How Do We Begin a Major Gifts Program?

I'm often asked that very question. I answer by saying it's all about creating and maintaining relationships. If you want to be successful in major gifts, there must be an organizational mindset, otherwise known as a culture of philanthropy, in which the nonprofit cares for each donor. It's a commitment that must be made starting with leadership, development officers, and the board.

This commitment entails donor cultivation, stewardship, and care designed to fulfill your organization and your donors' needs to sustain your vision.

Thresholds

One of the first steps is to define what the major gift levels or thresholds are for your organization. I usually like to say that any gift that makes or has the ability to make a significant and positive impact for your organization should be considered major. For one nonprofit that might be a one-time gift of $500 or more; for another, it may be total gifts of $5,000 or more.

It's all about a creative strategy that helps donors meet and fulfill their dreams while accomplishing yours. 

When speaking about major gifts to prospects stress that a gift to you is a gift through you to solve an urgent and pressing need.

Identify

If you're not already, you should rate major donor prospects according to their willingness and capacity. Willingness refers to a donor's connection to your organization and his or her level of commitment or interest to support your case. And it's important to consider capability as well. This refers to a donor's financial capacity to support your mission.

Start with Your Database

To find major donors look to your database first. How many are giving at a significant level? How many have made a $1,000 gift? If you have 5,000 of these, you're doing great. If you have only 100, that's probably more the norm depending on your size. Let's say you only have 4. If that's the case, my advice would be to lower your baseline to $500 and go from there.

Segment Major Donors

This goes back to what we originally said about commitment. Remember, we said that that commitment means caring for each donor as you would like to be cared for. Fulfilling this means breaking major donors and prospects into segments that allow you to care for all major donors consistently and carefully. Stay focused on these donors who are likely to to give the majority of the funds you receive in any given year. 

Rank Your Major Donors

1. How close do you feel they are to giving you a significant gift?
2. Have they been in touch with you recently?
3. Have they given you any indication that a gift might be forthcoming?
4. Do you know them well and feel comfortable that you might receive a gift fairly soon?

When you're done ranking, think about the capacity of you staff. A full-time major gifts person should be able to handle between 50 to 100 top tier prospects, carefully, consistently, and strategically.

The bottom line: nearly 90% of philanthropic gifts in the U.S. come from individuals. To be successful you need to ask yourself the following:

Are you maximizing your donors' giving potential through a well-thought out major gifts program?