Pros and Cons of Major Donors

Designing Tomorrow: Creative Strategies for Social Impact

Major donor funding can feel like the holy grail of nonprofit growth — big checks, deep relationships, and potentially game-changing support. But what’s often left out of the conversation? The risk.

In this episode, Eric and Jonathan dive into the real tradeoffs of major donor programs — the power dynamics, the mission drift moments, and the long runway it takes to build trust at scale. Whether you're building from scratch or recalibrating your fundraising strategy, this candid conversation will help you weigh the potential upside and the pitfalls.

➔ When a major gift is actually too costly to accept
➔ How to spot — and avoid — single points of failure in your revenue model
➔ The true time horizon for major donor ROI (and why it’s rarely fast)
➔ How to handle “friendly pressure” from high-influence funders
➔ Practical steps to build a resilient, aligned donor pipeline

If you’re wondering whether a major donor strategy is worth the effort — or how to manage the one you already have — this episode gives you the clarity, caution, and confidence to move forward wisely.

Episode Highlights:

• [00:00] Major donors: blessing or burden? Jonathan reflects on a recent transformative gift and what it reveals.
• [02:45] - When major donors help (or hinder) the mission.
• [04:56] - Why strings aren’t always visible, and what to do about it.
• [07:52] - Would you want this donor on your team if they weren’t giving?
• [10:00] - The real cost and timeline of launching a major donor program.
• [12:35] Donor, grant, or individual giving? Eric and Jonathan weigh the most scalable strategies.
• [15:28] Unrestricted funding, or instability? The tradeoff that comes with flexibility.
• [21:30] - What happens when a major donor exits?
• [24:44] - The long tail and payoff of building grassroots support.
• [26:51] - How to lead a major donor program with intentionality.

Resources:

• Article - How to Differentiate Campaign Messaging for Major Donors vs. Grassroots Supporters
• Article - How to Create the Conditions for Sustainable Revenue
• Article - Top 5 Features Your Nonprofit Needs in a Donor Management Platform
• Article - Going All In: A Digital-First Guide to Sustained Nonprofit Fundraising
• Article - Build a Healthy Social Impact Community with these 5 Pillars

Listeners, now you can text us your comments or questions by clicking this link.

*** If you liked this episode, please help spread the word. Share with your friends or co-workers, post it to social media, “follow” or “subscribe” in your podcast app, or write a review on Apple Podcasts. We could not do this without you!

We love hearing feedback from our community, so please email us with your questions or comments — including topics you’d like us to cover in future episodes — at [email protected]

Thank you for all that you do for your cause and for being part of the movement to move humanity and the planet forward.

Chapters

1. Pros and Cons of Major Donors (00:00:00)

2. Major Donors: Partners or Problems? (00:00:14)

3. What Makes a Transformational Partnership (00:01:17)

4. Strings Attached: Power Dynamics (00:07:45)

5. Building Effective Major Donor Programs (00:10:23)

6. Handling Risk and Single Points of Failure (00:18:13)

7. Best Practices and Donor Pipelines (00:26:57)