Lots of time and money is spent on identifying success factors in major gift fundraising for large organizations. Very little on factors that make a big difference for smaller organizations.

Until now.

Amy Eisenstein, author of Major Gift Fundraising for Small Shops, has just released a study done in conjunction with Prof. Adrian Sargent, director of the Centre for Sustainable Philanthropy and Dr. Rita Kottasz a research consultant to the Centre.

Surveying 662 completed questionnaires from organizations that generate income under $10 million, and coupling that with an extensive review on the academic literature regarding major gifts, the team offers some valuable insights and recommendations:

• Limit your major gift pipeline to the best 20 prospects. Don’t get distracted by a longer list.

Why? According to the study, “A focus on soliciting first time gifts (i.e. building the pipeline) has shown to impact negatively on performance, at least in the short term.”

• Balance the list between first-time major gift prospects and repeat major gift donors.

Why? Stewardship and renewal of current major gifts produces a far greater level of return.

Of course some readers will say, “This is simply common sense”. But then Tom and I’ve found that common sense is mighty rare, particularly when it comes to keeping a sharp focus on satisfying and retaining current donors.

And here are a couple of findings from the study that not only surprised us, but are well worth highlighting:

• There is a “strong correlation between the range of training and educational opportunities afforded to staff and overall fundraising performance.”

Finding: “Each additional form of training/education (as in conferences, and even webinars) is associated with an increase of $37,000 in income.

“While many nonprofits will not invest in staff development because they fear individuals will leave and the monies will be wasted, our results highlight the short-sighted nature of this approach.”

• Fundraisers with more tenure raise more money than those who stick around an organization only a short time.

Finding: “Given that turnover rates in the profession of fundraising are high, this represents a significant challenge, particularly in smaller organizations where salaries may not be competitive. It is therefore essential that nonprofits develop a plan to retain the commitment of key fundraising staff.”

• ‘Donor centricity’ pays off.  However, the study found that larger organizations take the issue of donor centricity more seriously than do smaller organizations.

Recommendation: “The focus on short term fundraising metrics was disappointing … Rather than focus solely on dollars raised, we would encourage boards to focus on variables [metrics] likely to drive future success, such as donor engagement, satisfaction and commitment.”

If you work for or with a smaller organization you’ll want to download and read the study carefully. In fact, regardless of the size of your group the study is packed with lots and lots of research and helpful insights on the major gift process. You can download Major Gift Fundraising: Unlocking the Potential for Your Nonprofit here.

If you work with a small nonprofit, what factors do you consider key for major gift success?

Roger