Nonprofit leaders often ask me, “Richard, what are the three main things I need to make my major gift program successful?”
I’m sure many people want to know because they feel real frustration about how their major gift program is currently performing. Sometimes (and I hope this is the case for you) they’re just looking for ways to make a good program better. The fact that you’re even reading this blog suggests that you know we can all improve!
In my last post I outlined what success looks like. Here, I want to explore the main elements of success in major gifts.
So how do you know you’ve got things right in major gifts?
I believe it’s as simple as three legs on a stool. First, you need to raise significant dollars for a good cause. Second, you’ve got to retain donors. Third, and crucially, you must consistently provide meaningful and fulfilling work for your major gift officer.
I hope you’ve already noticed that these last two points aren’t strictly about money! Maintaining relationships and building meaning into someone’s life may not feel like your top priority today. After all, isn’t major gifts about getting the money? Well, yes, to some degree it is, but just getting the money is not what it’s all about.
Retaining donors is hugely important as well. Millions of dollars are being spent to acquire donors; but unfortunately we see most major gift files losing 40% to 60% of their value each year – millions of dollars simply vanishing into thin air. The economy isn’t shrinking at that rate! What this actually means is that donors are simply vanishing from your organization. And I know for a fact that they are giving somewhere else.
Providing meaningful and fulfilling employment simply can’t be overlooked either. If you are keeping the donors and raising the money, but not valuing your major gift officer, there’s trouble ahead, believe me. With the tenure of most MGOs lasting just over two years, few managers in this field can say they’re experts at stewarding this important human resource.
And just as there’s a direct connection between losing donors and losing dollars… you guessed it, there’s also a direct connection between losing a major gift officer and losing donors! Jeff and I have been through this many times. A MGO leaves. Time passes as the organization scrambles to replace him. And the donors cool off, with some going away.
Here’s another way to think about this. I call it the Major Gift Value Triad. Every successful organization must have:

1. The ability to raise money, which is a by-product of doing good work that a donating public can engage with. This may sound rather basic, but it isn’t. The fact is that there are a lot of non-profits that do not have the ability to raise money. Either they don’t have program that the public wants to support, or they haven’t figured out how to present that program to donors in an attractive way. So this one point is a big deal.
2. A deeply held belief that these donors are partners, not sources of cash, which fosters a strong desire to nurture and retain them. We have talked about this quite a bit in this blog – that donors are NOT merely sources of cash, and if you treat them like they are, they will run away from you. If your donor value attrition is high, it is a clear sign that your organization does not value donors. THAT is a huge problem.
3. A business environment and culture that honors its staff and provides meaningful and fulfilling work. While the other two points above bother me quite a bit if not done, or if not done well, this point truly grieves me in my deeper self. Here’s why. I know what it feels like not to be valued. I know what it feels like to be a utilitarian pawn in some authority figure’s game. I know what it feels like to have my wishes, desires and gifts either totally ignored or minimized. You know this as well. It does not feel good. And we all know that when you honor and lift up an employee, you actually help yourself and the organization. This is an important value that is too often ignored, and it must be changed if it is not operating properly in your organization.

If your nonprofit is missing any of these points, trouble is on the way. Just like a three-legged stool cannot stand if one leg is missing, the organization (and certainly the major gift program) will fall if any of these points are not functional.
Many times when I present this concept to management and leadership, a great deal of angst, debate and downright arguments ensue. It’s almost as if I have been promoting fundraising heresy, and I should be banned from the discipline.
It’s only when I can show how millions of dollars are lost each year and hundreds, sometimes thousands, of donors are disappearing – or good MGOs are flocking out the door – that my voice can be heard as one of reason and truth.
Please listen to me. Shepherding donors is a sacred trust. So is stewarding and caring for each of your MGOs. Donors and MGOs are people to be treasured. Believe this, then take steps to align your organization to the Major Gift Value Triad so that it can properly and effectively house an ideal and successful major gift program.
Richard