I think assuming a minimum donation amount presents as hubris. Donors always have the ability to give little or nothing, regardless of how much capacity they have to give is. Just because a donor can give $10 million does not mean that they are in any way obligated to give a minimum of $1 million.
In fundraising we have prospect researchers who are great at making informed estimates about a person or foundation’s upper limit gift capacity. Other known gifts, company ownership, board positions, family history, real estate, etc. But, I don’t know that I’ve ever seen a prospect profile that provides a minimum ask amount.
@vipulnaik points out at another point in this thread that a potential major donor fluent in EA theory is unlikely to give a trivial amount, like $100. That is certainly possible, and if you know for certain that a donor makes their giving decisions with an EA lens, then by all means go for it. But, if you find yourself in a situation with a generous and wealthy donor who isn’t an EA’er that wants to give a substantial amount to your cause, just don’t take for granted that they could walk away at any moment for any reason.
For your counter question, I’m not entirely sure what donor risk you’re referring to. I think maybe you’re referring to a risk that the money is lost in transit, embezzled, or misspent? In that case, donors should do due diligence into the organization’s leadership (board and executive), review financials like the 501(c)3 or equivalents, insist on a gift agreement if we’re talking large amounts tied to specific activities and timelines, etc.
I think assuming a minimum donation amount presents as hubris. Donors always have the ability to give little or nothing, regardless of how much capacity they have to give is. Just because a donor can give $10 million does not mean that they are in any way obligated to give a minimum of $1 million.
In fundraising we have prospect researchers who are great at making informed estimates about a person or foundation’s upper limit gift capacity. Other known gifts, company ownership, board positions, family history, real estate, etc. But, I don’t know that I’ve ever seen a prospect profile that provides a minimum ask amount.
@vipulnaik points out at another point in this thread that a potential major donor fluent in EA theory is unlikely to give a trivial amount, like $100. That is certainly possible, and if you know for certain that a donor makes their giving decisions with an EA lens, then by all means go for it. But, if you find yourself in a situation with a generous and wealthy donor who isn’t an EA’er that wants to give a substantial amount to your cause, just don’t take for granted that they could walk away at any moment for any reason.
For your counter question, I’m not entirely sure what donor risk you’re referring to. I think maybe you’re referring to a risk that the money is lost in transit, embezzled, or misspent? In that case, donors should do due diligence into the organization’s leadership (board and executive), review financials like the 501(c)3 or equivalents, insist on a gift agreement if we’re talking large amounts tied to specific activities and timelines, etc.