Major Donor Fundraising Strategy

The thought of having to create and execute a Major Donor Fundraising Strategy is so overwhelming for many charities, that it has the vast majority hiding under the proverbial duvet and failing to even start.

So many charities are simply not doing Major Donor fundraising.  

• They claim ‘not to know anyone’
• They don’t know how to do it or what to prioritise.
• Their time gets taken up with the busy / reactive stuff.

The truth is that with government grants in decline, individual giving stagnating and a painful overreliance on trusts and foundations, Major Gifts fundraising can for many charities, play a small and growing role in a diverse and sustainable funding mix. 

I’m here to make it simple, and I’d love to share some thoughts on how basic your Major Donor Fundraising Strategy can be, regardless of your charity’s size and experience.

What is a Strategy? 

I read a strategy recently and concluded after doing so that it wasn’t actually a strategy.  

So let’s be clear:

A strategy is about using data and information to make intentional choices which will inform your activities.  

It’s about choosing one path over another so you can focus on the things which will get you to the place you want to be. 

The actions described in a fundraising strategy are specific.  Their inclusion can be justified.

For example: ‘Maximise income from existing sources’ is not a good example of a strategic objective because it’s unspecific, obvious and gives no indication that you’ve chosen to do this thing over something else. 

On the other hand ‘Take a 12 month break from running donor events to focus instead on building closer relationships with existing supporters’ is better.  You’ve taken a decision to cut something out to free up space for another activity.  You’ve made a choice. 

The one strategic aim every Major Donor Fundraising Strategy should include:

When starting out in Major Gifts fundraising, you’re not likely to have a whole lot of choice open to you. 

This should make planning your Major Donor strategy easy enough.  

Here’s my suggestion for your strategic direction:

‘Focus first and foremost with deepening relationships with existing supporters and personal connections.’

It’s actually that simple. 

• Nurture your existing relationships.  
• Connect with your people.  
• Check in with them regularly. 

Build your understanding of who they are, what motivates their philanthropy and what information you’re missing which is preventing you from having a conversation about a financial contribution. 

This is arguably also a very sensible direction for larger charities with established programmes, where the lure of gala dinners, development boards, glossy brochures and courting adviser networks can cloud your priority.

3 common mistakes I see regarding Major Donor Fundraising Strategy 

Now you have your strategy, you can double check it doesn’t contain any of these: 

1. Too much emphasis on events 

Events feel like an easy go-to for all Major Gifts programmes, especially new ones.  The assumption being that hosting an event feels like a legitimate ‘excuse’ to get in touch with someone as opposed to an invitation to learn more about your work, which does not. 

If you think that people can be lured into supporting you with a glass of Sauv Blanc and a teeny tiny Beef Wellington (or tapenade on a crostini for the vegans), then you’re likely mistaken.  

They’ll either not reply to your invitation.  If they do attend, they’ll take the snacks and you’ll never hear from them again.

You might be playing safe by going hard on sheer numbers (an inevitable percentage will likely attend), but the bigger the event, the higher the workload and the more difficult it is then to deliver a worthwhile ROI. 

Trust me. 

Those who are genuinely moved by your work will probably be open to hearing more, without the promise of canapes.

Top tips: 

If you have an events programme, be sure to interrogate the data and then to only run events which you’re absolutely confident deliver a great return on investment. 

Be brave and stop doing events which cost more time and money than they generate.  Use the time you’ve saved to concentrate on making one on one connections with supporters. 

If you’re new to Major Donor Fundraising, don’t bother with events in the first instance.  Talk to your supporters individually first. 

2. Disregarding existing contacts in favour of ‘cold prospects’

There’s something about the promise of ‘new and shiny’ supporters which often prevents charities from connecting first with those already on their radar.  

I have no idea why this is because talking to someone who is already sympathetic to your mission is a damn sight easier that trying to establish a new relationship.  

I’ve heard charity leaders say things like ‘there’s no one of note on our database’ and then proceed to create a fancy brochure which is then sent out to a list of local solicitors and accountants in the hope that they’ll do the solicitation on our behalf. 

I suspect it’s easier to hide out doing research all day than it is to actually pick up the phone.  Major Gifts work does require one to step outside of one’s comfort zone. 

Top tip: 

Don’t think that a band of secret philanthropists is out there waiting to come to your rescue.  They aren’t and they won’t.  

Talk to those already supporting you and regularly invite them to be a part of your work.

3. Grouping and segmenting donors and not building individual relationships 

Plenty of charities ‘tier’ their Major Gifts work, offering different benefits at different giving levels.  

Like membership schemes, these offerings enable charities to engage with high level donors at scale – great from an efficiency perspective and fantastic in facilitating social occasions and networking – both ingredients which can bring together like-minded supporters.

However, there is a danger that by treating donors in each of these groups as one homogenous entity, you’re possibly missing out on additional support. 

For many patrons / platinum members / guardians (not all), the minimum annual donation doesn’t fulfil the potential impact they are capable / desiring of.  Without further conversation / interest about what more a donor can do to create even more impact, their donation level will likely remain static.

I once solicited a six figure gift (plus several additional gifts for various projects) from a supporter giving £5k subscription / direct debit per year.  

Top Tip: 

Get to know supporters within your programmes on an individual, as well as a group level.  

Don’t shy away from making additional invitations to contribute if the interest and enthusiasm is there. 

One final reminder

Here’s your Major Donor Fundraising Strategy in one simple sentence:

‘Focus first and foremost with deepening relationships with existing supporters and personal connections.’

You’re welcome.