9 Transformative Steps: How to Build a Major Gifts Program for Nonprofits

How to build a major gifts program for nonprofits when your organization struggles to move beyond small donations and grant dependency? The untapped potential of major donors could be the difference between merely surviving and dramatically scaling your mission’s impact.

Redefining Fundraising: The Power of Major Gifts

The stark reality facing most nonprofits today is increasingly unsustainable funding models. Organizations trapped in the hamster wheel of grant applications and small-donor acquisition face mounting costs and diminishing returns. Understanding how to build a major gifts program for nonprofits isn’t simply another fundraising channel—it’s potentially your path to financial sustainability.

Major gifts typically represent 80-90% of fundraising revenue while requiring significantly less administrative overhead than grant management or mass solicitation. Despite this compelling math, most organizations invest disproportionately in lower-yield fundraising activities while neglecting systematic major donor development.

The organizations breaking through funding plateaus have recognized a fundamental truth: a structured approach to major gifts isn’t a luxury reserved for established institutions—it’s the very mechanism by which small organizations transform into influential ones. Let’s examine exactly how to build a major gifts program for nonprofits step-by-step, regardless of your current size or resources.

Step 1: Defining Your Major Gift Threshold

Before implementing any program, you must establish your organization’s specific definition of a “major gift.” This threshold varies dramatically based on organizational size, donor demographics, and funding history. Understanding how to build a major gifts program for nonprofits begins with this critical baseline.

For small organizations with annual budgets under $1 million, major gifts might start at $1,000-$5,000. Mid-sized nonprofits typically set thresholds between $5,000-$25,000, while larger institutions might consider $25,000+ as their starting point.

To determine your appropriate threshold:

Analyze your current donation database, identifying natural breaks in giving levels
Calculate what percentage of donors provide what percentage of funding (look for the 80/20 principle in action)
Consider donor capacity in your specific community or sector
Assess staff capacity for personalized stewardship
Set a threshold that identifies the top 10-20% of your donor base

This threshold isn’t merely a theoretical number—it determines program structure, resource allocation, and stewardship approaches. Organizations effectively implementing how to build a major gifts program for nonprofits regularly reassess this threshold as their donor base evolves.

Step 2: Assessing Your Current Major Donor Landscape

Before recruiting new major donors, maximize relationships with those already connected to your organization. Many nonprofits are shocked to discover significant giving potential already exists within their database. Understanding how to build a major gifts program for nonprofits requires honest assessment of current relationships.

Conduct a comprehensive database audit focusing on:

Current donors giving at or near your major gift threshold
Consistent mid-level donors demonstrating loyalty over time
Previous major donors who have lapsed
Board members and their networks
Key volunteers with potential giving capacity

For each identified prospect, assess:

Giving history (recency, frequency, monetary value)
Engagement patterns beyond financial support
Known wealth indicators
Relationship connections to your organization
Philanthropic interests and motivations

This assessment typically reveals that most organizations already have relationships with potential major donors—they simply haven’t been cultivated systematically. Your existing database often contains 60-70% of the major gift prospects you’ll need to launch a successful program.

Step 3: Creating Your Major Gift Infrastructure

Even small organizations need minimal infrastructure before approaching major donors. Attempting cultivation without these fundamentals undermines credibility. Mastering how to build a major gifts program for nonprofits requires these essential elements:

Case statement documentation: Develop a compelling, visually appealing case for support articulating impact, vision, and why major investments are necessary. This should include both emotional storytelling and concrete financial justification.
Gift acceptance policies: Create clear written policies covering stock donations, donor-advised funds, planned gifts, naming opportunities, and gift restrictions. Major donors expect this professional foundation.
Stewardship protocols: Establish specific processes for major donor recognition, communication schedules, and impact reporting. Document these to ensure consistency regardless of staff changes.
Database capacity: Ensure your donor management system can track complex relationships, multiple touches, and sophisticated giving vehicles. If using basic tools, create supplemental tracking systems.
Board involvement framework: Develop clear expectations and support systems for board participation in major gift identification, cultivation, and solicitation.

Organizations effectively implementing how to build a major gifts program for nonprofits invest in this infrastructure before major solicitation begins, rather than scrambling to create it reactively after donor conversations start.

Step 4: Prospect Research and Identification

With your foundation established, systematic prospect identification becomes possible. Effective major gift programs maintain continuous prospect pipelines rather than periodic campaigns. Understanding how to build a major gifts program for nonprofits means developing systematic identification processes.

Implement these research approaches:

Wealth screening: Consider conducting basic wealth screening on your database through services like DonorSearch, WealthEngine, or iWave. Even limited screening can identify hidden potential.
Board/volunteer prospecting sessions: Conduct structured sessions where board members and key volunteers review prospect lists and share relationship connections. Use a formal rating system to prioritize outreach.
Donor giving pattern analysis: Identify donors showing heightened engagement through increased giving, event attendance, or volunteering—these behavioral indicators often precede major gifts.
Public records research: Research property ownership, business affiliations, and philanthropic activity of key prospects through publicly available sources.
Peer organization donor review: Study donor lists from similar organizations with public donor recognition to identify individuals with demonstrated interest in your cause.

This research creates prioritized prospect lists segmented by giving capacity, relationship connection, and mission alignment. Organizations mastering how to build a major gifts program for nonprofits maintain 3-5 qualified prospects for each gift they need to secure.

Step 5: Cultivation Strategy Development

Cultivation—the process of deepening relationships before solicitation—represents the most commonly skipped step in failed major gift programs. Organizations rushing directly to solicitation typically experience high rejection rates. Understanding how to build a major gifts program for nonprofits requires systematic cultivation planning.

For each prioritized prospect, develop individualized cultivation plans including:

Relationship mapping: Identify who currently holds the strongest relationship with the prospect and who should ultimately make the ask.
Interest alignment: Document specific program areas matching the prospect’s known philanthropic interests.
Engagement sequence: Plan a series of meaningful interactions before solicitation (typically 4-7 touches over 3-12 months).
Learning objectives: Define what information you need to gather during cultivation (giving capacity, decision-making process, specific interests).
Milestone tracking: Establish clear indicators of readiness for solicitation based on engagement level.

Each cultivation plan should include diverse engagement opportunities:

Mission-focused experiences (site visits, program observation)
Leadership access (meetings with executive director/CEO)
Expert positioning (sharing specialized insights relevant to donor interests)
Community building (connections with like-minded supporters)
Recognition opportunities (appropriate pre-solicitation recognition)

Organizations effectively implementing how to build a major gifts program for nonprofits allocate 60-70% of major gift officer time to cultivation activities rather than immediate solicitation.

Step 6: The Solicitation Process

When prospects demonstrate readiness through cultivation, structured solicitation becomes possible. Effective solicitation is highly choreographed rather than improvised. Mastering how to build a major gifts program for nonprofits requires developing a consistent solicitation methodology.

For each solicitation:

Pre-solicitation planning: Conduct a formal strategy session with all team members involved in the ask, reviewing prospect information and finalizing ask amount and project alignment.
Solicitation team formation: Assemble the right team for each ask—typically combining organizational leadership with peer connectors who have relationships with the prospect.
Ask scripting and role assignment: Explicitly determine who will make the actual ask, what supporting roles others will play, and rehearse key talking points.
Proposal development: Create a customized written proposal for significant asks, professionally presenting the opportunity, impact metrics, recognition benefits, and specific amount requested.
Objection anticipation: Predict likely concerns or objections, preparing thoughtful responses in advance.

The actual solicitation meeting should follow a deliberate structure:

Mission connection reinforcement
Impact illustration through specific examples
Clear, direct request using the exact amount
Strategic silence after the ask
Responsive discussion based on initial reaction
Specific next steps regardless of immediate outcome

Organizations effectively implementing how to build a major gifts program for nonprofits typically achieve 40-60% success rates on face-to-face solicitations when proper cultivation precedes the ask.

Step 7: Stewardship Systems That Drive Retention

The solicitation merely begins the major gift relationship. Systematic stewardship determines whether single gifts become ongoing support. Understanding how to build a major gifts program for nonprofits requires developing comprehensive stewardship protocols.

Implement these core stewardship elements:

Immediate acknowledgment protocol: Develop a multi-touch acknowledgment system involving personal calls, formal letters, and leadership recognition within 24-48 hours of gift receipt.
Impact reporting schedule: Create a calendar of personalized impact communications showing exactly how the gift is being utilized, with both statistical and narrative elements.
Recognition matrix: Develop tiered recognition opportunities appropriate to your organization’s culture and donor expectations.
Continued engagement planning: Design ongoing involvement opportunities maintaining donor connection between solicitations.
Renewal strategy timeline: Establish clear timelines for when and how renewal discussions should begin, typically 60-75% through the initial gift period.

This systematic approach dramatically improves retention. Organizations mastering how to build a major gifts program for nonprofits achieve major donor retention rates of 80-90% compared to the industry average of approximately 45%.

Step 8: Building Your Major Gifts Team

Even small organizations need clear responsibility assignment for major gift functions. Regardless of organization size, someone must “own” the major gifts process. Understanding how to build a major gifts program for nonprofits means appropriate staffing for your organization’s scale.

For organizations under $1 million annually:

Assign executive director 30-40% time to major gifts
Engage board in cultivation and solicitation
Consider fractional major gift consultant for structure development

For mid-sized organizations ($1-5 million):

Dedicate at least one staff position primarily to major gifts
Develop major gift committee with board representation
Engage program staff in donor experiences and stewardship

For larger organizations:

Create dedicated major gift team with portfolio management
Implement moves management tracking systems
Develop specialized roles (prospect research, stewardship coordination)

Regardless of size, establish clear metrics for major gift staff focusing on:

Face-to-face meetings conducted
Cultivation moves completed
Solicitations made
Dollars secured
Retention percentage achieved

Organizations effectively implementing how to build a major gifts program for nonprofits set activity metrics (meetings, moves) as leading indicators rather than focusing exclusively on dollars raised.

Step 9: Creating Accountability and Continuous Improvement

Successful major gift programs implement rigorous tracking systems ensuring accountability and enabling optimization. Understanding how to build a major gifts program for nonprofits requires developing appropriate measurement frameworks.

Implement these accountability elements:

Prospect pipeline reporting: Create visual dashboard tracking prospects through cultivation, solicitation, and stewardship stages with clear movement metrics.
Activity benchmarking: Establish clear activity expectations for major gift officers (weekly meetings, monthly solicitations) with regular review.
Return-on-investment calculation: Develop ROI methodology capturing both hard costs and time investments against major gift revenue.
Program learning systems: Conduct formal debriefs after significant solicitations (both successful and unsuccessful) to identify improvement opportunities.
Donor feedback mechanisms: Implement structured donor feedback processes gaining insights directly from major supporters.

This data-driven approach allows continuous refinement. Organizations mastering how to build a major gifts program for nonprofits typically see conversion rates and average gift sizes increase 15-20% annually as systems improve.

Integrating Major Gifts Across Your Organization

For maximum effectiveness, major gift programs must integrate with broader organizational strategy rather than operating in isolation. Organizations effectively implementing how to build a major gifts program for nonprofits align these efforts with overall institutional advancement.

This integration includes:

Strategic plan alignment: Ensure major gift priorities directly connect to organizational strategic objectives rather than creating parallel priorities.
Cross-departmental collaboration: Develop formal coordination between major gifts, communication, programs, and finance departments.
Board integration: Incorporate major gift metrics and updates into regular board reporting and strategic discussions.
Budget planning connection: Use major gift pipeline projections in organizational financial planning rather than treating major gifts as supplemental.
Cultural integration: Cultivate organization-wide understanding of and appreciation for major donor relationships beyond the development department.

This holistic approach prevents the common pitfall of major gift programs operating as isolated silos. By weaving major gift strategy throughout organizational fabric, the program becomes transformational rather than transactional.

Conclusion: From Program Building to Mission Transformation

Learning how to build a major gifts program for nonprofits isn’t merely about securing larger donations—it’s about transforming your entire funding model toward sustainability and mission expansion. Organizations successfully implementing these approaches often find major gifts shifting from 20% to 60-70% of total fundraising revenue within 3-5 years.

This transformation creates a virtuous cycle: increased unrestricted funding enables greater impact, which attracts additional major support. When systematically developed, major gift relationships become partnerships advancing both donor philanthropic goals and organizational mission.

The methodical approach outlined above has proven effective across organizations of varying sizes and sectors. Your organization already possesses the most essential element for major gift success—meaningful mission impact worth supporting. The challenge now lies in systematically connecting that impact to those with capacity to significantly advance it.

Connect with nonprofit freelancers who specialize in major gift program development to accelerate your organization’s fundraising transformation.

References

April 7, 2025