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Ten Steps for Obtaining Major Gifts for your Development Department

Outlined here are FAQ's about major gift fundraising. These questions can be applied to any direct solicitation of funds. The questions are also listed in chronological order as fundraising action steps for each prospect. What you put into major gift or direct solicitation efforts will translate directly into funds raised. Most people can attain a level of comfort asking for money and this type of solicitation is fundraising in its most effective form.


STEP 1
The first step in major gift solicitation for your nonprofit organization is to identify major gift prospects, that is, those individuals, businesses, corporations and foundations capable of making gifts of $25,000, $50,000, $100,000 and above. Some organizations use prospect research vendors to scan an existing donor base and identify wealth markers. These services are only tools that provide additional information - some very good information and some very susceptible to error. Be careful of "modeled" data that provides a best guess and not hard facts. There is a place for modeled data but it is not reliable on its own. The best way to get good information on prospects is to run your list of names in front of people with knowledge of local business, banking, and investing. While confidentiality is critical, many bankers, lawyers and business persons will be able to provide clues to the ability of the people they recognize.

STEP 2
The second step in major gift fundraising for your organization is to establish the proper gift level for each prospect. In doubtful cases, it is far better to "overshoot" than to "undershoot." In this way, a cushion is provided if the prospect should find the initial request too high. If you don't know enough about the prospect to establish a fair estimate of a gift level, don't ask until you do. It is important to research what gifts a prospect has made to other organizations. While there may not be a connection to the work that your nonprofit does, people who have a history of giving are the most likely to give again. This is one of the most important facts to remember in fundraising. Rating major gift prospects includes matching a prospect's interests with the project you are trying to fund, assessing their wealth, reviewing their history of giving to your nonprofit or to others and how likely they will be influenced by the people who will be making the major gift solicitation.

STEP 3
The third step in major gift fundraising for your organization is to pinpoint the Key Element of Attraction, that is, the reason for the prospect to make a sizable gift. It may take a little research to find this element, but it is essential that it be found and proposed. Will the prospect give:
Because he/she has strong interest in the project?
Because he/she wants to help others?
Because he/she remembers society "the way it used to be"?
Because he/she is a friend of the "Jones" family?
Because he/she is looking for other ways to give away his money?
Because he/she feels that he has been successful as a businessman and a philanthropist and, therefore, he wants to continue to be the catalyst for making the work of others a "big success"?
Because he/she wishes to make a gift in memory of a family member who believed in this particular cause?

STEP 4
The fourth step in major gift fundraising for your nonprofit organization is to prepare an individual proposal for the prospect. Prepare the individual proposal for a major gift in as unique a way as possible. The prospect must feel you have made an effort to match the merits of the project with their interests.
Include a chart of gifts needed to reach the goal of the fundraising project.
When appropriate, include architectural drawings with interior and exterior views.
Sometimes a multimedia presentation on a laptop can bring a project to life.
Include a pledge card or commitment form. Always have one with you.
Include a list of major donors, unless they have asked for anonymity.
Include the names of board members and volunteers leading your fundraising effort.

STEP6
The sixth step in major gift fundraising for your nonprofit organization is to set the major gift appointment. Call prospects for an appointment, in their home or perhaps take them to breakfast or lunch. Don't mail the proposal before seeing the prospect. If the proposal is mailed first, the prospect tends to review the proposal and delay the appointment. Having face-to-face contact to present the case is the best approach. If the appointment is set for more than a week ahead, a short note confirming the scheduled visit should be sent.

STEP 7
The seventh step in major gift fundraising for your nonprofit organization is to ask for the gift. Ask, ask, ask for a major gift. Show the prospect prepared materials. Don't apologize for the request or water down the approach for fear of embarrassing the prospect. Make the request and let the individual react to it. It is that simple. To survive as a fundraiser, you must understand that rejection is not personal and you should never assume rejection will happen. Always believe the gift will be made and your confidence and conviction will show in your eyes, words and body language. The prospect will recognize your effort.

STEP 8
The eighth step in major gift fundraising for your nonprofit organization is to enhance a successful major gift visit. If the prospect does agree to make a gift, thank him/her for their generosity. Also ask them to recommend the names of one or two people who may be willing or at least able to make major gifts. If it seems appropriate, and you will know by the conversation, encourage the prospect to be present for a visit with someone they recommend, or, at least, to assist in setting up the appointment. A letter acknowledging the gift and, if no previous direction has been given, suggesting or confirming a schedule of payments for that gift should be sent.

STEP 9
The eighth step in major gift fundraising for your nonprofit organization is to enhance a successful major gift visit. If the prospect does agree to make a gift, thank him/her for their generosity. Also ask them to recommend the names of one or two people who may be willing or at least able to make major gifts. If it seems appropriate, and you will know by the conversation, encourage the prospect to be present for a visit with someone they recommend, or, at least, to assist in setting up the appointment. A letter acknowledging the gift and, if no previous direction has been given, suggesting or confirming a schedule of payments for that gift should be sent.

STEP 10
The tenth step in major gift fundraising for your nonprofit organization is what to do if the prospect says no to your request. Before leaving the initial visit be certain to graciously reiterate your best pitch. If you feel as though the prospect is struggling with the amount but seems like they are very interested, you can put the ball in their court simply by asking "is there a level at which you would be comfortable in making a gift?" and then let them respond with an amount. If you had trouble scheduling the initial appointment and are concerned that a second meeting would probably be difficult to get, then try to close the deal at whatever level you can. If the prospect is still unwilling to commit but interested in the project, then try to set a date to meet again. Immediately send a letter thanking him/her for taking the time to meet and for considering a gift. Follow-up with the prospect as needed. Again, persistence is essential to success and through the conversations you have with a prospect you will sense when it is time to let the prospect go.

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