Planning Study? Feasibility Study? Philanthropic Study?
You may have heard the study referred to in different terms, but the more preferred term recently is planning study because, for many organizations, the study is not done to determine whether or not they can do a capital campaign, but to help them plan a successful campaign. Basically a planning study, the term I will use here, is an independent study conducted by a person or firm outside the nonprofit organization, to determine whether the organization is ready for a capital campaign and to provide a timetable and plan that will lead to success.
What is it? Do You Need One? When?
Some organizations think that the only information gained in the study is what dollar goal can be achieved in a campaign. In a recent book, edited by Martin Novom, CFRE and published by Wiley and Sons, I and seven other contributing authors contend there are many more valuable reasons to conduct a study besides targeting a financial goal that is likely to be achieved. If you are about to embark on a capital campaign, you should consider a study to avoid the possibility of failure. One thing that distinguishes a capital campaign from other fundraising most organizations do is that it is a very public campaign, with an announcement of how much money the organization plans to raise in order to achieve their goals. Often, it is the largest amount of money this organization has ever attempted to raise, and the purpose of the campaign is to implement a building project or build an endowment to fund the organization's future. In other words, you cannot afford to fail!
What Will the Study Tell You?
Yes, one of the important outcomes of the study will be to tell your organization if your goal is likely to be achieved. But what else can you learn from the study? A well done planning study will assess your organization's internal readiness for a major campaign effort—do you have the infrastructure in place to manage a campaign? Is your board willing to endorse this campaign financially and otherwise? Is your staff capable of running a campaign and do they have the time to devote to this major effort? Does your organization have a base of potential donors for the campaign?
The study also tells you about your community’s readiness to support the campaign. Does your organization have good public relations? Do the key people in your community know who you are and what you do? Are your organization and your leadership, both staff and volunteer, known and respected in the community? Are there people who would step up to the plate with a major gift? Are there key community leaders who will jump on board to lead this campaign? The planning study will answer all these questions and more.
So, How Does It Work? Who Does the Study?
The planning study should always be conducted by an outside consultant who is experienced in conducting studies, who has the knowledge, the expertise, and the objectivity to provide the organization with valid results and recommendations.
The study begins with the consultant doing an internal assessment of your organization, preparing a preliminary case for support which will be presented to the people being interviewed, and helping your organization develop a list of potential interviewees. The consultant will then meet face-to-face with each prospective interviewee and ask them about your organization, its plan, and the interviewees’ willingness to support the campaign. The consultant will then prepare an extensive report listing the qualitative and quantitative results of their interviews, along with recommendations for your organization to either proceed with the campaign as planned, make some adjustments to the plan, or delay the campaign until you are better prepared.
How Long Will It Take? How Much Will It Cost?
In general the study takes about three to four months and will cost anywhere from $15,000 to $50,000, depending on factors such as the size of your organization and the campaign, the number and location of the people to be interviewed, and the expenses related the interview process.
What If We Don’t Do a Study?
The study does not guarantee that your organization will run a successful campaign. And there are some instances where a study may not be needed, but these are rare. For example, if your organization has a strong commitment on the part of a major donor(s) that 60-80% of the money is already available, if your project has a very small dollar goal and your organization has a strong annual fund in place, or the board has committed two thirds of the goal themselves, a study might not be needed. However, for most capital campaigns, the study will lay important groundwork to help you prevent a failed campaign. The study will provide recommendations on strengthening your organization internally, building stronger constituent relationships, and planning a realistic timetable. If you have questions about your organization's readiness for a campaign, there are some free tools at www.campaignreadiness.com.
New Educational Offering
I am very excited to announce our new CharityUniversity Multi-week Intensive, a six-week course to be offered through CharityChannel, beginning March 2011. If you need more than training but cannot afford to hire a consultant, this new program is your answer. My first session in this series will be “Building the Board You Need to Succeed™.”
This course will provide you with the tools you need to develop a board of directors that understands their governance role, works as an effective team and eagerly embraces fundraising. More than a class, this program offers you access to a top notch consultant who will provide personal guidance to help you grow your board into the board you want, the board you need!
At the end of this program you will have: completed an assessment of your board; assessed your board meetings; developed an organizational and committee structure for your board; developed board position descriptions; developed a list of backgrounds, talents and skills needed on your board; identified a list of potential board members; developed a recruitment plan; developed a structure for board orientation; and developed a board educational program for the coming year.
For instructions to sign up, email me at linda@cvfundraising.com. |
