Answering 6 Key Questions Regarding Major Gift Giving for Nonprofits
The content in this article derives from Amanda White’s “Demystifying Major Gift Giving” webinar hosted by Park Bank in June of 2024. White is the founder of Amanda White Consulting in Madison.
“Everyone can be successful in major gift giving as long as you’re positive, confident, and have a strategy and plan.” – Amanda White
For many nonprofit organizations, a significant portion of the funding needed to sustain operations and drive growth comes through major gift giving.
How can you set yourself up for success in securing major gifts?
This article presents the answers to six key questions regarding major gift giving for nonprofits.
1. What is Considered a Major Gift?
The definition of a major gift depends on your organization’s size.
“For organizations with a budget of around $500,000, a major gift might be $10,000,” White said. “For organizations with $1M-$2M+ budgets, that threshold might be a lot higher.
“One of the most important things to do is identify what a major gift is to you.”
Major gifts can be large, one-time contributions or structured as multi-year pledges. They can come from individuals, family foundations, other philanthropic foundations, and corporations, and can take various forms such as capital campaign gifts, endowments, large expansions to specific programs, in-kind gifts, and charitable bequests.
2. What is the Fund Development Process for Major Gifts?
According to White, the process for fund development involves four steps:
- Prospect Identification – Identify potential donors capable of making a large gift.
- Engagement – Invite them to attend an event, have coffee, volunteer, etc.
- Ask – When the time is right, ask for a gift.
- Thank – When successful in your ask, show gratitude.
(Then repeat these steps.)
3. What are Smart and Strategic Investments?
Engaging in major gift giving requires a significant time commitment.
As such, White recommends prioritizing your top prospects according to the “fundraising pyramid,” which follows the “80-20 Rule” where 80% of the dollars raised come from 20% of the donor pool.
The Fundraising Pyramid (from top to bottom):
- Planned and Deferred Givers
- Major Givers
- Annual/Recurrent Givers
- Occasional Givers and Event Participants
Who’s the best target audience for major gifts?
“Donors who are already giving, already engaged, already care about the work that you do, but they have a larger capacity to give than what they’re currently giving at,” White said.
4. Why Emphasize Major Gift Giving?
Major gift giving is a more economical approach to raising funds compared to other methods.
“It’s usually more cost-effective because of the larger dollars you’re able to raise than other types of fundraising activities,” White said. “For most organizations, big fundraising events take so much of your time and usually have a much smaller return on your investment.”
Here’s a breakdown of fundraising costs per dollar:
- Events: $.50
- Direct Mail Renewal: $.25
- Planned Giving: $.25
- Grant Writing: $.20
- Major Giving: $.05-.10
5. Why Build a Culture of Philanthropy?
Successful major gift giving starts with creating a strong culture of philanthropy where everyone in your organization values fund development.
White provided six guidelines for building a culture of philanthropy:
- Everyone in your organization is an ambassador and relationship-builder.
- Everyone in your organization can articulate a case for giving.
- Fund development is valued as a mission-aligned program.
- Organization systems are established to support donors.
- The executive director is committed and involved.
- The board of directors fosters and leads fund development.
6. What is the Major Gift Giving Process?
Step 1: Identify and Qualify Prospects
“Look for those prospects who are engaged, have an affinity for your organization, and have capacity to give,” White said. “This is where your board plays a really important part of being an ambassador by having them look within their connections.”
In addition to examining your current donor base and leveraging your board, you may also use wealth assessment tools and conduct your own research to find qualified prospects.
Once you’ve identified a prospect, find a person within your organization who has a connection to the prospect (a “connector”) and can help make an introduction.
Step 2: Outreach
Reach out to the prospect through a warm-up call or email. Find out if they’re interested in learning more about your work. If they are, set up a meeting or invite them to your organization’s next event.
If you land a meeting, be prepared with a detailed agenda and think through the flow of your conversation so you’ll know when it’s the right time to make an ask.
“If they’ve got their poker face on and there’s not a lot of engagement, it may be too soon,” White said. “If they’re asking a lot of questions, seem engaged, they’re excited about your project, then absolutely make an ask, even if it’s a first meeting.”
Step 3: Engage, Engage, Engage
Regardless of whether you make an ask or not, or whether they give or not, it’s important to stay engaged with the prospect without pushing them away.
White calls this taking a “patiently persistent” approach.
“Invite them to program-related events, send nice notes about your progress,” White said. “Listen in your meeting for areas they are most interested in and look for opportunities to update them. Be patiently persistent. Continue to engage with them and keep them top of mind without being too pushy.”
Also, offer them some flexibility. Ask if they’d “consider a gift in the range of $_____ to $_______,” rather than asking for a “gift of $X.”
Last, enjoy your wins!
“Celebrate every big achievement, small or large, because that’s what keeps us excited,” White said. “That’s what keeps us motivated.”
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About Amanda White: For over 25 years, Amanda White has built the financial success of a variety of mission-based organizations. Since launching Amanda White Consulting in 2013, Amanda has advised over 50 nonprofit organizations, including 25 capital campaigns, in achieving funding goals and creating transformative projects in the community.