Donor Stewardship Building Enduring Funder Relationships

Leo Migdal

-Dec 9, 2025, 9:36 PM

donor stewardship building enduring funder relationships

Donor stewardship isn’t optional in today’s competitive grantseeking climate; use these practical tips to help your nonprofit build enduring and trust-based relationships with funders. A new grant from a funder to a nonprofit is never the end of the story—it’s the beginning of a relationship. True impact comes not from a single contribution but from partnerships a fundraiser develops with donors that deepen over time through intentional engagement. When I first stepped into my fundraising role at Candid, I expected the work to largely revolve around writing grant proposals and reports. I also expected the online applications process to be clearer and make the work easier because it involved responding to specific funder questions. Instead, many times I found online portals to be very rigid, with their uncompromising character limitations and fixed drop-down menu options, often leaving little room for human connection.

True long-term success with a grantmaker depended on discovering a rhythm, or cadence, of intentional outreach. At its core, donor stewardship is the deliberate, consistent practice of cultivating partnerships that endure. The need for effective stewardship is even more pressing today. In 2025, nonprofits face steep competition for limited foundation dollars, shifting donor expectations, and mounting staff and budget pressures. According to Candid’s 2025 Foundation Giving Forecast, only 37% of foundations expect to increase giving this year, while more than half plan to hold steady and nearly 9% anticipate decreases. In such a climate, donor stewardship is not optional.

Donor stewardship, the strategic process of creating and maintaining constructive relationships with funders, deserves focused attention because it provides multiple benefits to the nonprofit: The foundation of an effective fundraising strategy is the relationships your team forms with the people who power your mission. Every member of your nonprofit team already knows how to build strong relationships with friends, co-workers, family members, significant others, and more. Magic happens when you build relationships with prospects and donors. This is where donor stewardship comes into play. This guide covers everything you need to know to develop a powerful donor stewardship strategy that builds genuine, long-lasting relationships.

We’ll cover: A solid donor stewardship plan ensures your donors feel seen and appreciated, setting your organization up for long-term fundraising success. <img decoding="async" class="aligncenter wp-image-132170 size-full" src="https://bloomerang.com/wp-content/uploads/2025/01/Donor-Stewardship_Software-Guide-CTA-1.png.webp" alt="Fundraising is easier with the right tools on your side. Explore the Buyer’s Guide to Donor Management Software. " width="1536" height="528" srcset="https://bloomerang.com/wp-content/uploads/2025/01/Donor-Stewardship_Software-Guide-CTA-1.png.webp 1536w,https://bloomerang.com/wp-content/uploads/2025/01/Donor-Stewardship_Software-Guide-CTA-1-768x264.png.webp 768w" sizes="(max-width: 1536px) 100vw, 1536px" /> An integrated suite of modern fundraising solutions, powered by fundraising intelligence.

AthleticsRM, Central Intelligence, and more The world is changing quickly—and our resources help you stay on top of it all. Sign up to get new insights, success stories, and more, sent right to your inbox. Explore the differences between donor cultivation and stewardship, and how these strategies foster sustainable, long-term fundraising success. Donors expect more than a generic, automated thank-you message. They want to feel seen, appreciated, and like they’re part of...

BY: Molly Johnson, Assistant Vice President; Elizabeth Long Edwards, Senior Director; Larisa Bokota Malley, Director Learn important ways to build relationships with your donors and keep them engaged in your organization’s mission. This, in turn, will ensure that your organization continues to experience fundraising growth. Is your nonprofit acquiring new donors but finding it challenging to keep them? If so, you’re not alone. The 2024 CCS Philanthropy Pulse report reveals that donor retention remains a top challenge, as only 48% of nonprofit organizations reported keeping over half their new donors from the previous 12 months.

Successful stewardship builds trust and loyalty. Further, donors who feel appreciated and connected are likelier to become repeat contributors, increase their giving over time, fulfill multi-year pledges, and even advocate for your organization among their networks. Stewardship is a relationship-building process requiring the strategic management of donors through consistent communication, personalized engagement, and demonstrated impact. Cultivating and maintaining relationships with funders is a continuous journey for many nonprofits. Building meaningful connections beyond financial transactions is crucial for long-term success, supporting program sustainability and strengthening community impact. By applying these strategies, nonprofits can build sustainable partnerships that advance their missions.

Nonprofits must align with funders who share their values and goals while fostering partnerships that can evolve and strengthen over time. This article explores strategies for deepening these relationships, enabling nonprofits to secure lasting support and amplify their mission’s impact through proven approaches and actionable insights. Understanding what motivates funders—be it alignment with the mission, impact, or personal connection—is the foundation of building and maintaining strong funder relationships. Nonprofits can gain this insight through funder surveys, one-on-one conversations, and reviewing past grants. Knowing what drives funders significantly enhances a nonprofit’s ability to develop cultivation and stewardship strategies that transform a funder from a contributor to a committed partner. The journey from transaction to true partnership requires a proactive and strategic approach to engagement.

This involves strategies that resonate with funders both collectively and as unique constituents. One of the easiest ways nonprofits can achieve this is by tailoring communications and interactions to reflect the specific interests and values of the funder. This may be highlighting initiatives, programs, or projects that resonate with where they desire to make an impact or through communications that demonstrate the tangible outcomes their contributions have helped to achieve. Regular updates, impactful storytelling, and transparent reporting are crucial steps in building and maintaining strong relationships. Seeking feedback from funders on their preferred communication style or areas of interest can further enhance engagement. By keeping funders informed and engaged, a nonprofit increases the likelihood of renewed support and, in many cases, a sustainable funding source.

Strategic personalization is also a key element of this process. A blanket approach to cultivation and stewardship is unlikely to create meaningful relationships with funders that grow and extend beyond the transaction of their gift. Inviting funders to participate in the day-to-day activities of the organization, offering them opportunities to engage directly with the recipients of their support, and allowing opportunities for them to be thought partners in the... Events and gatherings of all sizes also provide excellent platforms for deepening funder relationships. These gatherings, whether virtual or in-person, provide excellent opportunities to not only deliver updates but also celebrate what has been achieved together. Building trust through accountability is key to maintaining and growing relationships with funders.

Funders must trust that nonprofits will utilize their contributions in manners that are fiscally responsible and as intended by the funder. Transparency in how funds are managed builds credibility and reassures funders their investments are making a measurable difference. Nonprofits can earn this trust through honest reporting that demonstrates both successes and challenges, maintaining honest upfront communication about setbacks and shifts, and bringing the funder into the conversations as needed to address challenges... Meeting deadlines for reports and grant deliverables further reinforces a nonprofit’s reliability and commitment. A retention crisis is quietly undermining the hard work of donor stewardship teams across the country. According to recent reports, the percentage of organizations prioritizing donor retention has dropped sharply.

While this trend is troubling, it also reveals a powerful, often-overlooked opportunity: the chance to secure your organization’s financial future and stand out from your peers by mastering truly effective donor stewardship. With the average donor retention rate hovering at a challenging 40%, the key to unlocking sustainable growth isn’t simply finding new supporters, but building authentic, lasting relationships with the people who already believe in... This journey begins with understanding what modern donor care truly entails and developing a proactive, personal plan. For that reason, we’ll help you dive into donor stewardship by reviewing the following topics: With a better understanding of donor stewardship and a dedicated plan, you can make stewardship an ongoing, iterative process at your organization and consistently build enduring donor relationships. Donor stewardship is the process of extending a relationship beyond the donor’s gift.

The ultimate goal of donor stewardship is to encourage them to give again by building a deeper connection. Developing that sense of loyalty will make your fundraising efforts more seamless in the future because you’ll have a strong supporter base to tap into. For stewardship to be effective, nonprofits must form mutually beneficial relationships with their donors. While nonprofits receive financial support, donors get to feel good about the impact they’ve made and join a community of people passionate about your cause. To build these relationships, nonprofits implement stewardship strategies that keep donors informed about the impact of their gifts and offer additional engagement opportunities.

Donor Stewardship Building Enduring Funder Relationships

People Also Search

Donor Stewardship Isn’t Optional In Today’s Competitive Grantseeking Climate; Use

True Long-term Success With A Grantmaker Depended On Discovering A

Donor Stewardship, The Strategic Process Of Creating And Maintaining Constructive

We’ll Cover: A Solid Donor Stewardship Plan Ensures Your Donors

AthleticsRM, Central Intelligence, And More The World Is Changing Quickly—and