This charity guide offers proven strategies to win back lapsed donors through transparency, personalisation, and recurring giving.
By
Aqsa Deen
・
7
mins read
Many organisations face a common challenge to sustain long-term success: winning back lapsed donors. Donors who have previously contributed to your cause but have ceased giving represent a significant opportunity to reignite their support.
The good news is that re-engaging lapsed donors is often more cost-effective than acquiring new ones. Research shows it’s five times cheaper to win back lapsed donors than to find new ones.
This article will dive into actionable insights & strategies to help your charity re-engage lapsed donors.
First thing first, don’t wait for your donors to become lapsed; rather, be proactive and engage them from the early stages of your relationship (first donation).
Encouraging a second gift can dramatically boost overall donor retention rates and long-term support for your nonprofit.
Data from the Fundraising Effectiveness Project (FEP) shows that while first-time donor retention is very low, it increases significantly with each additional gift. For example, donors who give a second time are more than twice as likely to stay engaged as those who give only once.
Despite years of research proving its value, the charity sector continues to invest disproportionately in donor acquisition over retention. This leads to significant inefficiencies in fundraising budgets, especially given that acquiring a new donor still costs up to five times more than retaining one.
"Investing in acquisition while ignoring retention is like riding a stationary bike. You’re working hard, but you’re not going anywhere" - says Nathan Hill, a fundraising expert.
Studies today, like those from the Fundraising Effectiveness Project, show that improving donor attrition by just 10% can more than double the long-term revenue potential of a donor base.
Why? Because loyal donors tend to:
Yet the opportunity remains largely untapped. With today's technology and access to data, the sector is well-equipped to do better—but it requires a shift in priorities from transactional fundraising to building long-term relationships.
Lapsed donors are individuals who have previously donated to a charity but have stopped making contributions for a specific period, typically 12 months or more. This duration can differ between organisations based on donation frequency, fundraising cycles, and donor segmentation.
Donor attrition is rarely caused by a single event. Instead, it’s often the result of overlapping factors. Some are outside a charity’s control, others are driven by communication, and some by relationship management. These triggers can be grouped into three main categories:
These factors are external and often beyond the charity's control. They reflect the broader environment in which donors live and give.
These factors are linked to how donors perceive and experience the charity’s work, transparency, and overall impact.
The Charity Commission found that public trust in charities is closely tied to transparency and visible impact—with participants saying they trust charities more when they can see where the money goes and what it achieves.
These are internal responses to how the charity manages donor relationships. They reflect the donor's emotional response to their experience.
Insight: Organisations that implement structured donor stewardship plans experience a 40% increase in retention rates.
Before you can re-engage lapsed donors, it’s essential to identify them accurately. Start by defining who a lapsed donor is for your charity. Below are some key steps:
While many nonprofits define a lapsed donor as someone who hasn’t donated within the past 12 months, the specific time frame can be adjusted depending on several factors, such as:
By leveraging your CRM system, you can segment lapsed donors based on:
Segmentation lets you personalise communication efforts (the next step) and focus on those most likely to re-engage.
Ensure that your donor data is up-to-date. You can achieve this by using data appending services to fill in any missing information or correct errors, ensuring a more effective outreach.
Once you've identified your lapsed donors, the next step is to craft outreach that will resonate with them. Effective communication should make the donor feel valued and remind them of the impact they can continue to have.
To craft such communication, nonprofits must examine the factors that influence donor behavior: primarily satisfaction, identification, trust, and commitment.
Goal: Remind donors that giving felt good — and that it made a difference.
Remind Donors: “My past experience with the charity was positive.”
Actions:
Comms: ✉️ “Your gift helped 45 children access clean water last year. Here’s what they’re up to now.”
Goal: Reignite a sense of personal connection to the cause.
Remind Donors: “I see myself in the mission. This charity reflects my values.”
Actions:
Comms: ✉️ “You believed in education for all. So do we — and your voice still matters.”
Goal: Rebuild confidence and show transparency.
Remind Donors: “This charity is honest, competent, and will use my donation wisely.”
Actions:
Comms: ✉️ “We know trust is earned. Here’s what we’ve been doing to grow and stay accountable.”
Goal: Make re-engagement meaningful and easy.
Remind Donor: “I want to be part of this charity’s future.”
Actions:
Example: ✉️ “We’ve missed you in our community — and we’d love to welcome you back, in whatever way feels right for you.”
Research shows that personalised emails have 6x higher transaction rates than non-personalised emails. Personalising outreach by addressing donors by name and referencing their past contributions makes your communication more impactful.
Donors want to see the real-world impact of their contributions. Share powerful stories, testimonials, and data-driven results that show how their past support made a difference. This could include:
Don’t rely on just one method of communication. A multi-channel approach can increase donor engagement. Combining emails, handwritten letters, and phone calls offers a better chance of re-engaging lapsed donors.
“Donors who give offline and online are over 3x more valuable to your organisation than those who only give offline.”
“And multichannel donors are 56% more likely to stick around compared to offline only.”
One of the best ways to win back lapsed donors is by offering them flexibility in how they can contribute. This makes it easier for them to give and encourages recurring donations.
Lapsed donors may be more willing to resume giving if they know they can set up a recurring donation.
Research shows, recurring donors give 42% more than one-time donors over a year.
Recent data also shows that repeat retained donors—those who have given for multiple consecutive years—make up 43.8% of all donors, the largest segment. While every donor group saw declines in 2024, repeat donors had the smallest year-over-year drop (−7.8%) compared to much steeper declines in new and first-time retained donors.
This underscores the value of cultivating ongoing giving habits: donors who give more than once are not only more generous over time but also more resilient during challenging periods.
Sometimes, lapsed donors may be more inclined to donate in ways that don’t require direct financial contributions. Consider promoting options like:
Employers often match their employees’ charitable donations. By educating donors about matching gift opportunities, you could significantly increase the amount of each donation.
Regaining lapsed donors—and keeping them—requires two key ingredients: trust (to win them back) and connection (to inspire ongoing support). Here’s how to deliver both effectively.
Provide detailed reports showing how donations have been spent and the tangible outcomes achieved. Share figures and avoid vague statements.
Include annual reports, budget breakdowns, and future program projections to demonstrate accountability and reassure donors of your organisation’s legitimacy.
Infographics, photos, and videos are incredibly effective at conveying the impact of donations. Visual content is shared on social media, 3-4x more than text-based content, making it an essential part of your outreach strategy.
Once you’ve re-engaged lapsed donors, it’s important to maintain a strong relationship with them.
A simple thank-you note or phone call can go a long way in demonstrating appreciation. Studies show that donors who feel appreciated are more likely to give again.
Offer exclusive experiences to your donors, such as:
Keep donors engaged through regular updates on ongoing projects and future campaigns. The more involved they feel, the more likely they are to stay committed to your cause.
Timing is critical in donor re-engagement. Too early or too late, and you might miss the window of opportunity.
Reach out to lapsed donors during key moments, such as:
While it’s important not to overwhelm lapsed donors, consistent engagement ensures that your charity stays top of mind. Regular updates can rekindle interest and trust in your cause.
Experiment with different strategies to determine which timing and messaging resonate best with your lapsed donors. This could involve testing A/B campaigns or surveying donors about preferred outreach methods.
Data-driven decisions can dramatically improve the success of your re-engagement efforts.
CRM systems like Engage by N3O can track donor interactions and allow you to tailor your outreach based on donor behavior. Utilise CRM data to personalise emails, track engagement, and optimise future campaigns.
Leverage predictive analytics tools to identify which lapsed donors are most likely to respond to re-engagement efforts. These tools can analyse past donation behaviour and determine the best approach for each donor.
Automated tools can streamline the re-engagement process, ensuring that no donor is overlooked. Automating emails, reminders, and thank-you notes can help keep the donor relationship alive without requiring manual effort.
Re-engaging lapsed donors requires a strategic, data-driven approach.
Remember, re-engagement is not just about asking for money—it's about building lasting relationships based on trust, appreciation, and shared values.
By continuously assessing and refining your strategies, you can create a loyal, long-term donor base that will ensure the sustainability and success of your mission.
Get in touch for a demo focused on your charity's needs.