Balancing Small and Major Gift Growth in Your Nonprofit
Achieving long-term sustainability requires striking a balance between cultivating small donors and securing major gifts. Both are essential for your organization’s growth and financial stability. Small donors provide a steady stream of revenue, while major donors can significantly propel your mission forward with large contributions. It can be difficult to find the right balance between these two fundraising pillars.
Why Both Matter
Small Gifts: The Backbone of Sustainability
Small donations are essential to most nonprofits. Whether it's $10, $25, or $50, these gifts add up over time, providing a reliable source of funding. The benefits of small donations go beyond their financial contribution:
Engagement: Small gifts often come from a large base of passionate supporters. These donors can be cultivated through engagement and may increase their giving as they feel more connected to your cause.
Diversity of Revenue: Relying on just one major donor or a handful of large gifts can be risky. If a major donor decides to pull their funding or reduce their support, it can severely impact your operations. Small donors help buffer this risk.
Long-Term Relationships: Small donors are often the stepping stones to larger donations in the future. When nurtured, many of these individuals can grow into mid-level or major donors over time.
Major Gifts: The Key to Expansive Growth
While small gifts form the foundation of your fundraising efforts, major gifts are often the engine that drives large-scale growth. Major gifts can fund new initiatives, expand your reach, and fuel strategic goals. The benefits of major gifts include:
Large Impact: One major gift can provide your organization with resources that enable you to tackle ambitious projects or achieve significant milestones.
Strategic Partnerships: Major donors often have connections that can unlock additional opportunities—be it in funding, visibility, or collaborations.
Stability: When major gifts are cultivated thoughtfully, they can provide multi-year or unrestricted support, creating a more predictable revenue stream.
Achieving Balance: 3 Key Strategies for Nonprofits
As nonprofit leaders, it’s crucial to strike the right balance between nurturing small gifts and securing major donations. Here are five strategies to help you achieve this balance:
1. Create Tiered Donor Engagement Strategies
Different donors require different levels of engagement. A one-size-fits-all approach will not work for both small donors and major donors. Create segmented donor engagement strategies that reflect the interests and capacity of each group:
For Small Donors: Focus on cultivating relationships through regular communications, such as newsletters, social media updates, and seasonal campaigns. Encourage recurring donations to build a steady income stream.
For Major Donors: Develop personalized, high-touch strategies such as one-on-one meetings, tailored impact reports, and exclusive events. Take the time to understand their philanthropic goals and align them with your nonprofit’s mission.
By offering both personalized and broader engagement opportunities, you ensure that every donor feels valued and connected, no matter the size of their gift.
2. Balance Your Fundraising Activities
Your fundraising calendar should include a mix of campaigns targeting both small and major donors. Major donor events (such as galas or private dinners) can be scheduled alongside crowdfunding or direct-mail campaigns aimed at small gifts. This ensures that you are constantly engaging both groups throughout the year.
For example, consider running an annual appeal for small donors, while simultaneously working on a capital campaign or a major donor solicitation for larger gifts. By layering different approaches, you can maximize fundraising potential without neglecting either group.
3. Foster a Culture of Stewardship
Stewardship is the process of maintaining and nurturing relationships with your donors. Both small and major donors need to feel appreciated and connected to your cause. Show your donors the impact of their gifts and keep them informed about how their contributions are making a difference.
For Small Donors: Thank them regularly and provide clear communication on the results of their donations. Offering updates, impact stories, and recognition can help maintain engagement.
For Major Donors: Build a more personalized stewardship strategy by providing exclusive experiences such as behind-the-scenes tours, invitations to meet with key staff, and frequent updates on their specific project’s progress.
By prioritizing stewardship across all donor levels, you ensure that both groups remain loyal and invested in your nonprofit’s mission.
If you’d like to learn more about striking the right balance at your nonprofit, contact us. We are here to support your success!