[ASK AN EXPERT] What's A Good New Donor Acquisition Rate?

Our Ask An Expert series features real questions answered by Claire Axelrad, J.D., CFRE, our very own Fundraising Coach, also known as Charity Clairity.

Today’s question comes from a nonprofit employee who wants advice on what would be considered a good new donor acquisition rate.

Dear Charity Clairity, I’m wondering if you have a data point readily available in your brilliant brain?  I know about donor retention rates, goals, etc., but I’m not finding much data on what is a good new donor acquisition rate or goal annually.

Is there some kind of nonprofit industry standard that says you should add 10% new donors over last year….or something like that?

— Anchorless

Dear Anchorless,

There's no precise answer to that question, because it depends on (1) what you do, and (2) what else is going on in the world.

Let's begin with external factors. For example:

• During the pandemic, if you were a food bank, you'd be well-situated to acquire many, many new donors.
• Natural disasters lead to an outpouring of philanthropic support for human services organizations.
• Political turmoil leads to an outpouring of support for values-based organizations impacted by that turmoil.

And so forth. Donors respond in times of crisis. Your job is to make the urgent case for support and share it across as many channels as possible.

You are not, however, simply at the mercy of the environment. Whatever your mission, the better you tailor your message to what's top of mind for people, the more likely you'll be able to inspire them to make a gift to you now. I happen to serve on the board of a theater company, and they were able to speak directly to theater's ability to open people's minds and hearts, inspire empathy, create community, and build an understanding of togetherness, not otherness. Due to the on-target messaging, and the fact they coupled the “talk” with some “walk” — creating free Zoom plays people could stream — they found themselves generating many donations from folks who'd never given before.

The best information we have comes from the Fundraising Effectiveness Project (FEP) reports. For instance, the most recent 2026 data show that while overall charitable dollars raised increased by 4.3% in the first quarter, the number of donors declined by 0.8%—continuing a trend from 2025, when total donor counts dropped 3.6% despite a 5% bump in revenue. Remember, we are currently in a philanthropic environment where fundraising growth is heavily driven by larger gifts from a shrinking pool of supporters, making broad donor acquisition exceptionally challenging right now. Given this reality, I wouldn't suggest you hold yourself to aggressive donor growth as an ongoing standard; stabilizing and retaining your current base is the more realistic priority.

Now let's move to acquisition factors over which you have more control, starting with the metrics that guide them.

How to calculate donor acquisition rate

Before comparing yourself to the industry, you need to know your own baseline. You can find this out using a simple formula:

Donor acquisition rate = First-time donors ÷ Total donors × 100

Example: If your organization acquired 250 first-time donors last year and had 2,000 total donors, your calculation would be: 250 ÷ 2,000 × 100 = 12.5%

Note on common mistakes: Nonprofits often confuse acquisition rate with response rate. Acquisition rate measures the growth of your overall donor base, whereas response rate measures how many people replied to a specific campaign.

Acquisition rate vs. response rate vs. donor growth

To set accurate goals, it’s essential to understand the distinction between these three metrics:

• Donor acquisition rate: The percentage of your donor base that is newly acquired over a period of time.
• Response rate: How many people replied to a specific ask.
• Donor growth: The net increase in the total number of donors, which factors in both acquired donors and retained donors.

How to set a realistic new donor acquisition goal

The best way to set a new donor acquisition goal is to look at your own performance over the past several years rather than solely relying on external averages. Here is a framework to do it right:

1.  Calculate your current rate: Use the formula above to see where you stand today.

2.  Review data from the past three years: How many donors did you acquire on average over the past three years?

3.  Factor in lost donors: Determine how many lapsed donors you need to replace just to break even.

4.  Estimate budget and capacity: Ensure you have the budget and staff bandwidth to support your goal.

5.  Set goals by channel: Break your larger goal down into specific targets for email, direct mail, events, etc.

6.  Pair with a retention goal: You must simultaneously plan to retain the donors you intend to acquire.

You can also use this simple goal formula to find your target number:

Target new donors = Donors to replace + Net growth goal (e.g., if you lose 300 donors and want to grow by 100, you need to acquire 400 new donors).

If last year was a windfall year due to circumstances beyond your control, take that into account and set expectations accordingly. Conversely, if last year you shut down, lost staff, or otherwise put fundraising “on hold,” consider setting more aggressive goals this year.

Why donor retention matters after acquisition

The real benefit of acquisition is the lifetime value of these newly acquired donors. It’s critical you understand and own this truth, because if you don’t also invest in building and implementing a strong donor loyalty plan, there's almost no point in acquiring these donors.

Acquisition strategy and retention strategy go hand in hand. No matter how new donors arrive at your doorstep, you must have a strong donor retention plan in place. Usually, the average new donor retention rate sits around 20%.

(New donor retention formula: New donors who gave again ÷ Prior-year new donors × 100)

You can't really cheer the fact that you acquired X new donors without simultaneously cheering the fact that you retained an above-average number of last year's new donors. Otherwise, you’ll have a steady stream of donors in and donors out. That’s expensive and, ultimately, not sustainable.

Ways to improve your new donor acquisition rate

Beyond direct mail, there are less expensive strategies to attract supporters. Turn your channels into an active acquisition playbook by implementing these tactics:

• Optimize your donation page: Ensure it is frictionless, mobile-friendly, and easy to navigate.
• Use lead-gen offers: Exchange valuable resources (guides, toolkits) for email addresses.
• Leverage donor stories and social proof: Share testimonials that show the human impact of a donation.
• Segment your campaigns: Speak directly to the specific interests of different prospect lists.
• Host P2P and community events: Empower your current donors to fundraise on your behalf.
• Test direct mail lists: Continually refine your lists based on response rates and demographics.
• Cultivate non-donor subscribers: Build an email journey that warms up newsletter readers before asking for a gift.
• Create a first-time donor welcome series: Immediately engage newly acquired donors so they are primed for their second gift.

I hope this gives you some anchors to ground your acquisition strategy moving forward!

New donor acquisition rate: frequently asked questions

What is a good new donor acquisition rate for nonprofits?

A strong acquisition rate varies by organization size and sector, but industry averages typically fall between 1.5% and 3% annually. Your best benchmark is your organization’s three-year historical average.

How do you calculate donor acquisition rate?

Divide the number of first-time donors by your total number of donors, then multiply by 100 to get the percentage.

What is the difference between donor acquisition rate and response rate?

Donor acquisition rate measures the percentage of your entire donor base that is newly acquired. Response rate measures the percentage of people who responded to a specific outreach campaign, like a direct mail appeal.

How do I set a realistic new donor acquisition goal?

Calculate your three-year acquisition average, determine how many lapsed donors you need to replace to break even, and add your desired net growth number. Ensure you have the budget allocated to meet this target.

What is a good first-time (new) donor acquisition rate?

First-time donors are traditionally the hardest to keep. While overall donor retention hovers around 40%-45%, the average retention rate for new, first-time donors is much lower, averaging roughly 20%.

How much does it cost to acquire a new donor?

Acquisition costs vary by channel, but direct mail acquisition is historically the most expensive, often costing nonprofits $1.00 to $1.25 to raise a single dollar. This emphasizes why retaining those donors is vital for long-term ROI.

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