Major Donor Fundraising | What you need to know

What is major donor fundraising?

At the top of your individual giving scale, ‘major donor fundraising’ is the term used to describe a tailored programme that focuses on a small number of committed (or potentially committed) high-value donors. There is no one set form, but there is a very definite common thread. At its heart, a good major donor fundraising strategy is all about building relationships, investing in lifetime value, and inspiring people to mobilise your mission through a series of ‘major gifts’.

Who are your major donors?

Often, when people hear the term ‘major donor’ they go straight to the Times Rich List. But one of the biggest misconceptions about major donor fundraising is that all major donors are millionaires. They aren’t. The term ‘major donor’ means different things to different organisations, and before you launch your new fundraising strategy you need to know what it means for you.

How to define your major donors

The definition of a ‘major donor’ will vary depending on the size of your organisation, networks and individual giving portfolio. For some charities, £500 is a major donation. For others, it might be £10,000. I once heard of a team that got a cheque for £1,000,000. That’s the exception. The rule is that major donors can be anyone who is giving, or has the power to give, over and above a pre-defined level. To set that level, you need to analyse your individual donations and find your mean, median and mode. Then scroll up. What you are looking for is outliers - top-tier donors, one-off or regular gifts that buck the norm. More art than science, as you rotate your data you will soon get a feel for where the line should be drawn. It might be a bit laborious, but when it comes to major donor fundraising you need to start with existing relationships and set your compass to ‘growth’.

How to expand your pool of major donor prospects

Once you’ve identified all the clear-cut prospects, you might want to grow your pool and start bringing in new ones. For that you need to…

Map your organisational networks: Your next big connection is only ever six degrees of separation So work with your team and board to map your networks and use these links to open new doors.
Create a major donor ‘journey’: Make sure you have a system in place to flag incoming high-value donations, and that you’re ready to nurture that relationship from Day 1.
Consider the world of wealth screening: Sometimes a controversial choice, real estate, business affiliations and stock holdings are all indicators of wealth - and ‘wealth screening’ can be a proactive way to find new prospects from within your current donor pool.

TOP TIP: When it comes to prospecting and wealth screening you must be UK GDPR compliant. Not only is it respectful and a standard part of good fundraising practice, it is a legal requirement. Remember, the Information Commissioner’s Office is not afraid to hand out fines.

How to build relationships with your major donors

The first rule of major donor fundraising is to get to know your donors as people. That’s why a lot of major donor fundraising strategies focus on cultivation and stewardship.

Stewardship techniques that have stood the test of time

When it comes to major donor fundraising, you need to show your donors that they are a valued part of your inner circle. It doesn’t have to be grand. From the simple to the sublime, here are eight tried-and-tested ways to take your stewardship up a level.

Going for lunch or coffee
Hand writing the envelope and signatories for your next mail-out
Sharing additional extras, like impact updates and project reports
Setting up a private social media group or forum that brings like-minded supporters together
Offering a ‘Behind the scenes’ tour, professional lecture or programme visit
Organising an intimate major donor dinner
Creating a VIP list for upcoming events
Organising some face-time with your founder or CEO.

TOP TIP: Never underestimate the value of saying thank you, of asking how someone is, and taking a genuine interest in their life. At the end of the day, people give to people, not organisations.

Effective major donor fundraising strategies

With so many options to choose from, it can all start to feel a little unruly. That’s where strategic fundraising planning comes in. Don’t be tempted to wing it. Take the time to bring your major donor fundraising programme together into one cohesive whole. Not quite sure how? We recommend going one of two routes. Or better yet, combining them!

Membership clubs: Bespoke and exclusive, membership clubs are a great way to give your donors that little something extra. Bringing structure and form to major donor fundraising strategies, they take the pressure off the initial ‘ask’ by creating a hook and making the process transactional. In exchange for an annual fee, your donor can gain access to different types of events. The key is to set different levels of membership and to reserve top-tier and exclusive opportunities for the highest level.

Individual donor journeys: Every donor is different, and you might feel that a membership club is a little too ‘one-size-fits-all’. As an alternative, you can work with your team to develop an overarching major donor journey - supported by a series of individual stewardship plans. Start by looking at where each donor is on the giving scale, and where you want them to be. Then you need to design a journey that stewards them through from point a to point b.

TOP TIP: Whichever path you take, the key to an effective major donor fundraising strategy is one that creates a sense of exclusivity and community.

Why are major donors so important to your fundraising programme

It might seem like an odd question to ask at the end of a post, but when you’re building a major donor programme from scratch, it can be easy to focus on zeros and forget your reason why. More than just ‘prospects’, major donors are a part of your charity’s giving community. Treat them well and the value is one that goes far beyond the immediate donation, with a strong major donor programme creating:

An important source of unrestricted or core income (if you make the right ask)
New networks, introductions and recommendations
Life-long supporters and advocates of your work.

Whether you decide to work on an individual or membership basis, you must NEVER just bank the cheque and move on. Major donor fundraising is all about relationships and lifetime value. Your job is to create the environment they need to grow.