Why it matters
Every organization needs new donors, because some existing donors will always move, change priorities or stop giving. But acquisition is expensive, and a first gift can cost more to raise than it brings in. The return comes only if the donor gives again.
That is why acquisition and retention are one plan. Before spending more to find new donors, check how many of last year's new donors gave a second time. If few did, the money is better spent on thanking and keeping the ones you have.
How to calculate it
Cost per new donor = what you spent on acquisition ÷ new donors it brought in
You spent $3,000 on an acquisition mailing.
It brought in 60 new donors.
$3,000 ÷ 60 = $50. Each new donor cost $50 to acquire.
How Steward shows it
Steward is built for what happens after the first gift. The "New donor, first year" journey starts when someone gives for the first time and puts each step in front of the person who owns the relationship.
Related terms
- First-year retention First-year retention is the share of donors who gave for the first time last year and then gave again this year. It measures how well you turn a first gift into a second one.
- Attrition Attrition is the loss of donors from one year to the next. The attrition rate is the share of last year's donors who did not give again this year, the opposite of the retention rate.
- Donor journey Donor journey means the planned series of touches a donor experiences with your organization, from their first gift through thanks, updates and later asks, set out in advance so nobody falls through the cracks.
The free Lost & Found audit reads a giving export in your browser and shows your lapsing donors and what they used to give. Nothing is uploaded. Then bring the same file to a 20-minute demo.