Fundraising is a crucial part of any non-profit organization’s operations. It allows them to continue providing services and fulfilling their missions. One of the most effective ways to raise significant funds for non-profits is through major gifts. Major gifts are donations that are larger than the average gift size and can make a significant impact on an organization’s budget. In this article, we will discuss the role of major gifts in fundraising.
What are Major Gifts?
Major gifts are donations made to non-profits that are significantly larger than the average gift size. The definition of a major gift varies by organization, but it is generally considered to be a gift that exceeds a certain dollar amount. For example, some organizations consider a gift of $10,000 or more to be a major gift, while others may set the threshold higher or lower.
Major gifts are typically given by individual donors, but they can also come from corporations, foundations, and other sources. The most significant difference between major gifts and other donations is the amount of money involved. Major gifts require a higher level of engagement and personalized cultivation to secure.
Why are Major Gifts Important?
Major gifts are essential for non-profit organizations for several reasons. Firstly, major gifts can provide a significant portion of a nonprofit’s budget. For smaller organizations, a single major gift can make up a significant percentage of their annual budget. Secondly, major gifts are often unrestricted, which means that they can be used for any purpose the organization deems necessary. This allows non-profits to allocate funds where they are needed most, whether that be for operational expenses or specific programs.
Thirdly, major gifts can also serve as a catalyst for other donations. When individuals see that a significant donor has given a substantial gift, it can inspire others to give as well. This is known as the “leadership effect,” where major donors lead the way for others to follow.
Finally, major gifts can also strengthen relationships between donors and nonprofits. Major gifts require a higher level of engagement and personalized cultivation, which can help build strong relationships between donors and nonprofits. These relationships can lead to repeat donations and ongoing support.
How to Secure Major Gifts?
Securing major gifts requires a specific set of skills and strategies. The following are some key steps to securing major gifts:
- Identify Potential Donors: The first step in securing major gifts is to identify potential donors. This involves conducting research to identify individuals who have a history of giving to nonprofits, have the capacity to make a significant gift, and have an interest in the organization’s mission.
- Build Relationships: Once potential donors have been identified, the next step is to build relationships with them. This involves personalized cultivation, which may include meetings, phone calls, and events. It is essential to understand the donor’s interests, motivations, and values to tailor the relationship-building process to their needs.
- Make the Ask: After building a strong relationship, it’s time to make the ask. The ask should be personalized to the donor and specific to the organization’s needs. It should also be made at the right time and in the right setting.
- Stewardship: After receiving a major gift, it’s essential to steward the donor properly. This involves acknowledging the gift, thanking the donor, and keeping them updated on the organization’s activities. Stewardship can help build long-term relationships with major donors, leading to ongoing support.
Conclusion:
In conclusion, major gifts play a crucial role in fundraising for non-profit organizations. They can provide a significant portion of a nonprofit’s budget, can be used for any purpose, and can serve as a catalyst for other donations. Securing major gifts requires a specific set of skills and strategies, including identifying potential donors, building relationships, making the ask, and stewardship.