We’re approaching the peak of holiday season, which often means a flood of last-minute donations as donors scramble to make their tax-deductible gifts before the new year. The season of giving thanks for friends and family often extends to generous donations, but not all increased generosity counts as a “major gift.” As you establish your protocols for the coming deluge of donations, we have some guidelines for you to consider when defining what a major gift means to your school.
- Major gifts are exactly that—major. While every donation is cause for joy at your school, major gifts take that celebration to the next level. It’s a gift that some organizations call “transformational,” because they allow your school to do things that would’ve been previously outside the scope of financial possibility—or perhaps set fundraising off to a good start.
- Major gifts are a matter of perspective. What counts as a major gift at one school might be a typical donation at another. Therefore, don’t define what counts as a “major” or “transformative” gift at your school by another nonprofit’s categories. To get a rough starting point for what your office might call a major gift, take what an “average” donation currently is, and multiply that amount by 10. That can give you a rough approximation of what a major gift might be for your school, though it’s only a place to start.
- Major gifts are “exceptions to the rule.” They are not sought yearly, or even biannually. Donors reserve major gifts for monumental occasions, which leads us to…
- Major gifts are (usually) targeted and specific. There is a reason a donor would give such a large gift to your school. Whether it’s to establish a personal legacy or to respond to an urgent programmatic need, the donor usually wants that money directed toward a particular project.
- Major gifts come when donors trust your school. Donors give to causes that resonate with them, but major gifts come when they trust that you and your school will use the money wisely. Trust between the donor and the school comes from building a relationship with that donor, as well as maintaining transparency
Unexpected major gifts could happen at any time, by donors you’re currently cultivating or who have dropped off of your metaphorical radar screen in the years since their attendance. They could be contributions toward a currently advertised effort, or a request to begin a new branch of school development (no pun intended). Should you be fortunate enough to receive such a gift this holiday season, show your school’s excitement and gratitude—and then plan how you can best use such a windfall according to your school’s overall strategic plan and the donor’s interest.
Additional ISM resources:
The Source for Development Directors Vol. 9 No. 2 Now More Than Ever—Tell Donors What Their Gifts Will Achieve
The Source for Development Directors Vol. 11 No. 1 What Constitutes a Major Gift?
Additional ISM resources for Gold Consortium members:
I&P Vol. 38 No. 15 How to Design Your Annual Fund as a Platform for Campaign Gifts
I&P Vol. 36 No. 15 Campaign Gift Pyramid Demonstrates Progress and Encourages Competition
