The Chronicle of Philanthropy recently reported on the ongoing decline of charity walks and runs at large, national foundations like American Cancer Society, Susan G. Komen, and Juvenile Diabetes Research Foundation.  Each of these organizations had reductions in revenue of more than 10 percent over the last year (see chart below).  While these events remain a good source of sustainable revenue for nonprofits, this downward trend signals the fundraising environment is changing.  As a result, many nonprofits have rebranded their grassroots events or created novel fundraising ideas.  For example, St. Baldrick's Foundation, a national nonprofit raising money for children's cancer, built a highly successful fundraising program around shaving the heads of volunteers and donors, mostly at Irish bars on St. Patrick's Day.  This program raised nearly $39 million last year. 

For organizations with slumping charity walks or runs or declining direct mail programs, trying to find the next best fundraising idea or chasing a new trend is challenging and often not productive.  Instead, nonprofits with established, but flagging, grassroots programs should consider investing in major giving.

Major giving is one of the fundraising activities with the highest rate of return.  This is particularly true for new major giving initiatives at organizations with more established fundraising programs.  In 2004, when the Cystic Fibrosis Foundation launched its Milestones to a Cure Campaign, its strategy was to transition high-net-worth walk donors to major gift donors, and to replace direct mail revenue with major giving revenue.  The strategy worked well.  The Foundation established a new revenue stream yielding $25 million per year, on average, during the course of its six-year Milestones Campaign.  

Nonprofits with mature charity walks or runs or established direct mail programs are often in the best position to take advantage of major giving.  This is because these organizations already have:

1. A strong case for support within their respective communities;
2. Deep databases, ideal for data mining and wealth screening; and
3. Long-term relationships with donors developed by field staff.

For nonprofits looking to launch or expand a major giving program, the initial investment is often relatively small, particularly compared to grassroots or large special events, which require considerable staffing and logistics.  You will need to prepare a strong case for support, align the board and leadership around the case, hire experienced major gift officers, and allocate resources for prospect research, travel for cultivation meetings, infrastructure (e.g., a "Moves Management" system), and marketing.  A relatively small team of major gift officers, working collaboratively with field staff and volunteer leaders and management, can quickly establish a pipeline of viable prospects.

Nonprofits should always be on the lookout for successful, organically-driven fundraising activities within their communities.  The approaches that worked for years may not work in today's changing fundraising environment.  Fundraising is still all about relationships, and the more an organization cultivates its donors, the larger the gifts they will ultimately receive. If your walk revenue is declining, now is the time to invest in a major gift program.    

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OAI is adept at working with clients to understand the changing fundraising environment and developing plans that build on core strengths and, at the same time, take advantage of previously untapped fundraising opportunities.   For more information, please contact us today at [email protected] or (202) 338-6100.