Common Myths about Major Gift Fundraising for Causes in India (Part Two)

By Alex Counts, Executive Director, India Philanthropy Alliance

This post is a continuation of part one, where I explored six common myths about securing major gifts that tend to occur in the earlier stage of cultivation and solicitation. In this follow up post, I highlight six additional myths and what the truth is (as I see it) related to the topic.

To review Myths 1-6 visit the first part of this two part series here.

7. When it comes time to solicit a donor for a major gift, the "ask" should be made by a socio-economic peer of theirs and/or the CEO/Executive Director. Typically, an organization will want 1-3 people in the room to solicit a donor after an extensive cultivation period. In most cases, the ideal number of solicitors is 2, but in practical terms it often is a single individual (and should usually be done in person). The people in the meeting from the nonprofit should be chosen because they are the ones who the donor will most enjoy saying yes to, and also will be most difficult for them to say no to. In most cases, the person who was most involved in the cultivation phase should be in the room. They can be supplemented by a board member, donor, or the Executive Director. Excluding the person who was driving the cultivation diminishes their future role, signals an overly hierarchical aspect to the nonprofit, and robs the charity of having the person most knowledgeable about the relationship in the room to steer the conversation towards the best possible outcome. 

8. Most major gifts from private sources to nonprofits come from foundations and corporations. For many years, nearly 70% of private donations to nonprofits in the United States have come from individuals. Most of the remainder comes from a combination of grants from corporations and foundations, and from bequests. Many nonprofits focus on foundations and corporations because they believe that this is where the money is. That is not the case (though a few nonprofits are much more attractive to institutional donors and they should focus on that). Another reason that nonprofits generally spend too much time on foundations and corporations is that it does not require them to interact with the people who earned or inherited the money, but rather their staff or handlers. Experienced fundraisers usually prefer to deal directly with the people who control the resources, but doing so requires them to overcome the uneasiness many people feel when talking about money. 

9. When it comes time to solicit a donor for a major gift, work up to "the ask" over the course of the meeting by making strong arguments for it and then detail your proposal towards the end of the meeting.  The person who trained me in fundraising recommended that when it comes to the solicitation meeting, put the exact amount and purpose of the ask on the table in the first five minutes of the meeting. (If the meeting is over a meal in a restaurant, do it in the first five minutes after everyone has placed their orders.) That same expert later revised that to the first one-third of the meeting (normally in the first 20 minutes of an hour-long meeting.) I have usually stuck to the "first five minutes" rule, and it has served me well. Many solicitors try to build up to their ask by making arguments in favor of it before putting the actual ask on the table. (Another reason they put it off to the end of the meeting is that they are nervous.) But foundation laying work should have been done in prior meetings, which at most needs a brief review prior to the ask being made 5-10 minutes into the meeting. The advantages of making the specific ask early on include coming off as clear, transparent, confident, and professional and leaving time to negotiate the terms of the grant (if they are inclined to agree) or explain why the solicitation is not acceptable to them (if they are not). The discussion that occurs after the donor declines to provide the gift will give the solicitors additional information that will help them come up with a future proposal to the donor that will be acceptable. Also, after you make your ask, don't try to fill what may feel like an awkward silence with trying to say something else. Just make your ask and be quiet, giving the person you are soliciting a chance to think about their response and then share it with you.

10. When it comes time to solicit a donor for a major gift, be flexible. Give them a menu of options in terms of the amount and the purpose. One of your jobs in preparing for a solicitation is to determine the amount and the purpose of the grant that best fits the potential donor's priorities and capabilities and those of your nonprofit. Assigning that work, even in part, to the donor amounts to a dereliction of duty and reflects a lack of confidence. ("In part" means giving them a gift range or a menu of 3 different things to support, as opposed to simply asking them to give any amount for any purpose.)  Give them something clear and specific to react to. For example, don't ask for a gift in the range of $50,000 to $100,000 for projects A, B, or C. Instead, ask for $75,000 for project A.    

11. Be careful when asking a donor for a major gift. If you ask for too much, you might offend them and poison the relationship for a long time, if not forever. Don't be greedy! The most common reaction when asking a potential donor for more than they are prepared to make is for them to be flattered and to say something like, "I’m not that wealthy, but I am glad that you think I am!" Rarely is a relationship harmed by asking for too much, as long as you make the appeal in the right spirit (i.e., emphasizing partnership and avoiding manipulation). However, if you ask for way too much, it may suggest a weakness in donor analysis by the nonprofit (which is not ideal but rarely fatal). A much more common and costly mistake nonprofits make is to ask for significantly less than a donor is prepared to seriously consider.  When brainstorming with nonprofits about how much to ask a particular donor for, I often query them, "Why not request four times more than what you are considering?" Sometimes there is a good reason not to do so. Oftentimes, there is not.

12. If a past major donor's interest moves on to other causes, don't waste time keeping in touch with them.  Even if a past major donor is absolutely certain not to give in the future, continuing to update them and make them feel appreciated almost always makes sense. This is because past major donors often have the ability to shape the giving patterns of people they influence, and having them feel good about their past association with you and what your nonprofit is doing now maximizes the chances that they will communicate favorably about you in their conversations, letters, emails, blog posts, family gatherings, and so on.  

Once again, I wish you success in securing major gifts to support your noble missions. Be sure to let us know how we can help you develop long-term relationships with your major donors.