How do you cultivate relationships with major gift prospects?

If you are building a major gift program for the first time, start where you are. It's rare that a donor's first contact with you will result in a major gift. The people who know you well - current donors, volunteers, board members, maybe even those who are using your programs - are most likely to have the emotional connection to consider a major gift. Also, have you defined what a major gift is in your shop? Being clear on this will help you plan your fundraising program.

There are potential major donors in every organization. It can be the donor who loyally gives $100 each year and has never been engaged. It can the donor who sends in $1,000 to see how an organization responds. I suggest starting with two categories: 1. Donors who contribute over a certain level - it could be $500, $1,000, $2,500, or more, depending on the size of your organization. 2. Donors who have given for a specific period of time - it could be 5 years, 10 years, or more. Those who give loyally are often overlooked but they are often the donors who feel the most closely connected and have more capacity to give.

Make sure that your caseload includes ~10 good connectors. These are people who: (a) get your cause and know how to talk about it as well or better than you (b) know people of influence and affluence who might be interested in involvement with your cause (c) are well respected and known with your network - people generally respond positively when they facilitate an introduction Give these folks the same treatment you would give any top major donor. Plan 3-4 touchpoints per year. Make sure you are helping them with connections for their other interests. Done well, this should keep a regular flow of new prospects who have both financial capacity and interest in your cause.

Beyond affinity, it's also important to listen. For example, social media delivers so much insight through conversation. It's important to spend time understanding what people are interested in and sharing how you solve the issue at hand through this and other mediums.

Many times the only way to gage what motivates donors is to build a relationship with them. Meeting them where they are and being curious about who they are will help you immensely understand where to classify them on a rating scale.

Look for common values their philanthropy or businesses demonstrate from publicly available sources. Relate these to the charity's and to your own. There is a fine balance between showing you have done some research, which most major donors will expect, and being over personal. Podcasts are an overlooked source of research around major donors with a high profile. People generally share much more in interviews and it is great preparation for what will hopefully one day be a real life meeting with them.

In addition to the tools available for research, I encourage leaders to ask their active donors and prospects directly about background, values, goals, etc. Ask about the story of their wealth. Gauge their level of comfort talking about money and their giving preferences. If you have developed good strength in the relationship, you generally can find out a ton just by asking. And don't forget to ask your connectors these questions as well. Your connectors want you to be successful in connecting with new prospects so they are a great source of intelligence!

There are lots of tools for research out there, but if your team is small you may already feel overtaxed with the responsibilities of front line fundraising, fulfillment, board relations, grant writing, and daily admin. In this case, hiring a contract researcher can be a great way to get the insights you need to cultivate higher value relationships without taking time away from other important priorities.

There are many great resources for prospect research. I agree with the advice offered by others here and would like to add one more thing -- talk to your prospects! Once you've prioritized your prospective major gift donors and opened the door to a conversation, ask questions to determine whether the prospect is interested in a deeper relationship with your organization through philanthropy. What draws them to your organization? What motivates them to give? What do they look for in organizations they support? What impact would they like to have? Major gifts come from those who have trust and confidence in your organization and its leadership. Prospective donors are the best source of information on how to build that kind of relationship.

True for many, especially corporate donors. Look outside the box as much as possible for other types of donors that may have interest and never turn away a donor with a small gifting budget but can be a long term and reliable donor that can also help you in gaining recognition by other donors. We ask charities to send us a list for the year they are seeking support by donor/specific purpose of gift/ and amount requesting/approved divided by approved gifts, then those under consideration and those they intend to apply to. There is an ulterior motive to benefit the charities. Many donors know each other and if a donor is supporting a charity they too may follow suit and also support them.

Another point I would like to add to this is to ask you prospects how they would like to be contacted. I’ve interacted with eco-friendly prospects who would reconsider a gift to your organization if they felt like you were “wasting paper” sending them letters and actually preferred to communicate via text messages. Before asking, texting a prospect would have felt like a huge overstep of boundaries, but much to me and my team’s surprise this prospect was even more receptive to communication once we learned that this individual just preferred to communicate that way.

Put a lot of thought into who is best placed to engage a donor. Is there a known link to the person who can make an introduction? Be prepared as a professional fundraiser to support others who may not be (existing donors, board members) in the process. Brief them and be clear about what the desired outcome is. This might be a direct ask or to set up a meeting. There is no substitute for phone calls, letters may also stand out but generally try and avoid email if you can.

Love James Haughton's advice below. Would add a few thoughts: - spend some quality time and get some help with your messaging (vision, mission, projects) and keep it tight (1 page or 6 minutes) - hone your storytelling - what are the stories of lives who have been transformed by your cause? - sharpen your systems for tracking relationships - review and refine regularly (you will fall to the level of your systems - nod to James Clear) - observe, ask/listen and learn about the stories of your donors lives and families - join your donors in play as much as you're able (make sure you are able to budget for this essential part of your work!)

I would agree, but I think open and honest communication is important. Go by the culture of the donor. Some are all family and may not require a specific format in reporting or they may not require reporting. IRS regulations state that a charity must report to donors on the usage of funds awarded and we all answer to the IRS (former IRS employee here). If the donor does not have a specific gift report format you can if you use a bookkeeping software like Quickbooks and assign an account by donor so that as you expend the funds coding each usage you have a record. You can print off a report for all of the checks cut using their funds for the specific gift they awarded. Then write a succinct report on each check and purpose. Specific!

Adding to James' good advice: - Assess their connecting capabilities - you now might have a raving fan with influential connections who will gladly help you add their giving - creating stability and resilience for one of their favorite causes. - Begin planning for the next invitation - may or may not be financial and may be a ways off - but plan nonetheless. - Celebrate their giving - pop the cork! Get creative. Include staff or celebrate with them separately. - As appropriate build relationships with other family members, younger/older generation. - Plan a vision trip to see the impact of their giving, whether it's 5 minutes down the road or 15 hours across an ocean.

Great stewardship for a gift is the first step in cultivating the next one. Showing donors the impact of their gifts is powerful. Ask your major donors how they'd like to be thanked and recognized. What would be meaningful to them? In my experience, connecting donors as closely as possible and appropriate, with the impact of their gifts -- so they can see what they are helping to make happen -- is far more effective than another paperweight or keychain.

Thank people who donate by phone, engage CEO's and Board Members in doing this when the gift is significant. Follow up with handwritten thanks. VIP stewardship events with a sense exclusivity are a great tool. Where feasible invite your major donors to visit projects to see the impact of their support. Most major donors will not want frequent updates so focus on quality, always try and discuss their expectations on reporting at the time they give.

If you’ve done well everything leading up to this point, then the solicitation should be a breeze. So, don’t overthink it. Additionally, be mindful that major donors are accustomed to being asked to make contributions, so they’re expecting you to solicit them at some point if there is alignment between your cause and their giving patterns. Note that, in some cases, it may insult a major donor to NOT be asked.

Agree 100% with Elton. Would add that, in my experience, the best ask in fundraising is when the donor makes the ask. "I'm ready to take action - how can I join the party?" As Elton suggests, if you've done everything well to this point, you'll start to get more and more of this from your donors and prospects. There's a great book I read recently called "They Ask, You Answer" by Marcus Sheridan. His concepts apply brilliantly, I believe, to the non-profit sector and have the potential to transform the way you invite people to join the cause.

This is going to sound counter-intuitive: If you are interacting with a prospect and it becomes clear that what "turns their crank" charity-wise is not aligned with your cause, be prepared to give away the gift. Call a timeout and say something like, "You know, as I've listened to you share and gotten to know a bit more of your heart and passion, I'm realizing that the work we're doing doesn't appear to be a great fit. I would love to help you find some causes that align more directly with your passions." I have done this a number of times in the course of my career. Not only do you deepen the relationship and trust, but you become a unique voice of influence in their giving. And, it exponentially increases the joy in your own work.

J. Paul's point is excellent, and I just want to expand on it for a moment. In addition to being willing to point someone in another direction, be willing to give them an out! Let them know that it's okay if something just doesn't work for them. Not only will this help you as a fundraiser feel more comfortable, it'll make the potential donor more comfortable, too. It's almost counter-intuitive, but when you give people a way out, they're more likely to say yes, because they understand that you're not just trying to back them into a corner. They understand that you actually care about alignment. Anyone can get a one-time gift, but if you want reliable funding you need to focus on alignment.