Donor stewardship: Building enduring funder relationships 

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. 

Why donor stewardship matters 

Donor stewardship, the strategic process of creating and maintaining constructive relationships with funders, deserves focused attention because it provides multiple benefits to the nonprofit: 

Efficiency. Maintaining existing funder relationships is far more efficient than seeking new ones. Research shows that acquiring a new donor can cost up to 7x more than an existing one. New donor acquisition requires significant time and staff resources—and it often comes with lower returns, at least in the early stages. 

Growth over time. When nurtured consistently, relationships often grow over time, whether through larger grants, multiyear commitments, or introductions to new partners. A well-stewarded foundation can become not only a reliable supporter but also a “door opener” to new networks and opportunities. 

Trust-based relationships. Donor stewardship reframes the power dynamic between funder and grantee to be collaborators tackling community challenges together. When trust is built over time, partnerships become more resilient during inevitable setbacks. With this in mind, the question becomes: How do we practice stewardship in a way that creates that depth and trust? 

Best practices for donor retention 

Effective donor stewardship is about maintaining a steady rhythm of practices that gradually convey care, transparency, and shared purpose. Here are five strategies to help boost your game. 

1. Make a strong first impression 

Funder relationships begin long before the first grant is awarded. When funders see that you’ve done your research, demonstrated alignment, and pursued in-person conversations, they’re more likely to invest in an ongoing dialogue with your organization. 

2. Establish a cadence for outreach 

Consistency signals reliability. Funders notice when communications are timely and thoughtful and not just tied to funding deadlines. Mixing formal updates with informal outreach through newsletters, reports, milestone notes, or even holiday greetings demonstrates attentiveness. Check funders’ communications for outreach opportunities and send a congratulatory note if they announce a new initiative or staff appointment. This shows funders you value the relationship itself, not just the grant. 

3. Demonstrate transparency and impact 

At the heart of stewardship is accountability. Sharing a combination of measurable outcomes backed by data and client success stories demonstrates effectiveness and highlights the human impact behind the numbers. Together, they show funders that their investment is working. Data provides credibility and accountability while stories create connection. Used together, they build confidence and trust.

4. Tailor communications to the specific relationship 

Every funder relationship is unique. A foundation that has supported your work for 10 years deserves different outreach than one that has just awarded its first grant. Adjusting tone, style, and frequency based on your history shows attentiveness and respect. And acknowledging their unique role in your success underscores their importance to your mission. As communications become more tailored, the relationship itself will begin to deepen. 

5. Build genuine two-way relationships 

Stewardship thrives when it becomes collaborative. Inviting input, positioning funders as thought partners, and encouraging them to share connections elevates the relationship beyond financial support. Foundations are often eager to contribute expertise and introductions. When you treat them as partners in problem solving, you create a stronger bond.  

Building sustainable relationships through intentional stewardship

These five strategies help to reinforce trust between your organizations outside of funding cycles. Sharing organizational updates, leadership changes, or special initiatives keeps them connected to your progress. Offering insights from the field or highlighting relevant collaborations adds value as well. And engaging respectfully on social media platforms—though only once a relationship is established—signals attentiveness without pressure. Together, these practices can transform stewardship from a checklist into a natural flow that sustains lasting partnerships. 

In the end, donor stewardship is not about isolated transactions—it is about the steady practice of relationship building. With care, transparency, and consistency, organizations can transform foundation support into enduring partnerships that strengthen both sustainability and impact. 

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