In today’s nonprofit world, the difference between financial stability and constant budget anxiety often comes down to one deceptively simple practice: donor stewardship. While many organizations focus their energy on acquiring new supporters, the real growth engine lies in keeping the ones they already have.

That’s the message fundraising consultant Katherine Lacefield, founder of Just Because Consulting, shared on a recent episode of the Nonprofit MBA Podcast. With a background advising nonprofits across the globe, she’s seen the same pattern again and again: groups that cultivate deep, consistent relationships with their donors—not just during campaigns, but year-round—are the ones that thrive. And surprisingly, she says, building those relationships doesn’t require full-time effort. With the right approach, even one hour a week can make a measurable difference.

A Fundraising Climate in Flux

The urgency of this work is amplified by today’s fundraising climate. Across the United States, shifts in political priorities and budget allocations have made grant funding less reliable. “Never be dependent on one source of funding,” Lacefield cautions. Her recommendation is to build a foundation of individual donors who give consistently, even in turbulent times.

This isn’t just an American concern. In countries like Kenya and South Africa, nonprofits dependent on U.S. aid are bracing for cuts. Even in Canada, where government support remains relatively stable, the economic strain has made donors more cautious. This means nonprofit leaders everywhere must think beyond traditional grants and diversify revenue streams.

Against this backdrop, stewardship becomes more than just good manners—it’s a strategic necessity.

From Pandemic Generosity to Post-Pandemic Reality

To understand why donor retention matters so much now, it’s worth remembering the fundraising surge during COVID-19. Lacefield recalls that donors not only had more disposable income—thanks to reduced spending on travel, dining, and events—but also a shared sense of urgency. Giving felt like a way to contribute to a collective solution.

Today, those conditions have reversed. Inflation, rising living costs, and a return to pre-pandemic lifestyles have left donors with less to give and more competing priorities. The generous “crisis bump” has faded, leaving nonprofits to work harder to keep supporters engaged.

This is where organizations often make a misstep: faced with falling revenue, they scramble to replace lost gifts with new donors rather than nurturing the ones they already have.

The Retention Over Acquisition Advantage

The allure of new donors is understandable, but Lacefield points out the math: it can cost five to twenty times more to acquire a donor than to keep an existing one. “Instead of going out and trying to get new friends all the time,” she says, “why don’t you just build stronger relationships with the friends you have?”

Her reasoning is practical. Current donors already believe in your mission. They’ve proven they’re willing to support it. The investment required to keep them giving—through timely, personal outreach—is far less than the cost of convincing a stranger to give for the first time.

A Lesson in Lost Potential

I learned this lesson firsthand. I once helped raise $15,000 for a nonprofit, then added a $7,000 personal donation. The response? A generic email newsletter. No phone call. No personal note.

That single oversight cost the organization far more than they likely realized. I never gave again. They lost $22,000 in immediate funds, plus the potential for repeat gifts, increased giving, and access to my network.

It’s a cautionary tale that illustrates Lacefield’s central point: small, thoughtful acts of gratitude can yield substantial returns.

Segmenting for Success

The challenge, of course, is making stewardship manageable—especially for small teams. Lacefield’s answer is donor segmentation, breaking your database into four groups:

  • Mass Donors ($20–$30/year) – Keep them informed with newsletters and general thank-yous.
  • Mid-Level Donors ($100–$200/year) – Ideal candidates for monthly giving programs.
  • Near-Major Donors ($500–$1,000/year) – Cultivate toward major donor status.
  • Major Donors ($1,000+ or top 1%) – Provide high-touch, personalized engagement such as calls, handwritten notes, and invitations to special events.

By dividing donors this way, you can focus the most energy on those with the greatest potential for increased giving, while still maintaining contact with the broader base.

Measuring Impact, Not Just Effort

Segmentation is only part of the picture. To ensure your stewardship strategy is working, you have to measure it. In the corporate world, the saying goes, “What gets measured gets managed.” The same applies to nonprofits.

A visible donor priority board—tracking top supporters, recent interactions, and giving trends—can transform abstract intentions into tangible goals. Each quarter, review: Did giving from top-tier donors grow? Were all scheduled outreach activities completed? Are donors responding positively? This data-driven approach keeps stewardship from slipping into “nice to have” territory and cements it as a core revenue driver.

Technology That Works for You

For busy teams, even identifying which donors to reach out to can feel overwhelming. That’s where CRM tools like DonorDock come in, highlighting the day’s top outreach opportunities—whether that’s a donor who gave more than usual, one whose gift anniversary is approaching, or someone who hasn’t been contacted in months.

This technology allows you to spend your one stewardship hour on action, not research. A simple five-minute email—“I noticed your gift increased this year; what inspired you?”—can make a donor feel genuinely valued and more connected to your mission.

The Human Side of Fundraising

Many people shy away from fundraising because it feels like “asking for money.” Lacefield reframes it as relationship-building. Just like in professional sales, the job is to uncover a donor’s motivations and connect them with opportunities to make the difference they want to see in the world.

When you view it this way, stewardship isn’t a transaction—it’s a collaboration. Donors aren’t just funding your work; they’re partners in achieving your mission.

One Hour, Well Spent

So what does one hour a week of stewardship look like? Lacefield suggests a consistent routine:

  • Review your segmented donor list and select key contacts.
  • Reach out to top-tier donors with personalized calls or emails.
  • Send a handwritten note or unexpected thank-you to a mid-level donor.
  • Use your CRM to identify and act on new engagement opportunities.

The emphasis is on quality over quantity. A single meaningful interaction can strengthen a donor’s commitment far more than multiple generic messages.

When Outside Help Makes Sense

Sometimes, the most efficient way to overhaul a stewardship program is to bring in a fundraising consultant. An outside perspective can help identify underperforming activities, retrain staff, and establish accountability systems to keep donor care on track.

For organizations that have relied heavily on events or mass appeals, this shift can feel like a leap—but the potential return, in both revenue and donor loyalty, is worth it.

Stewardship as the Best ROI

The case for donor stewardship is simple: retaining donors costs less than acquiring new ones, and well-stewarded donors often give more over time. In an era where every fundraising dollar must be maximized, this is the single most reliable way to ensure sustainable growth.

It’s not just good etiquette—it’s smart business for nonprofits.

Beyond the Gift: Building Partnerships

Ultimately, stewardship is about more than keeping donors on your mailing list. It’s about making them feel like partners in your work—people whose contributions matter, whose voices are heard, and whose support is appreciated.

In 2025 and beyond, organizations that treat donors as valued collaborators, not just financial backers, will be the ones that weather uncertainty and continue making an impact.

About the Experts

Katherine Lacefield is the founder of Just Because Consulting, host of the Just Because Podcast, and a recognized expert in donor stewardship strategies and nonprofit fundraising best practices.

Stephen Halasnik is co-founder of Financing Solutions, a leading provider of lines of credit for nonprofits, and host of the Nonprofit MBA Podcast.