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Reversing Multi-Year Declines in Donor Acquisition and Retention

161 % Increase in New Donors Acquired
41 % Increase in Reactivations

The Challenge

After the pandemic, The Salvation Army Chattanooga experienced a significant decline in active donors year over year. This trend was common among many nonprofit organizations, as donor acquisition and engagement efforts were deprioritized during and after the crisis.

The organization had been underinvesting in acquisition, leading to a shrinking donor base and fewer resources available for growth. A decline in donor acquisition meant fewer new donors generating revenue, making it harder to reinvest in future fundraising efforts.This cycle of decline created a downward spiral that could become difficult to recover from if left unaddressed.

About the Campaign

In FY25, the Chattanooga Area Command in the Kentucky-Tennessee Division sought to reverse this decline and partnered with TrueSense Marketing to rebuild its donor base. Its primary goal was to increase valuable donor acquisition and reactivation through a strategy known as WIN.

The Solution

To address this multi-year decline in active donors, the Area Command needed an infusion of valuable donors through acquisition and reactivation, which TrueSense categorizes as WIN (donor replacement strategy next to retention KEEP and upgrades LIFT). This included:

  • Increasing acquisition investment from $42,000 to $53,394

  • Fully rolling out a five-year testing plan to improve performance through list selection, email optimization, creative, remit format, gift ask, and email retargeting

  • Using TrueSense Marketing’s file health report to set new donor targets across channels

  • Leveraging AI-driven donor selection to prioritize prospective donors with the highest giving potential

  • Prioritizing the reengagement of lapsed donors

Results

The Salvation Army’s strategic shift in donor acquisition and reactivation efforts yielded impressive results, reversing years of decline. By increasing investment in acquisition and leveraging data-driven strategies, the Chattanooga Area Command saw:

  • 161% increase in new donors acquired
  • 150% increase in the number of new donors above $25
  • 107% increase in revenue
  • 51% decrease in the cost to acquire a donor
  • 132% improvement in net revenue
  • Expected 208% increase in five-year net revenue
  • 41% increase in reactivated donors
  • 62.5% increase in reactivated donors giving $100+

Key Takeaways

  • A steady investment in acquiring new donors is necessary to maintain and grow a nonprofit’s donor base over time.
  • Using AI and testing insights helps organizations target the right donors, optimize messaging, and maximize return on investment.
  • Investing in acquisition and reactivation, even after years of donor decline, can reverse negative trends and create sustainable donor growth.