November 2014
So, what is a major gift, anyway?
By Schuyler Lehman
This is a seemingly innocent question that
elicits responses all over the charts. Nearly
every nonprofit uses the term “major gift” and
has a quick definition of its meaning, but no two
definitions are the same.
The surface-level definition of a major gift in
most nonprofits is a specific size gift. A large
nonprofit might define a major gift as $25,000 or
more from a single source within a single fiscal
year. A smaller nonprofit may define a major gift
as $1,000 (and sometimes less), depending on
the size and maturity of the donor base.
To many nonprofit boards, a major-gifts effort is
simply about asking a segment of the donor
base to consider a larger gift. Some slightly
more creative boards, still believing the process
is transactional, might include giving societies
to recognize these larger donors. “Donors will
just give more because we are asking and we
need it, right?” My personal favorite oxymoron
is the term “major donor marketing,” implying
that major gifts are the result of this impersonal
promotion strategy.
Now that I have put myself out there and taken
a bit of an arrogant and self-righteous stance on
major-gifts fundraising, let me walk it back a
little. I recognize that all nonprofits want to have
donors who give large gifts annually in support
of their noble missions. Development
professionals and board members are
continually thinking of new ideas that will
produce such donors. It stands to reason that
any approach utilized must, at some point,
involve deliberately asking prospective donors
to consider larger gifts. I agree with and support
this train of thought. But let's dig a little deeper
into what major-gifts fundraising should truly be
about.
The most common misunderstanding of majorgifts fundraising is that it's about simply asking
for larger gifts from prospective donors who
have a lot of money. Don't get me wrong, larger
gifts are clearly an objective of major-gifts
fundraising and often the result, but large gifts
cannot be our entire focus. Defining major-gifts
fundraising as securing large gifts is like
defining dating as getting married. Yes, people
often date to find the right spouse and,
ultimately, get married, but if the focus of every
date is to propose marriage, most first dates will
not yield a second date.
What you invest in something is almost always
proportionate to what you get out of it. This life
rule is true for most anything worthwhile. As
kids, most of us wanted a quick fix to our
challenges and rarely wanted to put in all of the
hours practicing the piano (or the like) that
would produce the best result. We know in our
personal lives today that our most precious
relationships (God, family and friends) require
great effort to build and maintain.
This rule applies as much to fundraising as it
does to any other aspect of our lives. There is
no quick fix if we are to experience the success
of engaging donors in support of the mission we
represent. Although it sounds cliché to say it,
development truly is about relationships. Each
donor connects with your mission in a unique
way.
Our goal as development professionals is to
create a path for each donor to grow in
relationship with the mission and, ultimately, to
enrich that donor's life in some meaningful way.
One symptom of a deep and healthy donor
relationship is a large gift. Contrary to popular
belief, large gifts are not simply given for the
asking – at least if the gift is to be sustained. A
large gift represents investment from a donor
into a mission with an expectation of some
return. The return might be seeing the direct
impact of his/her giving, or any other result that
brings the donor satisfaction and joy.
If we believe that the large gift was given just
because we asked, then we are destined to be
disappointed when the donor chooses to direct
his/her giving to another mission in the future.
The bottom line: major-gifts fundraising should
really be called relationship-based fundraising,
because that is the most fundamental definition.
If large donors are not engaged in some
reciprocal and meaningful relationship with the
nonprofit's mission and its ambassador, then
the funding will likely be short-lived.
Sustainable major gifts fundraising requires a
strategy and a deliberate effort to develop,
deepen and maintain relationships.
The next time you are asked the question
"What is a major gift?," consider the following
answer: "A major gift in our organization is one
that represents a meaningful and personal
commitment from a donor who is in relationship
with both our mission and with us." If this
becomes the focus of your efforts, the size of
the gifts will not only grow, but also be
sustainable.