29% Isn’t the Finish Line
As foundations move beyond spring campaigns and continue building toward sustained fundraising growth, the 2025 FFE Industry Survey highlights a critical reality: acquisition success does not automatically translate into long-term donor value.
Across participating organizations, first-time donor retention remains steady at 29%—a rate that has often outperformed broader nonprofit benchmarks yet shows limited movement year over year. While this reflects strong initial engagement, it also signals a significant opportunity: the gap between a donor’s first gift and their second.
This matters because the second gift represents a defining moment in the donor journey. Industry data consistently show that when a first-time donor makes a timely second gift (typically within 30–360 days), long-term retention can quickly increase up to 75%. Without that next step, many donors never fully transition into sustained supporters.
For foundation leaders, this raises an important strategic question:
How intentionally are we managing the critical window between the first gift and the second?
Giving days, campaigns, and digital outreach have become increasingly effective at generating awareness and acquiring new donors. However, many organizations continue to optimize for campaign performance rather than donor conversion systems. As a result, the post-gift experience—communications, stewardship, and pathways for continued engagement—can lack the same level of structure and investment.
This is where insights from May’s Foundation Focus on recurring giving become especially relevant. Recurring giving programs rely on early donor engagement and trust, both of which are established in the period immediately following a donor’s first gift. Without a clear conversion strategy, the potential pipeline for recurring and long-term donors remains underdeveloped.
The opportunity for foundations is not simply to grow acquisition, but to design and own the full donor journey—ensuring that each new donor is guided toward deeper engagement, additional giving, and long-term connection to the mission.
At a broader level, this is also a question of efficiency. Donor acquisition is widely understood to carry a significantly higher cost of $1.50 (or more) per dollar raised versus donor retention at approximately $0.20 per dollar raised. Strengthening conversion is not only a growth strategy, but a more cost-effective one.
As organizations look ahead, improving first-time donor retention represents one of the most direct ways to increase overall fundraising effectiveness. It’s time to maximize the value of existing efforts while building a more sustainable and engaged donor base.
These insights are made possible through participation in the FFE Industry Survey and help inform peer benchmarks as leaders evaluate donor strategy, retention performance, and long-term fundraising growth.
Donor Retention & Conversion (2025 Industry Survey)
- Average fraternal foundation first-time donor retention rate: 29%
- Converting a first-time donor to a second gift can increase long-term retention ~75%
- Retention performance often outperforms broader nonprofit benchmarks, but with minimal year-over-year growth
- Continued opportunity in post-gift engagement and conversion strategy
Reflections
- How are you tracking and measuring the transition from first gift to second gift?
- Who within your organization is responsible for second-gift strategy and execution?
- Are you investing as intentionally in post-gift engagement as you are in donor acquisition?
- How do you define fundraising success? Does it include long-term donor value and retention?
- What systems or processes are needed to better guide donors from initial engagement to sustained support?
Recommendations
- Act early: Waiting more than 90 days can significantly reduce the likelihood of securing a second gift.
- Connect to impact: The 2025 Alumni/ae & Donor Engagement Survey reinforces that alumni are motivated to support academic achievement, leadership development, and life skills training. Ensure stewardship clearly tells the stories of these programs.
- Bridge to recurring: Once new donors are meaningfully acknowledged and engaged, introducing recurring giving can be a natural next step toward building long-term donor loyalty.
