Getting major gifts is hard work…let’s get started

The only way you can raise major gifts is to have confidence in yourself and enjoy the process…

Easier said than done – for sure.

If you’re  new to this, or you’re in re-boot mode, the smartest path is to take very small steps, recruit allies on the board, and get clear on what you could accomplish with major gifts of varying amounts. 

A fun task to get you started – make a wishlist of special projects that are already in your budget and can be made better, or new initiatives that would have a measurable impact. 

Why is it so important to have a major gifts program?

Major gifts represent the most important source of funds for a nonprofit that can be used for operating funds, special projects or capital campaigns.

The rule that 10% of the major donors provide 90% or more of the organizations funds shows the significance of major gift fundraising.

The most compelling part of receiving a major gift is that it can empower your organization and bring it to new heights.

money

I hope you don’t view your major donors this way

Is this how you think of a major donor? I’m sure you don’t but shouting out my point made me feel better. 

A major gift is not about money. It’s a well thought out personal decision. It’s a very special expression on the part of the donor making it clear that they believe in you 100%.

Deciding to make a major gift is an intelligent and strategic decision. It makes you take a hard look at the world and guides you into thinking what it is you want to change and how you can do it. Giving the major gift fills you with joy and passion and connects you to the organization for a lifetime.

Major Donor, age 30

Implicit in the gift is the message that the donor truly holds your organization in the highest regard – they want you to continue your good work well into the future.

These are the questions that are all too common with executive directors and board members:

  • Where are they going to come from?
  • How will I get the board involved, I can’t do it alone
  • It scares me
  • I don’t know how

Here are 4 baby steps to get the ball rolling

Baby steps on grass

Step 1: Is your attitude in check?

Getting major gifts is probably the most intimidating part of fundraising for most people.

The good news is that we’ve come a long way in the fundraising profession. We can now let go of the rolodex syndrome and the years and years that we spent arm twisting in the name of doing good. Ugh. 

Those days are over and we know that the way to a to ask and get a major gift, almost every time, is to ask the right person at the right time for the right amount.

If you do your homework and pay attention, it’s most definitely do-able. Even for the smallest nonprofits. 

Here is what’s at stake if don’t include major gifts in your fundraising strategy.

You will never have the capacity to:

  • Build an organization that has the staffing and infrastructure to provide outstanding programs sustainably
  • Continually improve your programs and expand your reach
  • Innovate, take risks, and meet emerging needs 

I say this because the research shows that most nonprofits, particularly those under $1M, have a hard time raising enough money to maintain the programming that they have, let alone improve upon it or grow. 

Moreover, these amazing groups are operating with minimal overhead and an inadequate infrastructure. How?

By burning out their staff or not providing the conditions for success needed to raise money – which of course costs money. 

I’m not beating up on boards or ED’s. The issue is systemic.

That must change if we are going to create impact that’s even a little bit sustainable.

Really, this whole overhead thing is insane. If you haven’t seen Dan Poletta’s TED talk, this is the moment. 

The solution: major gifts fundraising is a giant step in the right direction.

Here are a few stories that inspired me. More baby steps.

Success story #1: A board member transformed

I was facilitating a board retreat recently, and a board member named Joan got up and said,

“I don’t want to beg my friends for money! I feel like I’m twisting their arms, and they won’t want to be my friends any longer.”

If that’s how you and your board members feel, it’s time to stop and change your language and your attitude.

When you ask for a major gift you are giving the prospective donor an opportunity to make a difference in a cause that they already care about.

The following month, she had asked one colleague, one neighbor, and one friend to support the organization. Joan was a new person

Success story #2: the ask that sold itself:

Major donors want to invest in major goals and big visions. 

To prove that point, take a moment and imagine two different major donor prospects. 

Both are capable of donating $25,000 to your organization.  Both have been cultivated properly.  Both are ready to give.  Neither has ever given your organization more than $5,000 in a single year.

You go to the first donor, have a great lunch with him, thank him for his past support, and ask him to make a $25,000 donation to your organization to help support your ongoing efforts.

You go to the second donor, have a great dinner with her, thank her for her past support, and detail for her your plan to expand your non-profit’s services to the neighboring two cities. 

You’re going to double the number of people you serve, from 500 to 1,000 per year. You’re launching a new awareness initiative, including a brand new educational program that is being implemented in 10 local school districts. 

It’s going to cost another $100,000 over your current budget.  You ask her to donate $25,000 to take a leadership role in your new big vision.

Which of these two donors do you think is more likely to give?

Step 2: Find your allies

A glass of wine and a conversation with your dream team is a great first step.

The most important thing is to have a team that wants to make this happen. Set up a time to meet with the executive director, board chair, and 1 or 2 carefully selected board members.

Sit down over a glass of wine or a cup of coffee and have a conversation. Be casual and make it fun.

leadership-feb6

Get inspired. Watch this short video about how to get the board involved in major gift fundraising to kick off your discussion.

We all know the best leaders are learners. The only way this will work is if you know what you’re doing.

It can be fun. Figure out what need to learn. Then go at it. 

Assign something specific to each person (don’t leave it all to the ED) and set up a time to report back and identify next steps.

Get to know your peers: both board members of other nonprofits and ED’s. Learn what worked for them. Don’t do this in isolation.

Take this seriously. It’s too important to wing it.

Step 3: Identify your prospects and focus

I have good news for you. Many of your next major donors are already giving to you.  Studies show that frequency of giving is a better major gift indicator than the size of past gifts.

When I organized my giving and linked it to my own values, I found that I was willing and able to increase my giving, and to get more joy and satisfaction out of my gifts.

 Major Donor

So, start with the people who already care about you. We tend to assume our regular donors are already giving at the peak of their capacity:

“Oh, he’s just a $100 donor.” 

There’s no “just” about it if he’s making that gift every year! He clearly cares. And it’s worth your time to figure out if he has the interest and capacity to do more. 

Your non-profit should have a mini plan for every major prospect that you come across. 

Identify your top 10 prospects.

A few qualifiers:

  • they’ve given 5+ years in a row at any level
  • they’ve given $500+ for 2 years or more
  • they’ve given consistently and volunteer

Add to that

  • they know Sue the board member
  • they know Sam the client

Here’s the thing. It’s much better to focus your energy on a few solid prospects rather than spreading yourself too thin.

Forget your top 10. Make it your top 5, or your top 2. Do  it right.

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 Step 4: Build relationships with your top (fill in the blank)

Of course, build relationships with all of your donors.

But for the purposes of a major gifts program, create a special calendar and step it up.  Check this one out

Be Realistic

Major donor fundraising takes more time and patience than simply sending out a direct mail letter, a few newsletters and hoping for the best. 

At best, it takes a 10+ month process of proving to them that your non-profit is a good decision, and a good place for their hard earned dollars to find a home. 

Some prospects like events, others like mailings, still others like to be asked for input and advice. 

With the right game plan, your major donor efforts will begin to bear fruit, and will ultimately provide a major boost to your development organization.

Fundraising is all about relationships, and the most effective method of building those relationships is face-to-face.

Don’t be one of those fundraising shops that only contact donors through direct mail!

What’s your biggest roadblock?

Let me know and it will inspire my future posts.

If you found this useful, share it with a colleague. 

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