If there is one basic necessity in capital fund-raising, it is leadership in the commitment of time, talent, energy and money. Interestingly, nearly everyone is willing to talk about potential leaders and colunteers for a fund-raising campaign. They will also suggest certain corporations and foundations to be aasked for large gifts. But, almost everyone tries to avoid mentioning individuals who may be capable of making leadership gifts.
Table of Giving Standards
Early in campaign planning, a “Table of Giving Standards” is created to illustrate the importance of leadership gifts. It shows how gifts of different sizes must be combined to reach the fund-raising goal. Leadership gifts often comprise the top 10-15 gifts shown in the Table. If secured, the campaign will usually succeed because others will then tend to contribute in accordance with their capability.
Leadership Gifts are Key
Leadership gifts made at the outset are the foundation of a successful campaign. Depending on the campaign goal, they often start at $50,000 and go up from there. The saying that “20% of the people contribute 80% of the money” applies to leadership gifts. Still, many people think they can raise $2 Million by asking 400 people to each give $5,000. That strategy always fails.
Occasionally campaigns that start out on the right track may take a wrong turn. For example, an organization trying to raise $4 million is seeking a donation of $1 Million as the lead gift to the campaign. If that gift comes in at $500,000 instead, some may say, “We’ll just have to find ten more gifts at $50,000” may be overly optimistic. Where can they be “found?” Lowering the target doesn’t help either (100 gifts of $5,000 may cost more in time and effort than can be collected).
The momentum of a campaign rests on getting to the goal as quickly as possible. The more prospects you must solicit to accomplish that goal, the longer it takes and the more momentum you lose.
Successful campaigns are won with relatively small number of large leadership gifts received early in the solicitation process.