Using Gift Clubs to Encourage Major Gifts

Sections of this topic

    The club “leader” sets the pace, and invites others to join his/her Club – with an understanding that they are expected to give at a specific (major gift) level, and participate in specific activities.

    Not everyone who gives at that (specific) level is invited to be a club member … we are talking about club membership as a motivation for giving, not as a reward for giving.

    You can leave it right there — with club membership, the personal/expressed “gratitude” of the “leader,” and the requirement of making an “annual” gift of a specific size — as the whole package.

    Or, better yet, you can involve the members of a club in one-or-more different, mission-related activities — i.e., for educational institutions, the club members could work with the admissions or student recruitment offices, mentor a group of students, or help the institution acquire broader publicity. Use your imagination….

    Some clubs do not require members to make an actual long-term pledge, but rather, it is “understood” that they are expected to make a commitment to renewing annually. Some have found it effective to require a commitment from members to give at a specific level for ten years, or some other definite period.

    Both methods have been successful. The decision about requiring a specific pledge or a long-term, annually renewable commitment must be based upon the constituency of the organization, the (changing) circumstances, and what system club members will accept. As always, it’s about the needs of the donors !!

    Everything connected with the club must be done with class. The goal must be to have the friends of the organization recognize — and covet — the prestige of membership.

    Traditionally, members are given some symbol of their membership in the gift club. The symbol is usually an inexpensive, one-time gift and is designed to engender a bonding between club members, and “announce” to others their membership in the club – i.e., lapel pins, desk ornaments, wall plaques.

    Many organizations with formally established gift clubs also invite* members to an annual special activity — a reception, dinner or other (mission-related) event having particular significance to the institution and club members. (*Invite = no ticket fee)

    Gift clubs can work for almost any non-profit; all it takes is an understanding of what motivates donors, and a good dose of creativity.

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    [Note: If only donors are invited to those special events, then the fair-market-value of their “ticket” would be deducted from the amount of their “club dues,” thereby reducing their tax deduction. If prospective club members (and other non-club-level donors) are also invited, and actually attend the event, then there would be no connection between “club dues” and the invitation to the event … with no impact on the amount of a member’s deductible donation. Check with your tax attorney.]

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    (My thanks to my long-time friend and colleague, James A. Keenan, Jr., President, Keenan and Associates, Lowell, MA, for his collaboration on this piece.)

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    Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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