Encouraging Donations – Part 3: How to Build a Major Gifts Campaign
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Did you know that only 12% of donors are responsible for as much as 88% of the total funds raised for a nonprofit? That’s why it’s crucial to leverage the generosity of your top donors to secure and nurture larger contributions with a major gifts campaign.
Having thousands of supporters pledge support is the goal of many organizations. But while it’s good to have the numbers, sustainability is more critical. Appreciate all donors, of course, but bring more focus to the few who have and will commit to giving major gifts to help your organization fulfill its mission.
In the past, we’ve talked about how to develop nonprofit content and how to ask for donations. We’ll dive deeper into launching a successful campaign to generate major gifts and donations in this part of the series.
What Does a Major Gift Campaign Look Like?
A major gifts campaign involves generating the most significant donations for your nonprofit. These donations are usually outside of the planned gifts or the steady stream of donations your supporters give.
In most cases, major gifts are used for funding a specific project or fundraising goal. If there is none, the large donations are used to accomplish the nonprofit organization's mission, whether it is to feed the homeless or provide a livelihood for those in need.
A typical major gift donor is someone with a high net worth. They have a history of involvement with nonprofit organizations and have made generous donations in the past.
Therefore, these wealthy donors are the ideal prospect when launching a major gifts campaign. Their history of giving means that they are attractive prospects for your campaign because they have the resources and have been generous in the past.
4 Steps to Create a Major Gifts Campaign
There are four distinct steps involved in the major gifts fundraising process. Make sure to follow each step in order to launch a successful campaign that will get your major donors to give to your cause.
NOTE: This is where the moves management strategy can come in handy.
1) Identify Your Top Prospective Donors
Identifying the right potential donors is the first step to a successful major gifts campaign. And this shouldn’t be taken lightly; it requires a lot of research.
Start by examining your existing donor database to identify the ones that match the wealth and philanthropic attributes you are looking for. This is vital because you want someone with the financial capacity to give a major gift, as well as the willingness to give to your cause.
2) Cultivate Relationships with Those Prospects
Designate a team to cultivate relationships with existing donors, especially major gift prospects. They’ll need to learn more about each donor to establish a connection that truly resonates with each of them.
You can host an exclusive meeting with the nonprofit leaders to discuss goals and mission. Or, you can host an intimate gathering with VIP donors to let them know your interest in their support for the cause.
Keep in mind that according to recent research, it takes an average of 6 months (or longer) to cultivate a major gift donor.
3) Schedule “Ask Meetings”
Once you have established a connection and a relationship, you may embark on major donor solicitation. This is when your major gifts campaign will kick into high gear.
The first two steps have laid a foundation that will give you the confidence to do the solicitation. Use the data you’ve gathered and analyzed when reaching out to potential top donors so you can appeal to them in the most effective way.
4) Give a Proper Thank-You
Your work does not end there once you have received the major gift. You’ll want to foster donor loyalty by showing your gratitude for their generosity. Send them a thank-you note or use other ways to express your appreciation for their contribution.
Donor recognition is vital in encouraging your major gift donors to make additional contributions in the future instead of just one-time donations.
Practical Tips for Campaign Success
When embarking on a major gifts campaign, you can apply these practical tips to secure your donations more easily.
Hold Team Meetings Every Week
Schedule regular meetings with the fundraising team so you can discuss the projects of your campaign and map out the steps to improve their performance. This is also a great way to boost your team's morale as they'll get to see the progress being made with the campaign.
Use the Top-Down Approach
The top-down approach to soliciting gifts from donors essentially means asking the largest donors first.
Make it a priority within your fundraising calendar to start nurturing your key donors. This is an important step if you have a specific project that you want to accomplish for the year. Focus on the prospects who are likely to give a large gift so you can achieve your fundraising goals within your ideal timeline.
Offer a Multi-Year Pledge Option
Capitalize on your large donors by offering them the possibility of making a multi-year pledge, such as three to five years.
Keep in mind: Stewarding donors becomes increasingly important when they make a multi-year pledge. You must be extra committed to building a relationship with them instead of being complacent that you’ve secured that pledge for a few years.
Tools, Resources & Setup
There are several tools you can use to launch your major gifts campaign, develop content to encourage major gifts, and keep track of your progress.
Here are some worth checking out…
CRM Software
A reliable CRM platform is an essential tool for nonprofit organizations to maximize success with their campaign and generate major gifts. It allows you to keep track of donor interactions, donor identification, and capacity screening for your major gifts campaign.
There are a variety of platforms out there that you can choose from:
Wicked Reports
Wicked Reports is a marketing analytics tool that provides nonprofits with actionable reports and insights at every stage of the donor journey. You can use this tool to access essential data you need to determine your campaign's conversion rate and see how you can further improve results.
Campaign Calendar Software
It is vital to keep track of all the moving parts of your campaign so that you take control of the entire process. There are several campaign calendar software tools available for you to outline your nonprofit fundraising content throughout the campaign. Some of these include the following:
Hootsuite
Hootsuite is another handy tool that you can use to leverage social media content and optimize your gifts campaign. Use it to manage all your social media accounts in one place so you can save time and keep both donors and prospects updated on your organization’s mission through your social media pages.
Final Thoughts
A successful major gifts campaign can provide a significant impact on the entire organization, as well as your mission. It requires a lot of planning, time, and resources to execute it successfully—certainly more than a typical donation.
However, any size nonprofit organization can execute with success. Just follow the four steps to building a campaign and nurturing relationships with your donors to see your efforts pay off over time.
To master the art of fundraising for nonprofits, refer to our guide on effective fundraising. It will provide you with comprehensive information on what you need to do to find donors, foster a relationship with them, and get them to give to your cause.
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