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Donor retention is a measurable strategy, not just a fundraising hope. Plus, how to calculate donor retention for nonprofits. On this episode of Fundraisers Friday, Julia Patrick and Tony Beall take on one of the most serious business challenges in the nonprofit sector: donor retention. Their conversation makes clear how fundraising success is not only about bringing in new names, it’s about keeping the people who have already said yes to your mission and building systems that help them stay connected.

The discussion begins with a hard truth: average donor retention is far too low, and many organizations are not even measuring it consistently. Julia frames the issue in plain terms, calling it “a crisis,” while Tony brings context by showing how retention can vary by subsector. Faith-based groups and higher education may see stronger rates, while arts, culture, and human services organizations often face a steeper climb. That contrast alone reminds nonprofit leaders that benchmarking matters, but strategy matters even more.

One of the most focused parts of their conversation is the simple donor retention formula. Julia makes the case that this number belongs in board meetings, CEO reports, and regular management conversations. Retention is not a side note. It is a core operating measure. As she puts it, “It should be present with everyone so that you know what is going on.”

Tony then moves the conversation from math to management. He explains that donors leave for understandable reasons: delayed thanks, weak impact reporting, too many asks, and too little human connection. His line captures the heart of the episode: “We’re not talking about transactional fundraising. We’re talking about relationship-driven fundraising.” That idea turns donor retention from a development task into an organizational discipline.

They also link retention to stewardship cost, long-term donor growth, monthly giving, and next-generation philanthropy. Monthly donors, in particular, are shown as a promising path for building a more stable base. Julia and Tony encourage leaders to study patterns, review donor journeys, and make practical choices with limited resources.

00:00:00 Welcome to Fundraisers Friday
00:02:31 Why Donor Retention Is a Nonprofit Crisis
00:03:14 Retention Rates by Nonprofit Sector
00:06:18 Why Donors Stop Giving
00:08:00 Relationship-Driven Fundraising Strategies
00:10:10 The Donor Retention Formula
00:12:44 Using Data to Find Donor Patterns
00:16:16 Why Keeping Donors Costs Less
00:20:20 The Business Value of Monthly Giving
00:23:07 Donor Journey and Strategy Shifts
00:25:07 Planning Beyond a Big Fundraising Year

#TheNonprofitShow #FundraisersFriday #DonorRetention

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Our national co-hosts and amazing guests discuss management, money and missions of nonprofits!
12:30pm ET 11:30am CT 10:30am MT 9:30am PT

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Audits may make nonprofit leaders tense, but this discussion reframes the audit process as smart organizational practice rather than a yearly ordeal. Ben Stap of Your Part-Time Controller explains that a nonprofit audit is not simply a compliance exercise. It is an outside review that helps confirm financial accuracy, transparency, and proper use of funds so donors, grantmakers, and regulators can trust the organization’s stewardship.

Ben makes the conversation approachable right away with a memorable comparison: “It’s like having a police car behind you while you’re driving.” That simple image captures why audits feel stressful even when an organization has done nothing wrong. From there, he shifts the focus from fear to preparation. His message is clear: nonprofits that treat every month like audit season are far better positioned when the real process begins.

A major theme of the episode is audit readiness. Ben explains that many of the biggest audit problems come from issues that build up over time, including missed in-kind contributions, unclear treatment of restricted cash, revenue recognition confusion, stale footnotes, and unusual transactions that were never properly documented. His advice is practical: keep policies current, organize records all year, reconcile monthly, and review financial activity regularly so year-end does not become a scramble.

One especially useful takeaway for nonprofits is that audits are not only about finance staff. He points to the value of internal communication across departments, especially when program teams, development staff, and finance professionals need to share information about grants, pledges, and restricted funding. He also offers a smart governance practice: have the board periodically review the vendor list to help prevent conflict-of-interest concerns and support stronger oversight.

Another emphasized point is that nonprofits should decide what they want from an audit relationship. Some organizations need an audit firm that simply reviews and reports. Others need a partner who will answer questions during the year and help them think through complicated nonprofit accounting situations. As he puts it, “Proactive, overreactive is always a good way to go about it.”

00:00:00 Opening Discussion
00:01:19 Why Nonprofit Audits Matter
00:03:45 What Audit Ready Really Means
00:04:35 The Purpose of a Nonprofit Audit
00:06:13 Common Audit Pitfalls to Avoid
00:10:16 Documentation and the PBC List
00:13:15 Policies Procedures and Separation of Duties
00:16:28 Why Communication Drives Audit Success
00:21:05 Monthly Reconciliations and Year Round Prep
00:22:21 Audit Season Timing and Expectations
00:24:40 Turning Audits Into a Useful Tool

Find us Live daily on YouTube!

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Find us Live daily on X: @Nonprofit_Show

Our national co-hosts and amazing guests discuss management, money and missions of nonprofits!
12:30pm ET 11:30am CT 10:30am MT 9:30am PT

Send us your ideas for Show Guests or Topics: HelpDesk@AmericanNonprofitAcademy.com
Visit us on the web:The Nonprofit Show

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What happens after the first donation may matter even more than the donation itself! Lauren Laski, Manager of Customer Success at Bloomerang, talks about how nonprofit organizations can build stronger donor relationships, improve retention, and create more reliable revenue over time.

Lauren brings both fundraising and technology experience to the conversation, and she offers a clear reminder that the first donation should never be treated as the finish line. Instead, it should be seen as the start of a longer relationship. Lauren explains the power of prompt gratitude. She shares that when a first-time donor is thanked within 48 hours, they are “four times more likely to make a second gift.” That one practice alone can completely change how a nonprofit approaches stewardship.

The conversation, with host Julia Patrick, also moves into recurring giving, which Lauren describes as one of the strongest tools for long-term donor retention and revenue stability. With recurring donors retaining at a much higher rate, nonprofits can reduce the feast-or-famine cycle that often comes with event-based or year-end fundraising. For organizations trying to build predictable cash flow, this is a major business lesson, not just a fundraising tactic.

Another highlight of the discussion is Lauren’s advice on donor segmentation. Rather than grouping supporters only by gift size, she encourages nonprofits to think about behavior, loyalty, interests, and motivations. That shift can help even smaller organizations communicate in more personal and effective ways. As Lauren says, “Even if you only have 200 donors, they’re not all the same.”

The duo also talk about the 80 /20 communication rule, where most donor communication should focus on impact and connection rather than constant asking. That approach helps organizations move from transactional fundraising to relationship-centered fundraising, which is far more sustainable over time.

Strong donor retention is built through thoughtful systems, timely communication, and habits that make supporters feel seen, valued, and connected to mission results. For nonprofit leaders who want to grow fundraising in a healthier and more strategic way, this conversation offers a terrific roadmap!

00:00:00 Welcome and episode introduction
00:01:48 Meet Lauren Laski from Bloomerang
00:03:16 Bloomerang’s AI tool Penny
00:05:28 The 48 hour gratitude rule
00:10:34 Why recurring giving is retention gold
00:13:40 Segmenting donors by behavior not just dollars
00:18:04 The 80 20 donor communication rule
00:20:49 How often major donors should hear from you
00:23:40 Aligning fundraising and marketing teams
00:27:14 Lauren’s GiveCon invitation and final takeaways

Find us Live daily on YouTube!

Find us Live daily on LinkedIn!

Find us Live daily on X: @Nonprofit_Show

Our national co-hosts and amazing guests discuss management, money and missions of nonprofits!
12:30pm ET 11:30am CT 10:30am MT 9:30am PT

Send us your ideas for Show Guests or Topics: HelpDesk@AmericanNonprofitAcademy.com
Visit us on the web:The Nonprofit Show