You just received a check from one of your most loyal donors – the renewal of his annual $1,000 (or $5,000) contribution. It even counts toward your goal for securing major gifts. Feeling pretty good, are you?
Think again. Your definition of a major gift isn’t the important definition; the potential donor’s definition is the one that matters.
The typical not-for-profit organization defines a major gift based on a minimum dollar threshold, whether it be $1,000, $10,000, or $100,000. It’s good to have a target to aspire to, as long as it doesn’t become a self-limiting target.
But, what might your prospect say if asked for her definition? The best, and most pertinent, definition I have heard of a major gift is “one the giver has to think about.” Let’s examine that definition in the context of our all-too-typical solicitation practices.
The donor who annually writes you a $1,000 check (four years and counting) isn’t thinking about that gift; therefore it isn’t a major gift to him. There is likely much more where it came from.
If you continue to ask your $1,000 annual donor for that same amount year after year, you’re missing opportunities – year after year. Even if you ask for incremental increases in the gift amount, you’re missing a much greater opportunity. You’re setting the gift amount, rather than inviting your prospect to do it with you. And if you do it by telephone or mail, you’re squandering those opportunities.
Consider — your $1,000 per year donor almost certainly supports other charities. While you’re asking him to renew that $1,000 gift, someone else (his church, alma mater, a local hospital, the symphony) is inviting a conversation about something more. Some enterprising fundraising professional is pursuing her own definition of a major gift — with your donor. She may be excited about asking for a $25,000 pledge, and she may get it. And even she has missed the point.
Neither you nor your friendly competitors (yes, they are) from other charities are permitting your prospective donors to participate in determining what they are motivated to support, or in what amount.
Here’s my simple solution. Stop asking for contributions, and start asking for gift conversations. Since you can’t know your new suspected donor’s gift capacity, you must find a way to discover it.
My approach to this process of discovery is to invite a two part gift conversation. The first part, and always the most important, is to learn about gift motivation, possible designation. The second part is to invite a conversation about how best to accomplish it, usually in conjunction with triggering life events and asset allocation. After all, most really significant contributions come not from income, but from assets.
It isn’t a perfect approach; you will sometimes learn of the sale of a significant asset after the fact. But, when you discover that your prospect is preparing to sell the vacation home or the family business, or to update her estate plan (nothing wrong with a deferred major gift plan), you can offer some very appealing and taxwise gift planning ideas to complement those plans.
Now, how does that $1,000 renewal check look by comparison?