The most common activities for Australian-based NFPs are faith-based, human services, and education. As you can imagine, these three categories cover a wide range of social support and often attract the attention of wealthy contributors.
Without some form of major gift program in play, these donations can often get misallocated or are not fully utilised to push your NFP’s primary mission and goals. With a little organisation and planning, you can turn a foundation into a building block for your entire not-for-profit team.
What are Major Gifts?
A significant donation gift usually falls in the $25,000 to $50,000 range. It depends on your specific NFP. You might think of a $1,000 donation to fund a new initiative as a major gift, while other, more nationally focused teams consider $50,000 donations standard.
Either way, these major gifts tend to make up the bulk of an NFP’s annual fund. They are used for everything from renovating a kitchen in a food pantry to purchasing custom vans to transport at-risk youth to after-school programs.
So, who donates these big gifts? Major gifts come from major donors. They tend to:
- Already be associated with your NFP as board members, donors, volunteers, or corporate sponsors
- Have a high capacity giving opportunity due to high net worth
- Likely have a strong affinity or personal story associated with your NFP or its mission
The only other aspect to remember is that major donors tend to be slightly older. They have spent years cultivating a career or building a business and can now benefit from those financial gains by donating to your organisation. The only trick now is creating a system that attracts and leverages their kindness.
7 Tips to Streamline Major Gifts to Your NFP
#1 – Figure Out What Major Gifts Look Like to You
Most major gifts are in cash, stock, real estate, or planned gifts like a DAF (donor-advised fund). If you want to know how much you’re shooting for, you first have to define what it is you want.
Look at your previous largest donations. That is a reasonable basis for how much you want. For some NFPs, creating a chart based on the number of donors at each value (i.e., 10 at $1,000, 25 at $2,500, etc.) is a good way to determine what a major gift is.
You want to set an ambitious, but attainable goal. That way, you’re not disappointed or surprised when you hit your mark or come in a little short.
#2 – Create a Major Giving Team
Major gifts require a different service expectation than regular donations. You want a team of volunteers, usually headed by a development director or executive leader, to funnel major gifts into your NFP.
The reason for this is simple: people who donate a lot expect a lot. Not in terms of special favours, but in familiarity. They want a relationship with your NFP and seek respectful, personalised interactions that treat them well.
#3 – Make a Target List
Finding the right donors at the right time requires maintaining a list of “hot” targets. You want to look for those with a long history of donating or engaging with your NFP. That will give you a good starting point for a preferred donor database.
Once you have a list, break them down into the 3 Cs: connection, concern, and capacity. Anyone who donated a significant percentage to your operational fund over the past year is a hot lead.
#4 – The Art of Cultivation
Now for the hard part, cultivating major gifts. There is no way to underestimate how important it is to serve personal stories on a silver platter to major donors. Clearly explaining how those funds support your operations and then benefit or create value for the rest of the community is your number one way to get more gifts.
You can integrate these stories into all interactions, like:
- Hosting intimate or exclusive (VIP) events
- Having a separate, more detailed communication path (social media, email, etc.)
- Asking for donor input, opinions, and strategies so they feel more involved
- Setting up one-on-ones (lunch meetings, outings, etc.)
You can also invite these prospects to volunteer. They might break open those piggy banks when they see firsthand how their dollars will translate into direct action.
#5 – Make the Ask
You have to get comfortable with asking for major gifts. However, you need to set up a meeting space that is convenient for the donor’s tight schedule and appropriate to their station. You also need to use the right language.
Asking for a big gift often feels uncomfortable. If you share this discomfort, follow a simple formula: show appreciation, relay how they’ve positively impacted the NFP, then frame the ask around a specific goal or amount. You can say things like “Are you willing to consider a gift of $15,000 to support our immigrant integration program?”
#6 – Always Thank Major Donors
Always, always, always thank your corporate partners and major gift donors. This should be a personal note and public recognition of their charity and commitment to your organisation. While a phone call or handwritten letter is fantastic, you can go a little further with a donor recognition wall, an appreciation event, or another public display.
Not only will this benefit the donor, who will feel gratitude for their gift, but it will also demonstrate to other potential donors that you care about their support. That authenticity speaks volumes to those with time and money to give.
#7 – Review Your Results
Once you’ve run a major gift program for a year or around a specific fundraising campaign, it’s time to do some analysis. You want a clear, easy-to-understand report that examines the ROI for your program, retention rate, number of gifts, average donation size, number of asks, and anything else that could offer insights for the future.
Over time, you’ll start to see trends emerge. These will inform how you adjust and improve your major gift program in the future.
How We Help Your Major Gift Program
At Web 105, our role is to design and develop cutting-edge, visually engaging websites for NFPs like yours. That way, when you get your major gift program off the ground, we provide the online space to collect gifts, share news, and do anything else that might attract and retain big donors.
Our professional and experienced team has worked with Australian healthcare agencies, government groups, and a myriad of NFPs throughout the years. We know how to construct a website that supports your donation goals. Give us a call today, and let’s have a conversation about how we can enhance your major gift program.
FAQs
What is a major gift donor?
These are the people, groups, or businesses who contribute the largest gifts to your NFP. They tend to fill in the funding gaps for your entire operational year.
How much does a major donor give?
It depends on your organisation, but most will be anywhere from $5,000 for a smaller team to $2 million for a national program.
What is the difference between annual giving and major gifts?
Annual giving is a commitment for a specific amount year after year. These are extremely valuable and can be the lifeblood of your NFP. A major gift is typically a one-time donation of much higher value from someone with a more personalised relationship with your NFP.