Why pursue major giving?
1. The case for pursuit is easily made by highlighting that at minimum £3.4 billionB of all giving in the UK comes from this growingC market and by confirming that an established programme which is well run can have a sustained annual return on investment of 1:10. More importantly, it achieves the highest donor life-time value (LTV)D,E , of all practices, except perhaps legacies. Major giving is worth investing in.
2. With such returns, comprehending its intricacies or diverse landscape isn’t necessary to recognise its significance within the sector and its value to your organisation. Unlike other forms of giving, which are geared towards meeting ongoing operational needs, major giving also focuses on the bigger picture, offering the potential for transformative change. Major giving can revolutionise your organisation’s future impact.
With this potential confirmed, the focus naturally and eagerly shifts from ‘why’ to ‘what’ and ‘how’.
What is major giving?
3. Part of the hesitancy comes from believing major giving is only for universities, medical research, or the Arts, with multimillion pound projects to offer, when in fact the most common qualifying donation in the UK is £5k. So, you don’t need Lewis Hamilton or J.K Rowling on your mailing list to qualify, and you certainly don’t need to be asking for hundreds of thousands. What is major, is relative and should be bespoke to you.
4. Many also fixate on the amount of a single gift, rather than the long-term value of a relationship. Research shows that it can take upwards of 18 months to secure the first donation and it is on average the 11th donation before a donor gives seven figures. This is likely connected to sufficient development of identification and trust in the organisation. What is major, is the value within symbiotic relationships that develops over time.
Considering these characteristics, ‘major giving’ is actually a misleading label and ‘high value relationships’ better reflects the nuance and approach involved. It demystifies the fear and offers greater flexibility to fundraisers. It also requires a shift in mindset and approach from other types of fundraising.
Your Mindset
5. Too often organisations are focused on the money and forget the needs of the donor. When looking at high value relationships it is better to consider yourself more a custodian of the donor’s philanthropic intent than a salesperson trying to persuade them of your worthiness. And it is not possible to be a custodian if you don’t know what it is they want to achieve. Authentic listeners understand how they can make a major difference for the donor.
6. Organisations usually become so focused on showcasing their own worthiness that they obstruct the connection between the donor and the beneficiary. Of course, it is important to show you are a trustworthy and competent organisation, but craft a compelling narrative featuring the beneficiary and the donor, that ends in the difference they want to see. The best stories draw you in without drawing attention to the author.
Your Approach
7. Most organisations stumble before they start because of preconceived expectations, not least that fundraising is solely the duty of the fundraiser. Contrary to this belief, it is organisations that place fundraising at their heart and integrate all functions that get the best results. Successful high value relationship management is an organisation-wide pursuit.
8 .Controversially, as a high value relationship fundraiser you do not always want to be the one asking for a donation! You can of course, and often do. However, it stands to reason that the person held in highest esteem by the prospective donor has the ability to elicit the greatest response, be that the CEO, lab technician, the parish priest or performing artist. A good fundraiser doesn’t ask, they facilitate the ask.
This mindset and approach hold true whether you are talking with an individual, a family foundation or acompany.
Your Audience
9. Donors regularly refrain from supporting organisations they care about when they lack clarity on how their contribution will make an impact or can’t find a way to give that is appealing to them. Likewise, organisations try to avoid restricted funding for fear of operational constraints. However, aligning your organisation’s long-term strategic needs with donor interests and motivations can be achieved through astute grouping and positioning. A worthy cause still needs appropriate giving opportunities.
10. From venture philanthropy to effective altruism, the motives and methods of philanthropy shift between generations and this can make the thought of engaging in high value relationships a daunting one. In an increasingly competitive environment, remember that donors’ primary focus always remains the same, especially when being stewarded. Passionately communicate your impact early and often.
A https://benefactgroup.com/fundraising-resources/charity-fundraising-articles/value-of-giving-report/
B https://www.cafonline.org/about-us/blog-home/the-sunday-times-giving-list-2023
C https://www.beaconcollaborative.org.uk/new-data-shows-philanthropy-is-growing-in-the-uk/
D https://www.keela.co/blog/nonprofit-resources/donor-lifetime-value
E Sargeant, A. (2003). Using Donor Lifetime Value to Inform Fundraising Strategy. Nonprofit Management and Leadership.
12. 25 – 38. 10.1002/nml.12103.
Mark Carrigan
Mark runs an impact consultancy serving commercial and not-for-profit clients with interest in sustainability, impact investing and philanthropy. As a relationship and management specialist the drive behind Mark’s work is to help impact and philanthropy stakeholders realise the greatest possible return and social value for the causes and communities they care about. Often working directly with global leaders and heads of state, he has supported organisations around the world since 2003 with combined funding goals exceeding $590 million. As well as being Managing Director at Carrigan Consulting, he is a Senior Lecturer at the Chartered Institute of Fundraising and has been appointed to several boards including the Journal of Philanthropy and Marketing, Rogare The Fundraising Think Tank, Champ International and Fundraising Ireland (now Charities Institute Ireland). ). A frequent guest speaker, he has recently been invited to talk on the MSc in charity management suite of programs at the Charity Effectiveness Centre at Bayes (formerly Cass) Business School.