What are Major Gifts?

Major Gifts refer to substantial donations or contributions made to nonprofit organisations, charitable causes, educational institutions, or cultural initiatives. These donations are often significant in terms of their financial value and can have a transformative impact on the recipient organisation's ability to carry out its mission and programs. Major gifts are typically made by individuals, families, or corporations who have the means to provide substantial financial support. Major Gifts, as defined by Giving Ireland, are typically €5,000 or more and will not normally provide any return to the donor other than the knowledge that someone will benefit from the donation.

Data from Q1, 2023 of the Irish Giving Index Landscape Report has placed Major Gifts as having accounted for 5% of total fundraised income across a sample size of 14 organisations. When these figures are compared with those of the UK and the USA, it is clear that figures for Major Gifts in Ireland have remained consistently behind our British and American counterparts. But what causes this trend that has led Ireland to lag behind other countries in relation to receiving Major Gifts?

1. Tax Environment: In countries such as the UK and US, donations to qualified charitable organisations are tax-deductible. When the tax environment provides favourable deductions or incentives for charitable giving, donors may be more motivated to make major gifts. Higher tax deductions can make philanthropy more appealing by reducing the after-tax cost of the gift. Additionally, major donors are often driven by a combination of philanthropic intent and financial considerations. Tax benefits, while not the sole motivation for charitable giving, can be a contributing factor.
    
2. Population: The population in the UK and USA is significantly larger and more concentrated than in Ireland. The UK, with a population of over 66 million and the USA, with a population of over 330 million, dwarf Ireland’s population of just over 5 million. The concentration of wealth and high-net-worth individuals in larger populations may result in a higher number and larger value of major gifts in the UK.
    
3. Scale and Concentration of Wealth: Both the UK and the USA have a larger economy and a higher concentration of wealth compared to Ireland. As a result, major gifts in the UK and USA tend to be larger in scale. The presence of numerous high-net-worth individuals, prominent families, and established philanthropic foundations in the UK and USA contributes to a significant number of substantial donations. In Ireland, major gifts may be comparatively smaller in scale due to a smaller pool of high-net-worth individuals and a developing philanthropic culture.
    
4. Different Giving Cultures: The UK and USA both have a long-standing tradition of philanthropy and charitable giving, with a well-established infrastructure to support major gifts. There are numerous charitable foundations, trusts, and institutions that facilitate major donations and provide resources for philanthropic endeavours. Ireland, while also having a strong charitable tradition, may not have the same level of institutional support for major gifts. In the UK and USA, the influence of historical wealth and the presence of a formal philanthropic sector can shape charitable giving practices. In Ireland, the emphasis on community and personal connections may influence major donors to support local causes and organizations that are close to their hearts.

While total figures place the UK and USA clear of Ireland in relation to major gift giving, it is important to note that philanthropic giving can vary greatly among individuals, organisations and sectors within countries. Organisations in Ireland do successfully major gift fundraise and need to be all the more strategic due to these hurdles presented above.