Major Gifts (Major Donors)

Why It Matters

Major gifts are essential for nonprofit sustainability and growth. They fund transformative initiatives such as new programs, capital projects, or endowments. Securing major gifts enables organizations to expand their impact and innovate. Building relationships with major donors fosters long-term partnerships, ensuring consistent support over time.

Types of Major Gifts

• Cash Contributions: Direct monetary donations, often made through checks, wire transfers, or online platforms. Example: A donor provides $100,000 to launch a new education initiative.
• Stock and Securities Gifts: Donations of stocks, bonds, or other securities, offering tax advantages for donors. Example: A donor transfers $200,000 in stocks to fund an organization’s endowment.
• Planned Gifts: Contributions arranged during a donor’s lifetime but realized after their passing, often through wills or trusts. Example: A donor names a nonprofit as the beneficiary of a life insurance policy or retirement account.
• Bequeathments and Legacy Gifts: Gifts left to a nonprofit in a donor’s will or estate plan, often representing a donor’s enduring commitment to the cause. Example: A donor leaves $500,000 in their will to fund scholarships for underserved students.
• Property and Real Estate Gifts: Donations of land, buildings, or other property, which can be used directly by the nonprofit or sold to generate funds. Example: A donor gifts a vacation property to a nonprofit, which it sells to support its capital campaign.
• In-Kind Donations: Non-monetary gifts such as goods, services, or equipment that directly benefit the organization. Example: A donor provides new furniture for a nonprofit’s community center.
• Matching Gifts: Contributions made by employers to match an employee’s donation, effectively doubling the impact. Example: A company matches an employee’s $25,000 donation to a local food bank.
• Endowments: Large gifts designated for investment, with earnings supporting the organization over time. Example: A donor contributes $1 million to establish an endowment for a nonprofit’s arts programs.

Who Should Know This

• Development Professionals: To craft strategies for cultivating and managing major gifts.
• Executive Directors: To engage directly with major donors and steward relationships.
• Board Members: To leverage their networks and play a role in donor cultivation.
• Donors: To explore meaningful ways to contribute to a cause they care about.

Examples of Major Gifts in Action

• A philanthropist bequeaths a $1 million estate to a nonprofit, creating a permanent fund to support community health services.
• A donor gifts an urban building to a nonprofit, which converts it into a youth arts center.
• An alumnus provides $750,000 in stock to establish a scholarship fund at their alma mater.
• A company matches employee contributions, resulting in $100,000 in funds for disaster relief.

Best Practices

• Understand Donor Interests: Align major gift opportunities with what matters most to donors.
• Show Impact: Clearly communicate how major gifts are used and the outcomes they achieve.
• Foster Long-Term Relationships: Cultivate trust and stewardship to ensure sustained support.
• Be Transparent: Provide regular updates to donors about the impact of their contributions.