3FH16815K0800610R Major Gift Fundraising

The Charity First Series
MAJOR GIFT FUNDRAISING

Taking the plunge
Peter Maple
James K Myers
The Charity First Series aims to provide practical and straightforward
guidance on the challenges confronting charity operations today, with
fundraising in the spotlight. Its individual subjects range from those
concentrating on the UK and Ireland to non-profit issues in the EU and
other jurisdictions, from traditional to digital fundraising and from basic
help for those just entering the third sector to specialist areas for the
more experienced.
For further information and orders see www.charityfirstseries.org
© James K Myers. Licensed to Angelo Pallanca, pan@monaco.mc
MAJO R G I F T F U ND R A I SI NG
Taking the plunge
Peter Maple
James K Myers
First published electronically in 2011 by Social Partnership Marketing LLP
38 Leconfield Road, London N5 2SN
Revised edition published 2020
© James K. Myers, 2020
Please note that you have bought copyright material. You have the right to save one electronic copy for
yourself, to print out one copy, and to show the material if required to colleagues. However, you cannot
republish the material beyond that. If you wish to do so, contact the publisher for permission.
ISBN 978-1-908595-38-6
Limit of Liability/Disclaimer. While the publisher and authors have used their best efforts in preparing
this publication, they make no representations or warranties in respect of the accuracy or completeness
of the contents of this publication. If legal advice or other expert assistance is required, the services of
a competent professional should be sought.
CO NT ENT S
Introduction .5
1
It Starts With You .6
The Cause ~ Involving the Trustees
~ Strawberries and Cream ~ Preparing the Ground
~ Initial Research
2
Charity Begins At Home . 10
Rallying the Forces ~ Organise Social Events for the Stakeholders
~ Use the Patrons ~ Use the Volunteers
~ Never Walk Alone ~ Friends and Alumni
~ Keep in Touch ~ Organising Supporter Events
3
Where Have All The Wealthy Gone? . 15
Reaching Out ~ Is the Prospect Close at Hand?
~ Organisations and Special Interest Groups
~ From Minor to Major ~ The Website
4
Making the Ask . 19
The First Approach ~ Enthusiasm and Persuasion
~ Check, Check and Check Again ~ Where Should the Meeting Be?
~ Who’s at the Meeting? ~ Naming Rights
~ Listen as Well as Talk ~ The Invaluable Plan B
~ Giving Stewardship
5
Tax and Legal Considerations . 25
Tax Efficient Gift Structures
6
Legacies . 27
3
7
Cross-Border Donors . 29
Tax Status of Givers and Due Diligence
~ The More the Merrier
8
Grantmakers . 32
9
Corporate Donors and Sponsors . 35
10
Regulation and the Law . 37
The Code of Fundraising Practice
~ What if there is a complaint about fundraising?
~ Guidance on major donors and major gifts
Bon Voyage . 40
Appendix . 41
Who’s Out There to Help You? ~ Useful Websites (UK)
~ Useful Websites (Republic of Ireland)
About the Authors . 45
4
IN T R O D U CT I O N
There is an apocryphal tale about an exchange between two of America’s

most famous novelists on the nature and attitudes of wealthy people.
F Scott Fitzgerald is reputed to have said ‘the rich are different from you
and me’. In reply, Ernest Hemingway is quoted as saying ‘yes, they have
more money’.
Major gift fundraising can be seen as a mysterious field, but the essential
elements of a good campaign effort are reasonably accessible. In reality,
they’re much the same as for any well planned fundraising activity. People
give to people whether you are asking for £20 or £20,000. For the effort
expended on getting relatively small gifts done well, you might equally
well attract some much larger ones. In today’s world, with funding from
statutory sources withdrawn or shrinking fast, this could be very helpful
indeed. Moreover, major gifts can be sought both for specific projects
and core funding. Whether for a particular purpose, overall expansion or

simply survival, major gifts ought to be a part of your strategy for survival
and sustainability. They can be a vital part of the fundraising mix.
What constitutes a major gift? There are no universal thresholds. For
some charities, a £500 donation would be considered a major gift. For
others the figure might be £5,000 and for some it might even be a million
pounds. Remember however, that anyone who can write a cheque to charity
for £1,000 can usually, if they are sufficiently motivated, put an extra
nought on the end. So, one might do well to set the prospect threshold at
a comparatively low level. In every case, no matter what the amount, the
effort requires the same careful preparation, discipline and diligence. Much
is said here about personal contacts and meetings. In a world experiencing
a pandemic one may have to resort to Zoom meeting rather than face-to-
face and that brings its own challenges. The upside however is that people
may be much more willing to see you digitally than up close and personal.
Either way it is no reason to avoid tackling the issues and opportunities.
The world of major gift fundraising can bring surprises. Embarking
on the trail of major gifts is an exhilarating voyage of ups and downs
through which the determination to see the success of your cause will
sustain you. There should also be a bonus, besides the gifts, which is that
of the friendships that can result from these endeavours. Cherish them!
So, are you ready to take the plunge?
5
1
IT STARTS WITH YOU
Many do not relish the thought of asking for money whatever the amount.
However, in reality it needs to become much more than a simple request
for cash. Think in terms of bridge building, the satisfaction of giving,
how we can all make a very real difference, thus achieving a reason for
celebration and joy. Researchers talk about transformative giving and how
a major gift can change the lives of both the giver and the receiver.
As the fundraiser, whether a paid member of the team or a volunteer,
it is vital that you have a real enthusiasm for your charity’s cause. How can
you engender empathy if you don’t display it yourself ? The type of cause
will, of course, influence the direction of your overall and fundraising
strategy. What is the case for support? Consider the charity’s mission against
a backdrop of other similar charitable causes in the sector or community
and look at how they operate their own fundraising campaigns.

Then, think about how to differentiate your espousal of the charity’s
mission in your own approach to potential givers. Imagine the differences
between appealing for an animal charity on the one hand and an art gallery
on the other. Similarly, imagine fundraising for Tate Britain compared
with your local art gallery. Both are important causes but the fundraising
strategies will necessarily be quite different.
Next, consider the available resources in terms of time, money and
staff. Think in terms of fundraising precepts such as the Pareto principle
that 80% of your funds will probably come from only 20% of your funding
sources.
So how do you start your approach to potential major givers? Some of
the steps suggested below may seem obvious, but they are included because
they are so fundamental to success and yet can easily be overlooked.
The Cause
As already pointed out, if you’re not enthusiastic, the potential giver is
most unlikely to be either. Define the case as you see it so that it is crystal
clear. If the desired gift is for a particular project, be ready to convince your
listeners that the objective is essential to help fulfil the charity’s mission.
Of particular importance is the need for you to understand your
potential giver’s reasons for considering a gift to your charity in the first
place – what is it about your cause that they are particularly interested in?
6
1. It starts with you
With this understanding of their motivation, if you can explain how their
gift will help to advance a mission with which you already know them to be
in sympathy, then you can begin to establish a bond between the potential
giver and your charity.
Remember that your case statement needs to answer, at the very least,
the three questions any potential funder will be asking themselves. Who
are you? Why are you doing whatever it is? And why should I support you?
There is also an old sales adage that suggests, ‘you’ve got two ears and one
mouth, use them in that proportion’. That is to say it is vital to hear what
your potential giver would like to see from the gift. It may be the same as
you, a change in the world, a life improved. But, it may be quite different.
It may be about remembering a loved one or simply facilitating something
they would like to see happen.
At all costs, avoid what is known as ‘smash and grab’ fundraising, i.e.
appearing to potential givers as being unprepared and in a hurry – ‘you’ve
got money and we need it’! Go to meetings prepared to explain the need
for the gift or the project and be able to answer all the questions put by the
potential supporter and his/her advisers (who may well be present, as may
representatives of foundations), including their expectations.
Always make sure that you have with you budgets, costings, detailed plans
and anything else you might need to make the best possible presentation
of the project or cause. And remember that sales adage. Listen to what the
potential support wants and ask them for their advice.
Involving the Trustees

The trustees of your charity must be closely and continuously involved in
the process from the very beginning. There are at least two basic ways in
which they can support you: by discussing, agreeing and supporting the
fundraising plan; and by opening up their address books to help with the
identification and development of friends and contacts who may become
prospective givers. Indeed, this can assist the creation of a development
committee, made up of several trustees and selected staff members. This
will be covered more fully in a later chapter. The Americans have an adage
about trustees that they should give, get (i.e. help find supporters), or get
off.
Strawberries and Cream

It isn’t only the trustees who need to be fully in the fundraising picture. As
Peter Hendley, veteran fundraiser, says, ‘Fundraising and finance go together
7
like strawberries and cream, so internally always ensure the fundraisers can
talk openly with the charity finance people. An open sharing of information
helps fundraisers to understand the need for funds to cover core costs and
how to articulate what can often be a difficult ask to a supporter’. The
closest cooperation between communications, finance and fundraising is
vitally important to ensure that everyone is on the same page and to avoid
fundraisers going off on their own personal crusades for projects they like
or feel they can raise funds for.
There is a further truism that everybody in a charity is a fundraiser. That
is, they have the ability to provide enthusiastic, informed support when
asked. Potential givers may well want to speak to those on the ground
delivering the service or project. In a similar way the chief executive must
be fully engaged and willing to enter into those dialogues.
Preparing the Ground

Accurate and up to date information on potential givers is fundamental

whether they are from foundations, corporate bodies or acting as individual
givers. You must be able to explain why you are approaching them and not
someone else and how supporting your cause or project would be rewarding
for them. Be confident that you know enough about your prospect to see
the possible link between him/her and your cause.
The question of ‘who’ and ‘method of approach’ usually starts with
existing supporters. There is more to this than just the hope that they may
be disposed to give again (if you have looked after them and communicated
previous successes) – after all, they have already exhibited their support
on numerous occasions. Check your database and any other records very
carefully, swot up on their giving history before you meet them. This may
involve getting some ‘institutional memory’ from colleagues, which can
be done in regular fundraising meetings. Read what Sarah Gardner, chief
executive of a small (£200k pa) development charity called Action Through
Enterprise (ATEGhana) says about getting started.
‘ATE had already reached out to family and friends in getting started
to reduce poverty in a remote, forgotten, corner of Ghana called Lawra.
A trustee was helpful in showing me how to talk directly to some of those
already interested and giving at lower levels, about the difference they
could make with a larger gift, and how both they and the charity would
benefit from their gift. Really importantly he showed me that the first
major givers are likely to be friends of the charity giving at lower levels,
because they’ve never been asked effectively, to make a substantial gift.
8
This advice has stood me in great stead when reaching out to both existing
and new potential supporters and grantmakers’.
Initial Research
As suggested earlier, find out, to the extent possible, what other charities,
both those based locally and those operating in your field, are doing
to raise funds generally and major gifts in particular. Use websites and
the media, and for local charities study the local press. Find out which
professional organisations in your locality (for example Rotary, Round
Table, Soroptimists and business clubs) might take an interest in your
organisation or be in contact with affluent members of the community. For
the same reasons, you could also explore contacts with legal, accounting,
financial (wealth) advisers and other professional services working in or
with the non-profit field.
9
2
C HAR I TY B EG I NS AT H O M E
The major gift strategy must begin not only with the board of trustees,
but also with the CEO, staff, patrons and key volunteers. Without their
unstinting support and enthusiasm, your efforts are probably doomed, and
so this is the critical element in the campaign preparations. If you cannot
engender internal support for the campaign what hope is there externally?
Without the commitment of the board and other stakeholders you will
wind up feeling lonely and very disenchanted. In fact, the trustees need
to be the charity’s ‘ambassadors-at-large’, networking with their peers and
friends in order to raise the institution’s profile in the local community and
widen awareness far outside it.
Ideally, the trustees (and you!) will each make a donation (appropriate to
their means), as otherwise you will all lack credibility and conviction when
prospective givers of a donation or a legacy ask whether they themselves

have actually given. The previously mentioned ‘Give, get, or get off ’ needs,
even in the States, to be driven home and in Britain the approach needs
a very tactful appearance. Trustees in the UK often feel that their in-kind
support in terms of time, energy and effort is more than sufficient without
making a cash donation as well. However, leading by example can usually
persuade those less willing to give – at whatever level they are comfortable
with.
It is very important to have as many allies on the board as possible – as
suggested earlier, some may consider becoming members of a development
committee. As the name suggests, this comprises those board members and
other stakeholders who are willing to take on more direct responsibility for
the charity’s fundraising function. If the charity has, say, more than ten
trustees, then perhaps two to four might accept.
If there is only a small board of say three or four trustees, one might
suggest that the charity recruits more. At the very least, you must persuade
them to spread enthusiasm about the cause within the community, and
generally in that respect the more the merrier. This is true for all levels of
fundraising but in soliciting major gifts it is crucial. If this is the first time
the charity has embarked on major gift development then it is critical.
Rallying the Forces

The need for enthusiasm and support in major gift fundraising cannot
10
2. Charity begins at home
be over emphasised and it is most likely that this process will need to
start with you! Fundraising efforts frequently fall down because of lack of
engagement by stakeholders such as trustees, staff, volunteers and patrons...
but it’s the fundraisers who get fired! It’s part of your role, as fundraiser,
to keep everyone energised with your own enthusiasm. One will need to
have lively discussions with the trustees on their vital role in supporting the
fundraising efforts. So, make sure not only are you all on the same team but
that you all have the same script.
Organise Social Events for the Stakeholders

Get trustees, other stakeholders and potential givers together at events
so that the charity’s representatives have a chance to make a pitch (when
appropriate) for the projects currently requiring funds. There is little
downside to getting this group of actual and potential supporters together
to improve communications and understanding in a constructive way.
Use the Patrons

If the charity doesn’t already have patrons, consider recruiting some. They
can be well placed to help spread the word and open address books. They
may be celebrities or at least prominent citizens in the community. They
should be briefed to expect to be called upon to attend social events, cut
ribbons, support appeals and generally be ambassadors for the charity. It is
important to keep them involved, briefed and interested.
Patrons are important in major gift fundraising not least because they
can be an asset in helping to make specific asks. Don’t think of them as just
names on your letterhead. Nurture them as if they themselves were major
gift prospects – as indeed they ought to be.
Use the Volunteers

As well as being ambassadors in spreading the word, volunteers can be
potential givers themselves and will, in turn, know others capable of giving.
Encourage and involve them in what you are doing. Sometimes volunteers
are much better positioned to make the ask than you are. Depending to
some extent on the number of volunteers your organisation has, you can
find ways to be in regular contact with them and so get some good ‘market
intelligence’ on the people they meet in the course of their duties. In larger
organisations, it may be less easy to talk with everyone, and so a volunteers
newsletter might be an effective way of stimulating communications about
11
information they have about potential supporters. Don’t let them hide their
contacts under a bushel!
Never Walk Alone

Much of this discussion has been about the key stakeholders but there
are others waiting in the wings. Some may be very close at hand. For
example what about the unsung heroes and heroines of administration
or back office functions? As one embarks on a major gift fundraising
strategy, one must ensure that the admin and facilities teams are prepared
and equipped to meet the demands of the plan. Apart from the routine
tasks that will be essential – for example, prompt acknowledgement of
donations and financial back-up – there will certainly be a need for the
prospect research database to be constantly updated. This of course
applies to all fundraising efforts but is particularly important for major
gift fundraising, as there will be sensitive personal information stored
there (complying, of course, with the current laws on data protection).

The office will also be involved in plans and budgets for the campaign
and in providing printed materials as necessary. The gift does not stop with
receipt of the cheque or bank transfer. The office must provide follow-up
in the reporting and Gift Aid claims processing function and accounting for
restricted gifts. The latter is an area more likely to arise in major gift fundraising.
At the same time, at the point of entry there are others to consider. For
example, reception and the telephone call handling. Again, Peter Hendley
has a trenchant observation: ‘It’s well worth underlining the importance of
the receptionist. S/he is usually the first point of contact for a major gift
prospect visiting the charity office and first impressions on arrival are vital.
It’s always a good plan to never forget this important role in selling the cause.’
It might even be worth investing in some telephone voice coaching and
communications briefing for the call handlers, so crucial is this point of contact.
Friends and Alumni

In addition to the vital role of the trustees in backing your efforts, next
to consider could well be an existing organisation of supporters, a Friends
group or, in education, an alumni association. As with trustees and patrons,
these groups are an excellent starting place for prospecting major givers.
Friends and alumni will be individuals who are likely to have an affinity
with your organisation and who may already have made modest and regular
donations over the years. Follow the circumstances of these supporters
12
carefully, focusing on those who could well be major gift prospects. Watch
the local and national press, and network to hear about life changing events
or circumstances that might influence a substantial donation or, perhaps, a
legacy gift. Here again, there is a need for the support of the admin team
in updating records and the database. Addressing a letter to the wrong
partner or even using the wrong salutation is unlikely to win you friends let
alone a big cheque! The more one knows about the major gift prospects,
the more one can fine tune the approach. And the more known about
the charity’s stakeholders, the more helpful they can be. Just for starters,
whom, for example do they know?
Keep in Touch
All givers, whether individual or corporate, and whether current or through
a legacy pledge, like to feel part of the charity and its projects. Does the
charity have a newsletter? If so, use it to send regular updates of what’s
going on for the organisation. Whether it has a newsletter or not, however,

remember the power of a personal letter or email to communicate good
news, an invitation or concern for the recipient’s well-being. The telephone
is generally even more effective. Remember also that many major givers or
prospects may be older people, perhaps living alone and likely to welcome
appropriate contact and involvement. If they have already donated to a
particular project invite them to see progress when significant.
To maintain interest stakeholders also need to feel involved. Depending
on the type of charity one might find that it could become the focal point
and meeting place for a group of supporters or friends. Whilst they are
busy enjoying themselves, one can be busy networking – perhaps to good
purpose if you discover, for instance, that the quiet, grey-haired lady serving
tea is also the great friend of a billionaire. Two examples of such focal
points that come to mind are the Whitstable Umbrella Community Support
Centre, in Whitstable, Kent, and the Fernbank Natural History Museum in
Atlanta, Georgia. Although they have achieved it in very different ways,
each organisation has succeeded admirably in creating an environment
where people come together, perhaps initially for social and educational
reasons, and wind up with a strong affinity for the host organisation.
Similarly, some organisations arrange regular receptions every couple
of months to get people together in pleasant social situations that stimulate
interest in the organisation and its current projects. The attendees often wind
up making valuable professional or social contacts that they will appreciate
13
and will remember where they were made. One outstanding example of
this is what is known in Atlanta as ‘Friday Nights are Martini Nights’ at the
Fernbank Natural History Museum. These are held over several months
of the year and consist of offering martinis and other refreshments as
well as light food in the museum’s lobby on a given Friday evening. There
is an optional film showing in their IMAX cinema, but mainly people
come along to meet others. One by-product of this programme is that the
Fernbank has become the No. 1 professional meeting place in Atlanta. But
those who attend, especially regularly, cannot fail to develop an affinity for
the Fernbank Museum. Think of how something like this could help your
Friends’ recruiting!
Organising Supporter Events

Whether you have adequate premises for entertaining or not, holding events
for potential and committed givers (and stakeholders) is essential, wherever
they are held. They will almost certainly be a winner for attracting further
donations as well as thanking existing givers and other stakeholders. And
why not have the admin team (suitably briefed) attend some of the events
so that everybody gets to know the organisation better? Similarly don’t
lose any opportunity to publicly thank supporters (if they wish it) as it is
something that can also help to encourage others to follow suit.
14
3
WHE R E HAV E ALL T H E WEA LT H Y G O NE?
One knows that somewhere out there will be multi-millionaires with the
capacity to invest in your charity, but they just don’t yet know you. How
do you find them? They may seem as elusive as the Scarlet Pimpernel, who
did his good work in saving people from the guillotine anonymously. For
guillotine read survival in the case of your charity.
Possibly the benefactor will find you. S/he might be writing that cheque
at this moment. Unfortunately, one can’t rely on serendipity, although it
does happen, and the more communications and preparation you do, the
more likely it is to happen. Alumni might visit Britain on a trip, call in
to see the Alma Mater and get carried away with the mission or latest
project. Someone might walk in and want to discuss donating their entire
art collection for your charity’s benefit. So always be ready to make the case
for a major gift, whether it is in the form of cash today, tomorrow or even
in kind. More practically, however, expect to have to do research, do more
research and initiate contacts with major gift prospects, wherever they may
be.
Here’s what Sarah Gardner of ATEGhana has to say about serendipity
when she started the charity in 2012. ‘Although I could confidently raise
some money through the usual community fundraising events, I realised
quickly that £200 from a Race Night would not sustain an international
organisation (albeit very small), with already many hundreds of beneficiaries
and soaring costs. A few months in, when I spontaneously received a £4,000
cheque from a parent of a child at a Scout Group I had talked to, my eyes
lit up and my dreams for the people of Lawra suddenly seemed within
reach’. She continues talking about the importance of having a strategic
plan. ‘8 years later, the “take every opportunity” approach has formed the
bones of what is now an excellent and carefully thought-through, integrated
fundraising strategy. My small team have raised over a million pounds –
with a large proportion of this being given, or facilitated by, major givers’.
Sarah has learned that one must be aware that there are two aspects of
giving to consider: capacity to give and propensity to give to your cause.
Research can help identify and ensure that both are present before the
ask is made. There is also a tendency to think of major givers only as
individual supporters but grantmaking organisations and local corporates
15
3. Where have all the wealthy gone
or sponsors might also support your cause (see more in chapters 8 and
9). Research begins close to home, and local sources will be important in
helping the charity’s survival, whether they are individuals or organisations
or companies.
It is also a vital precept that once found, a key supporter must be
cherished. Develop the relationship and make it a marriage, not a one-
night stand! However, returning to the vital question: how do you find the
prospect in the first place?
Reaching Out
Some sixty per cent of the UK population gives regularly to charity1 so there
are major givers out there somewhere – but where? Without a sophisticated
matching service or dating agency for givers and charities this is a huge
challenge. One needs to reach out through the media and cyberspace.
One part of the work is to liaise closely with your PR or communications
department, if you have one. If not one may well be handling PR assignments
oneself. Whether working alone or with a communications department it
is valuable to formulate and craft the message(s) you want to put over to
potential givers. Communications is about much more than fundraising but
it is very hard to fundraise in a vacuum. Appropriate fundraising messages
will help to reach out and widen the charity’s appeal to potential supporters.
Is the Prospect Close at Hand?

This is where trustees, patrons, friends, alumni and volunteers all come into
play as ambassadors. They will know and will be able make introductions
to the prominent leaders in the local business and professional community.
This will often include lawyers, accountants, bankers and wealth managers
who all have clients who might become sympathetic to your charity. As a
bonus, they might also know the local celebs and spread the word about
the benefits of supporting the charity. The ambassadors might also say
whether there is an opportunity to offer naming rights (see Chapter 4), for
example ‘The Sainsbury Wing’. The better your charity is known locally,
the more receptive your potential supporters will be. Use ambassadors and
events to network and develop contacts.
Organisations and Special Interest Groups

Look around for those professional organisations that might be sympathetic
to your cause and who might be able to support you.
1
Source: CAF UK Giving 2019, An Overview of charitable giving in the UK.
16
As well as the organisation itself, individuals within it might well be

major gift prospects. Don’t just look locally but also further afield to
see if there are potentially good matches, depending, of course, on the
nature of your cause and the passion you can display in communicating its
importance.
From Minor to Major

As Voltaire wrote ‘Cultivate one’s garden’. As already suggested, your
volunteers and, if you have one (and if not why not?) the Friends’ group
could prove fertile ground for developing major gift prospects, as can all
your existing patrons, alumni, volunteers and trustees. Amongst those who
make small but regular donations over a period of years, there will be
potential major givers, who given the right care, may be about to come
into bloom. What might cause them to flower? It might be a particular
project or event proposed by your charity. It could be at the time they
are making or updating their will. It could be a watershed moment in

their lives such as the receipt of an inheritance or a close bereavement
(there are few motivators more powerful than giving in memory of a loved
one), retirement or sale of the business. Keep researching, cultivating and
developing them; keeping files up to date on the personal circumstances of
the prospects. But do bear in mind…
The Data Protection Act and the more recent General Data Protection
Regulation (GDPR): The strict regulations stipulate what information you
are allowed to keep (and equally what information you are not allowed to
keep) on current and potential givers and how and how long you should
keep it. Keeping information you no longer need is inappropriate and what
you do keep should be of a nature that if the giver insisted on knowing
what information you do hold on him, you and your organisation would
not be embarrassed2. That said, if someone does say they never want to
hear from you again, you must keep that on record so as to avoid sending
them unwanted and unsolicited requests for money. More usually a request
for ‘no more letters please’ is often an opportunity to thank the supporter
again for years of giving, a promise not to keep asking but an opportunity
perhaps to consider a final gift in their will (see chapter six).
The Website
What is the current state of your organisation’s website? This is arguably the
The Information Commissioner’s Office (ico.org.uk) provides resources related to ‘Fundraising and
2.
data protection’.
17
best showcase there is and it is likely to be the first place that prospective
supporters or their advisers check. It is vital therefore to ensure it projects
an image that is going to reassure them that the gift being considered
will be well placed. Coherence of messages big and small are important.
For example, does your website have a ‘.org’ domain? This is not a legal
requirement, but a ‘.org’ address indicates that the organisation is a ‘not-
for-profit’ – good psychology!
Make sure the website is up-to-date (and kept up-to-date) in every
respect. Is it exciting? Does it include future plans as well as current projects?
Does the ‘About Us’ page clearly explain who’s who in the organisation –
preferably with photos – and a summary of the charity’s history? Does it
give recent financial information and management reports? Does it include
your charity registration number prominently (and company number if you
have one)? Importantly, does it ask for donations online with a secure
payment facility? Does it suggest legacies? A well-executed website will
help to encourage supporters to go beyond one-off gifts.
18
4
M A K I NG T H E A SK
This chapter considers approaches to individual donors. Later chapters will

cover making the ask to companies and grantmakers
Research3 demonstrates time and time again that people give first and
foremost because, ‘I was asked.’ A cardinal fundraising sin is therefore not
to ask, but who makes the ask, and when, are critical factors influencing
the success or otherwise of major gift fundraising.
Judging how and when to make the case to a potential major giver
and then the ask, is a skill acquired through experience and reflection.
There are however some basic considerations. Who exactly is best placed
to make the ask? How many should attend the solicitation meeting(s)? Plan
and agree beforehand who will present and who actually will ask for the
gift. The same research cited above also suggests that people give most
generously to those whom they admire and respect – and who themselves
have given. Where is the meeting to be? These matters would depend very
much on who is the prospect’s closest contact in the organisation: one
of the trustees; the CEO; a volunteer; a patron; another giver or as a last
resort, you (better that you ask than nobody)? Will the meeting be with the
supporter alone or will their spouse be present? There may well be special
dynamics here to watch out for, such as unease on the part of either of
them.
If you already have fundraising experience then consider holding some
‘role play’ sessions with colleagues who are to make the ask before meeting
the prospect. These can be entertaining but important rehearsals for that
vital meeting. However, rejection must also be rehearsed as well as success,
since one needs to learn what No feels like and have some valid ‘call back’
or fallback options. One good rehearsal is for the asker to attempt to keep
a focused discussion on the objective of the meeting, i.e. the gift, whilst the
prospect goes down many conversational cul-de-sacs – without of course
the asker implying that s/he is only interested in the gift. The two ears one
mouth adage is very helpful here. Listen carefully to what they tell you
and ask about. What would they like to see resulting? Can you make that
happen?
Be open and prepared to discuss basic tax issues and alternative giving
3
Peter Maple: Marketing Strategy for Effective Fundraising, 2nd Edition (DSC, 2013).
19
4. Making the Ask
vehicles (e.g. gifts of shares) up to a point, especially if advisers are present.

One must understand what they are talking about and make suggestions,
but never try to give tax or legal advice. For example one might go prepared
with some examples of the actual ‘net’ cost of a gift once all Gift Aid and
other tax reliefs are taken into account. There is often a misconception that
tax reliefs are somehow gimmicks enabling the wealthy to ‘make a profit’ out
of giving to charity. Unless the giver is engaging in some kind of fraudulent
scheme, making a gift to charity always costs the giver money. Nobody ever
gives because it is tax efficient, but tax efficiency can make it possible for
the giver to contemplate a much larger gift than originally envisaged. This
is the intention of government tax policy relating to charitable gifts.
The First Approach

The research has been successful, and a potential giver is identified. How
to suggest a meeting? This can be the tricky part. Firstly, is there someone
involved in the organisation who knows the prospect well enough to contact
them directly? Could this person help to break the ice by telephone? Has
the prospect already had contact with the charity over something else?
If not, the choice would be either a letter or a telephone call. A letter
might be preferable to a ‘cold’ telephone call if nobody has already met
the prospect. Email is generally not recommended for a first approach,
because it is too easy to ignore or refuse. If the telephone is an option, be
ready to explain with confidence to a PA or assistant the reason for the
call. A telephone conversation is almost certainly the best way to gauge a
prospect’s receptivity and may well provide guidance on how to progress
to that most important objective: the first meeting. If s/he has a title make
sure to use it correctly, both face to face and to any staff – whether on the
telephone or by letter.
Enthusiasm and Persuasion

Before reaching the vital meeting with the potential supporter, one must
be well prepared. People are not naïve, if they’ve agreed to a meeting they
know the subject of money is going to arise. Why might the person be
willing to contemplate a gift to the charity? The ground can be usefully
prepared by cultivating the prospect through invitations to social events,
such as a guided tour or reception where you can share enthusiasm for the
cause and ask for advice. If you ask for money too soon you’ll get advice.
If you ask for advice and listen to it and respond appropriately, in the
fullness of time you’ll probably get money.
20
4. Making the Ask
By the time of the meeting one must be clued up on the prospect’s

interests, philanthropic record and perhaps any deep motivational/
experiential events in their life. Be prepared to explore the benefits, both
emotional and financial. Convey enthusiasm about the charity’s mission
and the particular project for which funding is being sought. Suggest
that s/he might like further involvement in order to share in the exciting
times ahead. Remember giving can be transformational and should be a
pleasurable experience for the giver and receiver.
Establish from the outset, however, whether there is any expectation
of control over expenditure or direction, or veto power. If so, discuss
this carefully with the trustees before committing the charity. Very
occasionally gifts have to be refused. Be very careful to avoid what
might be misconceptions on either side, particularly where strong egos
are concerned. A number of US and, more recently, UK charities have
developed ‘gift acceptance policies’ which cover the source of the money
and other ethical considerations4.
Check, Check and Check Again

This would seem to go without saying but it’s well worth double-checking
plans, preparations and any documentation intended for use at the meeting,
such as project budgets and drawings. If during the meeting there are
questions that can’t be answered, say so, and respond with answers as soon
as possible afterwards. In any case, make sure that all attendees are as
well briefed as possible on the case for support and on the prospect’s
circumstances.
Where Should the Meeting Be?

There are a number of factors that influence the outcome of a solicitation
meeting, and its location can be of considerable importance. The best
place to make the ask, as a notable expert, Margaret Holman of Holman
Consulting Inc5, suggests, ‘is the one the donor selects’. Margaret continues,
‘Fundraisers have to be adept at coping with a variety of locations from
very public ones, restaurants for example, to business settings, where the
donor is usually distracted by emails, calls, secretaries, etc., or their home’.
She considers this the best of meeting grounds and the charity’s offices are
also a good spot. ‘Each of these locations,’ she writes, ‘is also a reflection
4
See Institute of Fundraising paper ‘Acceptance, Refusal and Return: A practical guide to dealing with
donations’ (www.institute-of-fundraising.org.uk).
5
Margaret Holman is the co-author with Lucy Sargent of Major Donor Fundraising (DSC, 2012).
21
4. Making the Ask
of the donor’s feelings about the charity and the fundraising team – the
less personal the less likely the gift will happen at that meeting.
Who’s at the Meeting?

One needs to be adept at dealing with gatekeepers appropriately. The
first gatekeepers might be the prospect’s family or PA, the second may be
the legal, tax or financial advisers. But even Cerberus, the mythological
gatekeeper for the underworld, could be silenced with forethought. So
stick to the plan, and once the cultivation is complete, the prospect has
shown real interest in the case for support, it’s time for the ask.
Decisions have to be made. As discussed early it needs to be the right
person asking at the right time for the right amount. Decide who is the
right person. It might be you if you’ve done a lot of the cultivation, but
more often it will be the person who introduced the prospect. It could be
another stakeholder in your organisation. It might finish as a joint effort.
Normally, no more than two people from the organisation would attend
and it must be agreed in advance as to who will make most of the running.
Never get into an argument in front of the prospect (think this hasn’t
happened?).
If a spouse is present, remember to involve both parties in the discussion.
If an adviser is present, don’t ignore him/her. Make spouses and advisers
feel an integral part of the negotiations. Every so often allow for a silence
sufficient for anyone to voice objections, issues or questions. Otherwise
these might not be answered and the meeting will peter out unresolved.
Naming Rights
On specific projects where appropriate, consider offering naming rights
such as for new wings and suites. For example, ‘Would you have any
objection, Mr and Mrs Smith, to our calling it the Robert and Jane Smith
Wing of the XYZ Hospice?’ or, ‘As you’re considering a gift in memory of
your late husband, Mrs Smith, would you have any objection to our calling
it the Robert Smith Memorial Wing?’
Naming rights can be a key selling point in a major gift or legacy
solicitation but tread very carefully. Some prospects might jump at it, others
might recoil and others might insist on complete anonymity. This is where
knowledge of the potential giver’s motivations will help to decide what is
most appropriate. Discuss the proposal thoroughly beforehand with the
trustees and CEO, and check the gift acceptance policy, if one exists, as
this might include the subject of naming rights. Difficulties could arise for
22
4. Making the Ask
instance, if Robert and Jane Smith get divorced and object to being linked
so publicly. If the givers are in favour of accepting naming rights a formal
agreement will have to be prepared, and, of course, don’t underprice
it. Naming rights is one area where you ought to consult experienced
fundraising experts to minimise the risk of lawsuits should something go
wrong. Generally, one can only ‘sell’ the naming rights once, although later
donations by the Smiths or other parties can be sought.
Listen as Well as Talk

Listening will generally achieve more than non-stop talking, so ask questions
that will get the prospect talking about their real feelings and objectives.
Remember the prospect’s interests, listen to any objections or suggestions
during the presentations if there are any, otherwise these may be saved
until the end of your pitch when it will be harder to make a comeback.
Encourage clarity about the prospect’s own ideas, desires and wants so as
to be prepared to deal with any issues appropriately. There should come

a natural point at which the presentation is done and it’s time to make
the ask. With training and experience, one will be able to sense that the
moment has come and make the appropriate suggestions that ‘we have an
agreement’. But, again, be careful that objections may have been saved up
for this point.
The Invaluable Plan B

If one hears the words ‘I’ll think about it’, nod sagely, agree with his or her
wisdom and make sure you have a plan for the follow-up steps. Keep up the
momentum to the maximum extent possible. Ask what extra information
might be needed and if others need to be involved.
Never leave the prospect until a follow-up meeting has been agreed to,
even if no date is fixed, so that things can be moved on to a close.
Imagine things haven’t gone smoothly. There has been an outright
rejection. What can be done about it? Peter Hendley’s advice is timely.
‘It may be worth mentioning the need for fundraisers to get used to the
dreaded R word – rejection! A No is very rarely a No forever – it’s perhaps
a No, not at this particular time or for this particular ask. I believe the job
of the fundraiser is to accept the rejection but then gently explore with the
donor so he or she fully understands why the ask has failed in order to go
back immediately or at a later date with a counter proposal. In business,
overcoming rejections is the key to successful selling. For charities, I sense
it is much the same but perhaps explained better as the right person, making
23
4. Making the Ask
the right ask at the right time!’ One might also add is there a better placed
person to make an ask?
Giving Stewardship
Now for the good news. The gift has been secured. The work is however
far from over. Cultivation of the giver now has to be transformed into
stewardship. It’s up to the fundraisers to make this process not a chore but
natural and enjoyable. Both fundraiser and giver should be proud of what
the charity is achieving with the gift. Communicate what is happening,
whether it is a boast about progress or an apology that something has
gone awry or perhaps delayed. Whether informally or on formal occasions,
such as a ceremony, invite the giver to have a look around. If the charity
has a newsletter, feature an article about the gift and include progress
reports about the project that has been funded. Work out every practical
way to keep the giver involved in the cause, especially if the gift is tagged
or restricted to fund a particular project. Remember that the giver may

want to continue to make further cash donations or a legacy pledge (see
Chapter 6). If the giver is new to the neighbourhood or an older, perhaps
retired person, he or she might especially value closer involvement with
the project. Make it a point to remember personal things such as birthdays
and special interests, if appropriate – in other words get to know the giver.
How best to do this? Peter Hendley makes this useful suggestion, ‘I
have always found that telephoning major donors or better still getting the
charity’s CEO to phone or email personal thanks immediately after receiving
a gift well worth the effort. Givers usually expect a receipt and letter of
thanks, but not necessarily a phone call. It’s a great way of finding out
more about the donor’s motivations and helps with relationship building.
People might say, ‘don’t bother about a thank you’ but in reality you can’t
thank people too often. They might get embarrassed but deep inside they
know that they are appreciated, something we all desire. As a further step,
taking donors to see projects, giving them access to front line charity staff
and volunteers really does get them excited and eager to give more.
And that’s what major gift fundraising is all about.
24
5
TA X A N D L EG A L CO NSI D ER AT I O NS
When dealing with major gifts, tax and legal considerations can assume
much greater importance than with small donations where Gift Aid is
often a routine process. In structuring major gifts, a degree of tax planning
will normally be required to maximise the tax-efficiency of the gift. For
example, using Gift Aid carry-back provisions and evaluating the efficiency
of non-cash gifts of shares, property and other chattels in contrast to
cash gifts. Fundraisers should not ‘play lawyer’ but ensure that the giver
has made sure that expert tax and legal advice is obtained as required.
Of course, the giver may well have his or her regular tax advisers in place
and will be relying on his or her own advice rather than seeking to rely
on your knowledge. While recognising the importance of these issues to
givers it is worth taking a step back and reminding oneself it is for an
individual’s advisers to provide the necessary tax input for the giver. In
addition, perspectives on tax avoidance in the UK have perhaps moved
to a more cautious approach particularly following the introduction of
the General Anti-Abuse Rule (GAAR)6 and so you may wish to exercise
an appropriate degree of caution if asked to participate in any novel tax
efficient structures for major gifts to protect the charity and its reputation.
Additionally, one should keep up to date on the main issues in tax
efficient giving by individuals. Get to know the best practitioners so that,
if needed, you know who the prominent experts in this field are. They may
be willing to offer pro bono advice and occasionally even have some clients
interested in supporting you.
Tax Efficient Gift Structures

In the UK, there are currently very few tax leveraged gift structures in
place but keep your eye on any new developments. One of the existing
structures is the Flexible Reversionary Trust7. This can be used to reduce
inheritance tax whilst retaining access to capital, tax efficiently – again
competent legal and tax advice is essential for the giver.
There are tax breaks for people who donate works of art during their
lifetime, which is potentially good news for museums and galleries all over
the country. The Cultural Gifts Scheme introduced in 2013 offers donors
6
For full details, search for ‘GAAR guidance’ at www.gov.uk.
7
For full details, search for ‘Inheritance Tax Manual’ at www.gov.uk.
25
5. Tax and legal considerations
the ability to receive relief equal to 30% of the value of the object from
income tax and capital gains tax when pre-eminent objects are donated to
the nation. There is also the option for the tax relief to be spread over 5
years.
If the giver is a US citizen or resident, one should be aware that the
US has a variety of ‘planned giving’ structures available to US givers, such
as the Charitable Remainder Trust (CRT). This is a simple trust agreement
whereby a donor makes an irrevocable gift to a charity in exchange for
income for life or for a period of years. The trust may be funded with
cash gifts, appreciated securities or real estate, among other assets. At the
time the trust is set up, the donor may get an income tax deduction, avoid
capital gains tax, and ultimately save estate taxes. After the donor’s lifetime,
whatever remains in the trust passes to charity.
It is useful to have some knowledge of these US-style gifts that also
include ‘charitable gift annuities’ which, may at some point become available
in the UK, although there appear to be no firm plans to introduce such

gifts at present.
In the UK, Charitable Remainder Trusts are usually referred to
as ‘Lifetime Legacies’. Although the Treasury continue to resist offering
this tax relief in the UK at the time of writing, it is possible to use the
vehicle itself, without relief.
The UK initiatives that actively encourage legacy giving to charities are
covered more fully in Chapter 6.
26
6
LEG ACI ES
So far, the focus has been on lifetime gifts but legacies should be an
important part of a fundraiser’s strategy and plans. High house prices in
many parts of the country and increasing numbers of people dying has
resulted in record levels of legacy income being recorded in recent years.
Over and above ‘excess deaths’ due to the pandemic the large post war baby
boomer generation are beginning to die in larger numbers and charitable
legacies are set to rise from £2 billion pa to £4 billion pa over the next few
years8.
Depending on how solicitation attempts for a cash gift from a prospect
have been going, legacies are always an alternative to an outright gift or
an additional gift at a later stage. But, how to broach it? Inexperienced
fundraisers are often hesitant about suggesting a legacy gift or pledge.
Sometimes one receives a prompt from an existing supporter. For example,

after a giver has hosted a successful reception: ‘That was great, what else
can I do?’ The answer is very easy. Don’t ask for another cash gift simply
say, ‘well, next time you are updating your will, perhaps you could consider
writing us in for a gift?’ This opens a new dialogue.
To some extent one may require a judgement about how and when to
broach this topic, given a particular prospect’s attitudes, but the best way
forward might be a direct approach so that both parties can talk it over
without inhibition.
In these uncertain economic times, legacies offer a huge advantage over
a cash gift – they cost the giver nothing, thus being an attractive alternative
to those who may be asset rich but cash-strapped. Legacies are tax efficient
in that they reduce inheritance tax exposure. Another marketing angle for
attracting legacies could be the potential appeal of an in-memoriam gift
in memory of a loved one. Here is where naming rights can have great
potential.
Now for a word of warning. Be careful to avoid what might become a
contentious legacy at some point in the future and ensure that legacy giving
is conducted in accordance with recognised good practice and adherence
to the Fundraising Code9. Don’t get into the newspapers for the wrong
reasons. When soliciting a legacy gift make sure, to the extent you can,
8
See: Routley, C, Sargeant, A, and Day, H, Everything research can tell us about legacy giving in 2018. (Legacy
Voice: University of Plymouth, 2018).
9
See: fundraisingregulator.org.uk/code
27
6. Legacies
that the pledger discusses his or her intentions with family members and
takes professional advice from legal advisers. It is essential that a qualified
solicitor or will writer draw up the will, but the choice of solicitor must
be left to the pledger. It would be useful to have with you handouts that
emphasise the case for support together with the benefits of seeking
professional advice and involvement.
One small but important point is that the organisation’s exact name as
beneficiary should be used in the will, together with its registered charity
number. This can help to avoid confusion at a later stage as occasionally
charities are misidentified in the will and confused with another charity of
a similar name or cause. There are also provisions setting out what happens
if a named charity is no longer functioning and therefore unable to receive
a legacy gift at some point in the future. The Register of Charity Mergers
has also helped to avoid the loss of legacies to charities that have merged
or been wound-up. Under section 311 of Charities Act 2011, any gift to
a charity that no longer exists and has merged with another will, unless
specifically excluded in a person’s Will, go to the new merged charity.
Think of ways that the charity can recognise legacy pledgers in their
lifetime, for example a Wall of Honour. Treat pledgers as major givers,
providing social opportunities and events for them to meet and keep
them involved in your charity’s progress. Pledgers will usually appreciate
such acknowledgement of their planned legacy gift during their lifetime.
Currently the average specific gift to charity in a will is approaching £5,000
and the average residuary gift is nearer to £50,000 – a major gift in anyone’s
book.
From a tax perspective, where at least 10% of the assets are left to
charities a reduced rate of inheritance tax is payable (from 40% to 36%).
28
7
CRO SS- B O R D ER D O NO R S
Suppose that the giver has been found (or s/he’s found your charity) but
they are resident in a foreign country.
It is not at all unusual today for a giver to be resident in one jurisdiction
and to support an organisation in another. In such cases, the first practical
issue of concern for the person is usually how s/he gets the (cash) gift to
the organisation in the most tax efficient way. This boils down to how tax
relief on the donation can be obtained in the jurisdiction where the person
is tax resident.
There are two possibilities here. As a matter of EU law, it is currently
possible for the giver to apply for tax relief from his or her local tax
administration for a gift made directly to a charity in another EU state.
However, the ease with which this can be achieved varies throughout the
EU and may only be available where a charity meets the test for eligibility
for tax exemptions in the donor’s jurisdiction. European charities have not
found it straightforward to register with HMRC and very few have managed
to successfully register to receive UK charity tax reliefs on gifts. With Brexit
terms under negotiation at the time of writing it is also difficult to say how
long this option may remain open to UK charities with European givers.
An alternative that may prove administratively and legally simpler
is for the giver to channel the gift through an established intermediary
organisation such as Transnational Giving Europe (TGE), which operates
over 21 partner countries10. In this case the giver would make the gift to
the local TGE partner foundation in his country of residence and thus get
the appropriate domestic tax receipt. This organisation would then transfer
the gift to the TGE partner organisation in your country, which typically
operate as Donor-Advised Funds (TGE’s UK partner is the Charities Aid
Foundation (CAF) and the Irish partner is the Community Foundation
for Ireland). The TGE network facilitates tax efficient gifts between the
majority of EU member states. It must be hoped that this facilitation of
tax efficient giving may continue to assist UK charities even subsequent to
the UK leaving the EU.
Note that there is an administrative fee payable for this service, which
varies depending on the amount of the prospective donation.
If the giver is a US citizen or taxable in the US, a US charitable
foundation, generally referred to as a 501(c)(3), will be required to be the
10
See: www.transnationalgiving.eu
29
7. Cross-border donors
intermediary in order for the giver to get a US tax deduction for the gift. If
the giver is a US citizen but resident in the UK (i.e. a dual taxpayer), there
is a special type of ‘dual qualified’ charitable foundation vehicle that will
usually provide for optimal tax efficiency on both the US and UK sides.
The reason for this is that US citizens are, in principle, taxable on their
worldwide income by the US. CAF, Chapel & York and NPT Transatlantic
are three UK-based donor-advised funds that can provide this gift transfer
service (see appendix).
If the foreign-based giver is considering a legacy gift then there are
other considerations that will almost certainly require legal advice for both
the pledger and the charity. Within the EU, at least in principle, donors
should be able to leave a legacy to a charity in another EU state without fear
of punitive taxation by the tax authorities in his home state. The position
for UK donors remains uncertain, following the UK’s departure from the
EU. Historically, a legacy gift to a foreign charity by a UK resident risked
being taxed at 40% (this being the rate at which inheritance tax is payable)
and this may well continue.
One other issue that the pledger and the charity may need to be careful
about is the existence of ‘forced heirship’ rules in Civil Law jurisdictions
(most countries in Europe except for England, Wales and Ireland). In
essence this means that a giver resident in one of these jurisdictions may
not have the right to leave a legacy above a certain amount if it does not
respect the amount of the estate that is reserved for heirs.
Finally, on the subject of cross-border legacies, a word of caution. If
the charity receives a letter out of the blue from a ‘law firm’ informing that
the charity has been left a legacy gift, but that certain formalities must be
satisfied first, including the payment of a fee, be very wary.
Tax Status of Givers and Due Diligence

To the extent possible, it is useful to be aware of the tax status of the
giver in his country (or countries) of residence. Sometimes givers are
reluctant to provide this information, in which case their wishes should
usually be respected, if possible. Just as an example of how important this
information could be in tax planning, consider the case of an extremely
wealthy potential major donor, Mr X. Mr X is said to be an American –
but is he, in fact, a US citizen or US tax resident? He may spend a lot of
time in Britain, but is he a taxpayer in the UK? Add in the possibility that
this gift’s destination is a beneficiary in yet a third country and you have
30
7. Cross-border donors
an interesting and challenging bundle of tax issues to contend with. Once

again, qualified legal and tax advice is highly recommended, although much
of the advice may need to be obtained by the giver.
Due diligence on the givers is also important given the trustees’ obligation
to carry out donor due diligence. The Charity Commission’s ‘Compliance
Toolkit – Chapter 2: Due diligence, monitoring and verifying the end use of charitable
funds’11 provides as Tool 6 a list of ‘Know your donor – key questions’, with
which trustees and fundraisers should familiarise themselves to consider
whether the gift may pose any reputational risk to the charity. The first two
questions on the list are ‘who are the donors?’ and ‘what is known about
them’ and these are a starting point for charities to consider when being
offered or soliciting a major donation.
The More the Merrier

If you have a substantial pool of overseas supporters, for example alumni,
you might want to look into establishing an informal supporters, Friends or

alumni group, which could hold local events. This should serve to generate
enthusiasm for your cause and could well entice some major gifts.
11
See guidance here: https://www.gov.uk/government/publications/charities-due-diligence-checks-
and-monitoring-end-use-of-funds
31
8
G R A NT M A K ER S
Up until now, major givers have been considered as individuals, with only
incidental reference to grantmakers, who include trusts, foundations,
professional bodies, lottery funds and companies (see Chapter 9) as
potential major supporters. However, these sources of income should be
high on a fundraiser’s list of priorities, although their dynamics are quite
different from those applying to individuals and need to be considered
separately. For one thing, you are unlikely to be meeting face-to-face with
a grantmaking trust or foundation panel (initially, at least). It is also vital
to recognise that many trusts are, in fact, simply the giving vehicle for
wealthy individuals, families and occasional groups. These generally should
be researched and considered firstly through the individuals themselves as
major givers. The vehicle is secondary (as are the tax considerations) even
if a formal application has to be made to the trust after the individual has
agreed an approach.
Depending on how you define them, there are well over 10,000
grantmaking trusts and foundations in the UK alone12. Some of these
are listed in commercially available directories and reports from specialist
providers13. But remember, before polishing a first approach by letter, to
take a careful look at what kind of causes a given trust or foundation
is likely to support and tailor the application very specifically. The same
applies to lottery applications and those to professional bodies. Ensure, at
the very least, that the trust does support your area of work.
Take care to follow the funder’s exact requirements for submission of
an application including how it should be submitted, i.e. by post or email.
If not, you risk wasting the grantmaker’s time as well as your own. You
should take particular care with both the information you submit in your
application and also how you word your cover letter (if required). Try to
put yourself in the place of the application’s recipient and consider how it
will come over to the grantmaking organisation.
If successful with a grant, don’t forget to thank the organisation
promptly and plan how reporting obligations will be managed. Neglecting
to do this is more common than you might think, and a cardinal sin. If there
12
At the time of publication, the Charity Commission and the Scottish Charity Regulator together listed
some 22,000 charities as being grantmakers of varying types. Many of these however will have narrowly
defined beneficiaries.
13
Including Social Partnership Marketing’s Invisible Grantmakers.
32
8. Grantmakers
are no formal reporting obligations, common sense would also dictate that
you provide the funder with frequent updates on how your project is doing.
Ask the funder at the outset what is expected from you. They will have
already made it clear what formal restrictions come with the grant, but
there may well be side issues to be explored. Trusts generally give in order
to see the promised outcomes come to fruition, so report your successes
and explain any problems.
There are also directories of overseas foundations available, both in
print and online (some are listed in the appendix). If you are tempted to
apply to grantmakers in America for example, you should think carefully
about the likely appeal your organisation or cause would have to US funders.
Two examples illustrate what might or might not be attractive to them. The
first, a UK residential care home for the elderly, would not likely be a grant
winner from the US. There are plenty of care homes for the elderly in both
the US and the UK and they are probably best supported by local funders.
The second example, a Second World War aviation museum, would be

much more likely to get support from US donors for reasons of historical
interest and cooperation going back to not only the Second, but even the
First World War.
Today many UK trusts are moving more towards ‘project’ related
(restricted) grants rather than general (unrestricted) funding. This can
be a complicated area. If a long-term relationship exists with a trust or
foundation, grantmakers may be more inclined to support the ongoing
costs of a charity (core funding), which are vitally important. Otherwise
the tendency is to support projects with tangible outcomes and with a
defined timescale.
The problem is that it’s not always possible to come up with innovative
projects. For charities who are struggling to keep afloat this issue can be
particularly challenging, especially in an increasingly competitive funding
environment’.
Peter Hendley offers invaluable insights into grant seeking: ‘Make each
approach as bespoke as possible and get your letter and application to
stand out from the rest. Don’t treat this as a mail merge exercise. Think
about who should write the letter; use a hand-written salutation and hand-
write the envelope address; make the pitch personalised and talk about
outcomes; invest time on writing a compelling story; and bring the issues
alive with an example of [the charity’s] success.’
Lastly, don’t forget that there might be local grantmakers who might
33
8. Grantmakers
respond to your cause. There are 46 local Community Foundations 14 in

the UK who make grants for local causes. There is also the Charities Aid
Foundation15, which is itself a grantmaker as well as offering a host of
other services to both givers and charities in the UK and internationally.
Community Foundations and CAF are sponsoring organisations that hold
donor-advised funds, i.e. funds for charitable giving (grantmaking). They
are designed to be accessible, simple, and less expensive alternatives to
private foundations.
14
See ukcommunityfoundations.org
15
See www.cafonline.org
34
9
C O R POR ATE DO NO R S A ND SP O NSO R S
One of the differences between soliciting gifts from individuals and

applying for corporate funding or sponsorship is that in the latter one is
dealing with a corporate hierarchy. First of all, one must find out whether
the conversation is actually with the company as such, or indirectly through
one of the company’s owners, who may be wealthy individuals, in their own
right. In which case the advice at the beginning of the preceding chapter
concerning trusts as giving vehicles should be followed - i.e. if individuals
choose to use their company’s philanthropy as their vehicle they should be
considered first and foremost as individuals.
Therefore, let’s assume that it is the former and that one must make
an approach to one of the company’s executive staff. It is generally not
impossible to find out who would be the best person, and generally the
more senior, the better. Corporate support can take several forms: outright
donations, in kind support, ‘partnering’ and sponsorship.
Make no mistake, the company will want something out of whatever
deal is negotiated, but up to a point this is reasonable. Maple’s ‘Spectrum of
Philanthropy’ (2008)16 regards much corporate giving as ‘enlightened self-
interest’. Even individual givers often want satisfaction and recognition.
When dealing with corporate executives, therefore, be prepared to be
businesslike in any approach and be ready to respond to their need for
leverage. Don’t respond too rapidly or too generously if in any doubt at
all about the wisdom of the deal. Colleagues in the charity may have to
be consulted, not to mention the trustees if there are important issues
involved. Corporate Social Responsibility (CSR) budgets can be substantial
but they will have strategic objectives to which your cause must add value
if you are to succeed.
Do not attend meetings with too many preconditions in mind. Again, If
the company’s owner(s) are personally interested in the cause or project, one
might need to create an opportunity to treat them as individual supporters.
Remember that companies don’t make decisions, people do.
Otherwise, continue to press for the corporate support that was
originally sought. Would this company consider the charity to be its ‘charity
partner of the year’, for example? Be realistic as this can take years to
negotiate. Also think about any opportunities for naming rights, which
16
Maple, Peter, 2010, The Spectrum of Philanthropy, APAS Papers 157, Academic Public Administration
Studies Archive - APAS
35
9. Corporate donors and sponsors
can be a popular offer for companies, though again your colleagues and
trustees must be fully in the picture. Invite corporate prospects to events
just as for individual donors and keep in touch with them.
In order to attract corporate support, it’s important to be aware of the
need to offer something back, as the company’s interest in supporting you
may well go further than pure philanthropy. It’s therefore necessary both
to make a good case for why they should support your organisation and to
identify what benefits they can expect as a result.
There can however be hidden risks in the best of offers. As Peter
Hendley points out: ‘The requirement for a charity to undertake due care
and diligence in accepting a major gift is an issue that most charities may
need to address. One practical solution might be a traffic light system. Red
is those sectors and types of businesses with which a charity might not
want to engage or take money, e.g. arms companies, tobacco producers,
etc., as they carry the greatest risk of reputational damage by association.
Green is those companies with which we will engage and present least or
minimal risks, e.g. optical equipment. This leaves yellow, which is those
companies where frankly it is not that clear cut and deeper research needs
to be undertaken to make a judgement. It’s never easy but having some up-
front agreed protocols and processes17 helps.’
The path is seldom easy and will take time as corporate budgets are
often already committed for two or even three years, but the destination
can ultimately be crucial to the survival of your charity.
17
See reference to Gift Acceptance Policies on page 21, above.
36
10
R EGULAT I O N A ND T H E LAW
Recent bad press around ‘aggressive fundraising’ and inappropriate or

unethical approaches has resulted in significant changes in the way that
fundraising and fundraisers are regulated. Whilst involvement in major gift
fundraising will generally mean that one is having sensitive conversations
with people in order to develop lasting relationships so that a complaint
should never arise, it is nonetheless important that fundraisers should
understand the regulatory framework and the particular guidance that
relates to the acceptance of major gifts.
It should be noted that the Charity Commission do not regulate
fundraising activities. This is now within the remit of The Fundraising
Regulator, an independent, non-statutory body that regulates fundraising
across the charitable sector in England, Wales and Northern Ireland18. The
Fundraising Regulator was established following the Etherington review

of fundraising self-regulation (2015) to strengthen the system of charity
regulation in an attempt to restore public trust in fundraising.
The Code of Fundraising Practice

A key role of the Fundraising Regulator, as of July 2016, has been to set
the ‘Code of Fundraising Practice’19 (‘The Code’). The Code outlines the
standards expected of all charitable fundraising organisations across the
UK. All members of the Institute of Fundraising have committed to abide
by the Code of Fundraising Practice and adhere to the highest standards
of fundraising at all times, and it is therefore highly recommended that
anyone involved in fundraising considers joining the Institute and ensuring
compliance with the Code, the standards and guidance for good practice.
The principal aims of the Code of Fundraising Practice are to:
• promote a consistent, high standard of fundraising;
• make sure charitable institutions, their governing bodies and
fundraisers know what is expected of them;
• set out the standards [the Fundraising Regulator uses] when
considering complaints;
• provide a benchmark for organisations and fundraisers to assess
their practices against so they can identify necessary training and
18
Fundraising by Scottish charities is subject to Scottish charity law and overseen by The Scottish
Fundraising Standards Panel
19
See fundraisingregulator.org.uk/code
37
10. Regulation and the law
monitor and set policy priorities for their fundraising; and

• develop a culture of honesty, openness and respect between
fundraisers and the public.
What if there is a complaint about fundraising?

Any complaint about fundraising should be made initially to the charity
itself to attempt a resolution. Failing that, complaints need to be referred
to the Fundraising Regulator, who can investigate any concern that the
Code of Fundraising Practice may have been breached.
The regulator’s role is to:
• Set and promote the standards for fundraising practice (‘the Code’
and associated rulebooks) in consultation with the public, fundraising
stakeholders and legislators.
• Investigate cases where fundraising practices have led to significant
public concern.
• Adjudicate complaints from the public about fundraising practice,

where these cannot be resolved by the charities themselves.
• Operate a fundraising preference service to enable individuals to
manage their contact with charities.
• Where poor fundraising practice is judged to have taken place,
recommend best practice guidance and take proportionate
remedial action.
Guidance on major donors and major gifts

Early versions of the Code of Fundraising Practice made specific reference
to major donors (defined as ‘an individual or family with the potential
to make or procure a gift which would have a significant impact on the
work of the charity’). While the version of the Code current at the time
of writing omits such reference, it does retain guidance relevant to the
solicitation and receipt of large donations.
Specific examples of guidance include:
Due diligence and gift acceptance (section 2.3.3)

Gift acceptance policies have been discussed in Chapter 4, above, and
the requirement to carry out donor due diligence has been referred to in
Chapter 7, above. The Code also directs fundraisers to the Institute of
Fundraising’s Acceptance, Refusal and Return paper, referred to on page
21, above.
38
10. Regulation and the law
Reputational risk (section 2.2.1)

The Code states: ‘You must take reasonable steps to assess and manage
any risks fundraising poses to your charitable institution’s activities,
beneficiaries, property, work and reputation.’
Money laundering (section 2.2.2)

The Code states: ‘You must20 meet the Proceeds of Crime Act 2002, which
applies to money or other property that has been gained through criminal
behaviour, even if the behaviour is legal in another country.’
Financial advice (section 1.3.4)

The Code states: ‘When talking about finances and financial benefits, you
must tell donors that you are not in a position to offer formal financial
advice.’
Donor Benefits (section 2.7.7)

The Code states: ‘If you encourage someone to donate by offering benefits,
you must make sure: you have the power to give the benefits; the benefits
are appropriate in the circumstances; and the benefits are proportionate to
the size and frequency of the donation.’
A number of the above requirements are described in greater detail on

the Institute of Fundraising’s website21.

20
The use of bold type for must here indicates this to be a strict legal requirement, independent of the
requirements of the Code of Fundraising Practice.
21
See: IoF guidance on Major Donors
39
BO N VOYAG E
As mentioned earlier nobody should let a situation develop that could cause
someone to complain. Sensitivity to anyone’s habits, beliefs and behaviours
(within the law) are crucial to good fundraising at any level. For fundraisers
involved in major gifts this is a fundamental to ensure that it is indeed
the most rewarding area of the fundraising mix. This can be expressed as
a question, as in what other arena can one deal on a daily basis with the
most interesting, indeed fascinating, cross-section of people? Yes, they can
be quirky, eccentric, demanding, temperamental; but they can also be the
most easy-going people in the world. What they very rarely are, however,
is boring.
Engaging and working successfully with major gift prospects presents
a challenging and memorable experience, not only individually but for
the charity, whose continued survival might be ensured through those
gifts. Furthermore, the icing on the cake might indeed be some lifelong
friendships.
As Robert Louis Stevenson said, ‘To travel hopefully is a better thing
than to arrive’. For major gift fundraisers, both bring rewards. The way to
success is to travel hopefully and with enthusiasm. And as for the arrival,
remember that Stevenson also wrote Treasure Island.
May the treasure be yours.
40
Appendix
APPEN DI X - WHO’S O U T T H ER E TO H ELP YO U ?
Useful Websites (UK)
a) Regulatory and Advisory Bodies:
Charity Commission for England and Wales: The Charity Commission

regulates the administration and affairs of charities in England and Wales.
Their website offers guidance on a wide range of topics, including. ‘Charities:
due diligence, monitoring and verifying the end use of charitable funds’.
www.gov.uk/government/organisations/charity-commission
Charity Commission for Northern Ireland: The Charity Commission

registers and regulates charities in Northern Ireland.
www.charitycommissionni.org.uk
Office of the Scottish Charity Regulator (OSCR): OSCR is the charity

regulator and registrar for Scotland.
www.oscr.org.uk
The Fundraising Regulator: The Fundraising Regulator sets and

maintains the standards for charitable fundraising in England, Wales and
Northern Ireland.
www.fundraisingregulator.org.uk
Scottish Fundraising Standards Panel: The Scottish Fundraising

Standards Panel oversees enhanced self-regulation of fundraising by
charities registered in Scotland.
www.goodfundraising.scot
HM Revenue & Customs – Charities and tax: The official site for UK
tax guidance for charities and charitable giving, including information on
tax obligations and reliefs.
www.gov.uk/charities-and-tax
Information Commissioners Office (ICO): The UK’s independent

body set up to uphold information rights. Includes resources related to
‘Fundraising and data protection’.
ico.org.uk
41
Appendix
b) Other Organisations:
Actually Data: Specialists in data management for charities, helping

charities get the most from their online giving data.
www.actuallydata.co.uk
Art Fund: Formerly known as The National Art Collections Fund, the Art
Fund helps facilitate gifts of art and pre-eminent objects to UK institutions
and publishes A Guide to Giving Art, downloadable from the site.
www.artfund.org
Chapel & York: International fundraising specialists providing a range

of services and publications to help organisations fundraise and operate
internationally.
www.chapel-york.com
Charities Aid Foundation (CAF): ‘A charity, bank and champion for

better giving’, CAF offers a broad array of domestic and international
services to assist donors and charities alike.
www.cafonline.org
Charity Tax Group (CTG): The CTG campaigns on behalf of charities

to seek changes in tax legislation and administration.
www.charitytaxgroup.org.uk
The Cranfield Trust: Offers free consultancy and management support

to UK registered charities.
www.cranfieldtrust.org
Directory of Social Change (DSC): DSC provides information and

training for the voluntary, charity and community sectors worldwide.
Publishers of Major Donor Fundraising, by Margaret Holman & Lucy Sargent.
www.dsc.org.uk
Philanthropy Impact: Philanthropy Impact is the membership association

for charities, advisers, intermediaries and others concerned with domestic
and cross-border high value philanthropy.
www.philanthropy-impact.org
42
Appendix
The Philanthropy Workshop: Established in 1995, the Philanthropy

Workshop describes itself as ‘the leader in strategic philanthropy education
and networking’.
www.tpw.org
Institute of Fundraising (IoF): The professional membership body

for UK fundraising, the IoF is the UK’s leading provider of fundraising
training.
www.institute-of-fundraising.org.uk
IT For Charities: The IT Resource Guide for UK Charities & NFPs.

www.itforcharities.co.uk
Law Society Gazette: Publishers of Law Society Gazette Charity & Appeals
Directory and Spring Legacy Appeals Directory, published respectively in
December and April. Inclusion will ensure that your appeal is targeted to
will writing solicitors and their clients.
www.lawgazette.co.uk
Social Partnership Marketing LLP (SPM): SPM, the publisher of

The Charity First Series (of which this publication is one) also publishes
Invisible Grantmakers, an annual listing of little known funding prospects
to assist trust and HNWI fundraisers in their research.
www.socialpartnershipmarketing.co.uk
Transnational Giving Europe (TGE): TGE, a network coordinated by

the King Baudouin Foundation, covers 13 countries and is at a European
level the only existing practical solution to support a beneficiary located in
a foreign country with all the tax advantages in the country of residence
of the donor.
www.transnationalgiving.eu
UK Community Foundations: ‘A national network of community

foundations, bringing together people and organisations that want to
improve their communities.’
ukcommunityfoundations.org
43
Appendix
UK Fundraising: UK Fundraising is the website helping to improve the

effectiveness of charity and non-profit fundraisers
www.fundraising.co.uk
Validaid: A fully automated Donor Advised Fund offering donors and

their advisers a matching and impact measurement service to help guide
effective giving.
validaid.org
Useful Websites (Republic of Ireland)
The Community Foundation for Ireland: A grantmaking charity, the

Community Foundation for Ireland seeks to inspire donors and support
charities and community groups.
www.foundation.ie
Charities Institute Ireland: The voice of Ireland’s leading charities.

www.charitiesinstituteireland.ie
Philanthropy Ireland (PI): PI, an association of independent philanthropic

organisations, is the representative body for the philanthropic sector in
Ireland, aiming to maximise the impact of giving in the country.
philanthropy.ie
Revenue – The Office of the Revenue Commissioners: For all charity

tax questions.
www.revenue.ie
The Wheel: Ireland’s national association of community and voluntary

organisations, charities and social enterprises, a leading support and
representative network for the community and voluntary sector in Ireland.
www.wheel.ie
44
AB O UT T H E AU T H O R S
Peter Maple is senior philanthropy academic fellow and researcher at St

Mary’s and London South Bank Universities and was previously on the
editorial board of the leading journal Voluntary Sector Review. Peter is a
fundraising trustee at ATEGhana and formerly the director of fundraising
& communications at leading charities, including Leonard Cheshire
Disability, Crisis and Arthritis Care.
James Myers is the founder of the European Association for Philanthropy

and Giving (EAPG), a not-for-profit membership body that brings charities,
legal advisers and financial intermediaries together for more effective and
efficient philanthropy (EAPG is now known as Philanthropy Impact). He
is also a partner of Social Partnership Marketing LLP. Jim is American by
birth but has spent virtually all his adult life in Europe, mainly France and
now the UK. Earlier in his career he co-founded the European-American

Tax Institute in Paris.
45
The Charity First Series
For the full list of titles in the Charity First Series, see our publications list.
Titles include:
Beyond the Collection Plate - Developing Church Income from Different Sources
Effective Media Relations for Charities – What journalists want and how to deliver it
Legacy Fundraising from Scratch
Organising and Operating a US Charity – A guide to US 501(c)(3) Organisations
Prospect Research
Raising Funds for Your School – A comprehensive guide
Raising Funds from Grant Makers
Structuring Not-for-Profit Operations in the UK
The Gift Aid Guide
Also published by Social Partnership Marketing
Invisible Grantmakers - an annual listing of unpublished grantmaking trusts.
See www.socialpartnershipmarketing.co.uk for further details.
ISBN 978-1-908595-38-6
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The Charity First Series

MAJOR GIFT FUNDRAISING

© James K. Myers, 2020

About the Authors . 45

There is an apocryphal tale about an exchange between two of America’s

and core funding. Whether for a particular purpose, overall expansion or

and look at how they operate their own fundraising campaigns.

Involving the Trustees

Strawberries and Cream

Preparing the Ground

Accurate and up to date information on potential givers is fundamental

prospective givers of a donation or a legacy ask whether they themselves

Rallying the Forces

Organise Social Events for the Stakeholders

Use the Patrons

Use the Volunteers

Never Walk Alone

there (complying, of course, with the current laws on data protection).

Friends and Alumni

going on for the organisation. Whether it has a newsletter or not, however,

Organising Supporter Events

Is the Prospect Close at Hand?

Organisations and Special Interest Groups

As well as the organisation itself, individuals within it might well be

From Minor to Major

are making or updating their will. It could be a watershed moment in

help to encourage supporters to go beyond one-off gifts.

This chapter considers approaches to individual donors. Later chapters will

vehicles (e.g. gifts of shares) up to a point, especially if advisers are present.

The First Approach

Enthusiasm and Persuasion

By the time of the meeting one must be clued up on the prospect’s

and other ethical considerations4.

Check, Check and Check Again

Where Should the Meeting Be?

Who’s at the Meeting?

Listen as Well as Talk

to be prepared to deal with any issues appropriately. There should come

The Invaluable Plan B

or restricted to fund a particular project. Remember that the giver may

Tax Efficient Gift Structures

in the UK, although there appear to be no firm plans to introduce such

Sometimes one receives a prompt from an existing supporter. For example,

Tax Status of Givers and Due Diligence

an interesting and challenging bundle of tax issues to contend with. Once

The More the Merrier

you might want to look into establishing an informal supporters, Friends or

The second example, a Second World War aviation museum, would be

respond to your cause. There are 46 local Community Foundations 14 in

One of the differences between soliciting gifts from individuals and

Recent bad press around ‘aggressive fundraising’ and inappropriate or

Fundraising Regulator was established following the Etherington review

The Code of Fundraising Practice

monitor and set policy priorities for their fundraising; and

What if there is a complaint about fundraising?

• Adjudicate complaints from the public about fundraising practice,

Guidance on major donors and major gifts

Due diligence and gift acceptance (section 2.3.3)

Reputational risk (section 2.2.1)