Capital Fundraising Campaign

A capital fundraising campaign is an effort to raise a relatively large amountof money in a relatively short period of time. A capital campaign involves an organized group of volunteers, working together with the charity, to solicit pre-qualified and very targeted prospects, in face to face meetings.

Capital campaigns are organized in such a way that the top prospects are solicited first and prospects with lower potential are solicited later in the campaign. (This form of fundraising, known as sequential fundraising, was invented by Ben Franklin.) Solicitation is done by volunteers, supported by staff, in one-on-one meetings with prospects. The campaign may be supported by special events, such as information sessions, that are designed not to solicit funds, but introduce people to the campaign. Similarly, advertising or stories in the media may alert people to the campaign but do not solicit donations.

In order to succeed at a capital campaign, the charity must have a well defined need (case statement), communication materials that clearly explain the cause, dedicated volunteers who are willing to make direct solicitations on high-potential prospects, and relationships with prospects who have the potential to make large donations. The goal of a capital campaign may be to raise funds for capital projects, endowment funds or new program initiatives. Day to day operating funds are usually not supported by capital campaigns.

Often there is no distinct point when the need for a campaign is recognized. Sometimes it comes about as the result of an opportunity, such as extraordinary grant or donation, which provides a starting point to build on and an impetus to do more. On the other hand, a negative experience, such as a building on the verge of collapse or a program that is bursting at the seams, sparks the realization that something should be done.

Once the need is recognized, some further steps are required before embarking on a campaign. They do not have to follow in sequence, but for the sake of convenience, we have listed them this way:

A strategic plan session or sessions that clarifies the need for the project and makes it a priority for the organization as a part of their overall strategic plan.
Initial development of the concept such as preliminary architectural work, writing a business case, and exploration of alternatives.
The work done in step 2 will provide an initial budget for the project that can be used as a starting point for determining the campaign goal.
Conducting a feasibility study for the campaign, testing the initial goal and the receptivity of the concept on the part of external stakeholders.
Review of the feasibility study report and the initiation of any changes that the report recommends to internal systems or the project.
Develop a campaign plan that shows how the campaign will proceed in terms of its goal, the recruitment of leadership, prospect review, timing of the campaign, campaign organization and a campaign budget.
Formal acceptance of the campaign plan by the Board of Directors and the appointment of an ad hoc committee of the board that will act as the initial Steering Committee for the campaign.

These steps are developed in more detail throughout this site and in the documents that can be downloaded from the site.

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.

For more information on capital campaigns, go to Campaign Plans on this site. Or you might want to review the section on Capital Campaign Feasibility Studies.

**Capital Campaign Summary**
When to Do It when organization is undergoing significant change large capital projects, such as building, is needed timing is right IE for donors	What You Need donors who may consider larger than usual contribution top-level volunteers need perceived as urgent organization has good image
Why You Do It best way to raise a large amount of money in short time raises profile of organization takes your organization to the next level of service delivery	Results to Expect campaigns usually take a couple of years with a few more years to collect pledges success will depend on top gifts raise pledges then collect cash