Anatomy of the Leadership Gift Phase

When you’re starting a capital campaign for your organization, it’s important to not only begin with the largest gifts, but also to recruit your top givers as leaders in the campaign. This is what we at CDS call the Leadership Gift Phase. The Leadership Gift Phase is the single most important activity of the campaign, as its success will determine the victory of the whole campaign.

It’s best to begin by considering the magnitude of the campaign’s goal and evaluating what gifts are necessary to reach that goal. For example, you can develop a table of Gifts Required, which reflects some proven capital campaign fundraising maxims, namely the “80/20 Rule” (80% of the money will come from 20% of the donors). This includes at least one lead gift of between 10-25% of the overall goal, as well as that 50-60% of the total raised will come from the top four or five gift categories.

Typically, leadership gifts are classified as $100,000+ (often pledged over as many as five years) and begin with the best prospects—those donors who are regular or past givers at the highest levels. This group has already demonstrated an extraordinary commitment to the organization and may be counted on to give serious consideration to your requests. Then, include other potential leadership gift donors identified during the campaign feasibility study or by other means. This will give you a short list of top-level prospects that you can cultivate and solicit first.

The Importance of Early, Large Gifts

The Leadership Gift Phase is the most important and critical activity in the campaign because leadership gifts get the campaign off to a fast, credible start, build momentum and excitement, set the standard of subsequent giving, and determine the eventual outcome of the campaign.

Knowing the importance of this phase and its impact on what you are ultimately going to be able to raise allows you to develop a detailed plan of action. Work with the president/director of the organization to recruit the chief volunteer leaders into a Leadership Phase working committee. Next, share the plan with the group and teach them the most effective methods and practices to implement the program.

Once co-opted into the plan, the leaders become intrinsic to the process, especially in researching, evaluating, prioritizing, cultivating and, of course, soliciting leadership gift prospects.

The Leadership Gift Phase Program

Start with an Extraordinary Lead Gift

In a typical capital campaign to raise $3-10 million for a small to medium sized organization, the goal of the Leadership Gift Phase is to raise a minimum of 50% of the minimum campaign goal. The best way to begin is by seeking an extraordinary lead gift to the campaign. This gift should represent somewhere between 10 and 25% of the overall minimum goal. In order to achieve this, you should target, rate, and screen about 30 to 40 prospects. It is important that the organization’s president or director and the chief volunteer leaders jointly accept responsibility for the implementation and success of the Leadership Gift Phase. This provides accountability.

The solicitation of large gifts requires a highly personal and structured approach, given the sensitive and important nature of the activity. These gifts are just too important to be treated casually or without consideration of the long-term effects (especially if not done right!). Extensive preparation is necessary and essential to ensure an effective solicitation. Almost invariably, effective and appropriate solicitation yields the desired result. In charitable fundraising, these approaches must be personal as well as professional.

Make it Personal

We recommend that all Leadership Gift Phase visits be conducted in the prospect’s home. Most major decisions involve family members and are best considered in comfortable and familiar settings. It is important to keep to the campaign’s agenda during visits, but you will also be dealing with people on very human and personal levels as well. Remember, a capital campaign is about more than money; it is also about the mission of the organization. Many of the prospects targeted will be asked for gifts larger than they may have ever considered (or thought of as appropriate) for a nonprofit institution or cause.

Encourage people to understand that this is work they can do well because of their involvement and love for the organization. Also stress that they are not asking for themselves, but rather on behalf of an organization they care about and consider important. It is important that the volunteer/solicitor adopts a sense of urgency, and that they thoroughly know the case and objectives of the campaign. Leadership gifts are solicited in series, rather than all at once. For example, ask something like: “We need your decision before we go any further. Can we come back next Tuesday to discuss it with you further and hear your response?”

It’s a Marathon, Not a Sprint

Sometimes it may seem like the hardest part is getting started with your volunteers. It can be very helpful if your first couple of solicitations are successful, and at the highest possible gift levels. The first two gifts will greatly aid their ability to get the second two gifts, and so on. A $1 million gift at the early stage of a campaign is worth several times its numerical value because of the leverage it provides the organization. However, a $1 million gift at the end of the campaign is worth only $1 million. Early success will help you build confidence and enthusiasm. This manifests itself in many ways, not just in the money raised, but in the commitments expressed by donors to your work and in people expressing their commitment to their community through their action.

The 5 Steps of the Solicitation Process 

1. Pre-visit preparation

• Orientation of the case/needs
• Prospects assigned
• Strategy developed and request amount agreed on

2. Set a formal appointment

• Determine the best time to call
• What is the format of the meeting? (Breakfast, coffee, dinner, setting, etc.)
• Who else should be there—another board member? Other donors?
• Coordinate schedules before calling
• Call and request the appointment

3. Campaign office prepares a specific proposal

• Personal letter with request amount (to be left with the prospect after the visit)
• Case statement or brochure and other promotional materials
• Pre-visit briefing given by counsel — a rehearsal

4. The meeting

• Break the ice
• Present the case
• Ask for the gift—specifically!
• Listen
• Handle the response
• Set the appropriate follow up

5. Follow-up and closure

• Campaign office sends thank-you letter immediately
• Anticipate their response and additional information
• Personal, purposeful follow-up by the agreed date
• Arrange for documentation of their gift

In summary, all contributors are important, but those capable of making the largest gifts require special attention. Such leadership gifts provide significant money, set the pace for giving, inspire confidence, create momentum, and ensure the success of your organization’s campaign.

CDS has been a leader in nonprofit fundraising for the past three decades. Contact us if you need more intensive help with your major gift fundraising, strategic planning, or preparing for a leadership gift phase for your organization.

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