A major gifts program can transform your organization, empowering you to fulfill your mission greater than ever before. This major gifts program guide will help you understand how to categorize a major gift, what returns you may expect, digital fundraising tips, and how to conduct a major donor meeting. It opens you up to think of major giving in a new way, a way that may move your major donor success to the next level.

What is a major gift?

Major gifts can profoundly impact your organization's mission regardless of their form. While there isn't a universal definition, as each organization is unique, a standard threshold for most nonprofits is a donation of $5,000 or more. These significant contributions can be a game-changer for your bottom line, allowing you to make a tangible difference in your community.

Some nonprofits could categorize donations above $1,000 as a major gift, but the scoring benchmark is the 80/20 rule. A major gift is better qualified as attributing 80% of donor revenue to 20% of the 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.

Are you ready to launch a major gifts fundraising program?

Successful fundraising organizations do not enjoy their rewards by accident. Their outcomes are part of an intentional fundraising strategy with a major gift program. Before launching a major gifts program, an organization must address "the 4 C's of fundraising," as they commonly refer to in nonprofit messaging. These are:

• Having a clear, Compelling vision.
• Consistent Communication
• A Competent follow-up process.
• Champions of your mission.

Major gifts program checklist

This checklist is designed to help you better understand if your organization is equipped for major gift donations. The following critical attributes are central to major gift success for any organization seeking to move its fundraising to the next level. Does your organization have:

• The ability to raise money either by offering a product or service or (most coveted) doing good work and having an existing donor base to support your efforts.
• The firmly held belief that donors are partners in their mission, beyond being simple funding sources? Do you have a donor-centered culture?
• A robust desire to nurture, retain, and engage with donors?
• An understanding of the time cost of consistently raising funds and launching a major gift campaign? (Do you have the time and personnel resources, or are there opportunities to carve time out of your schedule to devote to this effort?)
• Are there any champions of your mission with relationships or influence who may be interested in helping you develop your major gift donor database?
• Leadership that understands, supports, and understands the value of this initiative? Do they know that while potentially transformational, major gifts take time to cultivate and are rarely rewarded in a few short months?
• A well-organized donor database or do or CRM? While spreadsheets are lovely and a possible starting point for those capable of doing so, a donor database is a powerful component of a major gifts strategy.

If you can check most of these boxes, it may be time to launch and improve your major gift strategy. If you can only check 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.

Major gifts fundraising: Managing the budget and return on investment (ROI)

Only launch a major gifts program with a reasonable strategic plan, budget, key success indicators, or improvement areas. Lacking these will put you in danger of joining those who started but never followed through on prioritizing major gifts as a revenue source.

"Realistic" is the magic first word that should come to mind, and three factors can help you determine if you're achieving that with your Return on Investment (ROI) expectations.

1. Wait to launch a new major gifts program and compare it to one that has been in place for years. This will set you up for disappointment when the focus should be on development.

2.  Factor in your major gifts officer's (MGO) experience level when setting goals and expectations. If the major gift officer or MGO has years of work in this field under their belt, you may go a bit higher. You may want to reign it in if your MGO has been promoted to that title with no real-time experience (as frequently happens).

3.  Consider the level of management available to your MGO. If an MGO has strong peers, expertise, and support, their results could be exponentially higher than those of an MGO with limited or restricted support.

The outcomes above can vary by situation and depend on many factors, including the MGO's experience, the organization's mission resonance or lack thereof with donors, supporting resources, and messaging. One way to leap forward faster is to hire a fractional MGO who can leverage a more profound experience, vast networks, and supporting resources and already has a solid system for identifying potential foundation and high-net-worth individual donors for your organization. 

Setting Your Major Gifts Fundraising Program Up for Success

Identify Prospects

Starting is often the biggest hurdle, so dig in and start researching to identify those 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.

Build the Foundation

Develop a case for support: Create a compelling case for support, and create a document that clearly articulates why your nonprofit deserves major donors' investment. Highlight their contributions' impact, the need's urgency, and your organization's unique role in addressing the issue.

Develop Offers that Major Givers of Large Donations Want 

Major donors are seeking a return on their philanthropic investments through increased customization. The reality is that donors are an ever-changing creature and expect more than in the past from those they choose to support. No longer can a nonprofit sit idly by while dollars pour in, and this is why nonprofits that adapt are finding new ways to identify and deliver what major donors are seeking.

When was the last time you surveyed your donors or prospective donors?

Turning Gift-Giving into Deeper Strategic Giving Is an Art

We see a vast ocean of dollars out there moving from one generation to the next in the most significant transfer of generational wealth in American history. This is why planned gift-giving is important to the ideal major gifts program. You must put one in place if you don't have a planned giving method front and center. This helps your most loyal donors in their critical philanthropic planning and secures additional funding.

One does not need to go too far in their research to uncover that over the next twenty years, trillions of dollars will be handed down, making this an excellent opportunity to focus on major donors and the relationships, transparency, and even connections those with this newfound wealth will be looking for.

This approach takes you far beyond the traditional "ask and give" models, and using tax and financial planning tools helps donors think creatively about using the assets they control as a critical part of their giving. A few significant points to consider in leveraging planned giving into major gift strategic giving are:

• Integrating the function of planned giving and major giving, eliminating the usual competition in these areas, and treating the donor as one person, not two halves.
• You are enhancing your planned giving program with asset-based fundraising and have a strategic gift design program in place.
• It is essential to understand that life happens, and donors' wealth can be impacted by various events, including fraud, scammers, identity theft, government regulations, and much more.

Organize your website so that it's easy to give non-cash major gifts.

Many major gifts officers overlook 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, these prospects will do their research. This research is usually started by looking at your social media and website.

The intention of your major gifts program should not neglect non-cash gifts like real estate, heirlooms, and stocks. This potential is exponential in contrast to cash; these non-cash assets are often quite liquid. If you can open your thinking, you will find that nonprofits that accept non-cash gifts can be a charitable path for those seeking to dispose of treasures while providing tax advantages. Work on these giving paths to be available to you as an organization and communicate to potential major givers. Here are a few ideas to consider:

• Giving pages that highlight and provide the path for non-cash donation options can be helpful. Gathering the donor's details and instructions they can convey to their broker can also help, making it easier for big givers to start with your nonprofit.
• Offer these options as simple text links on your primary donation pages.
• Website banners or popups can be effective, and at key times, like the end of the year, they can provide tax advantages many may wish to consider.
• If any donor launches the non-cash donor form but you do not find they complete the transaction, be sure to follow up, thank them for their consideration, and seek to understand what the next steps are or why they stopped their progress.

Major Gift Program Action Plan Guide

You've taken steps to review your current state as an organization and taken on the critical role of strategic development planning to align all parties toward your goals. You have the vision and will to make major gifts a central part of major donations for your organization. You are ready to grow those donations and fuel your organization's mission in a big, transformational way. Now, it's time to take on a new mindset…

Widely considered one of the best midfielders in soccer history, Andres knew one could get lost in overthinking and realized the best way to learn is to move forward. This advice is great for those planning their major gifts program and feeling overwhelmed by the research and details. Remember, mistakes are a sign you are trying something new, pushing the envelope, and indicating the ability to improve.

Many MGOs have enjoyed making fortuitous contact with a major donor who said yes to a large gift early in their career. While this is beautiful, don't a one-time spearing of your "white w ale" bring a false sense of comfort. The path to success is not a single event but a consistent dedication to improvement. Major gifts will come your way, as will times when "no" seems to be the only word you get from prospects. Your secret to success is working hard, continuing to learn, and never giving up.

Set a Mutually Beneficial and Repeatable Meeting Process

Major Gift Meeting: Preparation

• Google search results for the interest of your prospect.
• Look at organizations they are associated with, including their social media and websites, and, if possible, articles they have written or shared.
• Learn about the person you are meeting with by recording details in your notes, spreadsheet, or donor database.
• Find a topic to break the ice or set the hook for a meeting.
• Gain an understanding of what might be important to the prospect and why.
• Demonstrate that you are prepared (and thus value their time).
• Identify three goals for your meeting.
• Build out your discovery questions in advance, illustrating knowledge of the prospect and their interests.

Major Gift Meeting Time

• Don't get lost in meetings that seem to last forever without any accomplishment. Instead, follow this easy-to-follow five-step process after participating in the necessary five minutes of small talk.

#1 PIVOT:  "I want to be respectful of your time. Do you mind if we discuss the agenda?"

#2 PURPOSE: "The purpose of this meeting is simply to determine if we should have a next step."

#3 PLAN/AGENDA: "To get us there, I'd like to ask you a few questions about your goals and tell you more about our mission and plans. Is that okay?"

#4 OUTCOME: "From there, we can jointly decide whether it makes sense to take a deeper dive and keep moving forward."

*Important to set the tone for what's in it for me (WFM) and what's in it for you (WFU)

#5 CHECK: "Does that sound fair? Anything you'd add?"

This last step is crucial because it establishes safety and trust with your prospects by allowing them to co-create the agenda with you. It's an act of intellectual curiosity that shows you genuinely care about what they have to bring to the conversation.

Get to Know Your Major Gifts Prospects Better

One goal of cultivation is to get to know your prospects better. To do this, you should ask them a variety of open-ended questions, including:

• How did you initially get involved with your organization? Why did you decide to start giving? Why do you continue to give?
• Why do you feel our mission is important to support?
• What do you love about our organization? What would you like to see improved?
• If you could fix or improve one thing about our organization, community, or the world, what would it be?
• What might encourage you to consider giving more?

These questions encourage donors to think about your organization more deeply and consider how to get involved in its mission to improve the world. 

5 Steps to Building Strong Major Gift Relationships

You can take these steps in any order that makes sense to you and your nonprofit.

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 occur 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.

Taking tours, major days of service, and events, you know this part well.

3.  Engage your prospects to volunteer.

Invite your prospects to volunteer, serve on a committee, in the office, in direct service, one-time or ongoing. Volunteering does more than lend hands, volunteering connects individuals to your mission in a direct and sincere way.  

4.  Provide regular updates and check-ins.

Consider sharing updates via a digital newsletter, a phone call, direct mail, or in person. You should also check in to determine 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 that connection and trust with your nonprofit.

Major Gift Program: Don't Forget the Others (Foundations, Businesses)

While individuals may often seem like an easier lift, do not forget to keep mission-aligned foundations and corporations on your radar. The people making the decisions for those organizations are people and should be treated as such. A common error is that MGOs often get lost in the rules of grantmaking without seeing behind the rules are individuals seeking to do good in our world seeking to make a difference.

Corporations have values other than profit or raising funds that drive their need to give some of their money away. There is a growing trend among for-profit businesses to be socially aware and to be intentional in the communities where they operate. Bottom line: a set of values drives charitable giving—just like an individual!

Your challenge as an MGO is to uncover those companies' passions or interests and figure out how your nonprofit can help them fulfill their goals.

Do not miss the need to have major gifts work in tandem with your nonprofit's traditional fundraisers. When those teams work together, you often uncover golden cross-pollinating opportunities. MGOs should participate in ongoing general fundraising collaborations. Unlike many who think competition is a good angle, having internal teams fighting for dollars may not bring you the best outcome.

Avoid getting too formal with these companies; they deal with that daily. Take creative approaches to capture their hearts, and while initially there could be hesitation, you will be surprised by the seeds you plant and the fruits that may come to bear.

This also means that your communication and the business and process requirements should have emotional content. You need to find that common ground of passions, interests, objectives, and goals to make your point.

When writing a grant, be sure to include how their giving will change lives, address their passions, and support their company goals. While raising needed dollars with companies can be a bit complex, the rewards can be exponential today and for years to come.

Major Gift Program Summary

Can you unlock 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.

Major Donor Identification

Identifying potential major donors involves researching individuals or organizations with the capacity and inclination to make significant financial contributions.

Donor Cultivation

How does your organization cultivate relationships with potential major donors? This involves regular communication, personalized interactions, and engaging them in the organization's mission and activities.

Relationship Building

Building solid and meaningful relationships with major donors goes beyond fundraising. It involves understanding their philanthropic interests, values, and motivations and aligning them with the nonprofit's mission.

Stewardship

Effective stewardship involves expressing gratitude, keeping communications open, empowering major donors to stay informed about the impact they are having, and ensuring transparency in how their contributions are used.

Big Gift Ask Strategy

Developing a strategic approach to making the ask is crucial. This includes appropriately timing the ask, tailoring the request to the donor's interests and capacity, and clearly articulating their gift's impact on the organization's

Recognition

Publicly and privately acknowledging major donors and confirming their value to your nonprofit encourages continued support. Recognition can take various forms, including naming opportunities, donor events, and publication acknowledgment. Don't underestimate appreciation hardware (plaques, small awards made by a local artist, etc.) that is creative and can be displayed to prompt discussions around your nonprofit when you are not there.

Donor Follow-up and Reporting

After receiving a major gift, it is essential to follow up with the donor and update them on how their contribution makes a difference. Reporting on the impact of their gift helps maintain trust and fosters long-term relationships.