Welcome to FastDecisions.org
Welcome to FastDecisions.org

The Major Gifts Machine

Problem: Major gift fundraising can be unpredictable and time-consuming without a clear system.

Solution: Set up a structured “Major Gifts Machine” with roles like openers, closers, and experts to focus on finding, building, and securing high-value donor relationships, making the process efficient and effective.

Intro:

Welcome to "The Major Gifts Sales Machine" — your comprehensive resource for mastering high-value fundraising. This page empowers fundraisers with a step-by-step system to secure transformational donations efficiently and effectively. Built on proven strategies and actionable insights, this program is designed to streamline your workflow, maximize donor engagement, and accelerate your impact.

Let’s turn your ambitious fundraising goals into reality. Whether you’re a seasoned professional or new to major gifts, this platform will guide you from strategy to success.

Tools:

  • What is a major gift?
    • Frequently, major gifts are defined as gifts that constitute 1 to 5 percent (or more) of the gifts to an annual fund drive goal or 1/2 to 1 percent of the gifts to a capital campaign objective.
    • Other times it’s more of a gut decision - usually $1k, $5k, $10k, or $25k. Universities might consider a major gift north of $250k or $500k.
    • For us, it’s any time the gift is big enough to strategically paying attention to the individual relationship.
  • What you are looking for is a predictable major gifts machine.
    • The easy assumption here is just to add more major gifts officers - the more you add, the more revenue you generate. This couldn’t be further from the truth.
    • The most important element of this process is the operating system of the major gifts themselves. You want a specialized, predictable lead generation system to ensure steady revenue growth without relying on random spikes or a list of rich donors.
    • The most crucial factor for predictable revenue is a consistent inflow of leads that meet specific qualifications.
    • Major gifts programs should operate as a standalone function, focusing solely on high-value donors.
  • We recommend creating a team that has three roles. We call this the “Major Gifts Key”
    • Openers: focuses solely on prospecting and lead qualification, similar to an SDR role in business sales, which bridges the gap between marketing and development. They care about inbound leads, and are experts in using tools to generate these new leads.
    • Closers: Establish and hold a deep relationship with donors. Aren’t afraid to ask for big gifts.
    • Experts: Program team members (or the ED/board member) who add real value to the depth of the conversation.
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  • Separating roles within the team allows for more efficient prospecting and follow-up.
  • Whenever possible, specialists should handle prospecting independently of closing responsibilities to maximize efficiency.
  • Setting Goals:
    • A frequent mistake made by boards is setting aggressive revenue targets without establishing a proper lead-generation system. This leads to missed targets and high turnover in hard-to-place major gifts roles.
  • Reaching out:
    • Cold calling is calling someone who doesn’t know you and who isn’t expecting your call. We avoid that by generating interest well before reaching out.
    • When in doubt, go top-down instead of bottom up. Reach out to the higher-level executive and ask for a referral to the correct person.
    • If the contact isn’t ready to make a decision, openers evolve them into internal advocates who can promote the solution to their team .
    • Concise, non-salesy emails requesting referrals within a funder receive much higher response rates than direct sales pitches.
    • Success depends on having a very clear idea of who your high-value targets are and what needs they have. Know Your Donor/Guestology
    • Prospecting emails should focus on the FUNDER’s long-term success. StoryBrand
    • Short, clear, and simple emails are essential to boost readability, especially on mobile devices. More importantly, the shorter the email, the more power is reflected in that email.
    • Limit emails to one clear question to avoid overwhelming the prospect.
    • When asking for a referral, be VERY specific. “Would you introduce me to a doctor in Massachusetts who cares deeply about diabetes” is actually much more helpful than “can you think of 3-5 people you know who care about diabetes?”
    • Be “pleasantly persistent” with ideal prospects until you get a definitive “no” .
  • Building and Qualifying Prospect Lists
    • Build out and qualify a well-targeted prospect list. It should be qualified, so everyone knows the strength of the various leads on the surface.
    • Use additional qualification processes to confirm each donor’s capacity and interest in major giving.
    • Divide donors into tiers based on giving capacity and engagement interest, focusing efforts on high-potential donors. A donor’s willingness to give is often more crucial than their financial capacity alone.
      • Ensure the criteria are based on meaningful metrics, such as consistent past giving and expressed interest in involvement.
    • Periodically re-evaluate donor pools to adjust for changes in capacity or engagement levels.
    • The strength of a well-qualified list is very important. Continuing to pursue weak leads is inefficient.
    • Avoid promoting donors to major gift status solely based on a single large donation; ensure they are willing to engage more deeply.
  • Planning
    • Having a structured, long-term plan for each donor reduces uncertainty and enables flexibility when needed.
    • Sustained, disciplined effort is more effective than sporadic, high-profile campaigns.
    • Segmenting by motivations can personalize donor cultivation, helping you target more effectively with tailored communication.
  • The Ask
    • Immersive Experience: Create a personal, impactful experience for donors to help them “see” and “feel” the mission.
    • Using Storytelling: Narrate real stories that connect emotionally, showing both the challenge and the impact of the solution.
    • Visual and Sensory Engagement: Use photos, videos, and other media to replicate in-person experiences for donors unable to visit.
    • Building Urgency: Convey the need's urgency and the significant role donors play in addressing it.
    • Consequences of Inaction: Explain what happens if the need isn’t met, reinforcing the critical role of donor support.
    • Clear Action Steps: Clearly outline the program’s action plan and desired outcomes, avoiding vague promises.
    • Specific Financials: Provide specific financial figures related to the project so donors understand where their funds are going.
    • Relating to Donor Values: Tailor presentations to align with the personal values and interests of the donor.
    • The “Ask” Formula: Include a structured request with clear elements like amount, results, timeline, and consequences of unmet needs.
      • Amount: Specify a concrete amount you are asking the donor to contribute. Rather than being vague, this should be a well-considered figure that aligns with the donor’s giving capacity and their previous interests.
      • Results: Clearly articulate what the donation will achieve. This part answers the donor's question, "What difference will my contribution make?" It should convey specific outcomes or changes that the gift will enable, such as funding a particular program or achieving measurable milestones.
      • Timeline: Define the time frame for the impact. This could include how quickly the organization will act on the donation, the duration of the project, or when results can be expected. It gives donors a sense of immediacy and timeline, making the donation feel time-sensitive and impactful.
      • Consequences of Unmet Needs: Explain what could happen if the need goes unmet. This step introduces the urgency behind the ask, clarifying the potential negative outcomes if funds are not raised. This could be lives left unhelped, programs unfunded, or specific setbacks in the organization’s mission.
    • Follow-Up and Reinforcement: Regular updates keep donors engaged, ensuring they see the continuing impact of their support.
  • Closing:
    • Salespeople should focus on identifying the client's underlying issues and desired solutions to align offerings more closely with needs. Needfinding
    • A favorite question to uncover needs: “What would have to happen for this to be a no-brainer decision for you?”
  • Stewardship:
    • Stewardship goes beyond simply managing donations; it involves fostering a relationship with the donor that prioritizes their interests, needs, and motivations. This approach requires that fundraisers listen closely to donors, keeping them updated and involved in the outcomes of their contributions. By treating stewardship as an ongoing relationship rather than a one-time acknowledgment, organizations can create a strong bond with donors that encourages repeat giving.
    • Provide frequent, specific updates to donors about the impact of their gifts, reinforcing their value to the organization. Be clear about how donations are used and report back on any progress or setbacks.
    • Connect donors with the outcomes of their contributions, potentially through direct interaction with beneficiaries.
    • Express thanks in a personal and meaningful way to deepen donor satisfaction and loyalty.
    • Create channels for donors to provide feedback, fostering a reciprocal relationship. This allows them to feel heard and valued.
    • Customize stewardship based on individual donor interests.
    • Thank donors within 48 hours of receiving their gifts to show appreciation and respect.
    • Develop organizational systems that track and ensure thank-you procedures are consistently followed.
      • Conduct periodic reviews of donor acknowledgment and reporting processes to continually improve donor stewardship.
    • Thank donors when they least expect it with personal touches, enhancing the memorability of their contributions.
    • Customize gratitude based on the gift’s size and donor’s preference, which could include calls, handwritten notes, or public acknowledgments.
  • Employee Onboarding:
    • Allow for proper onboarding time for each new person. Openers need at least a month, preferably two months, before you can expect productivity. Closers might need six months or more.
  • Tracking Metrics:
    • Results-driven metrics like qualified opportunities per month are more impactful than sheer activity numbers like dials. KPIs and OKRsKPIs and OKRs
    • Right Donor Selection: MGOs should manage a focused, qualified caseload of no more than 150 donors who desire deeper relationships.
    • Revenue Goals for Donors: Each donor should have a realistic yet aspirational revenue goal to guide fundraising efforts and track progress.
    • Personalized Donor Plans: A tailored engagement plan for each donor is critical, helping MGOs maintain a meaningful, long-term relationship.
    • Effective Asking: The “ask” must align with the donor's personal values and goals, ensuring the donation feels impactful.
    • Thanking Donors: Proper and timely gratitude is crucial; neglecting it risks damaging donor relationships.
    • Reporting Back: Regular updates on the impact of donations help retain donors by showing that their support matters.
    • Churn Rate: This is the percentage of donors who stop giving each year. A lower churn rate increases the Average Donor Lifespan, boosting LTV.
    • Accountability: Setting clear expectations and tracking progress to ensure goals are met; accountability is framed as supportive rather than punitive.
    • Lifetime Value (LTV): See below
  • Lifetime Value
    • Lifetime Value (LTV) is a core concept in major gift fundraising that focuses on the long-term value each donor can bring to the organization.
    • As an MGO, your role is to deepen donor loyalty, which can result in increased lifetime value. The keys to achieving this are understanding, connecting with, and stewarding donors effectively over the years.
    • Use your CRM to track each donor’s preferences, interests, and values. By regularly reviewing this information, you can customize your approach and communicate in a way that speaks directly to what the donor values most. Mystique Database
    • Develop a profile that captures their giving history, milestones, communication preferences, and future potential. Understanding the “big picture” of their relationship with the organization is essential to managing it effectively. Know Your Donor/Guestology
    • The formula for calculating LTV can be broken down into four key components:
      • Average Gift Size (AG): The average dollar amount of each donation a donor makes.
      • Frequency of Giving (FG): The average number of gifts a donor gives per year.
      • Average Donor Lifespan (ADL): The number of years the donor is expected to continue giving to the organization.
      • Retention Rate (RR): The number of donors who stay with the organization every year.
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  • Know what makes a donor give
    • When donors feel they are part of a larger purpose, their contributions increase, both financially and in terms of loyalty.
    • Donors want to see the tangible impact of their contributions, which necessitates transparent and continuous communication from the organization about how funds are utilized and the outcomes achieved.
    • Transactional vs. Relational Giving: Moving from seeing donors as sources of funds to partners in mission. Viewing donors as mission partners strengthens connections.
    • Understanding intrinsic motivations such as legacy, purpose, and societal contribution. Needfinding
    • Recognize that many donors see giving as an extension of their values and identity.
    • Honor the emotional aspect of philanthropy, which deepens donor loyalty.
  • Building Trust with Donors
    • Using real-world stories to show the impact of donations.
    • Building trust through continuous updates.
    • Transparent reporting back on how donations are utilized.
    • Engaging donors beyond financial asks to sustain interest.
    • Help donors create a legacy through giving.
    • Take your donor to the need. Simply explaining the mission is insufficient; it is crucial to allow donors to feel the impact firsthand, either through in-person experiences, vivid storytelling, or multimedia presentations that convey the real need.
  • Staff Engagement
    • You need aligned, passionate staff. Measuring Employee Retention*
    • Ensuring every team member understands their impact on the mission.
    • Ensure that they know their roles.
    • Make sure there’s plenty of exposure between fundraising and program staff
    • Ensuring everyone understands and buys into the mission.
    • MGOs should focus on relationship-building without getting distracted by organizational tasks unrelated to major gifts. They should exclusively focus on their donor caseloads without being assigned non-fundraising tasks.
    • Retention is as crucial as acquiring new donors; it should be a key goal in performance evaluations.
    • Regular training for MGOs is essential to keep skills sharp and ensure effective donor engagement.
  • Build a Culture of Philanthropy
    • Treating donors as an essential part of the mission, not just as a funding source.
    • Leaders must model a passion for engaging donors as mission partners; disinterest or inability to relate to donors is considered counterproductive.
    • Regularly sharing the organization’s founding story reinforces mission alignment across staff, board, and donors. This does mean regular - it should be repeated so often that everyone is bored with it.