Struggling to Secure Large Gifts? Here's How to Maintain Momentum

Are you raising money for a capital campaign or new initiative and frustrated that your largest lead gifts are taking so long to materialize? Does it also feel almost impossible to get meetings with your high-capacity donors? Are you tempted to chase lower hanging fruit and start securing gifts from your mid-level donors to manufacture some momentum? 

In my experience, leaders pursue mid-level gifts instead of persevering for large gifts because they don’t understand what a large gift requires of donors or the organization. While asking for mid-level gifts may lead to you hearing the answer “yes” sooner and more frequently, this shift decreases the amount of money you can raise, puts your momentum in jeopardy, and sets you up to forgo long term financial security for your organization. 

This article is about navigating the realities of what major gifts mean and their significance for donors and fundraisers. You’ll learn why large gifts matter, why large gifts take a long time to materialize, and how to hold out for large gifts without losing momentum.

If you’re willing to commit to the long term goal, create a system for success, and stick to the plan, the possibilities for your organization are bigger and better than you realize. 

Why Large Gifts Matter

Think about a fundraising campaign or initiative like an empty jar. You’re going to fill the jar with rocks (major gifts), gravel (mid-level gifts) and sand (smaller gifts ). A successful campaign or initiative goal is achieved  when the entire jar is filled with no gaps. If you put the gravel  in first, or even part of the sand, and then add rocks you will have gaps. But if you put the rocks in first, add the gravel next, and add the sand last  your jar will be filled with no gaps!  

Here are just 3 reasons why not giving up on large gifts matters to your campaign or initiative goals:

• Large gifts will make up 80% to 90% of your fundraising goal. And these gifts — the 80-90% of your fundraising goal — will come from 10-20% of your donors. Cultivating deep meaningful relationships with these 10-20% of donors, while time consuming, can ensure your fundraising success. 
• Large gifts build donor confidence. Publicly launching your campaign with a significant amount of money already raised invites new donors into a challenge or cause that feels attainable. Perceived attainability is crucial to the momentum you will need to get your campaign across the finish line. 
• Large gifts are abundantly and uniquely possible right now because of the Great Wealth Transfer. Currently, $73 trillion is being passed from one generation to the next! Cerulli Associates estimates that $10-$12 trillion of that will go to charity. Where this wealth will go is being decided right now! Inviting these gifts significantly increases your chances of receiving them.

Large gifts, like the rocks in our analogy, take up more space and provide a structure for new donors to rally around. It takes time to cultivate these relationships, but these relationships are worth the investment. 

Why Large Gifts Take Time

Have you ever done something because you knew it would pay off in the long term? 

Inviting and waiting for large gifts to materialize versus securing mid-level gifts because they happen faster is like exercising to improve your lifestyle versus exercising for appearances. You sign up for slower progress when exercising to improve your lifestyle; but you also sign up for longer lasting results that eventually lead to improving appearances.

When you’re exercising to improve your lifestyle or  building trusting, lasting relationships that lead to large gifts, micro-growth is happening. The growth isn’t as obvious  because it’s so incremental, but it’s the slower, steady growth that makes the progress sustainable.

But why does slow-and-steady in fundraising have to take so long? It takes time for donors to see themselves as true partners, to have important conversations, and to work out their best gift with your help. 

Donors Need to See Themselves as Partners

“Donors who are choosing to give large sums of money to your organization are also choosing not to give to other organizations. This means when they choose to give to you, there is commitment, passion, and loyalty tied to these gifts.” - Veritus, “Three Operating Principles of Major Gift Fundraising” Whitepaper 

The commitment, passion and loyalty that compels a donor to make a large gift is cultivated over time and requires trust. If your organization has had a previous track record of not being financially responsible  or has not attempted a campaign in a long time, it will take extra time to build the kind of trust that leads to large gifts. You aren’t just building trust between you and the donor, you’re helping your donor build trust with the organization, the mission, and the need that your fundraising goal seeks to solve. That’s a lot of trust. 

How Selah Ministries Helped Their Donors Feel like Partners

Six months into a $2M campaign Selah Ministries (organization’s name has been changed) had secured three 6-figure pledges and nine 5-figure pledges. This was nowhere near the $1.6M (80%) in major gifts that was needed to reach their goal. 

Based on the size of their donor base Selah’s team started the campaign with hopes to secure at least six 6-figure gifts and twenty 5-figure gifts. Their progress after six months was disappointing. The campaign just didn’t have the momentum they had expected. 

Not ready to shrink their goals, the team gathered to process what they had learned from donor conversations. They concluded that many of the “no” answers were really “not yet” answers. Donors were committed to the organization and had the capacity to make these large gifts, but they hadn’t been engaged enough over the last couple of years. Donors didn’t see themselves as partners of the ministry. 

So the campaign team pivoted. Returning to their major donor list they crafted an engagement strategy for each donor by asking the following question: what does this donor need to fully invest? More information? More involvement? More acknowledgement for their past contributions? Then they invested time into executing the plan for each donor. For some donors this plan took a year. When they felt the donor viewed themselves as a partner of the ministry, they invited a large gift again. 

In the end eight donors each gave $100,000 and 24 gave 5-figure gifts. In the last six months Selah Ministries met their $2M goal. Most importantly, they gained partners who were invested in the mission of the organization for the long term.

Donors Need to Have Important Conversations

Think about the biggest decision you’ve made in the last 2-3 years. How many important conversations did you have before officially making the decision?

My eldest daughter just completed her first year of college. It took her a whole year to choose her school. She applied to schools. We visited the schools. We weighed the pros and cons of academics and swim programs. Until finally…finally a final decision was made. The decision couldn’t be rushed. It had to be faithfully and attentively walked out. 

My daughter choosing a university and a career field is not that much different from major donors choosing to make a large gift which will make a significant future impact. This decision takes time and multiple conversations. They are considering the impact they want to make, the legacy they want to leave, and how they want to steward the resources that have spent a lifetime accumulating. They may also need to consult with financial planners, tax advisors, or other family members.

Because a donor is considering so many significant things, be ready for this  process to take 12 - 18 months with a donor who is already warm to you, and up to 3 years if you’re starting a new relationship with a donor. 

Donors Need to Work Out Their Best Gift with Your Help

Inviting large gifts requires you as a fundraiser and organization to think big — your vision has to be big and your ask has to be big. Thinking this big and closing gifts this big takes big time and effort. Fundraisers and their donors may spend months in friendly negotiations over a gift’s purpose, timing, funding, documenting and recognition. 

But all of the time spent working out a single large gift is still easier than all of the time spent raising many smaller gifts. In one of my new favorite books, Dr. Ben Hardy proves that achieving 10x growth is easier than 2x growth. In fundraising, you can 10X your growth with one gift of $100,000 that requires 4-5 visits. Or you can 2X your growth with 10 gifts of 10k that each require 2-3 visits (a total of 20-30 visits). How would you rather spend your time? 

Before moving on it’s worth pointing out that if you’re receiving large gifts in fewer than 5 visits you might not be thinking big enough. A fundraising expert and early mentor of mine, Laird York, taught "If a major gift commitment happens quickly, say within 12 months, a major gift as defined by your institution's structure may have been met, but you might not have reached major gift status in the eyes of the donor. If you are too quick to recruit major gifts, you might want to redefine your definition of major."

How to Avoid Losing Momentum in your Campaign

Staring down a three year stretch to fully fund your campaign or next initiative is daunting. What if the campaign stalls out? What if you lose momentum in the second year? These are valid questions and concerns. Losing momentum or stalling out is bad. But there are also tried and tested strategies to keep your fundraising traction barreling towards your goals. 

Three of the most important strategies to maintain momentum are: launch with strategy, enlist and support campaign volunteers, and don’t rush to the ask.

Launch with a Winning Strategy

A winning strategy will help you prioritize your tasks, not waste your time, and accomplish things that get you closer to your goal. A winning strategy includes three things:

1. An engaged board. Your board needs to be fully on board with the strategic direction and the goals for the campaign.
2. A feasibility study. Research your donor base to evaluate your fundraising capacity. Do you have enough prospects to reach your goal? There are various rules of thumb about “campaign math,” but generally speaking, you’ll need 3 suspects for every 1 qualified prospect, and 3 qualified prospects for every gift. Visit with your best suspects to test the fundraising case, and understand the donor's interest and willingness to participate.
3. A trusted consultant. When an internal team member conducts a feasibility study and leads strategy it is not uncommon for them to under or over project their organization's capacity. A consultant from outside your organization can be a powerful and key player in leading strategy as well as being an unbiased truth-teller. They are also the accountability partner who will keep you focused on the right strategy with the right donors at the right time.

Every morning I wake up and pick my “big three” for the day. If I only get those three tasks done, I know that day will be a success. My big three help me prioritize my tasks, not waste my time, and get things done that will move me closer to my goal. 

Launching your campaign or fundraising initiative with a winning strategy is like starting your day picking your “big three.” 

Enlist and Support Campaign Volunteers

Dee and Don were some of the most patient, faithful and generous people you could hope to meet. I had the privilege of meeting them while consulting a capital campaign. Dee and Don were committed to the flourishing of their new church and made it financially possible for the church to hire me as a consultant. 

Before the campaign began Don passed away. Dee continued to be involved in the campaign and invited others to make gifts. Towards the end of the campaign Dee made a matching gift that was critical to the success of the campaign. Note: You can read a more complete story about Dee and Don’s impact HERE. 

This story is a beautiful example of the influence volunteers can have in a campaign. When enlisting and supporting volunteers it’s important to remember three things:

• Gifts. Committed and engaged donors should make gifts of their own. Be careful and intentional to cultivate a trusting and genuine relationship with them and invite their gift. Walking your volunteers through the experience of making a gift will equip them to more confidently invite others to give.
• Influence. Committed and engaged volunteers are likely to invite people they know to make gifts. You can greatly help this along by asking your volunteers or current major donors to introduce you to anyone who they would be delighted by the opportunity to make a gift.
• Grow. You might not know everyone who is excited and committed to your mission when you start. Don’t be hesitant to add other members to your campaign leadership team as good-fits emerge. 

As your volunteers are serving alongside you, remember that they are volunteers. Checking in with them about life, not just fundraising will be important to stewarding relationships with them. 

Don't Rush to the Ask

“Most donors have to be engaged and warmed up prior to a big ask. It’s so important to take the time to bring them into the campaign process and make them feel like insiders,” wrote Gail Perry Group. Making donors feel like insiders isn’t something you can rush. Take your time. 

Rushing hurts your fundraising efforts in three ways: 

1. You may waste your time by approaching the wrong people. Researching and conducting feasibility studies helps prevent you from meeting with people who aren’t interested in supporting you. 
2. You may damage a valuable relationship. Asking for a gift too soon or when the time is not right can break trust with donors. They may also turn you down simply because they are not ready. Take the time to cultivate. 
3. You may receive disappointingly smaller gifts. Inviting a gift before a donor is ready often leads to smaller gifts. They may believe in your mission, but they haven’t adopted it as their personal mission.  

The planning and preparation process for a campaign or fundraising initiative can feel indefinitely long particularly if you need finances in the near future to be solvent. But resisting the need to rush is critical to your ability to successfully invite bigger and better gifts. 

What’s Next?

Does resistance and slow progress mean you’re doing something wrong? What if the resistance you’re feeling is because you’re on the right track? 

Resistance for Nehemiah and the Israelites rebuilding the walls of Jerusalem was because they were on the right track (Nehemiah 3-8). Instead of giving up, they committed to the long term goal, created a system for success, and reminded themselves of the favor God had given them previously. They rebuilt that wall.

After reading this article you may still be concerned large gifts are taking too long to materialize. That’s okay. You are responsible for a huge endeavor, perhaps something that your organization has never attempted! Second-guessing is understandable. But don’t let impatience, fear and delayed timelines hijack the long term vision. 

If you would like an expert to accompany you through a campaign or to simply confirm that you’re on the right track my team and I would be honored to support you. You can schedule a call with us HERE. 

This article was co-authored by Brenda Moore, CFRE and Samantha Roose.