The Power of Major Gifts (and some advice from a Major General)

Fundraising is a profession with lots of old wisdoms, like "Board members should give, get, or get out!" and "The biggest reason people don't donate is that they were never asked."

Another one I have heard frequently is this: Fundraising from major gifts should constitute the same amount as all other fundraising sources combined.

I know it sounds pretty extreme. But the longer I stay in this career, the more I believe in that statement.

Today I was analyzing the number of individual donors we had in fiscal year 09 versus the prior fiscal year. I knew that the overall dollars raised from individuals decreased in FY09, so I assumed I'd see a decrease in the number of donors as well.

Wrong. It turns out the number of individual donors increased from FY08 to FY09. And there was no major trend of people downgrading their donation amounts either.

This made no sense given that we earned less from individuals in FY09. And then I noticed the X factor: five of our top donors were hit by the economy last year, and they decreased their gifts. Out of over 1,000 donors, the donation decisions of five individuals was the deciding factor on our bottom line.

There is not much a Development Director can do about the economy hitting the largest donors. But this anecdote reminded me of the value of those major donors--the small handful of people that form a foundation for your organization. I'm going to make it a goal this year to talk to each of them at least once a month, tell them how much they mean to our organization, find out if they have any questions or desires. Keeping those relationships solid is essential.

I guess my point, therefore, is that it really may be true after all: You know your organization is doing well when its major donors contribute more than all other donors combined. I'm still working on this one, personally; any advice most welcome.

And one final quick thing. Since this post started out being about fundraising mottos, I happen to have a favorite. When in doubt, I follow the good advice of George S. Patton: “A good plan, violently executed today, is better than a perfect plan next week.”