The New Era of Nonprofit Fundraising: Fewer Donors, Bigger Gifts
In today’s nonprofit landscape, one thing is clear: major gifts are driving the deepest impact. According to research from the Giving USA 2024 Report, individual giving dropped 3.4% last year, but donations from high-net-worth individuals and foundations increased significantly. This shift has created a paradox: fewer donors overall, but larger contributions from the top tier of philanthropists. This shift is reshaping major gifts fundraising across the nonprofit sector.
Fundraising expert Gail Perry, founder of the Gail Perry Group, says this moment represents both a challenge and an opportunity. “Every single organization has major donors in its database,” she explains. “The problem is, they’re often treated like small donors—receiving generic messages instead of genuine engagement.” This moment represents a major shift in major gifts fundraising.
This shift toward “transformational fundraising” isn’t just about asking for bigger checks—it’s about building deeper trust and more human relationships.
Summary
Why Optimism and Leadership Matter in Uncertain Times
Nonprofits have faced a turbulent few years. Between changing administrations, shifting economic policies, and unpredictable funding from government grants, some organizations have been hit harder than others.
“There’s been confusion and even devastation for nonprofits whose government funding was suddenly cut or clawed back,” Perry says. “But others—especially those with strong donor relationships—are thriving.”
Her advice: optimism is a fundraising strategy. “If you don’t believe you can raise money, you won’t,” she insists. “Leaders and board members must model positivity and confidence, even when external factors look bleak.”
In an environment where fear can easily paralyze organizations, those who continue to cultivate relationships—especially with wealthy donors—are emerging stronger.
Unlocking Hidden Potential: Finding Major Donors in Your Database
One of the biggest misconceptions in fundraising is that major donors are “out there”: wealthy strangers waiting to be discovered. Perry argues the opposite.
Many organizations overlook the fact that effective major gifts fundraising starts with understanding your own donor file. “Most nonprofits already have potential major donors on their lists,” she says. “They just haven’t identified them or built the right relationships.”
A common pitfall is treating every donor the same—sending them mass emails, automated thank-you notes, and never engaging them personally. Yet a donor who’s been giving $1,000 a year for several years may be capable of donating $100,000 or more if approached correctly.
The key, Perry says, is to start with data-driven segmentation—analyzing your donor base to identify consistent givers, volunteers, or those with donor-advised funds. (Learn more about donor analytics tools at DonorSearch or WealthEngine).
The Psychology of Major Donors: It’s About Connection, Not Cash
The psychology behind major gifts fundraising is built on connection, curiosity, and alignment. Perry draws parallels between philanthropy and professional sales practices such as “consultative selling.”
“Good fundraisers listen,” she says. “They ask questions, learn about the donor’s story, and discover what matters most to them. Only then can they find alignment between the donor’s passion and the organization’s mission.”
She recommends starting with simple, open-ended questions:
- What inspired your first gift to us?
- How did you come to care about this cause?
- What part of our work resonates most with you?
These questions not only uncover motivations but also empower donors to express their values. “Once they start talking about why they care, you barely have to ask for money,” Perry laughs. “They often end up offering it themselves.”
From Fear to Confidence: Training Fundraisers to Thrive
One of the biggest barriers to effective fundraising is fear: especially the fear of asking. Confidence is one of the biggest differentiators in successful major gifts fundraising. Perry’s firm offers a Major Gifts Intensive program, a live virtual course that helps nonprofit teams build both skills and confidence.
“Fundraisers come in nervous and uncertain,” she explains. “But once they learn how to start authentic conversations, their confidence skyrockets.”
She recalls a small nonprofit client whose fundraiser used a simple “thank-you” call as a relationship opener. “The donor had been giving $1,000 a year. After a meaningful conversation about his interests, he made a six-figure commitment—without even being asked.”
Training, Perry emphasizes, is not a luxury, it’s a strategic investment. “Like golf, you can’t hit the ball well without practice and feedback,” she jokes.
Turning Conversations into Commitments: A Step-by-Step Approach
When approaching major donors, Perry recommends a conversational flow that naturally deepens engagement:
- Start with gratitude. “Thank you so much for your gift—what inspired it?”
- Invite storytelling. “I’d love to know your story and how you became passionate about this cause.”
- Discover alignment. “Which part of our work resonates most with you?”
- Create next steps. “Would you like to visit our facility, meet our team, or see a program in action?”
- Plant seeds for involvement. “Could you see yourself becoming more involved with us?”
Each question builds trust while giving the donor emotional ownership of the mission. The approach turns what was once a transactional “ask” into a joyful, meaningful dialogue.
Why Volunteering is the Gateway to Philanthropy
Volunteering often becomes the gateway to major gifts fundraising. One surprising insight from the Bank of America Study of Philanthropy is that volunteering leads to giving. Perry cites this research often: “The study found that 88% of wealthy donors who volunteer also donate to the same causes.”
Inviting potential donors to participate in events, advisory groups, or behind-the-scenes tours can be more powerful than a direct solicitation. “When people give their time, they feel connected and respected,” she says. “That emotional investment translates into financial generosity.”
Avoiding Mission Creep: The Dangers of Wealthy Board Members
While it can be tempting to invite large donors onto your board, Perry cautions that money doesn’t equal governance wisdom.
“Sometimes high-powered individuals bring their own agendas,” she warns. “They may unintentionally cause mission creep by steering the organization toward their personal vision.”
Effective boards require balance—diverse perspectives, collaboration, and alignment with the mission. “You want donors to be partners, not pilots,” she quips.
For guidance on recruiting and managing nonprofit boards, she recommends BoardSource, which offers free tools and templates for governance best practices.
The Hidden Cost of Turnover in Fundraising Teams
The nonprofit sector is notorious for high turnover among development staff. Studies by the Association of Fundraising Professionals (AFP) suggest the average fundraiser stays in a role just 16 to 18 months.
According to Perry, the real issue isn’t pay—it’s culture. “Fundraisers often lack support, clear goals, and realistic expectations,” she explains. “They’re juggling too many responsibilities and don’t receive the training or affirmation they need.”
Stephen Halasnik, host of the Nonprofit MBA Podcast and co-founder of Financing Solutions, adds that leadership must take responsibility: “If your fundraisers are failing or leaving, that’s a management issue. They need tools, coaching, and a supportive culture to thrive.”
Building a Culture That Supports Fundraisers
At its core, successful major gifts fundraising depends on leadership mindset. Perry encourages nonprofit leaders to treat fundraisers like a high-performing sales team: “They need motivation, recognition, and a sense of accomplishment.”
She recommends that boards regularly celebrate wins, set achievable goals, and provide professional development budgets. “A motivated, confident fundraising team is your best asset,” she says.
Organizations that adopt this mindset often see transformational results. One of Perry’s clients—a small arts nonprofit—doubled its annual revenue after applying her training methods.
Final Thoughts: Fundraising is a Human Art
In an age of automation and digital marketing, the most powerful fundraising tool remains the same: human connection.
“Major donors don’t give to institutions,” Perry reminds us. “They give to people they trust.”
By focusing on relationships, curiosity, and gratitude, nonprofits can not only unlock major gifts but also reignite the joy of giving—for both the donor and the fundraiser.
Human connection remains the heart of major gifts fundraising. As Perry puts it: “When we stop treating donors like ATMs and start seeing them as partners in impact, everything changes.
About the Experts
Gail Perry is an international fundraising consultant, keynote speaker, trainer and philanthropy leader, with deep expertise in major gift and capital campaign fundraising. Her Fired-Up Fundraising approach, developed over the past 30 years as a nonprofit philanthropy expert, has helped organizations raise hundreds of millions in gifts.
Stephen Halasnik is a Managing Partner at Financing Solutions and host of The Nonprofit MBA Podcast. Financing Solutions has been the largest provider of lines of credit to small nonprofits in the US since 2012.
