Want to Hit Your Annual Fund Goal? Start With This Donor Retention Strategy

As the end of your fiscal year approaches, there’s one question on every CEO and board member’s mind:

Will we hit our annual fund goal — or fall short?

If your nonprofit runs on a July 1–June 30 calendar, you’re likely in full year-end sprint mode. Your team is chasing down final gifts, making calls, analyzing reports, and preparing to close the books. And all eyes are on the bottom line.

At Gail Perry Group, we believe your final fundraising numbers don’t need to be a nail-biter. If you have the right focus in this last month of the fiscal year, your team can not only meet your goal, you may even exceed it.

We recommend one high-impact move that has helped dozens of our clients bring in substantial dollars right before year-end. And it’s right before your eyes! 

And it starts with this question:

Year-End Fundraising: Who Are Your Best Donor Prospects?

Let’s be strategic. At this stage, new donor acquisition is not your best bet. Capturing new donors takes a lot of time and energy. 

Instead, we advise our clients to double down on the donors you already have..

Your most powerful year-end fundraising opportunity lies with donors who already know and love your organization but have yet to renew their gifts this fiscal year.

We’re talking about your leadership annual fund donors from last year who have not yet given this year. 

These are your best prospects for a high-return, short-term campaign in the final weeks of your fiscal year.

These donors are “about to lapse.” And the consequences of losing them are serious.

Donor Retention Warning: Why LYBUNT Donors Deserve Immediate Action

Donors who gave last year but not yet this year are known in fundraising circles as LYBUNTs (Last Year But Unfortunately Not This).

It’s a funny acronym, but it’s no laughing matter. Retaining current donors is one of the biggest challenges in fundraising. It’s one of the most important drivers of sustainable revenue.

According to the 2024 Fundraising Effectiveness Project, overall donor retention dropped to 42.6% last year — its lowest level in a decade. 

That means – drumroll please – that more than 57% of ALL DONORS are not renewing their gifts! 

But, it’s important to know that donors who repeat gifts year after year have significantly higher retention rates than newer donors who are just getting to know your mission.

That’s why we strongly recommend that your team make these “about to lapse” supporters your highest priority right now. It’s a smart, donor-centered move — and often one of the easiest ways to close the gap in your goal.

Smart Annual Fund Strategy: Target Your Top “About to Lapse” Donors

Here’s the strategy we’ve used with clients to great success — broken down into three actionable steps.

Step 1: Identify Your “About to Lapse” Leadership Donors

Ask your team to pull a report of all donors who gave a significant gift to your annual fund last year, but haven’t yet renewed this year. 

Focus especially on donors giving at the leadership or mid-level range: those giving $500, $1,000, $5,000 or more.

Why leadership annual fund donors? 

These individuals are more likely to be committed, connected, and capable of giving again. Their renewal can give your numbers a meaningful—and immediate—lift, especially since you have a deadline to meet your year-end goal. 

Now, total up the giving potential (dollars!) on that list. You may even see tens of thousands — even hundreds of thousands — of dollars sitting in this group.

 And this money is about to leave your organization! With the right outreach, your team can recapture these funds easily. 

We recommend that your fundraising team make this list their #1 priority for the rest of this month. 

Pro Tip: Add a column showing when the donor made their gift last year. If they gave in June last year, they may be planning to give again, but not yet. Reach out now to prompt that renewal.

Step 2: Segment Donor Lists for Higher ROI on Your Annual Fund Outreach 

Next, divide and conquer. Not all LYBUNTs are created equal, and you want to spend your time where it will pay off.

It’s time to break the list into segments. We love segmentation because dealing with groups of similar donors at a time simplifies your strategy. 

We recommend that your team sort the list by these key filters:

• Largest donors first. A few large gifts right now could possibly push you across your goal.
• Most engaged donors. These are donors who’ve attended events, opened emails, volunteered, or responded to past outreach.
• Board connections. Do any board members have a relationship with these donors? Personal connections may be able to dramatically increase response rates.

From here, deal with these individuals one by one or in small groups. 

You can create mini-portfolios and assign staff, board members, or volunteers to reach out. Please know – this is not a generic appeal — this is relationship-based fundraising at its best.

Board Tip: This is a great time to engage board members in fundraising. Ask them to write 3–5 personal notes or make a few thank-you calls – even if donors have not yet renewed. It’s an easy lift — and can have an outsized impact.

Step 3: Donor Engagement Strategies: Use the Personal Touch to Boost Retention

You can move the needle in a big way with personalized outreach.

This step is simple in concept, but powerful in impact. Because at its heart, fundraising is not about money — it’s about relationships. We all know this but putting it into practice can always be challenging! 

And in these final weeks of your fiscal year, it’s those key donor relationships that just might close the gap.

Your donors are lovely people. They want to feel seen, and they want to be thanked. They want to know their gift made a difference. And they want to know you noticed.

That’s why we recommend that your team make the personal touch a top priority.

Let’s walk through what this looks like in practice — and more importantly, why it works.

Donor Psychology: Why Personalized Fundraising Works

Modern donors are savvy. They’re inundated with asks, appeals, and causes vying for attention. 

The one thing that still cuts through? It’s a personal, authentic connection.

The Fundraising Effectiveness Project and numerous studies have shown that donor retention is directly tied to how connected donors feel to the organization. 

Obviously, generic communications don’t build that connection. But, personal ones do.

Research from Penelope Burk, author of Donor-Centered Fundraising (one of our favorite experts!) found that the top reasons donors stop giving are:

• They weren’t thanked
• They weren’t told how their gift was used
• No one followed up personally

You can solve all three with one phone call or note.

Tactics for Personalized Outreach: Notes, Calls, and Emails That Work 

Here are a few of our favorite, proven tactics:

1. Handwritten Notes from Board Members or Senior Staff

A brief, heartfelt message — written by someone with stature in your organization — reminds donors that they are valued. It doesn’t need to be long. In fact, short notes are often the most effective.

“Dear [Donor], thank you so much for joining us as a supporter last year. You made [impact statement] possible. We’re wrapping up our fiscal year this month, and I hope you’ll want to continue as a partner in our work. Your generosity means so much.”

2. Personalized Phone Calls

A quick phone call is still one of the most powerful tools in fundraising. It creates a connection, encourages dialogue, and offers the chance to actually chat with the donor! 

Here’s a sample call script you can customize:

“Hi [Donor], it’s [Name] from [Organization]. I just wanted to say thank you again for being one of our wonderful supporters last year. We’re so grateful for everything you’ve made possible. As we approach our fiscal year-end, we’re hoping our core supporters will renew their gifts. Would you consider making a gift of [$X] again this year?”

Make it donor-centered. Focus on appreciating these donors and the impact they are making — not pressure.

3. Individualized Emails from Known Staff Members

Forget the mass email blast. We recommend that you assign a handful of donors to each staff member, who can then send personalized, thoughtful emails referencing their past gift.

Include:

• A thank-you
• A specific impact they helped achieve
• A clear invitation to renew support
• A simple link to give online

This level of personal attention is rare, and it shows donors that they matter.

Donor Retention Strategy — Why This Outreach Works Right Now

In uncertain economic times, many nonprofit leaders are anxious. But here’s the insight from the field: donors are still giving — especially when they feel connected to the cause.

We’ve seen it repeatedly with our clients. When donors are reminded of the impact they made, when they are personally invited back in, they give. They feel proud. And they often give more.

Remember, many of these important donors don’t even realize they’ve lapsed! Don’t treat them like they’ve turned you down this year. Instead, approach them as loyal partners in your work.

A warm, clear reminder helps them feel seen — and gives them a chance to continue their impact.

And the timing? Perfect. Year-end is when donors expect to be asked. You’re not intruding — you’re inviting them to renew their support. 

It’s the easiest ask of all to make! Simply inviting people to renew their gift and remain supporters.

Year-End Fundraising Impact: Donor Retention vs Acquisition Costs 

Beyond revenue, there’s something bigger at play here: donor retention. Never forget that keeping a donor is far more cost-effective than acquiring a new one.

Your current donors are a huge organizational asset. They are your loyal supporters and passionate advocates. 

Trying to bring in new donors is a heavy lift. And it’s expensive.

In fact, according to data from the Fundraising Effectiveness Project, acquiring a new donor can cost 5–10 times more than keeping a current one. And repeat donors are significantly more likely to become major donors over time.

That’s why year-end renewals are so much more than short-term wins. They’re building blocks for important long-term relationships, vital recurring revenue, and donor lifetime value.

Click here to access the Donor Renewal Checklist.

Bottom Line: Fiscal Year End Fundraising Strategy for Your Nonprofit Team.

The dollars are there. The donors are waiting. All your team has to do is reach out with care, strategy, and purpose.

Here’s a recap of your steps:

• Pull your LYBUNT list now — focus on leadership donors
• Prioritize by capacity and connection
• Make it personal — notes, calls, and customized emails
• Follow up persistently and warmly

And above all, don’t wait. Time is short, but the opportunity is real.

If you’d like expert help shaping a powerful year-end campaign or training your board and team to raise money with confidence, let’s talk.

Partner with Gail Perry Group to Strengthen Your Fundraising Strategy

We’re here to help you build momentum, deepen donor loyalty, and finish strong — not just this year, but every year.