The Missing Piece in Grant Strategy: Major Gifts

Nonprofits often find themselves constantly chasing funding, writing grant proposals, hosting fundraising events, and seeking new donors. While these methods are essential, they can be unpredictable, requiring extensive time and effort with no guaranteed return. Major gifts are one of the most effective ways to build a sustainable funding strategy.

Major gifts, representing the largest individual contributions an organization receives, do more than just fund programs; they create financial stability that strengthens an organization’s ability to secure grants. By developing a strong primary gifts strategy, nonprofits can reduce dependency on short-term funding sources and ensure they have the resources needed to operate effectively while pursuing competitive grants.

Why Major Gifts Are Essential for Nonprofit Sustainability

Most nonprofit funding isn’t evenly distributed across all donors; a small percentage of donors often contribute a significant portion of total revenue. Prioritizing major gifts allows nonprofits to:

• Reduce Financial Uncertainty: Grant cycles are competitive and unpredictable. A well-established major gifts program provides a steady flow of funding to maintain operations while awaiting grant decisions.

• Demonstrate Financial Strength to Grantmakers: Many funders look at an organization’s financial health before awarding grants. A strong major donor base signals stability and increases credibility in the eyes of grant reviewers.

• Expand Capacity for Grant Writing: Developing grant proposals requires staff time and expertise. Major gifts can help fund dedicated grant writers, research efforts, and the administrative costs associated with applying for and managing grants.

• Fund Match Requirements: Some grants require a matching contribution from the organization. Major gifts provide the unrestricted funding needed to meet these requirements and unlock additional grant dollars.

Building a Strong Major Gifts Strategy

To effectively integrate major gifts into a sustainable fundraising strategy, nonprofits should focus on:

1. Identifying Potential Major Donors

Existing donors who have consistently given over time may be able to give more. To identify major donor prospects, look at past giving history, engagement levels, and philanthropic interests.

2. Strengthening Donor Relationships

Major donors don’t give based on a single request; they invest in organizations they trust and feel connected to. Regular communication, personalized outreach, and opportunities to see the impact of their contributions foster long-term giving.

3. Presenting a Bold and Clear Vision

Donors give generously when they see a meaningful opportunity for impact. Instead of focusing on general operating needs, craft a compelling case for how their gift will drive transformational change within your mission.

4. Aligning Major Gifts with Grant Goals

If your organization is applying for a specific grant, significant gifts can be leveraged by showing that there’s already financial backing for the initiative. This strengthens proposals and demonstrates broad donor commitment to the project.

5. Stewardship and Long-Term Engagement

After securing a major gift, continued engagement is crucial. Keep donors informed about the impact of their contributions, invite them to organizational events, and cultivate relationships for future support.

The Future of Sustainable Fundraising

By integrating major gifts with grant writing efforts, nonprofits can create a sustainable financial model that reduces uncertainty, enhances grant competitiveness, and allows for long-term impact. Instead of relying solely on unpredictable funding sources, major donors provide the foundation to keep operations stable and mission-driven work moving forward.

When nonprofits build strong relationships with major donors, they secure funding and strengthen their ability to pursue and win critical grant opportunities.