Table of Contents
What is donor stewardship, and why must we plan for it? Donor stewardship is like being the best host at a party where your donors are the VIP guests! It’s mainly about ensuring they feel appreciated, valued, and connected to the cause they support.
At this party, you’re not just saying, “Thanks for the check. See you next time!” Instead, you engage with them, tell them how amazing they are at what they do, and show how their generosity changes lives. This keeps them in the loop because they become a part of this journey.
A study showed that retention rates among nonprofit organizations typically hover around 50%, meaning that half of the donors contribute only once and don’t return for further support. This highlights a critical opportunity for nonprofits to focus on building lasting relationships and nurturing repeat giving.
What are the goals of donor stewardship?
Why does one need Donor stewardship? Organizations with strong stewardship programs see up to 200% higher donor retention rates. Plus, getting a new donor costs 5 times more than keeping one you already have. It makes sense to keep the current donors happy, right?
Think of it like nurturing any important relationship. You want to:
- Keep the donors engaged and giving (retention)
- Inspire them to give more over time (growth)
- Turn them into ambassadors for your cause (Advocacy)
- Build a community around your mission (engagement)
The goal is simple: make every donor feel valued, connected, and inspired to stay on this journey with you. Because when they do, their impact—and their loyalty—grows exponentially.
Read more: How to Manage Your Donor Data for Meaningful Donor Relationships.
Why is donor stewardship important?
Let’s take a simple scenario here. Let’s assume you just made a $100 donation to help provide school supplies to underprivileged children. Which would make you more likely to donate again?
Scenario A: You never hear from the nonprofit organization again,
Scenario B: you receive a personalized thank you note, photos of children using their new supplies with a smile, and a detailed report showing how your donation helped 10 specific students.
The key takeaway is that donor stewardship means building a bridge between the donor’s generosity and its real-world impact. When donors can feel the difference they are making, they become not just one-time contributors but long-term partners in your mission.
The components of donor stewardship
People often get confused about all the nonprofit terms regarding donors. One of the most common questions about donor stewardship is, “What is the difference between donor cultivation and donor stewardship – isn’t it the same?”
The answer is no; donor cultivation is what happens before an ask is made. Donor stewardship is the relationship you maintain after an ask and donation.
Let me provide a clear breakdown of donor lifecycle phases:
- Identification
This involves finding qualified donors who have both the capacity and inclination to support your organization. This includes screening, wealth analysis, and identifying prospects through various channels like events, referrals, and database mining.
- Research
A systematic process of gathering and analyzing information about potential donors, including their philanthropic interests, history, financial capacity, personal background, and connections to your cause. This phase helps in understanding motivations and determining appropriate engagement strategies.
Read More: A Quick Guide To Getting Started With Donor Prospect Research
- Cultivation
The process of building and strengthening relationships with potential donors. This involves strategic engagement through meaningful interactions, creating opportunities for involvement, and demonstrating your organization’s impact and value. The goal is to align donor interests with organizational needs.
- Solicitation
Solicitation is when you ask for a donation. You have a donor who’s been engaged with your organization for six months. How would you know they’re ready for an ask? What signals would you look for? It is a strategic ask, but it’s only successful when the previous phases are done well.
- Stewardship
This is where organizations may fall short on, but it is crucial for long-term success—the ongoing process of managing relationships with donors after they’ve made a gift.
| Donors like Keanu Reeves and Ricky Gervais embody the essence of charitable giving, driven by a deep desire to make the world a better place. |
Whether inspired by personal experiences, such as Reeves’ dedication to cancer research sparked by his sister’s battle with leukemia, or Gervais’ unwavering support for animal welfare, their generosity stems from a genuine passion to create meaningful change.
However, sustaining this spirit of giving requires more than just admiration- it relies on fostering strong relationships with donors. By showing gratitude, sharing impact stories, and building meaningful connections, nonprofits can nurture these relationships and inspire donors to continue their journey of transforming lives and creating a better world.
Donor stewardship plans: Best practices.
In the world of Marvel, Rocket, and Groot is the perfect metaphor for the relationship that organizations have with their donors in donor stewardship plans.
Just as Rocket cares for Groot, organizations must nurture their donors, ensuring they feel valued and supported. By investing time and effort in this stewardship, organizations can help their ‘saplings’ thrive, leading to a lasting relationship that benefits both parties.
Read more: How to Ensure You Get Long-Term, Committed Donors.
Here are some pointers that can help you gain that relationship.
- Personalized communication: Base it on their history of giving, interests, and level of engagement—usage of names and acknowledgment of their contributions. Think about the last time you received a clearly automated message versus a personal note. Big difference, right? Keep in mind that you should segment your donors by giving history, tracking their specific interests, and personalizing the communications beyond just using their names.
- Timely gratitude: How quickly does your organization currently acknowledge donations? What’s your process for different gift sizes? And who is responsible for sending acknowledgments? Remember, sending thank you notes within 24-48 hours of receiving the donation is worth more than an elaborate response a week later.
- Donor impact updates: Keep donors informed about the impact of their giving. Whether newsletters, personalized emails, or social media, meaningful updates should highlight the transformative power of their generosity.
- Exclusive engagement invitations: Create opportunities for involvement beyond financial contributions. It can be virtual behind-the-scenes tours, donor-only events, volunteer opportunities, or advisory committees.
- Regular check-ins: Reach out periodically, even when not asking for donations. Keep in touch through newsletters, anniversary emails, or seasonal greetings to maintain an ongoing connection.
Read more: Creating The Perfect Donor Stewardship Plan.
How to engage different donors in the donor pyramid
Let’s dive into four different categories of donors a nonprofit organization encounters and explore how personalized strategies can enhance donor relationships. Here, we will discuss the techniques to customize your interactions and communication with each group.
1 – Loyal major donor stewardship
Stewardship for major donors requires a highly personalized approach, as these donors often expect to see the tangible results of their support, and their gifts make up a large chunk of your overall fundraising revenue.
Strategies:
- Schedule regular check-ins via phone or in-person meetings.
- Share exclusive updates about key projects they’ve funded.
- Involvement in decisions or advisory roles, when appropriate.
- Celebrate milestones and anniversaries with a personal touch.
Read Also: Major Gift Fundraising: The 9 Essential Steps To Guide You
2 – Loyal mid-level donor stewardship
Mid-level donors often represent your most reliable and consistent supporters in a donor stewardship plan. While their individual contributions may not match major donors, their loyalty and cumulative giving can significantly impact over time.
Strategies:
- Acknowledge their consistent giving with special recognition programs.
- Provide semi-personalized updates about the programs they support.
- Offer them opportunities to increase engagement, such as matching gift campaigns or minor leadership roles.
3 – Loyal minor donor stewardship
Loyal minor donors may contribute smaller amounts, but their consistent support indicates a deep connection to your cause. Over time, they can grow into mid-level or even major donors if nurtured effectively.
Strategies:
- Send frequent, heartfelt thank-you messages.
- Highlight the collective impact of their contributions.
- Invite them to participate in volunteer opportunities or community events.
4 – New and one-time donor stewardship
One-time donors in a Donor Stewardship plan are crucial. How you engage with new or one-time donors can determine whether they become long-term supporters. Stewardship for this group should focus on educating them about your mission and showing them the immediate impact of their gift.
Strategies
- Send an enthusiastic and prompt thank-you message.
- Provide clear examples of how their contribution was used.
- Introduce them to your organization’s broader mission and invite them to stay connected.
Closing thoughts:
As you reflect on your donor stewardship plan, consider the steps you can take today to ensure your donors feel more connected to your mission. Whether adapting a template or creating new initiatives, each effort moves you closer to lasting impact. Use these templates as a starting point to craft your personalized donor stewardship, and remember that a little extra effort in stewardship today can lead to a lifetime of impact tomorrow.
Keep learning about donor stewardship best practices here: Top Tips for Planning an Impactful Donor Appreciation Event.
