Key Term

What is Major Donor?

Definition

A major donor is an individual, family, or organization that contributes a significant amount of money to a charitable organization, typically well above the average gift size. The threshold for what constitutes a major gift varies by organization but often starts at $10,000 or higher. These donors frequently maintain ongoing relationships with the nonprofit and may make multiple substantial gifts over time.

Significance

Major donors are crucial to the sustainability and growth of nonprofit organizations, often providing the cornerstone funding for significant projects, capital campaigns, and operational expenses. They require specialized cultivation and stewardship strategies, including personalized communication, exclusive engagement opportunities, and detailed impact reporting. Understanding and effectively managing major donor relationships is a critical skill in fundraising, as these supporters typically contribute 80-90% of a nonprofit's donated income despite representing only 10-20% of the donor base.