Your Capital Campaign Budget Template Should Consider Cash Flow

A capital campaign budget template should consider your costs along with whether you will have adequate cash through the completion of your project. Examining the assets that will go to the campaign, your fundraising expectations and the expenses created by the project will help you predict cash flow over your three-to-five-year pledge redemption period – an important piece of keeping your campaign on track.

Our capital campaign budget template download includes a cash flow formula into which you can enter your own project numbers to see where you stand year by year. Download it now!

Capital Campaign Budget Considerations

Your capital campaign budget will include the cost of acquisition and construction along with all the costs surrounding your project. There may be testing, permitting and zoning fees. You’ll want to include the furniture, fixtures and equipment that make your space inhabitable. Then add in the consultant fees for your architect, feasibility study and capital campaign management.

Capital Campaign Feasibility Study

There are typically two-steps to a capital campaign. Step one is campaign planning, or the feasibility study. It typically lasts 3-4 months. A conservative cost estimate for a feasibility study is $20,000 to $40,000.

Capital Campaign Management

The next step is campaign management, in which your consultant will lead you through the fundraising process. Your consultant will be with your organization for a long time – at least one year and sometimes as many as three. Fees vary greatly depending upon the consultant’s experience, the level of service they are providing, and your geographic location. Resident consultants move to your community and spend nearly every day in your office. This is the most expensive form. The cheapest is the consultant who never comes onsite. He or she strategizes with the nonprofit virtually. This is the least expensive. There are many more consultants who provide services somewhere between these two examples, visiting the nonprofit in person when needed and working remotely.

Typical Capital Campaign Management Costs

Your capital campaign budget should include costs of managing your campaign calculated as a percentage of your fundraising goal for the project. For a small campaign of $2 million to $5 million, you’ll want to budget about 10 percent of the goal for the campaign. This should include your consultant’s monthly service fees along with design and printing of campaign brochures, production of a campaign video, printing and mailing newsletters, software updates to manage a campaign, campaign events and donor recognition. Adding these costs to your campaign, your goal is adjusted accordingly, and your $5 million campaign becomes a $5.5 million campaign. Larger campaigns can be based on a smaller percentage. For example, if your goal is $10 million, the cost of your campaign will likely be in the 6-percent to 8-percent range.

Learn more about our capital campaign budget template cash flow formula and how it can help with your campaign or download it now.

Melissa Sais is a consultant and communications director with CampaignCounsel.org.