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Reactivating Lapsed Donors: How Autonomous Fundraising is Bringing Donors Back Faster and Increasing Giving

Reactivating Lapsed Donors: How Autonomous Fundraising is Bringing Donors Back Faster and Increasing Giving

Chapter Leadership Brief 3.21.25

by Emily Groccia
Vice President, Customer Success / Director, Version2

Fundraisers know that lapsed donors represent one of the biggest untapped opportunities in fundraising. These are people who have given before, believe in the mission, and may be willing to give again—but only if engaged in the right way.

The challenge? Most nonprofits struggle to bring them back.

The Industry-Wide Challenge: A Slow, Uncertain Process

Lapsed donor re-engagement is a well-known problem across the nonprofit sector:

  • Every year, 55-60% of donors do not renew their giving.
  • Each year, most nonprofits see only 5-10% of their donors come from previously lapsed supporters who return to giving.
  • Without an effective re-engagement strategy, organizations lose not just these donors, but their future lifetime value.

When lapsed donors give again, they’re not just making a one-time gift—they’re reconnecting with the organization and renewing their long-term commitment.

Version2’s Data: Autonomous Fundraising is Reactivating Lapsed Donors Faster and at Higher Rates

At Version2.ai, we analyzed the impact of AI-powered engagement on lapsed donor reactivation through our Virtual Engagement Officer (VEO)—and the results show a major leap forward compared to industry norms.

1. The VEO is Recapturing Lapsed Donors 3x Faster Than the Industry Standard

In just four months, 15% of the donors who have made gifts under VEO management were previously lapsed donors. In comparison, the industry average shows that only 5-10% of an organization’s total donors each year tend to be re-engaged lapsed donors. This early success highlights how the VEO is already driving a higher concentration of reactivated donors, reinforcing the impact of autonomous fundraising on donor retention and giving.

2. Lapsed Donors Aren’t Just Returning—They’re Giving at Higher Levels

So far, re-engaged lapsed donors under VEO management have contributed over $100K, accounting for 21% of total giving. Their continued support shows that Version2’s trusted digital labor is not only bringing donors back but also encouraging sustained giving. By keeping donors connected and engaged, the VEO is helping organizations build stronger, long-term donor relationships.

3. AI Engagement is Driving Increased Giving Across Donors

Donors are increasing their support at remarkable levels. Since engaging with the VEO, 30% of donors have raised their giving, contributing an additional $151K to our Innovation Partner organizations. This shift shows that AI-powered engagement inspires greater giving by keeping supporters connected to the mission and impact of the organization. By delivering timely, personalized engagement, the VEO is helping nonprofits cultivate deeper connections that lead to sustained and increased giving.

Why AI is More Effective at Re-Engaging Donors

The VEO does more than increase outreach—it improves the entire engagement process to bring donors back faster and more effectively than traditional methods. By analyzing behavioral insights, it pinpoints the right moves management stage, organization content, and even delivery method that will be most effective to re-engaging the donor. Its personalized, timely outreach ensures that donors receive messages that resonate, reaching them at the right moment with information and opportunities that are meaningful to them, including the ability to respond in 2-way messaging. Unlike human teams, which may struggle to maintain consistent follow-ups, the VEO stays engaged, strategically nurturing donor relationships over time and learning more about each individual’s connection to the organization. This combination of precision, personalization, and persistence makes donor reactivation far more effective.

Traditional re-engagement efforts rely on mass emails or one-off appeals, which are often generic, sporadic, easy to ignore, and 1-way. AI removes those barriers, ensuring every lapsed donor receives meaningful, well-timed outreach that encourages re-engagement and interaction.

Reactivating Lapsed Donors: A Smarter Approach to Sustainable Giving

The nonprofit sector has long struggled with donor retention, but the data is clear: lapsed donors will give again—if engaged the right way.

By leveraging AI-powered engagement, organizations can triple the speed of donor reactivation, drive more long-term giving, and create sustainable fundraising growth.

With Autonomous Fundraising, organizations are able to reach more donors while keeping interactions personal, leading to stronger relationships and better fundraising outcomes.

Curious how a Virtual Engagement Officer could transform your fundraising team? Click here to learn more.

Emily is the Vice President of Customer Success at Givzey and Director of Version2.ai, the program that launched the world's first fully autonomous AI fundraiser. Previously, Emily spent 10 years in higher education advancement before introducing fundraisers to AI with Gravyty in 2020, and has been with Givzey since its inception in 2023. 

 

 

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