Capital Campaign Planning: 7 Steps to Determine Your Readiness
Capital Campaign Planning: Are you ready for a capital campaign?
Capital campaign planning is a new challenge to many nonprofits. Most executive directors, development staff and board members have never conducted or participated in a capital campaign. But to reach full potential, most charities need to grow. That growth often involves expanding infrastructure and facilities. It requires conducting a capital campaign to raise the funds to bring the project to life. But where do you begin your capital campaign plan? First, find out if your organization is ready to take on the challenge.
Answer these questions to find out if you are ready for a capital campaign and download the checklist!
1. Is there a quantifiable benefit to expanding or improving our infrastructure?
This capital campaign pre-planning step requires a needs assessment. Conduct one with a professional consultant or an unbiased employee to determine the quantifiable benefit that advances your mission and that can be shared with philanthropists.
If your quantifiable benefit is established, then continue to the next question.
If you need more information on determining your quantifiable benefit, click below to:
Understand how to balance facts and vision when describing your benefit.
2. Does our board of directors support the project?
Ask your board members privately and individually if they think the project is appropriate and if they are willing to provide their time and treasure to advance it. You want their personal commitment and their willingness to hold you and the balance of your organization's leadership responsible to see the project through.
If you have confirmed your individual board members’ commitment to the project, then continue to the next question.
If you still need to gain your board's full support, then:
Check out these questions to ask your board.
Learn how to assess your board's leadership capacity.
3. Are our numbers current and realistic?
Your budget should consider cost estimates no more than one year old, pre-campaign costs like architect and feasibility study, and whether you will have enough cash through completion or if you need to take out bridge loans.
If your budget is solid, then continue to the next question.
If you need more information about developing a budget for this project, then:
4. Do we need to do a capital campaign feasibility study?
If you can answer "yes" to at least three of the questions below, then you do not necessarily need to complete a feasibility study.
Do you have a donor-approved case for support? Click here to learn more about cases for support.
Do you know what your donors like and dislike about your organization and your project? Explore why this is important.
Do you know what your donors are willing to give and why? Download the gift chart builder to show the estimated size and quantity of major gifts you will need.
Does your organization's leadership have extensive capital campaign experience?
If you answered "yes" to at least three of these questions, then continue to the next question.
If you need to learn more, explore the links to prepare for a feasibility study.
5. Do we know what type of consulting firm to hire?
There are several types of capital campaign consulting firms positioned to meet different types of need. Most importantly, look for a firm with experience in similar projects and communities to yours, and a firm that earns your trust through excellent references and individuals who will work with you throughout the campaign at the level of intensity that you need.
If you know what type of consulting firm will best fit your needs, then continue to the last question.
If you need to learn more about the types of firms that exist and which will work best for your organization, then read here about types of consulting firms.
6. Do we know when to start?
Work backwards from breaking ground and account for a 3-to-4-month feasibility study, a 10-to-24-month campaign, and a 3-to-5-year pledge redemption period.
7. You've answered the questions, now take action!
You might be interested in our Free Capital Campaign Workshop for you and your board. This no-obligation 90-minute to two-hour workshop can be held virtually or in-person for your board members, key volunteers and senior staff. Some organizations have even invited community leaders and major-gift donors to the workshop as a cultivation and education activity. We will delve into the questions above, the questions answered by a Capital Campaign Planning Study and the factors evaluated by counsel before beginning a campaign. We’ll also examine the goals and activities of each capital campaign phase and the responsibilities of both the consultant and the nonprofit. And we’ll answer your organization’s specific questions.
If you have more questions for us about capital campaign planning, contact us today. We’d be happy to help!
Updated 8-12-22
