A common challenge that nonprofits face is financial management. On top of managing fund allocation, it’s essential to ensure your organization consistently brings in the money needed to power your mission, whether to fund programs for your beneficiaries or pay for fundraising events.

Reaching that point of sustainability can be difficult, especially if you don’t have the major donors who can supply the funding you need. In this guide, we’ll discuss a few easy ways you can make your nonprofit more attractive to major donors and secure the support necessary to propel your mission forward.

1. Understand what motivates major donors.

To attract donors with major giving potential, you must first understand what motivates these types of donors to give. Common reasons for donating large amounts to charitable causes include:

  • Impact: Major donors want to make a positive impact on the world through a cause they feel passionate about. They give because they want to advance your cause.
  • Finances: Charitable gifts can reduce tax obligations, which makes donating very appealing to high-net-worth individuals. This is especially true when you offer giving options like stocks and cryptocurrency, which come with additional tax benefits.
  • Legacy: Many major donors are concerned with upholding an existing legacy or forging a new one for their family. These donors are more likely to give to nonprofits with dedicated legacy giving programs.
  • Recognition: Some major donors give to boost their reputations as humanitarians or philanthropists. To appeal to these donors, offer public recognition such as donor walls or interviews in email newsletters.

Examine your existing major donor data to understand what drives people to make major gifts to your specific organization. For instance, if you’re part of an educational institute, you’d use software that allows you to examine your alumni and take a closer look at those who have made large gifts.

Then, segment them based on common characteristics to understand what types of individuals make major contributions and uncover deeper motivations. You might even make personal phone calls to thank them for their previous donations and directly ask what inspired them to give.

2. Allow various gift vehicles.

While many major donors give cash, others are more interested in non-cash giving options. That’s why you should offer many different giving vehicles, such as:

  • Donor-advised fund grants: According to Infinite Giving, a donor-advised fund (DAF) is “a charitable giving account that individual donors open with sponsoring organizations for the purpose of long-term giving.” These are designed to benefit donors by offering more attainable tax deductions, but they also enable charitable funds to grow, resulting in larger donations.
  • Qualified charitable distributions (QCDs): QCDs come from Individual Retirement Accounts (IRAs). Donors tend to gift these when they’re trying to lower their tax obligation or fulfill minimum distribution requirements. These types of donations are also fairly straightforward.
  • Stocks: Donating long-term appreciated securities allows donors to avoid capital gains taxes and simplifies stock portfolio rebalancing. Additionally, supporters make stock donations to give larger gifts, as nonprofits receive more funds when the stock is donated directly. Otherwise, donors would have to sell the stock, pay taxes, and then donate the remainder.
  • Planned giving: Planned gifts include bequests, charitable gift annuities, charitable remainder trusts, and more. Determine which types of planned gifts your nonprofit would like to receive, then create a dedicated planned giving page on your website that outlines the steps for each.
  • Endowments: Endowments are dedicated sources of long-term funding, particularly popular among educational institutions. However, there are many different types of endowments, enabling this type of giving vehicle to serve nonprofits of all sizes and their respective audiences.

Incorporating new giving vehicles doesn’t just help your organization meet current donor preferences; it also enables you to keep up with the changing philanthropy landscape. With the Great Wealth Transfer underway, nonprofits need to be proactive in adapting to the preferences of younger donors who will soon be major contributors.

To that end, make sure that giving through these vehicles is as easy as making a monetary donation. Clearly outline your guidelines on your giving pages and provide your nonprofit’s contact information in case donors have questions. You can also use non-cash donation software to further simplify the process and make it even easier for major donors to give the way they want to.

3. Identify and leverage existing connections.

While there are plenty of prospect research strategies, cold outreach to potential major donors is undeniably difficult. Instead, it’s best to reach out to individuals who have existing connections with your nonprofit. A warmer approach like this will reduce your nonprofit’s anxiety over outreach and maximize your chances of receiving a positive response.

Here are a few potential major donor sources your nonprofit should leverage:

  • Long-time donors with wealth indicators
  • Board members
  • Previous beneficiaries, such as alumni, patients, or community members, depending on your nonprofit type
  • Corporate partners and sponsors
  • Peer organizations, such as other nonprofits or community organizations

Check your constituent relationship management (CRM) software as a starting point, and then go from there. If there’s an individual or organization that can facilitate the conversation with a prospect for you, ask them to introduce you personally. A warm introduction might be all you need to set the relationship off on the right foot!

4. Demonstrate tangible impact.

Remember that one of the main motivations for major giving is to make an impact on a charitable cause. However, even if that’s not a prospect’s top reason for giving, every donor wants to know that their funds will be used responsibly.

To show that you’re a trustworthy steward of donated funds, take the opportunity to discuss and illustrate the impact your nonprofit has made. UpMetrics recommends following these best practices when discussing your impact:

  • Tell a story that positions your organization and its work as the key to resolving an important community issue.
  • Use quantitative and qualitative data to appeal to both the emotional and rational sides of potential donors.
  • Be transparent about how you collected your impact data, how you analyzed it, and the tools you used to strengthen trust.
  • Discuss both positive and negative impacts to give major donors a holistic view of your efforts, especially if you discuss what went wrong and how you’ll improve the next time.
  • Use visuals effectively to help readers understand your impact, break up text, and otherwise keep them engaged in your efforts.

Don’t just send annual impact reports to major donors. Their level of contribution to your nonprofit warrants more frequent, personal updates. Apprise them of your work at the close of every fundraising event and initiative so they’re always in the know about exactly what you’re doing.

5. Build authentic relationships before making an ask.

Major donors understand the value they bring to a nonprofit, which can make them wary of engaging with organizations that only seem to want them for their money. Before you make any asks, build up an authentic relationship.

This might mean sending personalized digital messages through your marketing software, making periodic phone calls, or even sending handwritten letters from your nonprofit’s leadership. Most importantly, your stewardship activities should include meaningful engagement opportunities, such as:

  • Personalized tours and site visits
  • Leadership meeting sit-ins
  • Invite-only events
  • Behind-the-scenes access
  • Volunteer events

Enlist your major donor officers to put together activities that prospective and existing major donors would be excited to participate in. Your officers should be familiar with each major donor’s preferences, allowing them to customize invitations and opportunities for each one.

Attracting major donors is just the first step to securing a gift. Leverage key tools like Salesforce to build stronger relationships and demonstrate your impact to ensure that major donors stay committed to your mission and make gifts accordingly. With these tips, you’ll establish a solid foundation for your major donor relationships now and in the future!