Major Gifts for Small Organizations Michael Barndollar
What is a Major Gift? Major gifts fundraising is a one-to-one relationship where your sole aim is to match a donor’s interests and passions to the goals of your organization. Transforms, changes and saves lives! Transforms your organization. Dollar amounts?
Cost of Raising Money Acquisition mail $.85 - $1.25 Renewal mail $.25 - $.30 Events/Benefits $.50 - $.75 Foundation Grants $.25 - $.35 Corporations $.25 - $.50 Major gifts $.10 Planned gifts $.10 Capital Campaigns $.05 - $.15
The Fundraising Pyramid Investments Donor Commitment Planned Giving Involvement Donor Growth Major Giving Interest Information Donor Contact Annual Giving Identification 3
Sources of Philanthropy Giving USA 72% of donations are from individuals 8% of donations are from bequests 15% of donations are from foundations 5% of donations are from corporations
Assumptions Major gifts are essential to all highly successful development programs … Whether your organization defines a major gift as $500 or $100,000, because … 90% of your goal is likely to come from 10% of your donors, and … A good major gifts officer can raise 4-5 times your investment in them (at least) The cost per dollar raised is very low!
Key Questions: What is a major gift at your nonprofit? What is the largest gift you’ve ever received? Was it “manna from Heaven” or did someone make it happen?
Elements of a Successful Major Gifts Program A compelling, bold vision Organizational credibility Prospects with financial capacity and involvement Matching your needs with donors’ interests and benefits Strategic donor relations – working the top 50 donors steadily – it’s a habit Successful Annual Fund appeals Leadership level giving from an engaged Board???
Elements of a Successful Major Gifts Program Cause & Case: great causes but not about you; the Case is the rationale for support – it’s your organization, your solution, your service – your impact! Sales Visit, Visit, Visit ASK, ASK, ASK!!
Elements of a Successful Major Gifts Programs Cultivate the right donors Establish a revenue goal for each donor Create a strategic plan for each donor Ask donors for support Thank donors Report back Be Accountable
Can you identify donors that: Feel passionate about your mission? Derive satisfaction using their wealth to help advance your cause? Consider their relationship with you one of the more important ones in their lives? Make themselves accessible to you – already donating to your organization? Have a need that will be satisfied by making a gift to your organization?
How do you know?? What’s in your wallet? Better stated, what’s in your database because your database will determine what’s in your wallet!
Notes on Prospects Seven times the cost – old vs. new Look to your database Visit with top givers Referrals Never make decisions on behalf of your funders Friend raising events (not fundraising events)
Notes on Prospects Most qualified already involved and engaged; they believe in what you’re doing Master prospect list Rate and rank Relationship manager Natural partners Visit, engage, listen Referrals; do it again
Major Gifts It is all about relationships: maximizing the relationship of your best and most qualified prospects at this given time. (For Impact/Suddes Group)
Rating Potential Donors Capacity - If they were so inclined, how much could they give? Involvement – How involved and at what level with your organization? Affinity - How closely affiliated, interested in your work, how philanthropic are they? Informed – How informed are they about all aspects of your organization and its programs? Readiness - How much time is needed before their ready to say “yes”? What personal factors come into play that will affect their giving?
Board Roles in Major Gifts Champion Invite Invest (For Impact/Suddes Group)
Board Roles in Major Gifts Identify new prospects (which may be current donors) Rate and screen prospects Cultivate closer relationships When appropriate and trained, solicit gifts Steward gifts; maintain the donor relationship Commit to a minimum of X prospects each year
Personal Assessment How many donors do you initiate contact with each week? How many visits have you made to the home or office of current and/or former donors, trustees and friends? How many gifts have you asked for? Are you active or passive about building donor relationships?
The Bottom Line Right person asks the Right prospect for the Right amount in the Right way at the Right time for the Right cause with the Right case!
Remember, when you raise major gifts, you are the bridge between the world’s greatest needs and your donors’ desire and passion to address them!
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