Major Gift Minimums w Jimmy LaRose is Jimmy’s take on what constitutes a Major Gift Dollar Amount. Imagine for a moment that your nonprofit has 1,000 supporters. And 120 of those supporters are responsible for 90% of your fundraising revenue. You’d probably want to build strong relationships with those 120 people — after all, their major gifts are likely one of the reasons your organization is able to fulfill its mission.
You might be thinking that’s a dramatic example, but it’s the reality. Nearly 90% of all fundraising dollars come from just 12% of donors.
Why is this the case? This small subset of donors are wealthy, want to make an impact, and have the capacity to make major gifts. They’re also growing quickly in giving capacity right now.
Over the past decade, the stock market grew by more than 300% and the average income of your wealthiest supporters increased by more than 25%. There’s never been a better time to build relationships and inspire potential donors to make a larger impact.
Let’s take a moment to clearly define what major giving entails and then what major gift minimums could look like for your organization.
Outside of planned gifts, major gifts are the largest donations that a nonprofit receives. These donations are often used to fund specific projects, meet fundraising goals, or go into general programs that help an organization accomplish its mission. Meanwhile, a major giving program focuses on building relationships with a portfolio of prospects who have the capacity and affinity to make a major gift.
A typical major gift donor has a high net worth, owns real estate or stocks, is heavily involved with your nonprofit or others, and has made larger contributions in the past. Wealthy older donors are usually your best prospects, but soon Millennials will be too as this group acquires more wealth and giving capacity grows.
Plus, any nonprofit can start a major gifts program — there is no fixed amount that determines what a major gift is to any one organization. It boils down to the impact of the gift on your nonprofit’s needs. Some consider gifts over $100,000 to be major, while smaller nonprofits may consider $1,000 to be a major contribution.
If your organization doesn’t have a major gifts program already, here’s a quick way to determine what could be a major gift for your nonprofit:
SETTING MAJOR GIFTS MINIMUMS FOR YOUR ORGANIZATION:
1. Pull out the 25 largest gifts made to your organization in the past three years.
2. Examine the range of those gift sizes and eliminate any outliers.
3. Accounting for the remaining gifts, estimate a major gift minimum by figuring out the median of this range. This will help you capture the largest number of valuable prospects. For example, if your range is $5,000 to $10,000, you could go with $7,500.
4. Make sure you do not set the major gift amount bar too high. If you are seeking major gifts, your donor base needs to be capable of reaching that amount. Similarly, if you find that many donors are able to give that amount, you may need to raise it.
Bishop Redfern II, Major Gifts Ramp-Up is based Building donor relationships is key to major giving. With the right strategies in place, you can inspire donors to make gifts that are a win-win for them and your organization.
Reservations for this event are limited and will reach capacity shortly. REGISTER TODAY!
Who should attend? If you’re a CEO, CFO, COO, CDO, Executive Director, Development Director, Staff Member, Board Member, Pastor, Trustee or Volunteer responsible for the financial health of a nonprofit, ministry or church then you’ll want to make sure you bring as many people as possible to this training.
FEB 01 2022 – FEB 02 2022, (9AM-4PM)
MAR 16 2022 – MAR 17 2022, (9AM-4PM)
APR 05 2022 – APR 06 2022, (9AM-4PM)
APR 19 2022 – APR 20 2022, (9AM-4PM)
MAY 04 2022 – MAY 05 2022, (9AM-4PM)
JUN 07 2022 – JUN 08 2022, (9AM-4PM)
JUL 13 2022 – JUL 14 2022, (9AM-4PM)
AUG 09 2022 – AUG 10 2022, (9AM-4PM)
FAITH & FUNDRAISING (DALLAS)
OCT 12 2022 – OCT 13 2022, (9AM-4PM)
OCT 25 2022 – OCT 26 2022, (9AM-4PM)
SOUTH CAROLINA NONPROFITS
NOV 16 2022 – NOV 17 2022, (9AM-4PM)
NORTH CAROLINA NONPROFITS
DEC 07 2022 – DEC 08 2022, (9AM-4PM)
Major Gifts Ramp-Up will give you the tools you need to adapt, change and grow your nonprofit.
Founder, National Development Institute
P.S. We encourage to register for Major Gifts Ramp-Up as soon as possible. Virtual seating for these events are limited
Major Gift Minimums w Jimmy LaRose was first posted at JimmyLaRose.com