What Are Major Gifts? Plus 7 Other Donation Types - Kindful Glossary (2024)

FAQs

What is considered a major gift donation? ›

Any nonprofit can start a major gifts program — no fixed amount determines what a major gift is to any one organization. It boils down to the impact of the gift on a nonprofit's needs. Some consider gifts over $100,000 to be major, while smaller nonprofits may consider $1,000 to be a major contribution.

Major gift fundraising focuses on cultivating relationships with individual donors who have the capacity to make significant financial contributions. On the other hand, annual giving fundraising targets a broader base of donors who contribute smaller amounts on a regular basis.

A donation may take various forms, including money, alms, services, or goods such as clothing, toys, food, or vehicles. A donation may satisfy medical needs such as blood or organs for transplant. Charitable donations of goods or services are also called gifts in kind.

A principal gift is a major gift, but a major gift is not necessarily a principal gift. As explained above, your organization's definition of a major gift is highly relative to your donor base and average fundraising data. A principal gift is simply a large gift at the top of or above that range of major giving.

Create a list of all donors and donations from the past year, with the largest gifts at the top. Take the average of the top three or top five largest gifts you've received in the past year. This average gives your major gift threshold, a cut-off point to help you identify your major donors' contributions.

A quality major gift portfolio includes prospects with both capacity and affinity, meaning they have the financial means to donate and an interest in supporting your organization.

Typically, a major gift is 10 to 20 times larger than an annual fund gift. While an annual fund give may be around $500, a major give is typically $5,000 – $10,000 based on the organization and its funders. On average, major gifts are 10 percent of the organization's gifts, but 90 percent of total dollars raised.

Along with major gifts, planned gifts are the biggest donations a nonprofit receives. They can both greatly aid your organization and help to continue a loyal donor's legacy. Although you won't immediately receive planned gifts as you would major gifts, their scope and scale make them worth the wait.

Others categorize them into "gifts of knowledge" (word of wisdom, word of knowledge, distinguishing between spirits), "gifts of speech" (tongues, interpretation, prophecy), and "gifts of power" (faith, healing, miracles).

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Typically, this means $50 to $100. However, the amount is ultimately up to you because it is the thought that counts and not the amount you donate.

But while giving away money and worldly possessions is noble in itself, there is no higher form of giving than organ donation. The simple act of organ donation allows other people to live on by granting them the building blocks of life itself.

This means that major gifts make up the majority of an organization's total revenue for the year. For most organizations, they are the foundation of their bank accounts. That's why it's important to create a fundraising strategy that takes advantage of these funds.

So, you should be ready (or almost ready) to ask your major gifts prospects for a gift. Before you know it, it will be the end of the year, so you need to ask sooner, not later. Some people won't be available to meet right away, so begin scheduling your meetings now. Fall is the perfect time to make the ask.

Donations come in all amounts. On average, a donation is $617 with online donations averaging $148. For donations less than $1,000, the average amount is $20, and for donations greater than $1,000, the average amount is $2,500. No matter the size, all donations make a difference.

The ideal portfolio size is 150 prospects.

The first place you should look is in your donor file. How much has this person given in the past? What size gifts do they give, and how often? The wise and insightful Amy Eisenstein says you should start with the idea that the person can give between 2 and 10 times the amount they give to your non-profit annually.