One of the services I am contacted about most frequently is how to build a major gifts program. I often hear the following: “we need more major gifts” or “I need a major gifts program”. Major gifts are a critical component of a development program. They are “major” gifts, meaning that the gift that is large and important. For one of my clients, a major gift is $5,000. For another client, it is $50,000. The gift size varies but the impact is the same – major gifts make up the majority of the organization’s fundraising dollars and are crucial to fundraising success.
Because major gifts are so important, there are a few steps that every organization should take before launching a major gifts program. They include:
Create The Parameters
- Establish your major gift level. Review all of the gifts your organization receives and then look at the volume of gifts. Major gifts usually represent the majority of dollars raised, but the fewest number of gifts. (For example, 75% of fundraising dollars come from 10 large gifts while the last 25% of fundraising dollars come from many more small gifts). This exercise is both an art and a science and may change over time.
- It’s important to maintain updated data on gifts of all size. You may receive a few gifts from foundations but they amount to a large percentage of total money raised. Smaller gifts may yield fewer dollars overall but they represent a high number of donors. Remember that major donors often start out as smaller ones, so be sure to flag those lower level donors for cultivation.
- Every organization has its own data and there isn’t a “right” or “wrong” approach. Rather, finding the approach that works for your organization will help to ensure your success.
Organize Your Data
- Create donor lists: identify those who already give at your major gift level. Code them as major gift donors in your database.
- Create prospect lists: look at the list of donors who give smaller gifts (this will be your largest list of donors). The goal is to pull out a subset to add to your major gift prospect list. Using a wealth screening tool and what you know about these donors, identify who has the capacity and inclination to give at the major level. Look at those whose giving has increased over time or who has been giving for many years. They may become your best major gifts prospects.
- These processes should occur simultaneously and continuously. You should always be evaluating your donors and refreshing your pipeline. Board members and existing donors can be great sources of names. A formal database screening will also generate new names.
Invest In Donor Relations
- Ramping up major gifts efforts also means that you need to think about how you work with donors: how you engage and cultivate to how you thank them after they have made gifts. Creating strategies for engagement and solicitation as well as tracking progress are critical. Developing practical tools to support these efforts such as outreach templates, sample thank you notes, and solicitation talking points will also help you create a structure to support your major gifts efforts.
Regardless of where you are in building a major gifts program, Little Bean Group can help you to think through these issues and identify strategies and tactics for success.