A Practical Guide to Using Donor Data to Grow Fundraising

Fundraising often feels emotional, relational, and intuitive — and in many ways, it is. But the nonprofits that grow consistently over time share one thing in common: they use donor data to guide their decisions instead of relying on instinct alone.

Donor data doesn’t replace relationships. It strengthens them. It shows you where your fundraising is healthy, where it’s fragile, and where small changes can unlock meaningful growth. When used well, data becomes a strategic lens that helps nonprofits stop guessing and start planning with confidence.

Let’s walk through how to use donor data practically, even if you’re not a “numbers person.”

Start With the Right Data

Before running any analysis, you need a clean, useful dataset. The most effective format is donor-level giving by year, not individual transactions.

Your dataset should include:

• Each donor or household

• Their total giving for each of the last 5 years

Five years of data allows you to see patterns, not just snapshots. Two years only show change. Five years show trends.

Visual Patterns Reveal More Than You Think

One of the fastest ways to understand donor behavior is simple visual coding. Categorize each donor’s year-to-year behavior:

• New: First-time giver

• Renewed: Gave roughly the same amount as last year

• Upgraded: Increased their gift by more than ~10%

• Downgraded: Decreased their gift by more than ~10%

• Lapsed: Gave last year but not this year

• Lost: Lapsed and still not returned

• Recaptured: Lapsed and then returned

When you look at these patterns across years, trends become obvious:
Are lapses increasing? Are upgrades slowing? Are you recapturing people effectively?

You don’t need advanced math to notice that something is drifting in the wrong direction.

Measure the Core Fundraising Health Metrics

Once you see patterns, layer in a few simple metrics.

Growth Rate
This tells you how fast your fundraising is growing (or shrinking). Calculate it year-over-year so you know what’s realistic if nothing changes.

Donor Retention
Retention is the percentage of last year’s donors who gave again this year.

Retention = (Last year’s donors – This year’s lapsed donors) ÷ Last year’s donors

Many nonprofits sit around 40%, which means they lose most of their donors every year. Sustainable growth usually starts when retention reaches 60–70%.

Improving retention is often the fastest and cheapest growth lever available.

Average, Median, and Mode Gift

• Average shows overall revenue behavior.

• Median shows the typical donor.

• Mode shows the most common gift size — great for setting default ask amounts.

If the average is much higher than the median, you’re likely dependent on a few large donors, which creates risk. Healthy programs have averages and medians that move together over time.

Use Data to Set Smarter Goals

“Raise more money” isn’t a strategy — it’s a wish.

Data allows you to set goals that are:

• Specific: What exactly are you growing?

• Measurable: By how much?

• Actionable: Through what tactics?

• Realistic: Based on past trends

• Time-bound: By when?

Example:
Increase individual giving revenue by 10% this fiscal year by improving donor retention from 45% to 55% through better stewardship.

Now you know what success looks like — and what actions drive it.

Identify and Grow Your Best Donors

Your major donors already exist. They are simply your top 10% of givers — whatever level that currently is.

Treat that top segment intentionally:

• Communicate more personally

• Share impact stories, not just asks

• Make them feel seen and valued

As those donors grow, your “major donor” threshold naturally rises over time.

Below them are your “next best donors” — the group most likely to upgrade. Focus your attention there for future growth.

Evaluate Campaign Performance

Run the same analysis on individual campaigns:

• Who upgraded?

• Who lapsed?

• What did it cost to raise a dollar?

Sometimes a campaign looks successful on the surface but performs poorly when you factor in staff time and donor behavior.

Data lets you optimize, not just celebrate.

Use Data to Reduce Burnout

One of the biggest causes of fundraising burnout is unrealistic targets. When leadership sets goals based on budget needs instead of fundraising reality, teams are set up to fail.

Data creates alignment. It shows what is possible, what needs investment, and where change is required.

Fundraising becomes more strategic, less frantic, and far more sustainable 😌

Final Thought

Donor data isn’t cold or impersonal. It’s clarifying. It gives you language for decisions, evidence for change, and direction for growth.

When you understand your data, you stop reacting — and start leading your fundraising.

That’s how nonprofits grow with intention.