Asking an influential member of your community for a large gift is often an intimidating task. While effective donor prospecting can eliminate some of the anxieties involved, tools like a major donor society also go a long way to secure a big ask.
Major donor societies provide exclusive, insider access to your highest-dollar donors, generating significant revenue by developing intimate relationships with excellent stewardship.
What is a Major Donor Society?
A major donor society recognizes those who give the largest monetary gifts to an organization. These societies usually employ giving circles of a certain dollar range, like Bronze ($1,000 – $9,999), Silver ($10,000 – $24,999), and Gold tier ($25,000+) donors.
Along with inclusion into this group, donors typically experience exclusive perks and rewards. Incentives like name recognition in the organization’s annual report or program guide, preferred parking or seating at events, or insider newsletters and other behind-the-scenes access.
Think of these societies like other examples in the for-profit space, like additional perks for frequent flyers or after you achieve a certain status on a credit card.
Benefits of a Major Donor Society
A major donor society supports a major gifts program by providing enticing incentives for supporters and building useful structure for fundraising staff.
Volunteers or staff prospecting for a major gift can help seal the deal by rolling out the benefits for becoming a member of the major donor giving society. Nonprofits can plainly show their appreciation for these donors who contribute substantially by explaining the perks of their major donor society.
These giving societies provide helpful structure to guide a newly established major gifts program. Establishing giving tiers for donors can help them decide how to contribute to your organization in a big way for the first time.
When a nonprofit openly advertises the perks of a major donor society, it means they must follow-through with their promised stewardship. If your organization struggles to commit to regular stewardship, a major donor society can help hold you to these plans.
How to Establish a Major Donor Society?
A major donor society can provide a needed boost to a lagging major gift program or establish structure and direction for a new major gift initiative. Before you start, consider these concepts.
Analyze Donor Behavior to Establish Giving Circles
While there are endless examples of major donor giving societies online, the best version of your program needs data from your unique donors.
Analyze your major donors to see where lines for the giving circles should be drawn. Pull a list of top 20 donors to your nonprofit and see if you can identify patterns. Usually groups of major giving tiers start to emerge from your donors’ behavior.
Group together donations of similar size to understand where to naturally draw these lines. If your data is pulled primarily from an online donation platform, these groups may be even more evident.
Also consider if you can push your donors to jump up to the next tier. Donors who have been giving at the same level for several years may increase their gift if approached with an appealing donor giving circle upgrade.
Remember, if you change or establish major donor society levels, keep these suggested giving amounts consistent across the organization. For example, if you establish a major donor society at $500, $2,500 and $10,000, be sure your online donation form and upcoming direct mail appeals reflect these tiers too.
Create a Donor Cultivation Plan
The Donor Cultivation Cycle remains a powerful tool to keep your fundraising strategy on track. Be sure to send your major donor society plans through the cycle to establish a year-round strategy that will leave your major donors feeling appreciated and informed.
Follow the stages of the Cycle to determine or update your major gifts strategy. Pay special attention to the stewardship portion of the Cycle and plan ahead to deliver polished and thoughtful thank-yous to donors.
Execute a Strategic Roll-Out
Whether you are updating an existing society or establishing completely new giving circles, consider the best way to introduce this idea to your community.
Major gifts rely on building strategic relationships with influential people. The allure to be a member of an exclusive club with other impressive members is a major draw for major donor campaigns.
The roll-out should be no different! Consider if your Board President or other notable major donor at your nonprofit should be the person to introduce this idea in the appeal letter or an in-person visit. By having this person endorse, and imply they are giving at a major donor level, it may inspire others to join.
Maintain or Delegate
Any strategic approach at a nonprofit needs continuous maintenance and successful delegation to get the work done on a consistent basis. It is always important to follow through on your promises to donors. This is especially true when taking on a project dealing with major donors.
Start small with your major donor society to ensure it is completed fully and well. It is better to work your way up to a robust and elaborate donor giving society over time instead of risking a fruitful relationship with a major donor because of poor stewardship.
Conclusion
Major donor societies can serve as a helpful engine to boost major giving at your nonprofit. In addition to providing intriguing perks and insider access to the highest-dollar donors, these societies advertise built-in stewardship opportunities to build even stronger relationships.
Nonprofits who wish to enhance or implement their major donor society should analyze their donor’s giving behavior and the realistic expectations of staff and volunteers to build giving tiers that enhance major donor relationships.
