Six Essential Metrics for Tracking Major Donor Relationships

Key performance indicators (KPIs) to ensure donor retention and growth, helping you build lasting relationships with your major donors.

Introduction

Major donors are the lifeblood of many non-profit organizations. Tracking the right metrics helps you deepen engagement, demonstrate impact, and grow gift capacity over time. Below are six essential metrics every fund development professional should monitor to nurture major donor relationships and maximize long‑term support.

1. Major Donor Retention Rate

Definition
The percentage of major donors who give in back‑to‑back periods (typically year over year).

Formula

Major Donor Retention Rate = 
(Number of major donors who gave in both this year and last year ÷ Number of major donors who gave last year) × 100%

Why it matters

• Retaining existing major donors costs far less than acquiring new ones.
• A high retention rate signals strong donor satisfaction and effective stewardship.

Tips to improve

• Personalize stewardship touches (calls, handwritten notes, impact reports).
• Invite major donors to exclusive briefings or site visits.
• Track and thank donors promptly after each gift.

2. Average Gift Size Growth

Definition
The year‑over‑year percentage increase (or decrease) in the average gift amount from your major donor pool.

Formula

Average Gift Size Growth = 
[(Avg. gift this year – Avg. gift last year) ÷ Avg. gift last year] × 100%

Why it matters

• Indicates whether your cultivation and upgrade strategies are working.
• Helps set realistic upgrade goals for future solicitations.

Tips to improve

• Analyze giving tiers and create tailored asks.
• Offer major donors named funds or challenge gifts to spur larger commitments.
• Showcase impact stories tied to gift levels.

3. Donor Upgrade Rate

Definition
The percentage of major donors who move up to a higher giving tier within a defined period.

Formula

Upgrade Rate = 
(Number of donors who increased their gift tier ÷ Total number of donors in lower tiers) × 100%

Why it matters

• Measures how effectively you are cultivating and inspiring donors to give more.
• Signals opportunities to refine segmentation and ask strategies.

Tips to improve

• Segment your major donors by giving history and engagement level.
• Use milestone anniversaries (e.g., 5‑year giving anniversary) as occasions for upgrade asks.
• Provide clear impact projections for increased support.

4. Recency–Frequency–Monetary (RFM) Score

Definition
A composite score that ranks donors based on how recently they gave, how often they give, and how much they give.

How to calculate

• Assign each donor a score of 1–5 for Recency, Frequency, and Monetary value.
• Sum the three scores for an overall RFM score (range 3–15).

Why it matters

• Helps you prioritize donors for personalized outreach.
• Identifies high‑value donors who may be ready to upgrade or re‑engage.

Tips to improve

• Automate RFM scoring in your CRM to refresh scores monthly.
• Create tailored cultivation plans for top‑scoring donors.
• Monitor shifts in RFM to spot lapsed or at‑risk donors.

5. Engagement Index

Definition
A blended metric reflecting how often a major donor interacts with your organization outside of giving: event attendance, volunteer participation, newsletter opens, etc.

How to build it

• Identify 3–5 key engagement activities.
• Assign a point value to each activity.
• Sum the points for each donor over a rolling 12‑month period.

Why it matters

• Gauges the depth of your relationship beyond just dollars.
• Engaged donors are more likely to renew and upgrade.

Tips to improve

• Track both online (email opens, website visits) and offline (event RSVPs, one‑on‑one meetings).
• Recognize engagement milestones with special updates or small tokens of appreciation.
• Use engagement data to tailor your stewardship calendar.

6. Stewardship Response Rate

Definition
The percentage of major donors who acknowledge or respond to stewardship communications (surveys, thank‑you calls, personalized reports).

Formula

Stewardship Response Rate = 
(Number of donors who respond to stewardship outreach ÷ Number of donors contacted) × 100%

Why it matters

• Measures how well your stewardship efforts resonate.
• Provides feedback for refining impact messaging and delivery methods.

Tips to improve

• Keep surveys and feedback requests short and focused.
• Share one clear “win” or impact story in each communication.
• Follow up personally with donors who don’t respond to understand barriers.

Conclusion

By monitoring these six metrics—Major Donor Retention Rate, Average Gift Size Growth, Donor Upgrade Rate, RFM Score, Engagement Index, and Stewardship Response Rate—you’ll gain a holistic view of your major donor program’s health. Use these KPIs to set targets, celebrate wins with your team, and continuously refine your strategies. Strong metrics lead to stronger relationships—and ultimately, greater impact for your mission.