Campaign Components

Challenge Gifts

A challenge gift, at its basic premise, is a vehicle to motivate prospective donors to match extraordinary gifts. I would like to share three examples of successful challenges that the Steier Group has employed during capital campaigns.

•  During a feasibility study interview, a major benefactor said that he would make a $1 million gift to the campaign. In the interview, we solidified the gift and developed with the donor a lead gift challenge to find two other $1 million gifts. As a result of the challenge, the private high school received the three largest contributions in its history and exceeded the goal by $5 million.

•  During the last quarter of a church campaign, a donor agreed to lead a reverse challenge. The donor was willing to match dollar-for-dollar all pledges up to a certain date. The donor was a banker and the challenge was called “Break the Banker.” The challenge created renewed energy within the congregation and allowed the church to reach its goal.

•  A small boarding school used class challenges with the intent of increasing alumni participation. Each class had to raise a minimum amount and the names of the participating alumni were placed on plaque outside the newly constructed rooms. Appeal letters went out from well-respected members of the class and from class donors. The class challenges increased the participation rate from four to 17 percent.

Donors are motivated to give for a variety of reasons. Implementing the right challenge gift appeal will help you maximize your funding potential.

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