Certified Nonprofit Professional Practice Exam

According to the research on giving, what percentage of donations in successful major gift campaigns typically comes from a small percentage of donors?

1. 50% of donors

2. 80% of donors

3. 20% of donors

4. 70% of donors

The correct answer is: 80% of donors

In successful major gift campaigns, research consistently shows that a large proportion of total donations is concentrated among a small group of donors. The statistic indicating that approximately 80% of donations come from about 20% of the donors is reflective of the Pareto Principle, which suggests that a minority of inputs often leads to a majority of results. In the context of major gifts, this means that the efforts of fundraising teams should be focused on cultivating relationships with these major donors, as they significantly impact the overall financial health of the organization. This concentration of funding emphasizes the importance of donor stewardship, recognition, and personalized engagement strategies aimed at these key individuals who provide the majority of financial support. Therefore, understanding this dynamic is crucial for nonprofits looking to maximize their fundraising effectiveness and achieve their mission through substantial financial contributions.