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Retention Rate Formula:
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The donor retention rate measures the percentage of donors who continue to support an organization over a specific period. It's a key metric for assessing donor loyalty and fundraising effectiveness.
The calculator uses the retention rate formula:
Where:
Explanation: The formula calculates what percentage of your original donor base remained active during the measurement period.
Details: A high retention rate indicates strong donor relationships and effective engagement strategies. Nonprofits typically aim for retention rates above 40-45%, with top organizations achieving 60% or higher.
Tips: Enter the number of donors retained (those who gave again) and the total number of donors at the start of your measurement period. Both values must be positive numbers, with retained donors not exceeding total donors.
Q1: What time period should I use for retention rate?
A: Most organizations calculate annual retention, but you can measure it for any period (quarterly, biennial, etc.) as long as you're consistent.
Q2: What's a good retention rate for nonprofits?
A: Average retention is about 45%, but best practice organizations achieve 60% or higher. First-time donor retention is typically much lower (around 20%).
Q3: How can I improve my retention rate?
A: Focus on donor communication, personalized thank-yous, impact reporting, and making donors feel valued beyond just their financial contributions.
Q4: Should I include new donors in retention rate?
A: No, retention rate only measures donors from your original cohort. New donors would be tracked separately in acquisition metrics.
Q5: What's the difference between retention rate and repeat rate?
A: Retention rate measures the percentage of original donors who gave again, while repeat rate looks at the number of gifts from existing donors regardless of donor count.