Major donations, along with planned contributions, are the most substantial individual gifts that nonprofit organizations receive. These contributions play a critical role in funding projects and programs that directly benefit the community. In this Martin Letter, we will examine ten persuasive factors that motivate donors to make major gifts. Research shows that health nonprofits, higher education institutions, arts and culture groups, and foundations received over 50% of their million-dollar-plus donations from in-state contributors.
Now, let’s delve into the topic. What does major giving entail? From the donor’s perspective, major giving involves making a significant donation to a nonprofit. However, for the nonprofit, the process is more intricate than simply depositing a large check. Major gift fundraising encompasses several stages, including stewardship, solicitation, and cultivation. These major gifts occupy the pinnacle of the traditional donor pyramid and are typically limited in number, excluding planned contributions.
So, what are the ten compelling reasons why a donor makes a transformational or major gift to your capital campaign?
Philanthropic Impact:
Donors may be motivated by the opportunity to make a significant and lasting impact in their community or for a specific cause. A $1 million contribution can act as a catalyst for positive change, transforming lives and communities. The opportunity to strengthen one’s community can be highly attractive to potential donors.
Personal Connection: Donors may have a personal connection to the organization’s mission, values, or beneficiaries, prompting them to make a significant contribution to advance that cause.
Legacy Building: Contributing a substantial amount to a capital campaign allows donors to leave a legacy, making a tangible and enduring difference that will be remembered for years to come.
Leadership Recognition: Large donations often come with public recognition, such as naming rights for a building, program, or initiative. This can enhance the donor’s reputation, influence, and legacy.
Strategic Partnership: Donors might see their contribution as a chance to align themselves with an organization or cause they deeply care about. This partnership can lead to collaborative efforts, networking opportunities, and further involvement with the organization’s mission.
Social Impact and Change: A substantial contribution can be seen as a tangible way to address societal issues and drive positive social change. It allows donors to be a part of creating solutions and making a significant impact on pressing problems.
Supporting Innovation: Large donations can fuel innovation and progress. By contributing to a capital campaign, donors can help an organization implement groundbreaking ideas, research, or projects that have the potential to revolutionize their field or industry.
Strengthening the Community: Donors may view their contribution as an investment in the overall well-being and growth of their local community. By supporting a capital campaign, they can play an active role in building infrastructure, improving services, or advancing key community initiatives.
Personal Fulfillment: Ultimately, making a substantial contribution allows donors to experience a profound sense of fulfillment and personal satisfaction. Knowing that their resources are being utilized to drive positive change can provide immense joy and a sense of purpose. There can be additional factors influencing a donor’s decision.
Tax Benefits: Donors may be motivated by the tax benefits associated with large-scale donations. By contributing $1 million or more, they can potentially maximize their tax deductions, reducing their overall tax liability.
Indeed, various factors may impact the decision of a donor to contribute $1 million or more, encompassing personal wealth, peer influence, relationship with the organization, personal values and beliefs, as well as the endeavor to expand one’s network.
