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Almost every capital campaign has something in common:

A majority of the funding tends to come from just a few major donors.

In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country.  He observed that twenty percent of the people owned eighty percent of the wealth.  And it turns out that Pareto’s Principle is surprisingly helpful for fundraising as well – specifically in major donor fundraising and in most capital campaigns.

Over the years I’ve consulted on over 100 capital campaigns. The Pareto Principle hold true: in successful capital campaigns the majority of donations come from just a few major donors.

I recently consulted on a campaign to raise $4M to help build a new resource center for homeless moms and kids.  This project was funded by 3 major donors that gave $2M, plus an additional $1M that was given by a local association of builders who will donate time and materials.  Just 4 donors gave $3M of the $4M goal!!

My advice to you is to evaluate the giving potential of your top donors before you launch a capital campaign. If your top donors have capacity to give 80% of your campaign goal, then you can move forward with your campaign in confidence. If your top donors don’t have the capacity to fund your campaign, then you should adjust your campaign scope or identify new donors that can help cover the difference.

Major donor fundraising doesn’t have to be difficult and complex. I’ve been raising money from major donors for over 20 years and have discovered that success fundraising comes down to four important ingredients:

1. Identify who your major donors are. If you can’t name them by name or don’t know their giving history or giving priorities, then you have some work to do. Research your top donors, know exactly who they are, and learn as much about them as you can.
2. Your #1 job is to keep your current major donors actively giving to your organization. Do this by Thanking them promptly and emotionally when they give a gift. Then Report back to them what happened because they gave a gift. Odds are you have donors right now waiting to be Thanked and Reported to.  Don’t wait, reach out to them today!
3. Make your appeal in person. Stop hiding behind your email and phone. Get out there and meet with your donors face-to-face. Most (but not all) major donors desire to be in relationship with you and our cause.
4. Ask for more money than you think you can receive from your donor. The goal here is to stretch your donor’s thinking and then let them decrease the giving amount if it is too high.

Apply these ingredients to your fundraising and you will raise more money right away.  You’ll also build genuine, mission-driven relationship with your major donors – which means you’ll raise a LOT more money in the long term too.

If you are tasked with raising money for your organization, then I strongly suggest you put your money where you mouth is.  Make a generous gift to your organization today.

You see, donors are like sharks.  They can smell blood in the water.  And in fundraising, they can sense when you don’t believe in your cause or work.  They somehow know if you are truly invested in the work – or not.  The best way to motivate and energize your fundraising work is to invest not only your time and talents, but also your own money.

This recommendation isn’t just for you.  It’s for your CEO, your board, your staff, and your volunteers.  Those who make the greatest investment will work the hardest to fund and fuel the mission.

So go and put your money where your mouth is.  Make a donation to your cause today.

A local CPA firm asked me to speak to a room of nonprofit board members.

I started my talk by saying that fundraising is really about messaging.  This simple statement upset one particular board member because his definition of fundraising was wrapped up in his personal negative experiences where his time and money weren’t valued by other organization.

It was clear to me that this guy didn’t like fundraising. He had been hurt or angered by his previous fundraising or giving experience.

This board member reminded me why most board members, executive directors and program staff are uniquely unqualified to think about fundraising clearly.

1. They know too much about your organization, so they have a hard time “keeping it simple.”
2. They bring their personal feelings and opinions to the fundraising discussion – they want your fundraising to move them, not your donors.
3. They don’t understand that most donors to your organization don’t know much about your work and need a simple problem they can solve with their giving.

The key takeaway is to remember that board members matter, their opinion matters, but their opinion should not drive your fundraising strategy.