You’ve decided to start a major gift program. Great! Let’s talk next steps.
The major gift pipeline has two primary entry points. The first is to upgrade existing donors through appropriate involvement and cultivation. The second is to identify high net-worth individuals through peer associations and networks and attempt to ignite an interest in the organization and form a linkage.
Major Giving prospecting from the existing donor base:
One of the primary goals of the annual campaign is to identify and qualify potential major donors. The donor pyramid assumes that the majority of all donors will first connect with the organization through a small annual gift and, over time, will move up in gift size and type depending on capacity. Using this model, the development team assumes that the majority of their major and planned gift prospects will emerge from their ability to successfully retain and upgrade donors at the lower levels through effective cultivation. This adds a layer of depth and meaning to the annual campaign and requires that the major gift officers and annual campaign staff work closely together to identify high net-worth donors, or loyal donors, who may be ready to be moved into the major or planned giving cultivation cycle.
Major Giving prospecting through Peer contacts:
Acquiring major donors who are not already part of your donor base often requires a personal connection or introduction. The effort required to discover new prospects through peer contacts is substantial but can play a key role in diversifying the donor base and building strong community support.
The board of directors, the trustees, and the CEO are critical in this process. They should be expected to assist in researching, facilitating connections, and soliciting gifts from these high-level prospects. They should also assist in the cultivation of their peers as both donors and volunteers.
The key to developing a successful major donor recruiting plan is creating a Major Gift Committee where committee members represent the charity, or organization, to the community, contribute personal leadership gifts, and cultivate potential major donor contacts.
Major gift fundraising is unique in the degree to which the involvement of senior staff, trustees, high-level volunteers, and executive board members is required at every stage of the process.
(Sargeant & Jay 2014: 196)
Taking the time to establish both entry points; a well-thought-out cultivation plan for current high net worth donors while simultaneously developing the capacity of your internal executive team and volunteers to identify, recruit, and solicit will pay off. I have often spoken to organizations that claim that they have a successful major donor program because they have received a major gift. Sadly, securing a large donation does not mean that your organization has a successful major donor program. I have often seen organizations over-leverage their confidence based on a single gift and quickly squander the opportunity and relationship that the gift represented.
I hope you will take the time to develop a major donor pipeline that will result in multiple major gifts now and into the future. Let me know if you have any questions or how I can help you assess your current practices.
Cheers,
Carolyn