Principal Gift Program Design and Execution, Part 2

Part 2:  From Cultivation to Closing: Securing the Transformational Gift

A principal gift can change everything for a nonprofit. 

But infrastructure alone doesn't inspire donors to write those big checks.  

How to secure a transformational gift comes down to the art of the ask – the focus of this blog post.

In Part 1 of this series, we focused on building a robust principal gift program.  Before moving on, I encourage you to take a moment and give Part 1 a read.

Engage Donor with the Organization and Initiative(s)

Principal gift donors don't just give to a cause; they invest in solutions. Your job is to make them see your organization as uniquely capable of delivering those solutions, especially with a specific, resonant initiative.

Consider these examples:

• The Salvation Army Kroc Centers: Focused on revitalizing specific communities, these centers position themselves as catalysts for change, drawing donors who want outcomes far beyond traditional aid.
• University Naming Gifts: Building names, or endowments for scholarships, often come from donors passionate about a particular discipline. They want to cement their legacy in a tangible way.
• Habitat for Humanity: While the need for housing is vast, specific local builds paired with the potential homeowner's own story make the project both compelling and tangible for donors.

Beyond Appreciation: Aim for Inspiration

Sure, donors want to feel appreciated. But securing a transformational gift requires more than a thank you.

Share success stories that tug at the heartstrings and paint a picture of what their gift can create. Highlight the transformative shift you aim to make, not just fixing a problem, but building something that inspires and improves lives in a sustainable way.

Relationships Matter, but So Does Urgency

Nurturing relationships is paramount. But donors also respect action. Tying your initiatives to timely needs creates a sense of urgency and gives the donor a feeling that their gift is making a difference right now.

For example, if the need for a new shelter is immediate, make that known. A donor inspired by your work will want to help make it happen, and their gift could provide vital momentum for a larger fundraising campaign.

Accountability as a Cultivation Tool

Don't think of donor reports as just an obligation. Done well, they demonstrate a level of competence principal donors expect. Even with smaller gifts, proactive, detailed, and transparent updates lay the foundation of trust.

Closing the Gift

Align Intent and Impact

Warren Buffett wouldn't invest in a company unless he believed in its potential for success. It's the same with principal gifts. Find the sweet spot between the donor's passions and your initiatives that promise the biggest, most measurable impact.

The Power of a Focused Proposal

Forget long laundry lists of "needs." A transformational gift demands a targeted proposal that tells the compelling story of your initiative:

• The Need: Why is THIS project so vital, with compelling facts and figures to paint the picture.
• Measurable Outcomes: Clear, data-driven projections of what the gift will achieve in both the short and long term.
• Long-term Vision: How this gift will not just solve a problem but contribute to sustainable change and growth.

Beyond the Check: Discuss Multiple Giving Options

Be ready to discuss various giving methods with the potential donor. These might include:

• Planned Giving: Leaving a bequest in their will
• Matching Gifts: Leveraging corporate matching programs
• Stock Transfers: Potential tax advantages for the donor

Understanding their preferences not only helps the gift reach its maximum potential but shows you respect their financial goals as much as their philanthropic ones.

Leverage the Gift

Inspiration Is Contagious

Don't shy away from publicizing a principal gift (securing the donor's permission, of course). It sends a signal to other potential donors that your organization is worthy of big investments and inspires excitement around your mission.

Stewardship as a Springboard, Not an Afterthought

Regular, transparent updates on the gift's impact are not just good stewardship. Done strategically, they pave the way for the next conversation about an even bigger investment or even a recurring annual gift. Consider inviting the donor to a project site visit or give them the option of earmarking subsequent donations for specific outcomes. The more they see the difference they make, the more engaged they are likely to be.

Additional Considerations

• The CEO and Board's Role: Depending on the organization's size and the gift's magnitude, the CEO or key board members may need to be actively involved in the solicitation process. Remember, passionate individuals conveying a vision are often more effective than any proposal.
• The Art of the Ask: Tailor your approach to the donor's communication style. Some want a bold, direct ask, while others might appreciate a more nuanced discussion spread across multiple meetings. Be astute, adapt your approach, and be prepared to shift strategies mid-conversation.

Ready to elevate your principal gift fundraising success? Stay tuned for Part 3 of this series, where we'll examine strategies for strong board involvement – crucial for principal gift success. In the meantime, want to accelerate your results? Reach out and schedule a short call with Principal Gift Solutions today.

Recommended Reading

• “Major Gifts Unwrapped: 39 Principles for the Successful Major Donor Fundraiser” by Ruth Irwin

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