In the early stages of considering a capital campaign, there are many questions that need to be answered before you begin. A capital campaign can require considerable expenditure of resources. Before making the step of dedicating resources, you need to know the chances for the success of the proposed campaign.  Success is influenced by the campaign leadership, the size of the goal, the timing of the campaign and your prospects reaction to the proposed case for support.  A feasibility study can give you the information you need to plan a successful campaign.

A feasibility study usually uses one on one interviews with the key people in the organization and potential supporters of the organization to make an estimate of how much can be raised, the potential for campaign leadership and the reaction of your stakeholders to the organizational plans.  The study is also an opportunity for starting the process of recruitment of campaign volunteers and donors, as it gets people thinking about the possibility of a campaign.  You will also get feedback on possible competing campaigns in your areas. Perhaps most important, it gives you feedback on the case and what should be emphasized or explained in proposals and other campaign communication materials.

A feasibility study is not always necessary because there may be times when the need to do the campaign is irrefutable.  In most circumstances though, there are reasons any organization planning a capital campaign should conduct a feasibility study.

Getting Ready

Preparing to conduct a feasibility study involves both an assessment of internal strengths and weaknesses of an organization’s fundraising abilities, leadership and management systems. It also involves an assessment of your stakeholders and community response to a campaign.  An objective assessment of these strengths and weaknesses is essential. Using a consultant may be the only way to get a truly objective response from all of the study participants.

Campaign Readiness

The internal aspect of a campaign is often called a development audit or a campaign readiness appraisal. A campaign readiness appraisal can be done prior to the external part of a feasibility study or it can be done simultaneously.  The campaign readiness appraisal will examine existing fund development, the potential for finding new prosepcts, the planning process that was used to decide on the projects that require funding and the willingness and availability of senior people to dedicate part of their time to a campaign.  Often there is disagreement among the leaders of an organization on the campaign objectives.  This is especially true in large organizations.  These areas of disagreement must be resolved before the organization embarks on a campaign. 

The external or community interviews conducted during a feasibility study will assess the opinions of influential supporters and other target stakeholders of the organization. These supporters include those who are capable of making large donations as well as those who are capable of influencing others. Depending on the size of your prospect base and your campaign goal, you should interview at least 25 people from your external stakeholder group.  Campaigns with large goals will require many more interviews.  An organization's staff should identify potential interviewees and review these with the consultant conducting the interviews.  An employee should also be assigned to contact potential interviewees, arrange appointments and coordinate this schedule with the consultant.  The list of potential interviewees is usually developed by the senior fund development staff with the consultant's input.

Conducting a Feasibility Study

After the interview is arranged, the interviewee should be sent a brief, two-page summary of that describes the projects that the organization will be raising money for and why these things are needed at this time.  The interviewee will then have time to review the document, often called a preliminary case statement or statement of intent, prior to the interview.  This document may be written by an assigned staff person or the study consultant.  The consultant will use a questionnaire that solicits the interviews reactions to the preliminary statement, their perception of how acheivable the campaign is, their willingness for personal participation and their perceptions of the reputation the organization has in the community.  The interviewees may also be asked about the timing of the campaign, possible campaign themes, any potential pitfalls the organization should consider and their assessement of the urgency of the appeal.

After receiving input from all of the study participants, both internal and external, the consultant will prepare a report with recommendations on the campaign goal, the potential to recruit leadership, the potential to secure major gifts, any changes to the proposed projects that should be considered, and the best time to start the campaign.

The Feasibility Study Report

The material in the study report should provide allow the organization move to a next step of preparing for a campaign. There may be serious changes in the organization that need to take place before a campaign can be started.  This may take several months to accomplish.  There may be a very positive assessment of the organization's ability and strength, allowing them to move quickly to the early stages of a campaign.  The report should also provide an indication of the community's perception of the organization and point to the need for a public relations strategy early in the campaign.

A summary of the feasibility study report should be shared with the study participants and other stakeholders who did not participate in the study. It is a way of demonstrating that the organization is committed to a professional, systematic process and will remind key people that a campaign will soon be underway.