The Major Gift Strategy Large Nonprofits Use That Small Nonprofits Can Too

Frances Roen

6 days ago

4 min read

When people think about major gift fundraising at large universities, hospitals, or national nonprofits, they often imagine sophisticated wealth screening software, full-time prospect researchers, and databases that can identify every millionaire within a hundred-mile radius.

While those organizations certainly have more resources, one of the smartest prospecting strategies they use is surprisingly simple: they pay attention to liquidity events.

A liquidity event is any moment when someone's financial picture changes significantly. They may have sold a business, received an inheritance, exercised stock options, sold appreciated real estate, retired after decades of saving, or experienced another financial milestone that dramatically changes their giving capacity.

The reason large nonprofits pay attention to these moments is because they understand something many organizations overlook: major giving capacity isn't static. It's constantly changing. Someone who wasn't capable of making a six-figure gift five years ago may very well be able to today.

You Don't Need a Research Department

The good news is that you don't need a dedicated prospect research team to begin thinking this way.

Instead of asking, "Who's wealthy?" begin asking different questions.

Who recently sold a business? Who just retired? Who sold a longtime family property? Who has been recognized for a business acquisition or company sale? Who may have entered a new season of life that has changed their financial capacity?

Many of these events are public knowledge. Others are simply part of the conversations happening within your community.

That's one of the greatest strengths of small and midsized nonprofits—you are often much closer to your community than larger organizations. Your board members know people. Your volunteers hear stories. Longtime supporters stay connected to what's happening locally.

Those relationships can become one of your greatest prospect identification tools.

Your Community Is One of Your Greatest Assets

There's another strategy that smaller organizations often overlook.

Think about the people in your community who regularly work with individuals during major financial transitions. Wealth advisors, estate planning attorneys, CPAs, business brokers, commercial bankers, insurance professionals, commercial real estate brokers, and other trusted advisors are often among the first to know when someone has experienced a significant liquidity event.

To be clear, this isn't about asking anyone to violate confidentiality. Quite the opposite.

It's about building authentic relationships with these trusted professionals so they understand your mission and the impact your organization creates. Then, when one of their clients begins asking questions about generosity, legacy, or community impact, your organization naturally comes to mind.

They might simply say, "There's an organization I think you'd enjoy learning more about."

Or, "I'd love to introduce you to a nonprofit that's doing incredible work in our community."

Those introductions are incredibly valuable because they begin with trust. The goal isn't access to someone's financial information; it's becoming an organization that trusted advisors feel confident introducing to people who want to make a meaningful difference.

Capacity Is Only Half the Equation

Of course, a liquidity event doesn't automatically make someone a major donor prospect.

Capacity is only one part of the equation. A potential donor also needs a genuine connection to your mission, confidence in your leadership, trust that their gift will make a meaningful difference, and time to build a relationship with your organization.

Money alone doesn't create generosity.

Relationships do.

That's why the goal isn't to identify someone on Monday and ask for a major gift on Friday. The opportunity is to begin a relationship earlier—when someone is naturally thinking about purpose, legacy, and the impact they want to have.

Small Nonprofits Have an Advantage

Ironically, this is where small and midsized nonprofits often have an advantage over their larger counterparts.

Large organizations rely on technology, data subscriptions, and research teams to identify potential donors. Smaller organizations have something technology can never replace: authentic relationships.

You know the business owners.
You know the community leaders.
You know the advisors.

Most importantly, you know the people who know the people.

Those trusted connections can become one of the most effective prospect identification strategies you'll ever have.

Your next transformational donor may not be someone you've never met. It may be someone already connected to your organization whose capacity has recently changed—and who is looking for a meaningful way to use that blessing.

Pay attention to those moments. Invest in relationships with the people who see them first. And remember, the goal isn't simply to find wealthy people.

It's to recognize the moments when people are asking bigger questions about purpose, legacy, and impact—and be ready to invite them into a story worth investing in.

A Note of Thanks

This post was inspired by a recent episode of Rhea Wong's podcast, "Stop Chasing Newly Liquid Founders." While I took the idea in a different direction—thinking specifically about how small and midsized nonprofits can apply similar prospecting principles—I always appreciate Rhea's perspective. If you're interested in major gift fundraising, I highly recommend giving the episode a listen. It's full of thoughtful insights that challenge some common assumptions about where major donors come from.

Frances Roen is the Founder of Fundraising Sol and a fundraising consultant with two decades of experience. She is deeply passionate about relationship building, individual donor work, and supporting nonprofit professionals’ health and wellness to enable them to deliver their best work.