Nonprofit Lowdown Episode #329: Mastering Major Gifts with Rhea Wong

Release Date: March 17, 2025

In Episode #329 of Nonprofit Lowdown, host Rhea Wong delves into the intricacies of major gift fundraising, offering insightful strategies and actionable advice to help nonprofit leaders secure transformative donations. This episode, recorded during a webinar hosted in collaboration with Nonprofit Storytelling Conferences' Tactical Tuesdays, features a dynamic conversation between Rhea and her guest, Josh. Below is a comprehensive summary of their discussion, enriched with notable quotes and timestamps for reference.

1. Introduction and Episode Overview

Rhea Wong opens the episode by addressing the common frustrations nonprofit leaders face with fundraising efforts, particularly when initial quarters don’t meet expectations. She introduces the topic of major gift fundraising and emphasizes the importance of attracting larger donations to elevate organizational impact.

Rhea Wong [00:00]: "Are you tired of chasing donors with little to show for it? It's time to hit reset."

2. Rhea Wong’s Expertise and Approach to Major Gift Fundraising

Rhea shares her extensive background in the nonprofit sector, highlighting her successful tenure as an executive director in New York City, where she grew her organization’s private funds from $250,000 to nearly $3 million annually. She underscores her belief in the power of major gifts, noting that about 75% of private philanthropic dollars in the U.S. are contributed by individuals, with the top 10% of donors responsible for 90% of these funds.

Rhea Wong [03:50]: "The reason why I focus on major gifts is we know that when we look at the philanthropic pie, generally about 75% of all philanthropic dollars... are given by individuals."

While advocating for targeting major donors, Rhea clarifies that this focus should not come at the expense of nurturing smaller donors, as both segments are crucial for sustaining and growing nonprofit initiatives.

3. Q&A Session: Initiating Communication with New Major Donor Prospects

Question from James [04:21]:
"I'm using a donor prospecting platform to find and identify new major donors. Once I get a list of prospective donors, what's the best way to initiate communication?"

Rhea critiques the reliance on donor prospecting platforms like WealthScreen and DonorWell, pointing out their limitations in accuracy and engagement assessment.

Rhea Wong [04:21]: "The data that they collect is not always accurate... Especially in places like New York City where people buy co-ops... there’s a lot of opacity."

Instead of immediately launching appeal campaigns, Rhea advocates for a survey strategy to qualify prospects based on five key criteria:

1. Reason for Giving: Does the nonprofit’s cause align with the donor’s personal motivations?
2. Engagement: Is the potential donor already interacting with the organization through emails, events, or volunteering?
3. Capacity: Does the donor have the financial means to contribute significantly?
4. Timing: Is the donor ready to give now?
5. Permission to Reach Out: Has the donor consented to further communication?

Rhea Wong [05:44]: "I teach what is called a survey strategy... do a well run robust marketing campaign."

This approach ensures that nonprofits engage with prospects who are not only capable of giving but are also genuinely interested and ready, fostering more meaningful and effective relationships.

4. Q&A Session: Increasing Visibility Amid Donor Advised Funds (DAFs)

Question from Diana [18:58]:
"What do you see as the best strategy to increase visibility of your work at a time when donor advised funds or DAFs are increasingly popular for individuals?"

Rhea addresses the challenge of DAFs, which often act as opaque intermediaries, making direct donor identification difficult. She suggests a multifaceted approach focusing on four key areas of scaling:

1. Traffic: Ensuring sufficient visibility and reach.
2. Conversion: Turning visibility into active donors.
3. Donor Lifetime Value: Maximizing the revenue from each donor by increasing the frequency and size of their contributions.
4. Retention: Keeping donors engaged and preventing attrition.

Rhea Wong [19:07]: "If you know your donor lifetime value, you then know how much you can spend on donor acquisition and donor retention."

To counter the obscurity introduced by DAFs, Rhea recommends broad-based marketing strategies combined with targeted efforts to engage philanthropic advisors and program officers who can influence donor decisions.

5. Strategies for Building and Leveraging an Email List

Rhea emphasizes the paramount importance of owning and nurturing an email list over relying solely on social media followers, which are subject to algorithm changes and platform ownership constraints.

Rhea Wong [22:16]: "The email list is what you own. The email list is where you nurture the relationship."

She advises nonprofits to:

• Regularly communicate with their email lists through informative and engaging content.
• Use surveys and interactive content to assess donor engagement and preferences.
• Implement welcome sequences and personalized interactions to build trust and loyalty.

6. Engaging Unsubscribed Major Donors

Question from Fled Away [29:39]:
"Most of my major donors have unsubscribed from my stuff, right? How do you then engage with them?"

Rhea and Josh discuss strategies to re-engage major donors who have opted out of email communications. Recommendations include:

• Personal Outreach: Sending individualized emails or making phone calls to reconnect.
• Alternative Communication Channels: Utilizing direct mail or text messages where appropriate.
• Enhancing Email Content: Improving the value and relevance of email content to prevent future unsubscribes.

Josh [29:39]: "If your major donors have opted out of your email list, that's fine. Send a personal email."

Rhea adds that unsubscribes often indicate that email content lacks value, encouraging nonprofits to refine their messaging and approach.

7. Enhancing Donor Relationships: Being the Guide in Their Story

Rhea introduces a storytelling framework inspired by Joseph Campbell's hero's journey, positioning donors as the heroes and fundraisers as their guides. This shift from a transactional relationship to a partnership fosters deeper connections and mutual empowerment.

Rhea Wong [16:57]: "This is the story of your donor. Everyone sees themselves as the hero of their own story."

By aligning the nonprofit’s mission with the donor’s personal narrative and aspirations, fundraisers can create more compelling and meaningful engagement opportunities.

8. Conclusion and Key Takeaways

The conversation wraps up with Rhea highlighting the importance of thoughtful donor engagement and personalized interactions. She underscores that making donors feel special through personalized gestures can significantly enhance relationship quality and loyalty.

Rhea Wong [34:49]: "There’s nothing wrong with making people feel special a hundred percent."

Josh and Rhea conclude by encouraging listeners to adopt these strategies to transform their major gift fundraising efforts, emphasizing the blend of strategic planning and heartfelt relationship-building.

Josh [35:07]: "We have to have you back because this was an awesome conversation."

Key Takeaways

• Prioritize Major Gifts: Focus on the top percentile of donors who contribute the majority of funds, while maintaining support for smaller donors.
• Qualify Donors Effectively: Use survey strategies to assess donors' reasons for giving, engagement levels, capacity, timing, and willingness to be contacted.
• Optimize Marketing Strategies: Leverage email lists over social media, engage philanthropic advisors, and utilize tools like DAF widgets to increase visibility.
• Personalize Engagement: Move beyond transactional interactions by positioning donors as heroes and fundraisers as their guides, fostering deeper and more meaningful relationships.
• Enhance Communication Value: Ensure all communications offer genuine value to prevent donor attrition and encourage sustained engagement.

For nonprofit leaders seeking to master major gift fundraising, Episode #329 of Nonprofit Lowdown with Rhea Wong offers a wealth of knowledge and practical strategies to elevate their fundraising efforts and build lasting, impactful donor relationships.