As we step into 2025, nonprofit leaders everywhere are taking a hard look at what worked (and what didn’t) in 2024. If there’s one takeaway from the past year, it’s this: donor retention is a growing challenge, and nonprofits need smarter engagement strategies to stay ahead.
According to the Fundraising Effectiveness Project, donor retention dropped by 4.6% in 2024—the fourth consecutive year of decline (source). The culprit? Lack of consistent engagement and cultivation. And with nearly half of nonprofit leaders citing donor acquisition as their biggest hurdle, it’s clear that nonprofits need to shake things up.
So, what can we learn from 2024’s successes? Let’s dive into four key strategies that will help boost your fundraising and engagement in 2025:
1. Year-Round Donor Engagement is a Must
Sending a one-off donation appeal isn’t enough anymore. Nonprofits that consistently engage their donors—thanking them, sharing impact stories, and keeping them involved—are seeing better retention rates. And guess what? High-visibility channels like text messaging are outperforming emails. With a 99% open rate, texting is a powerful way to keep donors connected.
Take Boys Town, for example. After launching a year-round text messaging strategy filled with gratitude messages, donor surveys, and storytelling, they doubled their GivingTuesday text messaging revenue—while sending fewer messages (source).
2. Monthly Giving is the Future
Did you know that monthly donors are nine times more valuable than one-time donors? That’s right! Retention rates for one-time donors hover around 18.6%, while donors who give multiple times have retention rates as high as 61.2%.
Boys & Girls Clubs of America saw a 21% increase in monthly giving revenue in 2024 by automating impact updates and expanding their promotions across multiple channels. They even offered special perks for donors at certain giving levels—leading to 50% more conversions! The lesson? Make giving easy, valuable, and consistent (source).
3. Smart Donor Acquisition = Better Long-Term Support
With donor acquisition being a top challenge, it’s time to get creative. Instead of casting a wide net, nonprofits should focus on attracting donors who are truly aligned with their mission.
For example, the Crohn’s & Colitis Foundation ran a lead generation campaign targeting people interested in gut health (their key focus area). By using targeted ads and strategic follow-ups, they gained 3,500 new contacts—who were 26% more likely to engage than the average donor prospect (source).
4. Think Beyond Email for Big Moments
Major fundraising moments—whether it’s disaster relief or a national giving day—shouldn’t rely solely on email. Nonprofits need to leverage multiple channels to ensure messages reach their audience.
SMS fundraising has proven to be a game-changer, with some campaigns seeing a 28-times return on investment. The key? Meeting donors where they are—on their phones and through channels they actually use (source).
SMS Marketing Tools for Nonprofits
If your nonprofit is ready to dive into SMS marketing, here are a few highly rated and affordable options to get started:
- Tatango – Best for large-scale nonprofit text fundraising, known for high ROI (Tatango).
- EZ Texting – Great for small to mid-sized nonprofits, user-friendly interface (EZ Texting).
- SimpleTexting – Affordable and easy to use for mass texting and automation (SimpleTexting).
- Twilio – Best for tech-savvy nonprofits that want customizable SMS solutions (Twilio).
- Ready to Elevate Your Fundraising in 2025?
- Ready to Elevate Your Fundraising in 2025?
Ready to Elevate Your Fundraising in 2025?
If these lessons prove anything, it’s that nonprofits need to embrace smarter, more engaging, and more strategic fundraising approaches. And that’s exactly what we help nonprofits do inside Nonprofit Shaker University!
Want to master donor retention, fundraising strategy, and nonprofit growth? Join Nonprofit Shaker University today and get access to expert-led courses, proven strategies, and a supportive community of nonprofit leaders. Let’s make 2025 your best fundraising year yet!
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