Major donor development

The following resource is based on Philanthropy UK research findings published in Why Rich People Give (2004), the first major British study into the wealthy and their giving patterns, experiences and expectations.

More than 80% of funds come from 20% of donors. The definition of a major donor varies between charities, from one who gives £250 to one who gives £250,000.

Your definition of ‘major’ will vary depending on several factors, such as:

• The size (income) of your charity
• Your capacity and operational needs
• Your pool of prospective donors
• The extent of your major donor programme

Some donors give through a charitable trust or foundation. Most grant-making trusts and foundations derive their income from an endowment. Some trusts act as a broker for donors and collector of endowment, either in a local area (a community foundation) or in a specialist field (an intermediary trust). For more information about trusts and foundations, see ACF’s guidance for applying for funding.

Development is the term given to building and nurturing relationships with donors; it goes beyond merely fundraising to embrace the whole process of engaging donors in a cause and keeping them interested and satisfied with what they get back out of their investment and their relationship with the charity.

1. Communication
2. Engagement
3. Appreciation

Communication

• Involve trustees and senior staff — as well as those who deliver the mission.
• Maintain contact throughout the relationship.
• Provide regular and appropriate information – on progress, impact, finance and lessons learned.

Engagement

• Invite donors to see your work ‘on the ground’ – the impact that they can have with their donation.
• Involve the donors in the work of your organisation – such as sitting on a committee, networking with other donors, or just having lunch with a trustee.
• Instil a feeling of partnership, with an opportunity for donors to share their experience and expertise.

Appreciation

• Send an appropriate thank you.
• Recognise their giving and involvement, and respect their expertise and advice.
• Public recognition can be a great motivator for some, and avoided by others – establish at the outset what the donor wants and honour it.
  

Successful major donor fundraising depends on attitudes: seeing fundraising as a source of profit, rather than a drain on the organisation’s resources.

It needs:

1. An institutional view of fundraising as a profit-centre, not a cost-centre:
• Adequate investment of both time and money
• Commitment throughout the organisation
2. ‘Friend-raising’ before fund-raising:
• Targeting of donors at an appropriate level – asking for smaller donations at first, or larger donations when the time is right
• Engagement of their time and expertise in a way that is appropriate to that individual
• Dedication to maintaining the personal relationship, and not adopting a standard approach

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