Major gift fundraising is one of many strategies used in philanthropy. This particular focus emphasizes the impact that substantial donations from individuals, corporations, or foundations can have on a nonprofit organization’s initiatives and missions. Major gift fundraising plays a pivotal role in providing significant financial support that can drive transformative change, bolster sustainability, and enable nonprofits to achieve ambitious goals.

The threshold for a major gift can vary based on the nonprofit’s size and focus. For a new nonprofit, a major gift may be anything over $1,000, but for a more established organization it may be anything over $10,000. The important thing is to only compare major givers to the same organization’s entire constituent group. Here is how to calculate a major donor baseline:

• Run a report of your top ten gifts last year.
  It is important to pull top ten givers rather than top ten gifts because reporting on gifts would result in overlooking donors who may give more frequently. For example, a monthly gift of $200 would not cause notice if just reporting on large individual gifts. However, this amount would result in that giver contributing an annual gift of $2,400 which could fall into the major donor category depending on the nonprofit.
• Exclude outliers like excessively large gifts
• Exclude corporations and foundations
• Take the sum of the ten gifts and divide it by ten for the average major gift amount
• Round up (For example, if your average is $4,300, make it $5,000)

Major gift fundraising differs from other forms, such as annual giving or events, by focusing on building personalized, long-term relationships with donors who can make substantial contributions. However, an organization should offer many avenues of giving so all inspired by the mission can be part of impact.

Prospective major donors can be identified through prospect research, which involves analyzing factors like wealth, philanthropic history, and affinity to the organization’s cause. There are tools available, like DonorSearch, for this research. An organization can also conduct their own research through public data sources.

Donor stewardship is essential for maintaining strong relationships with major donors. It includes expressing gratitude, keeping donors informed, and involving them in the impact of their contributions. By communicating with donors, you keep them connected to the mission and they are able to see their dollars making a difference.

No, any and all nonprofits can and should have major giving fundraising strategies. Larger organizations tend to have more programs to fund, so their major giving program can be larger. Smaller organizations can also cultivate strong relationships with committed donors who resonate with their mission.