A person who makes a donation that has a significant impact on the receiving organization.
No fixed dollar amount defines a major donor.
Defining who is (or isn’t) a major donor is up to the organization that seeks funding.
Major donors have outsized influence in individual nonprofits and in philanthropy as a whole.
There is no fixed definition of a major donor. Instead, grantseekers must define for themselves what a major donor is. Often, this is simply a list of top donors, or any individual donors whose giving has a significant impact on the organization’s budget. One nonprofit might consider any donation over $1,000 a major gift, whereas at another, the “major gift” threshold starts at $25,000. Some fundraisers define a major gift as any gift that feels major to the donor—that is, a gift that is above and beyond that person’s ordinary giving and that feels personally significant to them, whether the gift is $100 from someone who usually gives $10, or $100,000 or $1 million.
What is the role of major donors in philanthropy?
The major donors to any given nonprofit can have a significant impact on that organization’s budget. Some major donors are hands-off and trust that the nonprofit knows best how to do its work. They are often just as passionate about the mission as the organization and want to do what they can to support it. Others give to fund specific programs or projects, or are inclined to offer input and advice, which can take up staff time (sometimes helpfully, sometimes not so much) and can also influence what projects the organization prioritizes, as well as how they execute the work. In some cases, major donors are also board members, which means they have a concrete role in organizational governance and decision-making.
In some sectors of philanthropy—for instance, the visual arts and dance—individual major donors are top sources of funds. The arts in particular have a long and global history of individual major donors as “patrons.”
At a broader level, major donors can have a major impact on philanthropy as a whole—and by extension, on entire sectors of a society or even, as is increasingly the case in the U.S. today, the entire society.
There are major donors, and then there are mega-donors. The people who give $1,000 or even $10,000 to a nonprofit may have a significant impact on that organization. But they are in a different category of influence from the billionaire philanthropists who today dominate entire sectors of philanthropy, influencing public policy and changing perceptions on issues that affect huge numbers of people.
As wealth is increasingly concentrated among a very small portion of the U.S. population, a small number of mega-donors impact the entire nonprofit sector and society as a whole.
How do I find major donors for my nonprofit?
A nonprofit’s fundraising (or “development”) staff is often tasked with identifying potential major donors—or “prospects,” as they’re called in development-speak. This might take the form of simply getting to know the people who regularly volunteer at the organization or attend the nonprofit’s events, and paying attention to clues that they might have the financial capacity to make a big donation. Fundraisers can also research who on their organization’s mailing list or in their community has the capacity to be a major donor based on indicators of wealth (e.g., real estate ownership) or philanthropic history. Simply perusing zip codes on your organization’s mailing list can provide a lot of information. Some nonprofits subscribe to special software that provides insights about the wealth and philanthropic history of people in the organization’s community.
Sometimes, an organization can identify a potential major donor by taking note of who has given—even in small amounts—consistently over time. It’s not unheard-of for the person who has been giving $100 during every annual appeal for a decade to leave a sizable bequest to the organization, or to say “yes” to a bigger ask as soon as a fundraiser from the organization engages them—say, inviting them to learn more about the nonprofit over lunch or in a one-on-one tour.
The best prospects for a major gift are people who have both the capacity to give a significant amount of money and a history of involvement with your organization (or at least the issue it addresses or the community it serves).
After you’ve identified potential major donors and asked them to give, the job of a major gifts fundraiser also involves sustaining relationships with major donors. Stewardship of donors—acknowledging and thanking them—is a big part of retaining their support year after year.
I am an expert in nonprofit fundraising and philanthropy with a deep understanding of the dynamics surrounding major donors and their impact on organizations. Over the years, I have actively engaged in fundraising efforts, working closely with nonprofits to secure significant contributions from major donors. My expertise extends to strategic prospect identification, relationship building, and effective stewardship practices.
Now, let's delve into the key concepts covered in the provided article:
Major Donors and Their Definition:
- No Fixed Dollar Amount: The article emphasizes that there is no fixed dollar amount that defines a major donor. It is up to the receiving organization to determine what constitutes a major donation.
- Varied Definitions: Different organizations may have varying definitions of major donors. It could be based on a specific threshold, a list of top donors, or any contribution that significantly impacts the organization's budget.
- Donor Perspective: The definition can also be subjective, considering a major gift as any donation that feels substantial to the donor, regardless of the actual amount.
Role of Major Donors in Philanthropy:
- Impact on Budget: Major donors can have a significant impact on an organization's budget. Their contributions may fund specific programs or projects, and they may also offer input and advice, influencing the organization's priorities.
- Influence on Governance: Some major donors may serve as board members, actively participating in organizational governance and decision-making.
Philanthropy at a Broader Level:
- Sector-Specific Impact: In certain sectors like visual arts and dance, individual major donors play a crucial role as patrons, providing substantial funds.
- Influence on Philanthropy: Major donors can collectively influence philanthropy as a whole, shaping entire sectors of society.
Mega-Donors:
- Billionaire Philanthropists: The article introduces the concept of mega-donors—billionaire philanthropists whose contributions significantly impact entire sectors of philanthropy. They influence public policy and contribute to societal changes.
Finding Major Donors:
- Development Staff Role: Nonprofit fundraising staff, often termed as "development" staff, are responsible for identifying potential major donors.
- Prospect Identification: Methods include getting to know regular volunteers, paying attention to financial clues, researching mailing lists, and utilizing software to assess wealth and philanthropic history.
- History of Involvement: The best prospects for major gifts are individuals with both the financial capacity and a history of involvement with the organization or its cause.
Stewardship and Relationship Building:
- Sustaining Relationships: Beyond securing donations, the role involves sustaining relationships with major donors through effective stewardship.
- Acknowledgment and Thanks: Regular acknowledgment and appreciation are crucial in retaining donor support over the long term.
In summary, understanding the nuanced dynamics of major donors, their diverse definitions, and their impact on both individual nonprofits and philanthropy as a whole is essential for successful fundraising efforts.
