4 Scenarios Where a Major Gift May Be a One-Time Donation

When your nonprofit receives a large donation, whether through long-term cultivation or as an out-of-the-blue gift, it is thrilling to say the least. You know how much good can be accomplished because of the investment and can’t wait to put it to use.

What if the donation came with a caveat, and the donor said it is strictly a one-time only gift? Do they really mean it, or might they regularly start giving large gifts? Maybe they are testing you to see how you handle such a donation. (To be fair, that is a possibility.) 

Six months or a year in, it can become very tempting to begin to rely on the idea that the same amount of money might come again the next fiscal year. Even though the supporter said it was a non-repeatable gift, should you try to convince them to give annually anyway? 

Fund development is a complex process that involves identification, cultivation, solicitation, thanking, stewarding and then continually building the investor relationship. If it was not a surprise or anonymous gift, you were likely aware — because of a combination of past giving history and your own cultivation efforts — whether and when a supporter was going to make the donation. You’ve likely positively and strategically partnered with them along the way. 

Related story: The Best Major Gift Ask Isn’t a Pitch

It does periodically happen, however, that a major donation is a one-time or short-term deal. Anonymous donors aside, here are a few examples of one-time or short-term major donations.

1. Lottery Win

A supporter wins the lottery and — depending on whether they take the lump sum or payouts over time — they are likely to use charitable donations as a tax advantage. Once they have made their intention to invest in your organization’s mission known, talk to the donor and find out what their plans are. 

Maybe they’ll receive payouts for five years and plan to give your nonprofit $10,000 in each of those years. But if they are adamant that after the five donations, they will return to the small, periodic gifts they’d given previously, you should engage them as close members of the organization’s family (if they want this). Through relationship-building and cultivation, they may change their minds at the end of the five years — or they may stick to their original plan. Either way, you should honor their wishes.

For budget purposes, if there is a signed multi-year pledge agreement, then it is reasonable to include the $10,000 in projections for each of the next five years, but not to include it thereafter.

2. Tribute

A donor who generally gives about $500 per year decides to transfer appreciated stock valued at $10,000 as a way to honor the outgoing founder who is retiring (and of course, support the mission). They tell you their plan is for this to be a one-time gift. You continue to steward the relationship and engage the donor and, over time as the relationship grows, you might find another reason to solicit an additional major gift from the donor. They may give it; they may not. But either way, respect what they decide and keep the relationship positive.

For budget purposes, you should not include this $10,000 in projections for the next year. If another gift happens to arise, great! But the situation does not warrant budgeting an expected $10,000 repeat gift. 

3. Relocation

They love your organization that serves only the local area and historically has given about $5,000 annually. Before moving out of state, they decide to give a one-time $15,000 gift. They say their plan is to discontinue support after they move and to begin supporting organizations local to their new home. You can ask if it is OK to keep in contact and continue to let them know the impact of their gifts. Maybe in a year or so, something the organization has done could move them emotionally and push them to send a gift. You’ve maintained the relationship, checked in periodically and honored their wishes. Then it resulted in a future gift. 

For budget purposes, you should not include a $15,000 gift in projections for coming years.

4. Capital Campaign Lead Gift

Your nonprofit will display the donor’s family name on a large section of a building as a result of a $1 million lead gift to your organization’s capital campaign. Before the capital campaign, this donor gave gifts less than $500 every few years and bought tickets to the annual gala. They make it clear that the capital campaign gift, which is pledged over three years, is a unique circumstance that will not be repeated in other gifts to the organization. 

The nonprofit absolutely must honor this boundary set by the donor. However, large capital campaign gifts often have the effect of pulling the donor closer to the organization over time. The more connected they feel to the mission, the higher the likelihood that they could increase the level of their annual gifts. 

For budget purposes, if a signed pledge agreement is in place, once the organization receives the first third of the donation, your nonprofit can budget the remaining two-thirds in the capital campaign budget for the next two years. Unless the donor indicates otherwise, there should be no specific increase to future projections for the annual budget based on this donor. 

These examples show that if a donor states that they are giving a one-time gift, you should honor this and act accordingly. Communicate the impact of their gift and the organization’s work and continue to offer opportunities for the donor to engage with the mission.

Good fundraising creates partnerships based on trust, ethical behavior and transparency. A one-time gift doesn’t mean you should never talk to the donor again, it simply means that you should continue to cultivate the relationship in support of the nonprofit’s important mission work in a way that honors everyone involved.

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.