In nonprofit fundraising, we use many important terms, and it's good to have a working definition of them. Here we cover major gifts, annual gifts, mid-level gifts principal gifts, and planned gifts.
Most gifts are annual gifts. "Annual" is a way nonprofit pros avoid hurting people's feelings — the real phrase is "small". But don't underestimate them! Annual gifts add up quickly, and a robust annual program can lead to many high dollar opportunities down the line.
Major Gifts are any gifts that are personally solicited. When it comes to identifying major donors, it's important to consider the size, impact, and financial capacity of your organization. For some larger universities, major gifts doesn't start until a $250k annual commitment. For most of us, major gifts start around $1k-$25k annually.
In most cases, the difference between principal and major gifts lies not in the donation amount, but who is doing the soliciting. Principal gifts are solicited by the Executive Director of the organization, usually with help from a staff member.
Planned gifts, or Estate gifts, are gifts left to the organization after a donor passes away.