Grassroot Nonprofits Should Focus on Procuring Major Gifts 

Startups and emerging grassroots nonprofits often finance their organization using personal funds. If they aren’t coming out of their own personal finances, nonprofits heavily rely on small donations to support their missions and programs. While small donations from individual supporters are crucial, securing major gifts from wealthy individuals, corporations, or foundations can have a transformative impact on their work. Below, I have identified several reasons why grassroots nonprofits should be aggressive in seeking major gifts.              

Financial Stability

For a grassroots organization to receive a major gift would be an enormous lift in their ability to sustain the work they are so passionate about. A substantial injection of funds can help grassroots nonprofits achieve financial stability. Major gifts can cover operating costs, allow a nonprofit to hire staff, support long-term stability, and fund new initiatives. Having a stable financial foundation allows nonprofits to focus on their mission without constantly worrying about funding gaps, which we also call “starvation.” Major gifts enable grassroots nonprofits to expand their reach and provide the necessary resources to tackle social issues. This will create lasting change for individuals, families, and communities.

Cultivating Major Donors

Cultivating major gifts procurement involves building relationships with donors who share strong alignment with your nonprofit’s mission. This requires you to facilitate donor research and qualify if a potential donor has the will and capacity to support your mission. You must also articulate your goals, develop a compelling case for support, and create a fund development strategy to achieve your vision. Engaging in these types of activities helps grassroots nonprofits develop friend-raising strategies for long-term relationships with potential donors. It also enhances credibility. Once you’ve secured a major gift from a reputable donor, it will certainly enhance your organization’s standing and reputation. Keep in mind that large donors often conduct due diligence before making a significant gift. This ensures that the nonprofit has sound financial management, effective governance, and a clearly evaluated impact. As a result of these validations, the grassroot nonprofits can attract additional funding and support from other donors, enabling it to grow and thrive.     

Long-term sustainability

Major gifts provide a more sustainable funding source than small individual donations or local government grants. While small donations are critical, they can fluctuate and vary over time. Major gifts, on the other hand, can provide a stable source of funding, allowing nonprofits to plan and weather economic uncertainties.

Collaboration and Partnerships

Pursuing major gifts often involves building relationships with donors who have connections and influence in the community. These connections can open doors to new partnerships, collaborations, and friend-raising opportunities. Major donors may introduce grassroots nonprofits to other potential funders or influential individuals who can further support their cause.

Leverage Additional Funding

Grassroots nonprofits should focus on procuring major gifts, because it demonstrates to other potential funders that your nonprofit can secure significant support. It also signals the organization’s capacity to manage and utilize resources effectively. This can increase the likelihood of receiving grants or attracting other major donors who want to join a successful funding effort. To be more successful in procuring major gifts grassroots nonprofits should invest in building friend-raising relationships, conducting prospect research, refining their case for support, and engaging in strategic fundraising activities. By the way, don’t forget to prioritize stewardship and recognize the importance of cultivating and maintaining relationships with these major donors over the long term.

By Joe N. Toliver, MBA 

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