Monthly giving programs are one of the most reliable sources of sustainable revenue for nonprofits. But just because a donor opts in to recurring giving doesn’t mean you can stop investing in the relationship.
At Masterworks, we track the monthly retention rate of recurring donors across dozens of organizations to spot patterns and opportunities.
Across most clients, annual retention for monthly donors tends to fall between 83% and 85%, with some exceeding 90%. But first-year retention is usually lower, and the biggest drop-off often comes right after Month 1, likely due to accidental sign-ups.
From there, we typically see a gradual 3–4% monthly decline over the first year.
As seen above, some clients experience sharper drops at specific moments in that first year. And that got us thinking: Could intentional relationship-building reduce cancellations for these clients?
Testing the Power of Connection
We tested several light-lift tactics specifically targeting first-year monthly donors. Here’s what we found:
- Thank-you postcards at Month 9 (just before a known cancellation spike at Month 10) led to a 10% decrease in cancellations over the next year.
- Branded newsletters, tailored specifically for monthly donors, produced a 7% decrease in cancellations over the 12 month period. The newsletters told stories of impact and appreciation.
- Ringless voicemails—at three, six, and nine months—reduced cancellations by 4%. These quick messages of thanks made a big difference.
- Digital ad campaigns served monthly donors with messages of gratitude and mission success throughout the year. These subtle reminders reinforced donor identity and purpose.
The Real Message? Relationships Matter.
Too often, monthly donors get dropped into a “set it and forget it” bucket. We hesitate to reach out because we’re afraid we’ll annoy them or remind them of their generosity, which might encourage them to question their commitment.
But in reality, donors appreciate being kept in the loop, as long as the communication is meaningful.
And while our tests focused on first-year donors (where retention risk is highest), the principle applies to all recurring givers. Even longtime supporters want to be reminded of the difference they’re making.
Not Sure Where To Start?
- Survey your monthly donors about how they want to hear from you.
- Offer communication preferences so they can opt in to what works for them.
- Lead with gratitude and stories, and then only send the occasional ask.
Because when you make the relationship feel real, monthly donors are far more likely to stick around.
