What is a Principal Gift?

Nonprofit organizations often seek out donors who are willing to make principal gifts. A principal gift is a donation that is typically larger than the average gift, and it can help to provide a much-needed boost to the organization's budget. Principal gifts can come from individuals, foundations, or businesses, and they are typically used to fund specific projects or programs. For example, a business might make a principal gift to a non-profit that is working to improve literacy rates in disadvantaged communities. Such a gift would allow the non-profit to hire additional staff, purchase new books, and provide other resources that would help to achieve its goal. Donors who make principal gifts are usually very passionate about the mission of the organization, and they often have a strong personal connection to the cause. As a result, principal gifts can be an essential source of funding for nonprofits, and they can help to make a lasting impact on the community.