Fundraising

How to Plan and Launch a Major Donor Society or Club

Six well-dressed people at a gala event, sitting at a table and clapping for a speaker. The table is set with glasswear and white linens.

Any fundraiser worth their salt will tell you that a major donor club (or major donor society, as some prefer) is an essential aspect of well-run major donor fundraising efforts. According to Giving USA’s most recent surveys, individuals and bequests make up 73% of charitable giving in the U.S. Among those individuals exists a group that has potential to bolster nonprofits’ giving base significantly—the major donor.

Needless to say, major donors are important and should be stewarded intentionally. Consistent communication, heartfelt and personal thank-you’s, relationship building, and solicitation are all part of that stewardship. A major donor club is a fantastic way to make your donors feel appreciated and, most importantly, involved in your mission.

There’s one big question, though. How do you plan and launch a successful major donor society? First things first, a little bit of research . . . 

Identify Your Major Donors

Within a donor file, who counts as a major donor varies quite a bit based on size of the nonprofit, its location, etc. A good rule of thumb is to look at regular givers in the range of $5K–$10K or more per year to start. This range is a good indicator of the bulk of your high-dollar support.

That said, look at your donation data carefully and make strategic decisions based on what you find. Every organization is different.

After doing some initial research, you’re ready to build your major donor club. Let’s get started.

Determine the Major Donor Club Levels

After reviewing your donation data, imagine how you’d like the club to be structured. It’s best to create levels (or “tiers”) for those who join. Depending on your organization's circumstances, the introductory level could be as low as $1,000 to $2,500 donors, and the highest anywhere from $25,000+ to $50,000+ donors. The choice of what level to start a club should be strategic and consider the club’s goal and the current pool of donors.

At risk of stating the obvious, don’t forget to include a few levels between the lowest and highest rungs.

Name the Donor Club

What’s in a name? Not much, according to the Bard of Avon’s young Juliet. For a donor club, the truth isn't quite so cut-and-dried.

You can name your club and its various levels however you like—there are no hard and fast rules. A nonprofit can (and should) try to find a name that fits its mission and culture. Does the name evoke friendship? Prestige? Team leadership? How does it make donors see themselves in relation to your organization?

That said, if you can’t land on a creative name for the club and its levels, feel free to go the generic route. The important thing is to know your audience (the major donors with whom you interact) and act accordingly.

Clarify the Incentives to Join a Donor Club

Setting the benefits of each level in the donor club is a balancing act. Make sure that whatever you offer is significant but still reasonable for your nonprofit. You must be able to keep your promises, so it’s best not to choose things that could stretch staff capacity beyond the limits. Check the following examples for ideas that don’t require much additional behind-the-scenes work during the year:

  • Tier 1: $1,000–$2,499 — A branded tote and membership certificate.
  • Tier 2: $2,500–$4,999 — Above benefits, plus invitation to an annual gala.
  • Tier 3: $5,000–$9,999 — Above benefits, plus a subscription to President’s exclusive quarterly newsletter.
  • Tier 4: $10,000–$24,000 — Above benefits, plus an invitation to one yearly board meeting.
  • Tier 5: $25,000+ — Above benefits, plus two private meetings with organizational leadership per year.

Design the Donor Club’s Look

After basic construction of the club is decided, it’s time to go to the drawing board with ideas for its aesthetic. Ideally, the colors and design should coordinate with the organization’s existing brand style—think of it like tastefully mixed patterns on a quilt. They don’t match, per se, but they look good paired. If this part sounds daunting, don't worry—creative help is available.

On a more practical note, you should plan to (at the least) create a logo, a unique letterhead to be used for all donor club communications, and a one-pager that clearly outlines the essentials: why a donor should join, the levels, and the associated benefits. Branded thank-you cards aren’t a bad idea, either—just remember to put them to use!

Launch It

Finally, it's time to introduce the donors to the donor club! Send a welcome letter on that brand new, beautiful letterhead to all the donors who fall into one of club levels by means of their giving over the past year. It’s also a good idea to send an introductory letter to everyone who is close to being automatically included.

For example, if your lowest tier starts at $1,000 givers, it’s worthwhile to include givers in the $350+ range, or even those who have given $200 for at least 3 consecutive years. Awareness of the club or donor society may entice them to up their giving then and there, but if not, it could very well encourage them to give within the club’s range in the future.

Run the Major Donor Club with Excellence

The important thing is to make good on whatever was promised to donors and to go above and beyond when appropriate. For instance, if a benefit or a gala is included, make sure you don’t skimp on making your organization’s guests feel comfortable and appreciated with a well-executed event. The rules that apply to wedding receptions apply here: if the food and drink is good and the guests are considered, everyone walks away happy. Check out this article on planning major donor events for more detailed information on that subject.

Keep the Major Donor Club Front and Center

Remember to invite donors to join the club and current members to renew their memberships periodically throughout the year. The most beneficial part of membership is that it provides the donor with a sense of community and involvement, which ultimately helps retain their interest and investment in the work your nonprofit is doing to make a positive change in the world.

 

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