Data is one of the most valuable resources a nonprofit can use when trying to level up its fundraising goals and results. Using your data effectively can help you move from transactional philanthropy to relational giving. Below is a step-by-step guide to building a cost-effective major giving pipeline from your nonprofit database.
Understanding what “major gift” means
First, the organization needs to understand that a major gift will be different for every charity. Whether spearheading a major healthcare institution or nurturing a budding arts nonprofit, each organization has distinct expectations and objectives regarding giving and donor engagement.
Review your donor data
This essential first step will tell you what constitutes a realistic major gift for your organization. At a minimum, you are most likely looking at individuals who can write a check of $5,000, but in larger organizations, it could be six or seven figures to be considered a major gift. An easy way to understand what a major gift would look like for the organization is to create a list of all donors and donations from the past 3-5 years, with the largest gifts at the top. The average of the top five largest gifts received is your major gift threshold.
Once you understand what a realistic financial expectation of a major gift prospect looks like, communicating that across the stakeholders within and outside of your organization is essential to ensuring that you are focused and deliberate in your effort to raise large sums of money from a small group of people. Managing expectations in fundraising is a topic in and of its own, but when spending focused time on major gifts, you want to be clear with your team on what you are trying to accomplish.
Understand what you are asking of major gift prospects
If you are pursuing a capital campaign, for example, you are seeking funds to build a building, you know that you will need that cash to be able to begin and finish construction. However, if you are pursuing a campaign in which you want to secure planned gifts that serve as potentially reliable future revenue, that campaign is going to be slightly different. It is crucial to understand your tactics in approaching and asking donors and the vehicles through which they can donate.
Now that you’ve identified the financial target of your major gift prospects and you have identified the types of gifts you wish to solicit whether cash and/or planned gifts, you need to spend time looking at your database, and all the amazing untapped potential that exists there.
Spend time with your data and access the right reports
While fundraisers make regular use of the most common fundraising reports, the following suggestions may help you dive deeper when it comes to finding additional major gift prospects. Most databases have a report around lifetime giving. If you pull that report regularly, you’ll identify the funders you already know and, perhaps more importantly, the ones you don’t. Focus on the top of the list first. Look at the folks who have contributed over time and the most to your organization. These folks have been with you and will most likely continue to support you on an annual level and, if the opportunity is right, during a special major giving opportunity.
Another report that may intersect the lifetime giving report looks at longevity of giving. One of the biggest indicators of a planned gift opportunity is someone who has consistently given for 10 years or more. An additional report that could be valuable is looking at past board members. These folks might be included on the previous lists, but there could be additional names that allow you to add more folks to your major gift pipeline.
Ultimately, if folks are on these lists, they are perfect candidates to pursue as major gift prospects. However, if someone is only on one list, that’s okay too. Do a little bit more research and try to understand where their giving has shifted over time. Invite them to come back and understand how that relationship has changed so that you can be prepared for those types of conversations in the future and slow them from moving away from the organization. Soukup Strategic Solutions Senior Consultant, Dr. Louis Traina, referenced this important fact of listening and learning in our fundraising work in a previous post about the major gift cycle.
In addition to identifying potential candidates, some databases can provide wealth screenings of your donors, verifying their potential. It’s important to take advantage of these invaluable resources when vetting potential major gift donors. A “Wealth” search function can provide additional prospects, more accurate information, and updated funding potential for the major gift prospects you’ve already identified in your previous searches of lifetime giving, continuous giving, and past board relationships.
After thoroughly exploring the potential within your database, it’s crucial to also consider additional factors that could affect the feasibility of identifying a prospect as a significant donor. Elements such as charitable donations to other entities, political contributions, and property ownership are instrumental in assessing a donor’s capacity and shaping your approach to engaging them in significant gift solicitations.
The exploration of an organization’s database reveals a treasure trove of potential major donors. It’s essential to understand that the journey to major giving is unique to each organization and that making a leap from modest contributions to substantial ones is an exception, not the norm. A proactive strategy involves recognizing the possibilities aligned with your immediate and long-term objectives and the methods you intend to use for donor engagement. While these discussions may evolve over time, diligent database analysis can uncover straightforward and sometimes surprising candidates for your major gift initiative.
By leveraging database insights through comprehensive reports and lists, your organization can strategically focus on nurturing deeper and more meaningful connections with key supporters. This approach demands dedication, patience, and the establishment of achievable objectives regarding what can be realized through the organization’s efforts.
