Major Gift and Capital Campaigns
Happy Fall everyone! Had a great time at the recent Case Community College Conference in Anaheim, this last month, where we met a lot of new friends. Being a Cypress College graduate it was a great experience seeing community college leaders learning how to go after their fair share of the philanthropic market place!
Our firm has gone through some great changes these last few months giving our principles more time to spend with our clients on a one-on-one basis. We would like to thank the following organizations for their support: Mesa Community College, Santa Fe Community College Foundation, Sheridan Senior Center, North Country HealthCare, Steamboat Adaptive Recreational Sports and Jewish Family & Children’s Service.
We are going to continue our blog series with the Art & Science of Major Gift and Capital Campaigns. Hope you enjoy.
It’s widely accepted that a campaign is an opportunity to focus your community around common goals and raise extraordinary support for key organizational priorities. But a campaign has multiple benefits; it can inspire leadership, elevate giving levels of current donors, and attract new donors.
There is indeed an art and science to a successful capital/major gift campaign. While it is true that fundraising in not brain surgery, there are several steps and procedures than need to be established and followed by experienced staff and consultants to minimize failure and maximize your success.
Fundamentally, a campaign is a tool or mechanism to raise major gifts at a strategic moment in the life of an institution. The campaign’s architecture — its structure, look, feel, strategy, timing and pace — and indeed, its chances for success rest on securing gifts at the top of the giving pyramid.
A campaign can underwrite the acquisition or restoration and renovation of buildings, land, equipment or facilities; can support endowments, scholarships and special projects/programs; and can provide the supplemental operating funds often needed today.
The key to any successful campaign is the pre-campaign planning phase, which should always include a Campaign Feasibility Marketing Study. A comprehensive Study provides your governing board and administrative staff with the information necessary to judge the nature and amount of funds available from your various private giving sources. In addition the Study will help you decide whether, when, and how your organization should begin a capital/major gift campaign.
The Study will answer the following questions:
- How do your constituents feel about your organization and program?
- Are sufficient numbers of volunteers and donors available to make your campaign a success?
- Are your specific dollar objectives attainable?
- The appeal of your case and needs to donors – can you make a “case” for support of your request?
- What opinions do key community leaders and decisions makers have regarding your organization?
- What plan of action will be necessary to help your organization become successful in reaching its goal, and when should the campaign begin and end?
Many organizations ask, “Why can’t we conduct our own Study in-house and save money?” While it is true that in-house staff with extensive campaign experience can direct campaigns with limited consultant supervision, the Study itself is different. A useful Study must encourage candid responses from leaders of your organization, key constituents, and prospective donors. Straightforward responses are more likely in a professional Study conducted by an independent third party. This candid input and feedback from potential funding sources is critical to determining whether to launch a campaign, what a realistic funding goal would be, and how to position a campaign for maximum success. For a feasibility study to have credibility, third-party professionals should construct it. Also, in-house studies usually do not save money because staff members charged with conducting the Study is diverted for several months from their primary business functions.
There are numerous additional benefits to your Study. It will:
- Give Board members a wealth of information and a perspective from which intelligent and prudent decisions can be made.
- Attracts key leadership to the campaign.
- Helps to pre-sell the campaign.
- Educate community leaders and friends about your case and needs.
- Identify program elements with the strongest appeal to donors.
- Helps strengthen relationships.
- Raises giving sights for everyone.
- Provide a critical point of contact between your organization and key prospects.
The benefits of a campaign are far greater than just reaching your dollar goal. A successful campaign represents an important juncture in integrating and furthering your organization’s strategic plan, and if you do not have a plan it will help you develop one.
For example, a campaign effort can generate:
- Expanded numbers of contributors, new constituencies of supporters, and more donors of major and planned gifts.
- A stronger board and more committed involved, informed, and enthusiastic volunteers.
- New and committed leadership.
- Supports need for large lead gifts.
- Favorable publicity about your organization through the impact of the campaign’s success.
- The most effective investment of your organization’s resources – a capital campaign is still the most cost-effective way of raising money today!
- A new fundraising effort for the organization or invigorate a stalled or ineffectual program.
BUT IT ALL STARTS WITH PROPER PLANNING
A professional Study offers a broad, in depth look at your organization’s ability to raise money, and to motivate and inspire staff, volunteers and the community – increasing your entire fundraising program. We have seen feasibility studies range from $15,000 to more than $100,000 depending on the firm and scope and complexity of the Study. Most of our Planning Studies averages $20,000 to $50,000.
Included in the fees: assisting with case development; developing a list of interviewees (should be at least fifty); interviewing a cross section of your key prospects including community, business and foundation leaders; producing a comprehensive report augmented by analysis, findings, conclusions, recommendations and a plan of action (if a campaign is feasible) on how, when and how much it will cost to launch your campaign; and the presentation of the firms findings and recommendations to your board.
If a campaign is advisable, a consultant can assist your organization by:
- Campaign Case development.
- Identify potential funding sources.
- Furnish complete day to day campaign management or weekly executive counseling.
- Provide leadership support and campaign strategy to the CEO, Director of Development, and Campaign Leadership and Volunteers.
- Devise work plans to track the progress of the campaign.
- Identify and help recruit campaign leaders.
- Assist in the preparation of materials, including proposals, brochures, correspondences and prospectuses.
- Incorporate cutting edge (click on to see more) print and electronic media.
- Train campaign volunteers on how to solicit prospects.
- Schedule and attend meetings with potential funding sources.
- Help in solicitation of gifts when appropriate.
Why hire a consultant?
- Large amounts of money are at stake;
- You are dealing with a limited amount of time;
- To avoid the possibility of failing publicly;
- Restructures your fundraising strategies;
- Initiates new forms of donor and volunteer engagement; and
- Consultants do campaigns regularly and understand their intricacies.
In other words, you can’t afford to experiment. You need to rely on someone else’s expertise. Remember, consultants don’t raise the money for you — they help you and your Volunteer Solicitors raise it.
So are you ready to launch a major gifts campaign? Do you have the infra structure in place? Are “key” community and philanthropic leaders aware of your organization’s needs and aspirations? Our next blog will address the importance of leadership and how you need to secure it for your successful campaign.
I hope you have found this useful for your fundraising planning and if I can be of any further assistance please give me a call or drop me an email.
Ron Huddleston, FAHP, CFRE
President
877.831.0472
