Once I was on a fundraising panel at an event and a participant asked, “What should be my number one focus in fundraising?”
One of the other panelists immediately said, “Build your major gifts program.”
Indeed, this has become the advice followed by many nonprofits that look to a limited pool of wealthy donors to provide most of their funding.
After all, it seems much more expedient to spend time on one person who can give $100,000 rather than 100 people who can give $1,000.
Major gifts are important. But don’t forget about the mid-level donors who give under $5,000 but give frequently and loyally.
Almost two-thirds of major donors start off making smaller annual gifts. Consider a deep dive into your data to find out how much of your organization’s revenue is supported by mid-level donors. This is a ready-made pool of prospective major donors to begin stewarding and cultivating (and you don’t have to go out and find them yourself!).
A strong mid-level program:
- Mitigates risk instead relying on one or two sources for the lion’s share of annual revenue.
- Creates a valuable pool of planned giving donors since most bequests come from loyal, smaller-dollar donors.
- Expands your reach and influence by gaining more voices for your cause.
- Promotes philanthropy. While US charitable giving has grown, the number of donors has not. This is not healthy for philanthropy, and it’s not healthy for civil society.
In order to launch an effective mid-level program:
- Segment your file. Who are your consistent, loyal donors? Who gives frequently? Who is engaged? (Opens emails, attends events, etc.)
- Establish giving clubs. Give donors reasons to upgrade by creating giving clubs with specific benefits.
- Personalize and recognize. Show donors you know them and appreciate their contributions by tailoring appeals and providing great stewardship with handwritten notes, calls or emails.
- Make mid-level donors insiders. Share new programs and information with them.
Foster regular engagement. Recognize giving milestones, sending regular impact reports, and personally inviting them to virtual or in-person events.
