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3 Strategies to Cultivate Major Donors for Your Nonprofit

Individual donations typically make up the bulk of a nonprofit’s funding. More than that, studies show 80% of individual donation revenue comes from the top 20% of donors. Securing these major gifts is essential to fund your organization’s most important projects and initiatives.

However, getting to the point of asking a donor to make a major gift takes time and effort. Donors will only want to give if they feel like your nonprofit values them as people rather than just revenue sources, which becomes more true as the donation amounts you ask for increase. So, you’ll need to communicate with each major donor individually to secure their support.

To help your nonprofit cultivate major donors, here are three strategies to try:
1. Assemble a dedicated major gifts team.
2. Conduct prospect research.
3. Build relationships with potential donors.

Keep in mind that the most effective major donor cultivation strategies are data-driven. According to CharityEngine, investing in dedicated major gifts software can streamline securing donations and help you evaluate your efforts over time. Let’s dive in!

1. Assemble a dedicated major gifts team.

Since major gifts are so critical to your organization’s success, it’s worthwhile to have staff members specifically dedicated to major donor fundraising. Many nonprofits refer to this as their development team or department.

Start by appointing or hiring one experienced fundraiser as your nonprofit’s major gifts officer. This individual will take on various related responsibilities, including:
1. Identifying potential major donors.
2. Developing an outreach strategy.
3. Presenting major gift proposals.
4. Recognizing and stewarding supporters.

As your organization grows, your development team should also grow. This way, employees with relevant skills can take on different responsibilities and make the process more efficient.

2. Conduct prospect research.

The term “prospect research” describes the first responsibility of your development team: finding individuals who may be able and willing to make major gifts. Your nonprofit’s constituent relationship management (CRM) software is often a good place to start identifying prospects, along with using prospect research databases and wealth screening tools.

When conducting prospect research, you’ll first identify capacity markers like net income, real estate holdings, and investments to determine whether an individual has the means to make a significant donation. Then, examine affinity markers such as giving history and past involvement with your organization or similar nonprofits to see if the prospect is passionate about your mission and would want to contribute.

Once you’ve compiled a list of names that meet both criteria, you can begin outreach. Start by identifying the prospects who are already involved with your organization. You may eventually look outside of your current supporter base for major donors, but it’s more effective to build on existing relationships before exploring acquisition.

3. Build relationships with potential donors.

When you communicate with potential major donors, remember that the key is ensuring they feel valued. Major gifts provide a way for prospects to deepen their support for an important cause and establish a pattern of generosity, which are important points in making your case.

To start building relationships with potential major donors, follow these three steps:
1. Set up an initial meeting with the prospect. Use this meeting to introduce them to your organization’s mission and impact, as well as learning more about their lives and interests.

2. Send follow-up communications. Continue getting to know the prospect, provide additional resources about your mission, and invite them to fundraising events or volunteer opportunities so they can see your nonprofit in action.

3. Make the donation ask when the time is right. There’s no rule for how long you should spend building a relationship with a prospect before asking for a major gift—you’ll need to judge each individual situation.

Even if a prospect doesn’t commit to give right away, keep communicating with them if you think they might be interested in donating in the future—remember, it’s a process! Also, make sure to thank them for everything they contribute, whether time or money.

Cultivating major donors for your organization is worth all of the time and effort you put into it. Make the process easier on your staff by assembling a dedicated team, and invest in the right resources to conduct prospect research and build lasting relationships with potential donors. Good luck!

ABOUT THE AUTHOR:

Philip Schmitz – CEO & Founder

Philip Schmitz is the CEO and founder of cloud-services leader BIS Global, creators of the CharityEngine fundraising & communications technology platform. Founded in 1999, Phil has managed the vision and strategy for BIS’s suite of integrated business applications & hosting tools used by more than 400 businesses & non-profits.