How to Succeed at Donor Stewardship as a Small Nonprofit
When I launched Sprout Fundraising & Consulting, I kept running into the same challenge: most small organizations either didn’t have a donor database, or the one they had felt more like a burden than a benefit.
I helped one client choose a CRM that was affordable and came highly recommended. But the moment she logged in, she felt overwhelmed. The system offered so many features that she didn’t know where to start.
Another client was using a robust, powerful, and expensive CRM. But because of frequent staff turnover, no one had been trained on how to use it effectively.
In both cases, the data was there, but the CRM wasn’t working for the organization.
That’s why I’m developing a solution for small nonprofits, a simplified CRM called SproutTable. My CRM is designed specifically for organizations with 300 donors or less. It’s laid out like a spreadsheet, but has the power to automate donor workflows, track engagement, and generate real-time dashboards.
SproutTable is launching this summer, but you don’t have to wait to improve your strategy. Download my free guide to building a strong fundraising foundation, which will add you to my email list. As a Sprout community member, you’ll be the first to know when SproutTable becomes available.
How a CRM Can Help You Boost Donor Retention
A CRM empowers you to automate donor stewardship and retain more of your supporters, especially first-time donors. Just a 10% increase in donor retention can boost lifetime value by up to 200%.
According to Bloomerang’s 2024 Mission Retainable Report, overall donor retention has hovered around 43% for years. For first-time donors, it can dip as low as 19%.
Small nonprofits can’t afford these numbers. With competition from social media-savvy organizations, well-staffed national nonprofits, and the rise of AI-driven personalization, donor retention should be a top priority in your fundraising strategy.
Donor stewardship is how you build authentic relationships that lead to long-term loyalty. And when 63% of donors say they give because they feel connected to your mission, it’s clear that connection is currency.
The real question is, how do you nurture that connection without adding a thousand things to your to-do list?
For mid-size to large nonprofits with 500+ donors, CRMs like Bloomerang are essential for staying in touch with supporters. But many smaller organizations don’t have the budget or infrastructure for a full-scale system. They’re often juggling spreadsheets and PayPal exports, making it all too easy for stewardship to fall through the cracks.
It costs five times more to acquire a new donor than to retain one. A thoughtful plan that includes thank-yous, impact updates, and personal touches, will make your donors feel like valued partners, not wallets.
What Happens Without a Plan?
One nonprofit I worked with routed all online donations to the board treasurer’s inbox. The staff never received a notification when someone gave. They missed many opportunities to thank and deepen relationships with their donors, which had a major impact on their bottom line.
What Does Effective Stewardship Look Like?
Here are simple, proven strategies that build trust and deepen relationships:
1. Say thank you fast.
The best time to thank a donor is within 24 hours of their gift. But an automated receipt isn’t enough. I always recommend sending a personal follow-up the next morning, like:
Hey [Donor First Name] – You made our day. I just saw your donation come through and I can’t thank you enough. Your support means so much to our mission.
2. Don’t waste your thank-you page.
Use this prime real estate to show immediate appreciation. Redirect donors to a page with a short video, photo, or story that highlights the impact of their gift.
3. Keep them in the loop.
Donors want to know their gift made a difference. Regular impact updates build trust and loyalty. Tie them to key moments in your calendar, like Valentine’s Day, National Volunteer Week, or Thanksgiving.
With only 36% of nonprofits sending regular impact reports, there’s a real opportunity to stand out. Combine storytelling and data to show donors they’re part of something meaningful.
4. Automate where you can.
Effective stewardship doesn’t require reinventing the wheel. With the right tools, you can automate:
Thank-you emails
Welcome series for new donors
Renewal reminders for donors coming up on 12 months since their last gift
To retain donors, you just need consistency. By sharing your mission impact and expressing gratitude often, your donors will keep showing up.
Boost Your Donor Lifetime Value with SproutTable
If you’re thinking, this all sounds amazing, but I don’t have the time or tech skills, I get it. That’s why I’m creating SproutTable, a CRM built for small nonprofits. It’s more affordable than other systems and will take the stress out of stewardship. Setup is easy with guided videos, but if you don’t have the time, my team can do it for you.
As a SproutTable user, you’ll get:
✔️ Templated acknowledgment letters
✔️ Pre-built donor journeys
✔️ Automated renewal reminders
…all customized to help you retain more donors and finally feel in control of your fundraising.
Turns out you don’t need a huge tech team or a massive budget to succeed at stewardship. Just the right tools and a plan. Grab 30 minutes of my time for free, and let’s talk about how to strengthen your donor relationships and fundraising strategy.
