(sometimes called Renewal Rate) is the percent of donors who gave a gift one year and also give a gift the next year. It is important to know your donor retention rate as it indicates how passionate your donors are about your mission and how healthy your annual fundraising efforts are.
Nonprofits with a high donor retention rate have long-term supporters who come back year after year. Nonprofits with a low donor retention rate need to continually acquire new donors or larger gifts to keep up.
Attrition rate tells the percent of donors who give a gift one year and do not give a gift the next year. It is important to know your attrition rate so you know how many donors you need to replace annually to stop your donor file from shrinking.
Note: Retention and Attrition rates can be calculated for each fundraising activity of your organization individually to better understand the impact for each activity or the whole program.