Gift Range Chart Guide for Nonprofit Organizations

Gift range charts are, one of many tools, used in the nonprofit sector to help organizations track their progress toward their goals. Also known as gift pyramids, this type of chart offers a visual representation of the number of gifts, of a specific value, a nonprofit is required to secure before hitting its fundraising goal. Typically, a gift range chart will display three key pieces of information: gift amount, number of gifts, and number of prospects.

Gift amount determines the monetary value of each gift required to hit the organization's goal. Number of gifts outlines how many gifts, corresponding to each monetary value, are needed. And number of prospects indicates the number of potential donors that are likely to contribute a gift corresponding to each monetary value.

It's important for nonprofits to track their goals, and therefore gift range charts play a crucial role. For example, a fundraising campaign with a $100,000 goal can be broken down into: 1 gift of $50,000, 2 gifts of $12,500, and 4 gifts of $6,250. Deconstructing a fundraising goal makes it more achievable. Instead of aimlessly attempting to raise $100,000, a nonprofit can use a gift range chart to strategically target gifts of specific monetary values.

In the remainder of this article, we'll cover various topics related to gift range charts. We'll explore the key components of a gift range chart, how to create a gift range chart and common mistakes to avoid during the process, tools and resources for creating gift range charts, including Paybee's all-in-one fundraising platform, and more!

Key Components of a Gift Range Chart

Gift range charts are what you make them. They can be extremely complex, containing lots of information, or simple, straightforward, and to the point. Regardless of the level of complexity that you decide on, here's a comprehensive list of the key components of gift fundraising charts:

• Total Fundraising Goal: The ultimate goal of your fundraising campaign. This total should reflect the combined monetary value of all of the gifts listed on a gift range chart.
• Donation Tiers: Each gift tier should be clearly defined, including its monetary value.
• Number of Gifts Required: Each donation tier should indicate the number of gifts, of the corresponding monetary value, that are required.
• Number of Prospects: The total number of prospects that a nonprofit will target during the fundraising campaign.
• Donor Prospect Pool: A list of the names of prospects that will be reached out to during the fundraising campaign.
• Minimum Gift Amount: The lowest monetary value assigned to a gift in a gift range chart. Typically, organizations will target the largest number of gifts of the minimum monetary value.
• Cumulative Gift Totals: A cumulative total of funds raised that reflects the overall monetary value of each tier.
• Percentage of Total Gifts per Tier: The percentage, of the total number of gifts, that each tier accounts for.
• Number of Prospects per Gift: The number of prospects that a nonprofit can reasonably expect to contribute a gift of each monetary value.
• Pyramid Structure: Gift range charts usually follow a pyramid structure. This means that gifts at the top are greater in monetary value but fewer in number of prospects per gift.
• Projected Gift Ranges: A brief outline of the projected value of gifts. For example, entry-level gifts, low-level gifts, medium-level gifts, high-level gifts, and significant gifts.

As mentioned, gift range charts can vary in level of detail. Some of the components above don't necessarily need to be included in the chart itself. It's common for nonprofits to create separate donor prospect pools. For some organizations, it doesn't make sense to include a list of all of their prospects in a gift range chart. The same goes for projected gift ranges. Typically, this component is used to plan donation tiers and, as a method of defining the value of gifts, might not be presented as part of a finished gift range chart.

How to Create a Gift Range Chart

With an understanding of the key components of a gift range chart, it's time to learn how to create one from start to finish:

1. Define the Total Fundraising Goal: Begin by establishing a concrete figure that represents the total revenue that your nonprofit aims to generate during a fundraising campaign. The total fundraising goal for our hypothetical example is $100,000. We'll expand on this hypothetical example throughout this step-by-step guide.
2. Break Down the Goal into Gift Levels: Determine gift levels that represent the monetary value of each tier of the gift range chart. We'll break our hypothetical goal down into the following gift levels: low-level gifts, medium-level gifts, high-level gifts, and significant gifts.
3. Determine Gift Amount Ranges for Each Level: Convert each vague gift level description into a clearly-defined monetary value. Here's how we'll determine our hypothetical gift amount ranges: low-level gifts have a monetary value of $2,000, medium-level gifts of $5,000, high-level gifts of $8,500, and significant gifts of $25,000.
4. Establish the Number of Gifts Needed per Level: With a monetary value assigned to each gift level, determine how many gifts, of each level, are required to achieve the total fundraising goal. In our hypothetical example, we'll require: 14 low-level gifts, 6 medium-level gifts, 2 high-level gifts, and 1 significant gift.
5. Identify Donor Prospects for Each Gift Level: Start by creating a donor prospect pool, which is a comprehensive list of all donor prospects. Based on their wealth and contribution history, assign each prospect to a gift level. Wealthier prospects, with a history of making larger donations, should be assigned to a gift level with a higher gift amount range.
6. Assign a Prospect-to-Donor Percentage: A prospect-to-donor percentage indicates the percentage of prospects that must be converted into donors to achieve the total fundraising goal. Let's say, in our hypothetical example, we have 92 prospects; we have determined that we require 23 donations. This means our prospect-to-donor percentage is 25% (23 / 92 * 100). In other words, we must convert 1 in every 4 prospects into a donor. A prospect-to-donor percentage can be assigned to each gift level, if preferred.
7. Organize the Gift Levels into a Pyramid Structure: Organize gift levels in descending order, based on monetary value, to create a pyramid structure. Here's how we'll organize the gift levels in our hypothetical example: significant gifts ($25,000), high-level gifts ($8,500), medium-level gifts ($5,000), and low-level gifts ($2,000).
8. Calculate the Cumulative Gift Totals: Cumulative gift total is calculated by multiplying the gift amount range by the number of gifts needed and adding the previous tier's total. Here are the cumulative gift totals in our hypothetical example: significant gifts has a cumulative total of $25,000 ($25,000 * 1 + $0), high-level gifts of $42,000 ($8,500 * 2 + $25,000), medium-level gifts of $72,000 ($5,000 * 6 + $42,000), and low-level gifts of $100,000 ($2,000 * 14 + $72,000).
9. Finalize the Gift Range Chart for Implementation: With all of the key considerations made, it's time to review and, if required, make edits to the gift range chart. Once the chart has been finalized, it can be implemented and used to track the progress of your fundraising campaign.

Common Mistakes When Creating a Gift Range Chart and How to Avoid Them

Nonprofit processes aren't always plain sailing. Creating a gift range chart can be a daunting task, especially for organizations that haven't followed the steps before. In this section of the article, we'll explore the common mistakes associated with creating a gift range chart and how to avoid them.

It's easy to ignore donor prospect research, instead relying on outdated information. However, each fundraising campaign is unique and requires an independent approach. When establishing a donor prospect pool, for your gift range chart, ensure that your research is thorough and in-depth. By targeting appropriate prospects, you'll improve your prospect-to-donor pipeline. As mentioned in the guide above, prospects should be evaluated based on their wealth and contribution history. Grants and fundraising appeals can be tailored based on this information.

Failure to calculate a prospect-to-donor percentage can lessen the impact of a gift range chart. The purpose of this type of chart is to assist with tracking progress toward your fundraising goal. A prospect-to-donor percentage helps you to understand how many prospects you must convert into donors to achieve your desired outcome. The absence of this information is the absence of a key performance metric. For a more detailed understanding of your fundraising progress, calculate a prospect-to-donor percentage for each gift level.

You'll want to find a balance between including too few and too many gift levels. Too few gift levels can result in gift ranges that don't align with your donor prospects. Let's say you have 3 gift levels with gift ranges of $50,000, $10,000, and $4,500. If you have a prospect that has a history of contributing within the $20,000-$30,000 range, you'll be missing out on a sizable donation. This hypothetical donor is likely to opt for the $10,000 gift level; the $50,000 gift level is too high. Too many gift levels can result in the opposite. Your gift range chart becomes too optimized, preventing prospects from exceeding their budgets slightly.

The above mistakes are the most common when creating a gift range chart. Avoid them and you'll be golden! It's important to remember that the gift range chart creation process shouldn't be rushed. Take your time, do your research, and you're sure to produce a chart that will impact your fundraising campaign positively.

Tools and Resources for Creating Gift Range Charts

Are you intimidated by the process of creating a gift range chart? You're not alone! Below are some tools and resources to help make the procedure easier:

• Paybee: As referenced in the introduction to this article, Paybee is an all-in-one fundraising platform. It offers users a wide array of tools for streamlining nonprofit workflows. Paybee has the ability to assist organizations with donor management and it can accept secure payments. This platform can be implemented alongside a gift range chart to help manage the prospect-to-donor pipeline.
• Donor Prospect Research Software: Perhaps your nonprofit struggles with identifying prospective donors. This is a hurdle that many organizations find it difficult to overcome. There are plenty of software options available to help with researching prospective donors. A quick Google search for "donor prospect research software" returns lots of results. If you choose this avenue, it's important to perform adequate due diligence and select a software that's suitable for your nonprofit.
• Wealth Screening Tools: Like donor prospect research software, wealth screening tools can assist with translating prospects into donors. Wealth screening tools can align suitable potential donors with the gift levels outlined in your gift range chart. This type of tool can also help with identifying prospective donors. Wealth screening tools and donor prospect research software together are a formidable duo.
• Gift Range Calculator: Gift Range Calculator is a free, online service designed to be used by nonprofits. It's simple, yet intuitive, interface allows the user to enter a fundraising goal. Once entered, the user can click the "calculate" button. Clicking this button will automatically populate the, previously empty, gift range chart for the user. While this tool is great for creating a generic gift range chart, it doesn't allow for much customization. It's a good place to start if your nonprofit is looking for inspiration.
• Fundraising Consulting Firms: The purpose of this type of business is to assist organizations with their fundraising endeavors. As with donor prospect research software and wealth screening tools, it's crucial to perform adequate due diligence before choosing a fundraising consulting firm. Firms can perform many roles and will, almost certainly, be able to help with tasks like the creation of a gift range chart. But don't commission a fundraising consulting firm solely for this purpose. Be sure that there are a variety of ways that your nonprofit can make the most of a relationship with a fundraising consulting firm.

How to Successfully Use a Gift Range Chart

Now that you have a deep understanding of what a gift range chart is, how to create one, the common mistakes to avoid, and the tools required to carry out the task, let's bring it all together with an example. We'll refer back to our earlier hypothetical example and use its gift levels, gift amount ranges, and number of gifts: 1 significant gift ($25,000), 2 high-level gifts ($8,500), 6 medium-level gifts ($5,000), and 14 low-level gifts ($2,000). The fundraising goal for this hypothetical campaign is $100,000.

We have a total of 92 donor prospects and we'll assign them to the gift levels as follows: 4 for significant gifts, 8 for high-level gifts, 24 for medium-level gifts, and 56 for low-level gifts. This means that each gift level has a prospect-to-donor percentage of 25%. In reality, it's unlikely that you'll have a uniform prospect-to-donor percentage across your gift levels; we're using simplified figures, in this example, to make it easier to understand.

Gift Level/RangeNumber of Gifts NeededNumber of ProspectsProspect-to-Donor PercentageCumulative TotalSignificant - $25,0001425%$25,000High-Level - $8,5002825%$42,000Medium-Level - $5,00062425%$72,000Low-Level - $2,000145625%$100,000

The above, hypothetical, gift range chart can be used to guide a fundraising campaign and to track its progress. The prospect-to-donor percentage indicates how many prospects, for each gift level, must be converted into donors to achieve the fundraising goal. The lower the prospect-to-donor percentage, the better. A lower prospect-to-donor percentage indicates that fewer prospects must be converted into donors to achieve the fundraising goal. As a fundraising campaign progresses and small milestones are hit, the gift range chart can be updated. This is a fantastic way to track campaign progress and keep motivation high.

Below are some more benefits of using a gift range chart:

• Simplifies Fundraising Planning: The fundraising campaign planning process can be tedious. Let's be honest; the hands-on portion of fundraising is much more enjoyable. Creating a gift range chart can help to simplify the planning process. After all, this type of chart contains the fundamental information required to understand the goal of the fundraising campaign.
• Identifies Key Donor Opportunities: During the development of a donor prospect pool, which is crucial to the gift range chart creation process, you'll identify plenty of donor opportunities. Your donor prospect pool will help form a prospect-to-donor pipeline that'll positively impact the outcome of your fundraising campaign.
• Improves Campaign Focus and Direction: Gift range charts help to establish a direction for your fundraising campaign. They indicate the overall goal, the total number of prospects, the prospect-to-donor percentage, and more. This information helps to guide the fundraising campaign, allowing your nonprofit to maintain its focus.
• Increases Prospect Engagement Efficiency: All of the prospects, relevant to your fundraising campaign, are identified during the gift range chart creation process. This means that your organization won't waste time attempting to engage prospects that are unlikely to donate. Therefore, workflows will be more efficient.
• Enhances Resource Allocation: Efficient workflows allow for enhanced resource allocation. By using a gift range chart, your nonprofit understands the number of prospects it'll have to reach out to. Therefore, a sufficient workforce can be assigned, to this task, without overcompensation. This frees up staff members and resources for other, potentially more important, duties.

FAQs

Q: What are the key benefits of using a gift range chart in fundraising?

A: The key benefits of using a gift range chart are: simplifies fundraising planning, identifies key donor opportunities, improves campaign focus and direction, increases prospect engagement efficiency, and enhances resource allocation. A more detailed explanation of these benefits can be seen in the "How to Successfully Use a Gift Range Chart" section above.

Q: How do I determine the appropriate gift levels for my chart?

A: Appropriate gift levels vary from nonprofit-to-nonprofit; gift levels are subjective. The best way to determine appropriate gift levels is to analyze the wealth and donation history of your prospects. Overall, prospects with greater wealth and a more generous history of giving should result in gift levels with higher monetary values.

Q: What are common mistakes to avoid when creating a gift range chart?

A: The common mistakes to avoid when creating a gift range chart are: ignoring donor prospect research, failure to calculate a prospect-to-donor percentage, and too few or too many gift levels. A more detailed explanation of these common mistakes can be seen in the "Common Mistakes When Creating a Gift Range Chart and How to Avoid Them" section above.

Moving Forward with Your Gift Range Chart Strategy

Gift range charts are a wonderful tool and nonprofits are advised to take advantage of them. In this article, we have covered lots of information about gift range charts - let's recap!

Gift range charts are used to plan a fundraising campaign and to track progress toward a fundraising goal. From total fundraising goal and donation tiers, to pyramid structure and projected gift ranges, gift range charts have many key components.

You can begin creating a gift range chart by defining the total fundraising goal of your fundraising campaign. Then, this goal can be broken down into gift levels. Eventually, you'll be required to calculate the cumulative gift totals before finalizing your gift range chart for implementation. When following the steps to create a gift range chart, avoid these common mistakes: ignoring donor prospect research, failure to calculate a prospect-to-donor percentage, and too few or too many gift levels.

There are tools and resources available to streamline the gift range chart creation process. Paybee, for example, is an all-in-one fundraising platform that can assist organizations with donor management and accept secure payments. Finally, the benefits of using a gift range chart are: simplifies fundraising planning, identifies key donor opportunities, improves campaign focus and direction, increases prospect engagement efficiency, and enhances resource allocation.

With your newfound knowledge, move forward and implement your gift range chart strategy. Good luck!