Bridging the Gap: Aligning Annual Campaigns With Major Gifts

Nonprofits must harmonize fundraising strategies to successfully manage clients focused on annual campaigns versus those oriented toward major gifts. 

Here’s a practical approach.

1. Integration of Teams

Encourage collaboration between annual campaign and major gifts teams to ensure consistent messaging and holistic donor engagement. This includes focusing on "special" or "leadership" gifts, where gift officers practice major gifts engagement with donors on the threshold between annual and major giving.

This lighter approach, applied across a broader group of donors, helps identify those capable, interested and ready to elevate their participation to major giving. The Veritus Group’s data analysis has shown that organizations without a mid-level program move only 0.2% to 1.2% of donors to major gifts. In comparison, those with a mid-level program move 3% to 3.5% to major gifts.

2. Stewardship Beyond the Annual Campaign

Implement stewardship plans that extend beyond the current year to nurture annual campaign donors toward major gifts partnerships.

3. Data-Driven Decision Making

Use donor data to identify annual donors with potential for major gifts, gradually introducing them to long-term partnership opportunities.

4. Education and Training

Invest in educating fundraisers about the distinctions between cash and wealth giving, including advanced charitable vehicles and how to engage donors at each level.

5. A Focus on the Future, Not Just Meeting Budget

Collaborate with our program and subject matter staff to discover what could truly transform the organization. Donors who see a vision for the future and avail themselves through a thoughtful, persuasive, honest relationship manager are more likely to spend time being involved. They also make an effort to understand the issues and their own connection to them.

6. Deploying a Compelling Narrative, Not Missing a Step

Compelling narratives for fundraising look like the following:

• What's the scope of the problem you are solving?
• Why are you uniquely positioned to address this problem?
• If available, who has helped you address this problem already?
• What do we want to do about this problem?

A Case to Explain the Difference Between the Annual Campaign and Major Gifts

Annual campaigns typically focus on securing cash gifts at whatever annual level is considered consistent for that organization — or higher. The primary goal is to receive the largest gift from the donor. This short-term focus drives fundraisers to leverage funds that donors are willing to part with without much persuasion.

Consider this scenario: Sam, a highly experienced coach on our team, has been observing a client who, for many years, has focused primarily on annual campaigns. Driven by sporadic impulses and fleeting hints of a donor's increased financial capacity, the client made an unusually large ask. The result was astonishing — a donor contributed $120,000, a significant leap from his usual $12,000. While this appeared as a coup, it was more a triumph of timing rather than strategic engagement. This generous gift, impressive as it was, did not emerge from a cultivated relationship or align with the donor's long-term philanthropic vision. It was a windfall, not a cornerstone for future collaboration.

Sam was now faced with a clear but daunting task: helping the client understand the long-term potential missed here without undermining what was undoubtedly a major success. Complicating matters further, the CEO of our company, a seasoned annual campaign executive, asked Sam directly for a breakdown of what made this solicitation successful, intending for other coaches to replicate this approach in their client engagements. In this instance, I found myself in the minority, advocating for a broader, more major-gift-focused perspective. I was hesitant to reinforce this approach to other coaches.

What I decided to do was discuss the CEO’s request with Sam, acknowledging the success with his client while exploring how we could expand this to anticipate future interactions strategically. I suggested Sam share these insights with our coaching cohort. I advised him to address several key questions.

• What did we learn about the donor's interests that motivated such a significant gift? 
• What trust was established, and how can this social capital be leveraged when challenges arise or if the donor feels discontent? 
• How will we sustain this level of giving next year when our budget increases by $100,000 due to this gift? 
• Given that the funds will likely support activities beyond this year’s unique operational needs, how will we manage the financial continuity?

I also encouraged him to rely on established major gifts fundraising strategies, such as using this gift as a stewardship opportunity to deepen the relationship without the immediate pressure of another solicitation. This involves revisiting discovery phases with the donor to understand how they perceive the program and its future and defining — through qualitative analysis — the donor’s connection to our charity, their capacity for major gifts and their philanthropic inclinations: Are they primarily a donor, or do they seek or perhaps even prefer a partnership?

By adopting this approach, our goal is not only to celebrate this unexpected success but also to strengthen our strategy for sustainable, relationship fundraising that aligns with our donors' deepest philanthropic aspirations.

The Journey of Experienced Philanthropists

Expanding our view, let’s draw insights from seasoned philanthropists whose evolved understanding of their philanthropic journeys offers profound lessons. These philanthropists often reflect on their giving patterns, recognizing that many of their donations, similar to the initial windfall in Sam’s scenario, are made spontaneously — gestures of goodwill rather than calculated strategies. However, they acknowledge that the most transformative partnerships — those that leave a lasting legacy or what might be termed "eulogy gifts "— are markedly different. These are the fruits of patient cultivation and strategic alignment, beneficial for all involved: financially advantageous for the donor, mission-expanding for the organization and a step toward the better world they envision.

In conclusion, adopting the right mindset is critical when managing clients focused on annual campaigns vs. major gifts. By understanding and appreciating these nuanced differences, nonprofits can strategically navigate donor relationships, leading to sustainable philanthropic growth and stronger partnerships in the fundraising landscape.

This is part two of a two-part series delving into the differences between annual campaigns and major gifts. Check out part one here.

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.