Capital Campaign: The Three Keys to Success

What is a Capital Campaign and How Is It Different from/Similar to Other Fundraising?

While virtually all nonprofits need to raise money on an ongoing basis for operating expenses, the capital campaign is unique in several ways. It is different in purpose since the money is used to offset major capital expenses: building construction or renovation, major equipment purchases, building an endowment for the future and/or program expansion. It is also different for many smaller organizations, because it is a once in a lifetime experience that may be the largest amount of money this organization has attempted to raise.  

Developing Your Case for Support — Telling Your Story

A preliminary case for support needs to be developed before the planning study is begun. Consultants will need a written piece of information that outlines the organization's programs and the needs that will be addressed in this campaign to share with the people being interviewed. The preliminary case statement will then be refined during the study before being translated into a final case statement for the campaign. Some of the key ingredients that will be in the case for support include:

• Mission
• Vision
• History
• Current Programs & Services
• List of Board and Staff
• Financial Information
• Need for Future Growth
• Plan for Addressing These Needs
• Opportunities for the Donor to Participate in the Vision

Perhaps the most important thing to remember when developing the case for support is that it should always be written from the donor's point of view, not the organization's need. What's in it for the donor? How can the donor become involved? There should be various options for donor's investment in the project-named giving opportunities, pledges over a period of years, planned giving opportunities, matching gifts. And donor benefits should be spelled out. Remember that to be compelling a case statement needs to have a sense of urgency, but should never appear "desperate." Remember too, that the case needs to have both emotional and rational reasons for the donor to give. The donor will be drawn in first by emotion, but before writing a check or signing a pledge card, they will want to be assured that this plan has been carefully thought out and this it will work.

Board Commitment

Board commitment is one of the key areas that need to be addressed before moving forward with a campaign. Has the board reached consensus that this campaign is needed? Have they agreed on a preliminary goal for the campaign? Does the board understand its role in the campaign and that their role will include a financial commitment as well as working on the campaign? All board members must be willing to support the campaign to the extent they can contribute both time and dollars. The presence of board members at key campaign events will be required in order to show their united support of this project. It will be extremely helpful, although not always necessary, that at least some board members have the ability to make a substantial leadership gift to the campaign.

Volunteer Leadership

Volunteer leadership is, in this author's opinion, the single most important element of a successful campaign. The board and staff alone should not try to run a campaign without support of key community leaders. Before recruiting people to serve on the Campaign Cabinet, the Steering Committee should review a list of potential donors and try to get those with the greatest potential to give to also become involved in the campaign. A list of corporate and individual donors will be developed through the planning study process and this can serve as the basis for recruiting campaign leadership. It will be vital to include key community leaders in the planning study process. It is much easier to invite these leaders to serve in a campaign capacity if they've been included in the planning process.

Assuring the Key Ingredients Are Present — The Planning Study

The planning study is an important step in the campaign process. Almost every organization needs to consider a study before launching their campaign. The study provides the organization with the means to assess both their internal readiness to do a campaign and the community's willingness to support the campaign. The planning study helps "sell" the case to the key community leaders, strengthens the board commitment, and identifies key leadership volunteers.

One of the key things the planning study will do is to identify strengths and weaknesses in the three key areas:

• The strength of the case will be determined as the consultant conducts interviews. Sometimes what the organization thinks is a strong case, may be weak in respect to the community needs as perceived by the interviewees who are key community leaders. Often the case will be adjusted to reflect the public perception of its strengths and weaknesses.
• During his study process, the consultant will be working with as well s interviewing key board members. In addition, there should be an internal assessment done by the consultant to evaluate the strengths and weaknesses of the current board. Often a study will recommend increasing the size of the board, filling gaps that may be needed to strengthen the board's ability to run a campaign, or educating the board in fundraising techniques and principles that will be implemented during the campaign.
• The internal assessment portion of the study will also asses the organization's ability to involve volunteers effectively. During the interview reprocess, one of the most important questions the consultant will ask interviewees is whether they would be willing to assume a leadership role in the campaign. Interviewees will also be asked to suggest other campaign volunteers. If the study report does not indicate that key volunteer leaders are available, it may be best to delay the campaign until such leadership can be recruited.

Linda Lysakowski, ACFRE is one of fewer than 100 people worldwide to hold the Advanced Certified Fund Raising Executive distinction. Linda is President/CEO of CAPITAL VENTURE, a fundraising consulting firm with offices in Nevada, Pennsylvania, and New Jersey. Linda has helped more than 100 organizations with their development programs and has trained more than 14,000 professionals in all aspects of development. Hundreds of tools for development professionals may be found on the CAPITAL VENTURE website at www.cvfundraising.com.

Average: Select ratingPoorOkayGoodGreatAwesome

Average: 3 (2 votes)