Major donors can be a great source of revenue for any nonprofit organization. Gifts from major donors are usually pretty easy to cultivate and receive. But how do you identify the ‘diamonds in the rough’ from a large pool of potential donors?
- Watch for donors who self-identify themselves. A donor who has a strong tie or belief in your organization and who has the means to make a large donation is your best candidate for a major gift. Many times, people will self identify by making a good-sized donation through the mail or at an event. You can usually multiply this kind of gift by 10 to 25 to determine the donor’s real potential (but not necessarily what you should ask them for at first).
- Pay attention to the checks donors give you. Sometimes you’ll see a check that’s written out of a Trust or a special giving account. This can be an indication of the donor’s capacity to give.
- Read the annual reports of other organizations to see if any of your donors show up in their major donor lists. It’ll give you a good sense of how much your donors are giving to other charities.
- Consider using a wealth-screening service. There are services out there that will run your house list through a series of databases to help identify who on your list has deep pockets. Wealthengine and MAGIC are two of those. This provides you with a targeted list of potential major donors that you might have otherwise missed. But remember, just because they have significant wealth doesn’t mean they will necessarily make a large gift to you.
- Show your Board of Directors a list of your current donors and ask if anyone knows any of your donors. You may get some really beneficial information about your donors that you don’t know.
- Look for L-I-A in a potential major donor – Linkage, Interest, and Ability. A donor must have all three. Linkage is some commonality with your organization – usually they’ve received services from you as a client, someone they know has received services from you, or there’s some other reason that your cause hits close to home. Interest is the donor’s desire to help you. They are interested in what you are doing. Ability is the donor’s potential to give. They must have resources to be a potential major donor.
Remember that these donors are people who care about your cause. They are not ATM machines that you can go to whenever you need money. Treat them with respect and kindness, keeping them and their interests in mind as you work to build a relationship. The benefits will be priceless!
Sandy Rees, CFRE, is a coach, consultant, and trainer who shows small nonprofit organizations how to raise more money and grow their Boards. For free tips on how to raise all the money your organization needs, visit http://www.getfullyfunded.com.
