It’s a simple question, but you may be surprised to learn that in studies conducted through the Association of Fundraising Professional’s “Fundraising Effectiveness Project” non-profit organization showed annual losses of 51.9% in revenue from downgraded or lapsed donors.  The organizations involved in the study compared their 2004 to 2005 results. The same organizations showed a 62.6% increase in revenues from new or upgraded donors. With a 10% net gain it might not seem like donor retention is that big of an issue, however on a long term basis non-profit organizations may not be able to replace lost donors with new acquisitions.  There is another potential threat to organizations who may be considering a major gift, capital or endowment effort. These types of efforts usually rely on small group of key donors for a large percentage of the goal, but the remaining funds usually come from the constituencies who have supported the organization in the past. A shrinking donor base could make these efforts much more difficult.  For these and other reasons it is important to track your donor retention and to understand of what is impacting your numbers.