Every nonprofit wants to receive a major gift or a bequest. Those special gifts can come as a surprise and it is a welcome surprise when it happens. They can also be cultivated. The cultivation process is straightforward but takes time and must be intentional. In other words, major gifts and bequests are earned.
The first step is to look in the donor base for indicators that there are donors who might be inclined to make a major gift or establish a bequest. (Since the process is the same for both from here on we will talk exclusively about major gifts and assume you realize we are talking about both.) Someone who currently commits to making a multi-year gift is inclined to make a major gift. How many of your donors have made a multi-year commitment?
It is common to find that none of the donors have made a multi-year commitment. Usually the reason is no one has asked. The donors are happy to make the commitment because in their minds they were going to do it anyway.
The second step is to figure out whom to ask for a multi-year commitment. A donor who has given the same amount or an increasing gift each of the last five years is ready to make a multi-year commitment.
Until you have multi-year donors with a solid record of keeping their commitments, you are unlikely to be successful asking for one.
The third step is to define how much money constitutes a major gift. A rule of thumb might be 10 times the average donor’s annual contribution. The actual number is unimportant. It simply provides a talking point when one approaches a multi-year donor.
Let us assume that your average donor contributes $100 annually. The gift target might be $1,000. Now imagine a donor who has made a multi-year commitment of $35 and been very faithful. Yes, asking for a gift of $1,000 looks like a stretch to you. However, you will be surprised how many times the donor will rise to the challenge.
Are they going to make a large gift every year? Many will because of the way you thank them. If you thank them with a story about how their gift helped someone, they will understand why it is important to their generosity. Their heart will encourage them to find a way to budget in the major gift each year. After two or three years, it is time to ask for a multi-year commitment of the major gift.
This process cultivates an ever-growing major gift program because it is helping to raise the average annual donor contribution. Sometimes there will be donors who are unable or unwilling to rise to the challenge of the major gift goal. That is okay. The majority will commit to a gift that is larger than their current annual contribution. It will be a major gift in their mind. In two or three years of steady giving, they will be ready to increase their major gift. Whatever they give still helps to increase the annual average.
Increasing the average annual contribution increases sustainability. When the average is increased faster than inflation rate, one has created a sustainable funding program.