Balancing Major Gifts & Annual Fund Efforts in Your Fundraising Plan
Scaling Major Gifts. Strategies, action steps, and ideas for scaling major gifts by Tammy Zonker, Major Gift Expert & Keynote Speaker.
After nearly 30 years in nonprofit fundraising, I've seen firsthand how challenging it can be to balance major gifts and annual fund efforts. As a development director and consultant, I've grappled with this issue countless times. In this edition, I want to share some insights that I hope will help you navigate this common dilemma.
The Tug-of-War: Major Gifts vs. Annual Fund
In my early days as a development director, I often felt torn between focusing on major donors and nurturing our annual fund. Sound familiar? You're not alone. Many nonprofits struggle to find the right balance, often leaning too heavily on one side or the other.
I've seen organizations pour all their resources into chasing big fish, only to watch their annual fund dry up. On the flip side, I've witnessed nonprofits get so caught up in annual campaigns that they neglect major gift prospects. Neither approach is sustainable in the long run.
Finding Your Balance: Strategies That Work
Over the years, I've developed some strategies that have helped me and hundreds of clients strike a better balance. Here are a few that I've found particularly effective:
Integrate, don't separate: Instead of treating major gifts and annual fund as separate entities, I've had great success integrating them into a cohesive fundraising strategy. For example, use your annual fund to identify potential major donors. In my experience, consistent annual donors often have the potential to become major gift supporters.
Leverage technology: I can't stress enough how much the right – and accurate – donor management system can help. I've seen organizations transform their fundraising efforts by using data to segment donors effectively and tailor their outreach.
Cross-train your team: One approach I've seen work well is cross-training fundraising staff in both major gifts and annual fund strategies. This creates a more flexible team and ensures everyone understands the importance of both efforts.
Create a moves management system: Implementing a robust moves management system has been a game-changer for many of my clients. It helps track donor interactions across all giving levels and ensures no one falls through the cracks.
Success in Action: A Case Study
I recently worked with a mid-size nonprofit that was struggling with this very issue. By implementing these strategies, they saw remarkable results. In just one year, they increased their major gifts by 30% while also growing their annual fund by 15%. The key was their integrated approach and smart use of data to guide their efforts.
Actionable Takeaways
Based on my experience, here are some steps you can take right now:
Analyze your donor database to identify annual fund donors with major gift potential.
Create a stewardship plan that nurtures donors at all levels.
Set specific goals for both major gifts and annual fund, and regularly review your progress.
Invest in training your team on both major gifts and annual fund strategies.
The Road Ahead
Remember, finding the right balance is an ongoing process. In my journey, I've learned that flexibility and continuous learning are key. Don't be afraid to adjust your approach as you go.
I'd love to hear about your experiences balancing major gifts and annual fund efforts. What challenges have you faced? What strategies have worked for you? Share your thoughts in the comments below.
Keep transforming,
Tammy Zonker
Major Gift Expert & Keynote Speaker
Fundraising Transformed
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