The Fundraising KPIs That Reveal Donor Attrition

Nonprofits today face a growing challenge: Donor participation continues to decline even as the demand for charitable services increases. For fundraisers, this makes donor retention one of the most important indicators of fundraising health.

It’s vital to understand how donors engage with their institutions and how to maximize the quality and quantity of each donor experience in order to succeed in generating time, talent, and treasure. 

The Fundraising Effectiveness Project highlighted the importance of donor retention and upgrades, emphasizing the need for nonprofit professionals to focus on lasting, transformational donor relationships instead of transactional engagements.

The 2024 report — the latest full year results available — also noted a continued decline in the number of individuals giving to nonprofits, particularly among smaller-dollar donors who provide critical, broad-based support. Donor retention declined by 2.6%, including sharper drops among donors giving $1 to $100 (4.4%) and those giving $101 to $500 (3.6%). 

These trends suggest that nonprofits may need to develop stronger systems for monitoring donor engagement and identifying the early signs of donor attrition. 

Understanding Donor Attrition and Retention

Donor attrition refers to supporters who stop giving to a nonprofit, either after making a single gift or by discontinuing a pattern of giving. Donor retention, by contrast, measures the percentage of donors who make a second gift to a nonprofit, typically within a year of their initial contribution.

Monitoring fundraising KPIs that signal donor attrition is critical because retaining current donors is significantly more cost-effective than acquiring new ones. Research suggests nonprofits spend about $0.20 per dollar raised to retain existing donors, compared with roughly $1.50 per dollar to acquire new donors.

When nonprofits prioritize retaining donors while also working to stop donor attrition, they gain several advantages. These include improved cost effectiveness, stronger long-term financial stability, greater opportunities to cultivate transformational gifts, and a stronger base of advocates, volunteers and supporters. 

Approximately 70% of new donors only give once, according to Bloomerang. High donor attrition can also lead to staff burnout, while low retention rates often signal weak connections between development teams and donors. 

To better understand donor behavior and reduce attrition, development teams should consistently track several KPIs, including:

1. Annual donor retention rate.
2. Average gift size.
3. Cost per dollar raised.
4. Fundraising return on investment. 
5. Lapsed donor reactivation rate.  
6. Recurring donor growth rate.
7. Program efficiency ratio.
8. Annual fundraising results in total and by segments.

These metrics provide development teams with valuable insight into donor engagement and help identify areas where fundraising strategies may need adjustment.

Using KPIs to Strengthen Donor Engagement 

Addressing donor attrition begins with consistently monitoring the fundraising metrics that signal how donors are engaging with your organization. By reviewing KPIs regularly, development teams can identify patterns in donor behavior and determine where strategic adjustments may be needed.

You are likely tracking total dollars raised, but ask yourself whether you are evaluating the full range of fundraising KPIs that reveal how donors are engaging with your organization.

Research from NonProfit PRO shows that 42% of nonprofit leaders identify acquiring donors as their biggest challenge, while only 8% cite donor retention as a top concern. This gap highlights why nonprofits must pay closer attention to the fundraising metrics that reveal whether donor relationships are strengthening or weakening over time.

Donors increasingly expect clear communication and visible impact from their contributions. To meet these expectations, development teams need stronger donor segmentation, more personalized engagement strategies, and processes that allow staff to spend more time building donor relationships. 

If retention rates decline or average gift size drops, organizations may need to strengthen segmentation and build more personalized, multichannel donor journeys through storytelling. 

Stewardship also plays an important role in donor retention. Timely thank-yous, clear impact reporting, and thoughtful communication help reinforce the connection between donors and the mission. 

Organizations should also evaluate whether the giving process itself is seamless and consider implementing technology that supports stronger donor engagement and fundraising analysis.

Ultimately, reviewing fundraising KPIs regularly allows nonprofits to identify potential problems early and adjust their strategies before donor attrition becomes a larger issue.

Donor KPI Analysis in Action

At The Salvation Army, we review fundraising performance across multiple revenue channels, including digital campaigns, direct mail, event, in-kind gifts, kettle income, donor-advised funds, and individual retirement accounts (IRAs) gifts. We also analyze results by donor segment — individuals, corporations, foundations, and other organizations — while tracking operational KPIs that help measure long-term fundraising effectiveness. Each development professional is responsible for managing their own donor portfolio..

One example is our annual WIBC Radiothon, which generated more than $450,000 in December 2025. I oversee corporate sponsorship for this event, and more than half of the total raised came from corporate sponsorships. 

The key to sustaining this success is focusing on donor retention early in the fundraising process. We begin by reconnecting with previous sponsors and reviewing which organizations continued their support, which increased their contributions, and which sponsors did not renew their participation. From there, we identify opportunities to expand the donor base while maintaining strong relationships with existing supporters.

Because I have been raising revenue for this event for many years, I can often anticipate which sponsors will return, which may increase their gifts, and which organizations may require additional cultivation. 

Maintaining consistent communication with donors throughout the year helps ensure we identify, cultivate, solicit, and steward supporters effectively. The core strategy remains simple: retain the existing donor base while continuing to expand it.

Turning KPI Insights Into Fundraising Strategy

While development teams often focus on total dollars raised, it is equally important to monitor the metrics that explain how donors are engaging with the organization. Tracking KPIs allows organizations to better understand donor engagement, identify potential warning signs, and refine their fundraising strategies.

Although every development professional should understand these metrics within their own portfolio, nonprofits may benefit from designating a staff member or small team responsible for monitoring donor retention and attrition trends across the organization.

Effective fundraising programs depend on consistent reporting, proactive trend analysis, and strategic action based on donor data.

Reducing donor attrition and strengthening donor retention are essential to building long-term philanthropic success, and monitoring these KPIs should be a priority for every development team.

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.