within the Indiana University Lilly Family School of Philanthropy, where he also serves as senior assistant dean for external relations.