What is Major Gift fundraising?

Major Gift Fundraising (also known as Major Donor Fundraising) is the practice of raising money from individuals whose gifts are: 

• substantially larger than the average and 
• which have the capability to make a significant impact on the recipient organisation / s.

These individuals are often referred to as major donors or (before they have given) major gift prospects.  It is the job of a Major Gift fundraiser to work with these individuals, using a highly personalised approach and working with a small portfolio of philanthropists so that they can keep track of each relationship at each stage.  

The process involves:

Identifying individuals 

There are three key factors that indicate that someone could make a Major Gift:

• Individuals need to have the financial means to make substantial donations, but more importantly, 
• a strong affinity to the cause in question and 
• (ideally) a personal relationship with an individual already connected to the charity.  

Major Gift Fundraising requires the investment of significant time and effort in researching potential donors, understanding their interests and philanthropic goals, and then planning the next steps accordingly.

The practice of Major Gift Fundraising requires the fundraiser to understand the motivations of each individual to the best of their knowledge / experience and from the facts gleaned from the research they’ve done.  Sometimes these are not explicit and must be assumed.  

Great judgement is key as is turning assumptions into fact through relationship building.

Planning and building relationships

The cultivation and stewardship period may involve various activities, such as personal meetings, events, tours of the charity’s facilities, and providing opportunities for the donor to engage with operational and leadership teams.  It typically takes many months, if not years.

Tasks may involve:

• creating custom proposals which demonstrate the impact of a potential gift, 
• introducing the supporter to colleagues, trustees and other donors, 

• showcasing accomplishments and demonstrating that you have a track record 
• explaining future plans
• Seeking feedback on planned initiatives 

The goal is to establish a deep connection between the donor and the organisation, aligning their philanthropic interests with the organisation’s goals.  

The healthiest major donor relationships strike a careful balance where:

• donors are included in the charity’s journey, their opinions are sought and authentically welcomed 
• charities are not put wildly off course or distracted by donors with an individual agenda which doesn’t necessarily align with a charity’s core mission. 

If it feels right and if the goals of both the philanthropist and the charity are sufficiently matched, then the cultivation work should lead towards a major gift.

Starting off a Major Gifts fundraising programme

Major Gifts Fundraising looks different in practice for every organisation.  The definition of a Major Gift will vary according to:

• charity size, 
• reliance on other sources of income, 
• fundraising culture (often depending on which sector the charity operates in) 
• the connections which exist between staff / trustees and potential philanthropists.

Some factors which make Major Gift Fundraising easier:

• a recognisable brand, 
• a track record for delivering great work 
• a large, long established supporter base
• well-connected trustees who are enthusiastic about fundraising 

Irrespective of your starting point, the first few years of a Major Gifts programme can be difficult financially, though there are exceptions.  

The key is to build gradually and proportionately (for example, don’t hire a Major Donor Manager on £50,000 a year if you have 4 people on your database and your trustees have zero interest in supporting this work). 

It’s a team effort

Even more so than other types of fundraising, Major Gift fundraising will only work if your leadership, including your trustees are intimately involved in the development of relationships.  

Major Gift fundraisers are often only the architects of a relationship and not the executors.  The actual introductions and subsequent points of contact will more often than not, happen between trustees, the CEO or other operational managers.  

It is the job of a Major Gift Fundraiser to build a tailored and thoughtful supporter journey for prospects suggested by those who have the connections.  It is not the job of a Major Gift Fundraiser to suggest / introduce. 

ROI?

Done well and with consistent application, Major Gifts Fundraising can generate an average of £9 for every £1 spent.  Return on investment tends to improve over time.

However, it can be hard to measure averages for this discipline compared with an individual giving, community or events programmes.

That’s because it’s very all or nothing and charities tend to be working with much fewer philanthropists than regular donors.  So you could raise nothing one year and £2 million the next from only three people. 

Rather than fixating on ROI, remember that nurturing relationships is the foundation of all great fundraising, Major Gifts or otherwise.

Once established, your Major Gifts programme will be self-sustaining, as satisfied supporters introduce their own contacts to your great work.