In this episode of the First Day Podcast, host Bill Stanczykiewicz, Ed.D. sits down with Ann Fitzgerald, founder of AC Fitzgerald, to talk about the critical role of donor stewardship in nonprofit success. Fitzgerald emphasizes that nonprofits often struggle with donor retention, noting a staggering 70% of new donors never make a second gift. She explains that effective stewardship—building relationships with donors after their initial gift—is the key to improving retention and increasing donor lifetime value.

Stewardship, Fitzgerald explains, begins after the donation is received. It involves not only the appropriate use of the funds but also maintaining a strong, ongoing relationship with donors. This requires prompt and meaningful acknowledgment, proper recognition, and regular updates on how their gift has made an impact. She advises nonprofits to personalize their engagement strategies for higher-level donors, ensuring that they feel valued and appreciated.

A major takeaway from the discussion is that even a small improvement in donor retention—just 10%—can double the lifetime value of a nonprofit’s donor base. To achieve this, nonprofits must prioritize stewardship at every level, from new donors to major givers. Fitzgerald suggests segmenting donor bases into categories and tailoring communication accordingly, emphasizing the importance of showing gratitude and impact without always asking for another donation.

Finally, the episode touches on the organizational mindset needed to foster a culture of gratitude. Fitzgerald encourages nonprofits to be intentional about stewardship, investing time and resources into nurturing donor relationships, not just acquiring new donors. With advancements in technology, such as AI tools for donor engagement, even smaller nonprofits can improve their stewardship practices and deepen donor loyalty.