Nonprofits can’t afford to overlook the power of re-engaging lapsed donors—strengthening donor retention practices is now more critical than ever. 

Last year marked the fourth consecutive year that retention rates declined year over year in Q3, with only 13.8 percent of new donors retained year to date. The drop was most pronounced among smaller donor segments ($1-$100, $101-$500 and $501-$5000), underscoring the need for more effective retention strategies, according to the Fundraising Effectiveness Project.  

These declining retention rates show the importance of employing good retention strategies, as retaining existing donors is more cost effective than acquiring new ones. Part of this process is identifying and re-engaging lapsed donors to improve your donor capture rate.  

In this guide, we will explore why donors lapse and what steps nonprofit organizations need to take to reactivate lapsed donors. We’ll also review strategies you can take to prevent donors from lapsing. 

What are lapsed donors?

• Lapsed donors: Supporters who have given to your nonprofit in the past but have not donated within a set period of time.
• Active donors: Supporters who have given within the same set time period.

The first step to creating a lapsed donor reactivation program is to define your criteria for active and lapsed donors. Most organizations define lapsed donors as those who haven’t donated in the past 18 to 36 months. Active donors are typically current donors whose last donation was in the past 18 months.  

It is important to establish a timeframe that makes sense for your organization. For instance, donors who last contributed 10 years ago should no longer be considered warm leads. They should be reintroduced into the acquisition process and regarded as potential donors once again. 

Why do some donors lapse?

There are many reasons why donors may lapse, and understanding and identifying those reasons can help organizations boost their future retention rates.

Common reasons why donors stop donating:

• Too much or too little communication
• Inappropriate solicitations. It could be they are too frequent, or the nonprofit is asking for an amount they aren’t comfortable with. Or they are consistently pushing the next donation without acknowledgement or gratitude.
• Changes in a nonprofit’s leadership or programs
• The donor’s financial situation changed (ex. job loss)
• The donor found other causes they would rather support
• They feel disconnected from or out of the loop about what was happening at the organization or how the money was being used

It’s worth spending some time understanding why donors lapsed. You can reach out via a survey, along with reviewing their donation history and communication preferences, and assessing their engagement level.

Not every reason behind a lapsed donor is within your organization’s control. A donor’s financial situation could change, or they might move and no longer want to support a local nonprofit. In most cases, the organization should let these donors go and focus more time and energy on those who are most likely to return.

What are some tips for reactivating lapsed donors?

Investing in lapsed donors is less expensive than constantly having to acquire new donors, while ensuring profits are building a loyal, dedicated supporter base. While acquisition is critical, without retention those donors never become monthly, annual, planned or major gift donors.

The reactivation process can help lapsed donors rediscover their initial reasons for giving (and new ones!) while sparking generosity and renewed vigor. Another benefit? Nonprofits can learn more about how and why donors lapse in the first place.

Here’s how to reactivate those lapsed donors:

1. Catch them early.

The sooner you re-engage a lapsed donor, the more likely you can win them back. Monitor your expiration dates carefully using your fundraising tools and establish a renewal/reactivation strategy that begins a few months before a donor’s expiration date.

A series of letters, well-timed telemarketing efforts, and email reminders all work well for retention efforts. During the 13th month, increase the urgency of your appeals and use a more vital message. Consider using testimonials from other loyal donors and mention critical upcoming initiatives.

2. Use a multi-channel approach.

Think beyond the appeal letter and take advantage of a multi-channel approach using a combination of communication channels:

• Social media
• Paid media
• Email marketing
• Direct mail

Creating a Facebook or Instagram campaign to target individuals who haven’t given in a year, or more is a great way to remind them of your organization and perhaps rekindle a connection.

Integrate an email campaign with your direct mail appeal and follow up with a phone call based on donor value, if warranted. Phone calls are more personal and could help donors feel their support will make a big difference. Following up a direct mail appeal with an email reinforces the need and offers an alternative way to give. 

You don’t always have to ask for a donation in a direct mail appeal letter. Think about inviting lapsed donors to a free social event, webinar, party, or other engagement opportunities, where they can hear an update about your work. Ask them to come and volunteer in your office or at a fundraising event.

Try to re-engage them in the organization’s mission by encouraging lapsed donors to donate their time and be involved with current happenings. In-person meetings (either individual or group ones) offer an opportunity to personally connect with the lapsed donor and reinforce why they supported you in the past and why they should continue.

3. Understand that not all lapsed donors are the same.

Segmentation and targeting are the keys to success. Some donors won’t give again. When selecting the list for a lapsed donor campaign, determine which donors you consider lapsed. Have they lapsed if they’re in their 13th or 14th month? 25th? Determine how deep into your lapsed file it makes sense to mail based on an analysis of recency, frequency, and monetary (RFM) value.

Remember that lapsed donors haven’t interacted with your mission in a while. You could miss them entirely with a message that assumes greater familiarity than is necessary.

4. Match messaging to motivation.

To successfully re-engage lapsed donors, understand what motivated them to give in the first place.

Use your donor database to identify how they first become a donor by asking:

• How often have they donated?
• How much did they give?
• Where did they give? Was it a peer-to-peer fundraiser, one-time event, or in response to  a premium offer?
• Did they respond to a mission-oriented appeal?

Their giving history should determine how you talk to them. Based on this information, you can segment the list, tailor the messaging to engage each segment in a way that would be most compelling to them and then determine how much you ask that they give.

5. Remind donors that your mission needs them.

Remember, you must build a case for their support when you write a fundraising appeal. The same is true for a lapsed donor reactivation campaign. Explain what still needs to be done, how you will use their gift, and the consequences of not giving. Donors want to know that their contribution makes a difference. Write about your success stories to show how your nonprofit organization uses donations. Thank them for their past contributions and remind them their support is still needed.  

6. Share an impact story.

Impact stories are a cornerstone of nonprofit fundraising and can be used effectively to reach lapsed donors. An impact story uses anecdotal and quantitative evidence to demonstrate the changes resulting from programs and services, helping donors understand the organization’s impact.

Consider tips like these when crafting your story:

• Prioritize ethical storytelling. Make sure you have documented informed consent from program beneficiaries. Use empowering language (empathy and compassion over sympathy), be respectful, and tell the truth.
• Use statistics. Add concrete impact metrics to the story for a logical component to complement the emotional storytelling.
• Focus on tangible benefits and outcomes. List specific ways beneficiaries’ lives are changed for the better (Ex. the food program your donations supported ensured older adults who are unable to cook or shop for themselves received high-quality meals)
• Use donor-centric language. Focus on the impact of donors’ actions rather than what the nonprofit does behind the scenes. Use the terms “you” and “your.” For example, consider saying “your generosity kept our food pantry stocked, offering a lifeline to the community” versus “our food pantry served 500 families this month.”

7. Encourage them to get involved in other ways.

Offering opportunities for donors to get involved with your organization is an effective way to re-engage those who may not be able to give any more due to financial constraints. Or it may help disillusioned donors find new meaning in supporting the cause.

Here are a few ways you can suggest lapsed donors can get involved:

• Volunteering
• Giving in-kind donations, such a pro bono services or lightly used, pre-owned clothing
• Attending events
• Advocating or spreading awareness of the cause
• Supporting fundraising initiatives (for example, joining a peer-to-peer fundraiser)
• Referring prospective supporters

In addition to possibly re-engaging the donor, getting supporters involved in these ways will likely deepen their relationship beyond a transactional done.

8. Try something new.

Sometimes catching lapsed donors’ attention is as simple as sending them something new and different in their mailbox, especially if you’ve been mailing the same package for a while. If your appeals look similar from one campaign to the next, test a different-sized outer envelope, a new color scheme, and a fresh tagline.

Get creative with your appeal letter – reposition the messaging, introduce new graphics or photos, include an insert, or share information about upcoming initiatives that entice a lapsed donor to re-engage. Offer an incentive for them to come back, such as free tickets to a local event, recognition on your website and in your literature, or a deeper discount on your member benefits.

However, keep the branding consistent so the recipients still recognize the message is coming from your organization.

9. Know when to let go.

Some donors are simply not going to give another gift to your organization. It would be a waste of time and money to keep targeting a lapsed donor who fits the profile of a one-time donor or appears to have moved on. Look at how long ago they gave, how much they gave, and through which channel. Recently lapsed donors with a history of multiple gifts are much more likely to give again than those who donated just one small gift a few years ago.

How can your nonprofit prevent donors from lapsing?

There is no guaranteed way to prevent any donor from lapsing ever again. However, nonprofits can take proactive steps to minimize lapses:

• Monitor donor engagement and know the signs that a donor is slipping away
• Identify and rectify gaps in donor stewardship
• Learn and adhere to donors’ communication preferences
• Express gratitude frequency and generously
• Be transparent about reporting successes and setbacks
• Segment donors and personalize communications
• Organize ways to connect (ex. events or online forums)

Wrapping Up

Lapsed donors will always be a strong prospect pool for your organization because they are already interested in your mission and willing to support you. They will always be more receptive to enlisting than a prospect with no prior connection with your organization. And as a rule, targeting them is a less expensive way of expanding your donor base than prospect acquisition. 

Solid donor retention and lapsed recapture plans will improve this pool’s potential.

Allegiance Group + Pursuant are here to help organizations like yours understand lapsed donors and the reactivation campaigns to re-engage them. With our extensive experience in nonprofit marketing, fundraising, and the latest technology, we bring our deep knowledge and connections to empower your success.

Additional resources:

Optimize donor experiences to prevent lapses

Prepare for what’s to come in 2025 with this guide

Frame acquisition as the next step after mastering retention/reactivating lapsed donors