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Fundraising
Basics
The Capital Campaign Planning Study
Linda Lysakowski, ACFRE
President/CEO
CAPITAL
VENTURE
SM
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When considering a capital or an
endowment campaign, there are two things that need
to be done order to determine the likely success
of a campaign—an internal assessment of the
organization’s readiness, and an external
assessment of the willingness and ability of the
organization’s constituency to support the
campaign. These two items are generally addressed
in the process of the Planning Study.
Internal Readiness
Internal readiness issues should always
be considered first, before testing the case with
the public. These internal factors should be assessed
during the Planning Study process:
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- Is the organization a 501(c) (3)
or other charitable organization?
- Is the organization registered with
the states in which fundraising will be done, if those
states require registration?
- Can a compelling case for support
be made for the proposed campaign?
- Is there development staff that
is experienced in running a campaign?
- Is there adequate support staff?
- Does the organization have a strong,
committed Board of Directors that will support the
proposed campaign?
- Is there a donor database system
in place that allows segmentation of donors and personalized
appeals?
- Are there policies and procedures
in place for accepting, recording and acknowledging
gifts?
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External
Readiness
The next step in planning a major capital or endowment
campaign is assessing the external readiness of the organization
to conduct a campaign. An outside consultant will help
develop the case for support and identify potential interviewees.
The consultant conducts these confidential interviews
and will then report back to the organization with their
recommendations.
The basic question of whether or not the community would
support the proposed campaign should be answered in the
study report. The planning study not only addresses questions
about the public awareness and support of the organization,
but also helps determine a reasonable, attainable goal
for the campaign and a realistic time frame. The planning
study also assists in identifying and cultivating volunteer
leadership and potential major donors to the campaign.
One of the first steps in the planning study is to develop
the campaign case for support, i.e., what is needed and
why is it needed? The case should answer the following
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- Who is the organization and what
does it do? Why does it exist?
- What is distinctive about the organization?
- How will this campaign address the
needs of the community?
- How can the donor become involved?
Why should they give to this effort?
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The
case needs to be both rational and emotional. The
case should be compelling, but not too emotional. There
is a fine line between urgency and desperation —
a line that the case for support cannot cross.
While the case is being completed, the process of identifying
the people to be interviewed can begin. The planning study
process usually requires between 35 and 60 interviews
and will probably take about three months to complete.
Generally, the list of interviewees starts with a list
of 75-100 potential interviewees, who are then categorized
into A, B and C categories, the A list being contacted
for an interview first. Interviewees should include present
and past Board members, major donors to the organization,
key volunteers, key prospective donors, and community
leaders. The preliminary case statement is then "tested"
through this interview process. The study interviews should
be done by outside counsel. The interviews are conducted
one-on-one, in a confidential setting, and the comments
reported back to the nonprofit anonymously. The interview
process helps build support for the case, determine community
awareness and acceptance of the organization, determine
a reasonable goal, and identify potential support for
the campaign.
The Planning Study report should provide: |
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- An analysis of the potential for
a successful campaign;
- A revised table of gifts, if needed;
- A proposed campaign plan and organizational
chart;
- A recommended overall dollar goal;
- A suggested campaign timetable and
budget;
- A list of potential donors;
- A list of potential volunteers.
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third party best does Planning Study in order to be effective.
When interviewing consulting firms, be sure to ask if
the study will include both the internal and external
components of assessing your readiness. Be sure that the
firms being considered adhere to a code of ethics and
are registered as fundraising counsel in the state in
which the organization is located, if such registration
is required. |
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