Research
Why holding on to loyal donors is not the right advice for every nonprofit
Phys.org ·
The Brief
- Conventional fundraising advice says nonprofits should hold on to loyal donors, especially as humanitarian funding shrinks.
- New research finds that the value of a donor depends on how a nonprofit is set up.
- For many organizations, winning new donors matters more than keeping loyal ones.
Why it matters
A one-size-fits-all retention rule may misdirect fundraising effort, so organizations that depend on donations, including humanitarian groups, may need to base donor strategy on their own structure.
Who’s affected
- nonprofit fundraisers and managers
- humanitarian organizations and their donors
- #nonprofits
- #fundraising
- #donor retention
- #humanitarian funding
- #philanthropy
As humanitarian funding shrinks, conventional fundraising wisdom says to hold on to loyal donors. But new research shows that the value of a donor depends on how a nonprofit is set up. For many organizations, winning new donors matters more than keeping loyal ones.