A major gifts program can transform your organization empowering you to fulfill your mission greater than ever before. This major gift program guide is based on decades of nonprofit fundraising experience to help you understand how to categorize a major gift, what returns you may expect, and how to successfully launch your own major gifts program.
The presence of a well-run major gifts program has a profoundly positive impact on the success of a nonprofit's mission and vision. While there isn't a universal definition of what constitutes a major gift, a common threshold is a donation of $5,000 or more. Some nonprofits consider any donation above $1,000 as a major gift. In general, it follows the 80/20 rule: 80% of your revenue will likely come from 20% of your donors. Note that this measurement should also be used as a reliable indicator to determine if your organization is flush with large donations or could stand to grow your donor database through donor acquisition.
These significant contributions are a game-changer for your bottom line, allowing you to make a tangible difference in your community.
Financially stable and successful nonprofits don't appear miraculously out of the ether—in most cases, their bottom line is significantly bolstered by a strategic major gifts program. When launching a major gifts program, an organization must focus on the four fundraising "C's":
Clear vision.
Your nonprofit's vision should be easily identifiable, and the best way to accomplish this is to repeat it across all your communication—direct mail, online mediums, donor clubs, and more. Illustrate your vision by pulling at the heartstrings of potential donors—it's not desperate, it's a human appeal for the betterment of your world.
Consistent Communication.
Donors are more likely to stay engaged when they feel included. Keep them in the loop through email, social media, and cultivation letters.
Competent Follow-up.
For major donors, a generic thank-you isn't enough. Build relationships through personalized follow-ups, and consider hiring a Major Gifts Officer to manage these special connections.
Champions of Your Mission.
Legacy donors keep the lights on and the mission thriving at your nonprofit. These givers have been around for a long time for a reason, and are perfect candidates to provide testimonials that will bolster your organization's reputation or leverage relationships.
The following attributes are central to success for any organization seeking to move its fundraising to the next level. Does your organization have:
If you check most of these boxes, your time to launch and improve your major gifts strategy may be now. If you only checked a couple, it might be time to review your notes and discern the next steps before diving head-first into a major gift fundraising program.
“Realistic” is the magic word when setting Key Performance Indicators (KPIs) to help determine Return on Investment (ROI). Below are some pointers to help you determine if your goals are ambitious but still within reach.
1. Give it time:
Don’t compare a new major gifts program to one that has been in place for years. Time and concerted effort is needed for proper development.
2. Experience matters:
Factor in your Major Gifts Officer’s experience level when setting goals and expectations. If your MGO has years of work under their belt, you may aim a bit higher when goal setting. On the other hand, if your MGO doesn't have much experience, you may want to keep your goals a little lower.
3. Support your team:
Consider the level of management available to your MGO. If an MGO has strong support, the program's results could be exponentially higher than those of an MGO with limited or restricted support.
Here’s how you can set your nonprofit up for success:
Conduct prospect research to identify potential major donors with the capacity and inclination to contribute significantly to your cause. Look for individuals or organizations with a history of philanthropy and an interest in your mission.
Develop a support case: Create a compelling case for a support document that clearly articulates why your nonprofit deserves major donors' investment. Highlight their contributions' impact, the urgency of the need, and your organization's unique role in addressing the issue.
Today’s donors want a relationship with the organizations they support, not just a transaction. Focus on building connections and showing appreciation.
“Organizations embracing this change are climbing a mountain of success while others, forcing their own models onto their donors, are fighting in the foothills." (Fundraising Analytics by Joshua M. Birkholz)
Donors now expect relationships, not just transactions, with their favorite charities. That is why forward‐thinking nonprofits are spending more time figuring out how to add personalization to their gift processing.
With trillions of dollars transferring from one generation to another in the next few decades, planned gift-giving is an important part of the ideal major gifts program. Having a planned giving program front and center helps secure additional funding and provides clear options for loyal major donors looking to do long-term philanthropic planning.
“Over the next 20 years, an estimated $84.4 trillion will be passed down from the Baby Boomer generation, with around $11.8 trillion potentially benefiting nonprofit organizations. This seismic shift presents a critical opportunity for philanthropy to harness these resources responsibly and effectively.” Vanguard Charitable Giving
Planned giving takes you far beyond the traditional “ask and give” models and, using tax and financial planning tools, helps the donor think creatively about using the assets they control as a critical part of their giving. When incorporating such a program into your fundraising model, there are a few significant points to consider:
Many major gift officers miss the fact that not all success comes from one-on-one outreach. When an MGO begins to bring their organization's name in front of major giving prospects, those prospects will do their research. This is where your social media and website come in.
A key focus of your major giving program should be non-cash gifts like stocks or real estate. These gifts are much larger than cash since more than 97% of wealth is held in non-cash assets. Organizations that accept any non-cash gifts see 50% growth in fundraising revenue over the next five years compared to 11% growth in those accepting only cash donations.
If your organization accepts gifts of stock, Qualified Charitable Distributions (gifts from an IRA), or Donor Advised Funds, ensure you have an easy, accessible way for donors to make these gifts directly on your website. Online giving — even for major gifts like these — is surging, and donors will be headed straight to your site looking for smarter ways to give. Here’s how you can set your organization up for success:
Strong relationships are at the heart of successful major gifts programs. Here are five ways to build those relationships:
1. Have a private face-to-face meeting (virtually or in-person)
This is a must. You cannot discuss a major gift in a group setting. This can be at the beginning of your cultivation or toward the end, but you cannot get around it. More than one person can attend a face-to-face meeting — usually a board member and the executive director or development director. The meeting can take place at the prospect’s home or office and last anywhere from 15 minutes to an hour.
2. Invite them to see your program in action.
Persuade each of your prospects to take a tour, visit a program, or attend an event. Choose something you think will have the greatest impact on that individual.
3. Engage your prospects to volunteer.
Invite your prospects to volunteer. On a committee, in the office, in direct service, one-time or ongoing. Volunteering brings people closer to your organization and makes them more inclined to give.
4. Provide regular updates and check-ins.
Updates about your programs and services can be delivered by phone, email, direct mail, or in person. You should also check in to find out how your donors are doing during these difficult times. Updates and check-ins should be sent twice a year to all prospects on your top 20 list.
5. Follow-up matters
Handwritten note cards, swag to remind them of your organization, invites to events, and sharing relevant articles that may interest them are great ways to build trust and brand affinity with your organization.
While individuals may often seem like an easier lift, do not forget to keep mission-aligned foundations on your radar. To do this, you should make sure that organizational fundraisers are part of the major gifts team. They should not be isolated from the individual MGOs or managed by a different department. They should be an integral part of the major gifts team.
Avoid the notion that you must get stuffy and intellectual in talking to foundation representatives. They will indeed require more processes, proof of outcomes, budgets, stats, and other numbers and facts. But don’t get away from the core fact that you, through your organization, are changing lives, the culture, and/or the environment, which is the important aspect of your work together. This also means that your communication, in addition to the business and process requirements, should also have emotional content. You need to find that common ground of shared values, passions, and interests, and then talk about those shared interests and values using stories to make your point.
While fundraising from organizations can be complex, the process really boils down to these simple points. Meeting the organization's funding requirements and successfully matching values and objectives will lead to success.
Have we unlocked all the secrets for a successful major gift program? Definitely not! The hope, though, is that you will be able to take a few of these highlights, key points, and resources that will put your organization on the path to more major gifts than you have had in the past and maybe, if the timing is right, land that transformational gift.
Starting or enhancing your major gifts program can truly transform your nonprofit. With the right strategy, relationships, and resources in place, you can unlock major contributions that will take your organization to new heights.