campaigns 101
TRANSCRIPT
Capital Campaigns 101An Introduction for First-Timers, CEOs,
Volunteers and Support Staff
Patricia P. Jackson and Mark W. JonesTuesday, December 11, 2007
9:15 to 10:30 a.m.
© Mark W. Jones, 2007
Before We Get Started… A few words from your speakers
What is a campaign? Why do we have them? Are there different
types? How do we plan for a
campaign? How does a campaign
unfold?
“Seven years in three hours….”
What is a “Campaign”? CASE’s Definition*
“A campaign is an announced, public effort to secure an extraordinary level of support for specific objectives during a finite period of time.”
* CASE Management and Reporting Standards, 3rd edition (2004)
What is a “Campaign”? Other Definitions
“A dream with a deadline.”
Why a Campaign?
Why not just raise the money through ordinary fundraising?
Why a Campaign?
Gives urgency to a vision that requires philanthropy
Galvanizes internal and external constituencies
Is the only fundraising tool proven to achieve meaningful, lasting growth . . . campaigns work!
Campaigns Work!
University #1Inflation Adjusted Total Gift Growth Rates
-10%
-5%
0%
5%
10%
15%
20%
(81-86) (94-98) (87-93)
Ave
rage
Ann
ual G
row
th (I
nfla
tion
Adj
uste
d)
Campaigns Work!
University #2Inflation-Adjusted Total Gift Growth Rates
-10%
-5%
0%
5%
10%
15%
20%
(58-64) (79-85) (94-98) (65-73) (86-94) (73-78)
Aver
age
Annu
al G
row
th (I
nfla
tion
Adju
sted
)
Campaign
Non-Campaign
Growth rates calculated using end-of-fiscal-yearfor year prior to era as base.
Campaigns Work!
University #3Inflation-Adjusted Total Gift Growth Rates
-10%
-5%
0%
5%
10%
15%
20%
Third Century (67-71)
Campaign forDartmouth (77-82)
Will to Excel (90-97)
(72-76) (83-89) (98-99)
Aver
age
Annu
al G
row
th (I
nfla
tion-
Adju
sted
)
Why is a Campaign not “Business as Usual”?
Greater focus on major gifts Targeting of “capital” projects:
Endowments for programs, faculty and students
Renovation and construction projects Other new resource-intensive initiatives
More intense engagement of campus community
Significant volunteer participation
Types of Campaigns
Single purpose Capital purposes only Capital and expendable Comprehensive
The Comprehensive Campaign
Fac ilities (Major Gifts)
Endowment (Major Gifts - Outright & Deferred)
Unrestric ted (Annual Giving)
Restric ted Current Use
(Foundations & Corporations)
6 Objectives of Successful Campaigns
By Bill McGoldrick, Washburn & McGoldrick
1. Exceed your financial goal2. Strengthen your infrastructure and build
campus support for the fund-raising process3. Create an enthusiastic, educated cadre of
volunteers4. Increase institutional unity and morale5. Enhance your institution’s external
reputation6. Position yourself for success in the next one
The Seven Phases of a Campaign (with thanks to Sue Washburn and Bill McGoldrick)
Phase 1 Pre-Campaign Planning The institution prepares
Phase 2 Campaign Planning The staff prepares
Phase 3 Advance Gifts Phase Key donor solicitations
The Seven Phases of a Campaign (with thanks to Sue Washburn and Bill McGoldrick)
Phase 4 Public Announcement The campaign goes public; solicitation of all constituents begins
Phase 5 Plateau of Fatigue Work, work, work!
Phase 6 The Homestretch Victory is in sight; prepare for post- campaign activities and priorities
The Seven Phases of a Campaign (with thanks to Sue Washburn and Bill McGoldrick)
Phase 7 Post-Campaign Shifting direction but
maintaining momentum . . . and preparing for the next campaign
Phase 1: Pre-Campaign Planning The Institution Prepares (6 months to 2 years)
Complete an institutional strategic plan Define, winnow and focus the
institution's needs and priorities Prepare first draft of a formal case
statement Begin "testing" the case statement and
institutional priorities
Strategic Plan Elements
Vision Assessments
Trends Strengths Weaknesses Opportunities Threats “Customer”
demand
Stakeholder concerns
Strategic directions Resource
requirements Financial plan Role for
philanthropy Priorities
Why Vision Is Essential?
Clarifies direction Inspires action Helps coordinate the actions of
different people quickly and efficiently It generates extraordinary gifts
Coupling Vision with Reality
An effective institutional plan is more than just a comprehensive wish list:
The priorities list must pass through the “crucible of choice”
There must be an action plan for making the vision a reality
Phase 1: Pre-Campaign Planning The Institution Prepares (6 months to 2 years)
Start to define program, scope and duration
Begin shaping campaign’s dollar goal Begin developing a prospective table of
gifts (more on this later) Increase donor research and evaluation Enlist 4-6 key volunteers Proceed to Phase 2
Estimating the Potential Goal
Some Useful Formulae:
2 x last campaign total Average of last 5 yrs. x 2 x #yrs. of
campaign More later….
Phase 2: Campaign Planning The Staff Prepares (6 months to 1 year)
Conduct a feasibility study Refine analysis of institutional priorities
and featured objectives Intensify research of top 100-300
potential donors Refine the table of gifts Establish a tentative campaign timeline
Feasibility Studies
Internal readiness assessment tests institutional will and measures strengths and gaps in staffing and infrastructure
External readiness assessment tests vision, image, priorities, donor readiness and fundraising climate
Assessing Your Readiness
A Suggested Guide…
Use the accompanying “Campaign Readiness Rating System” to help you determine whether or not your institution is positioned for success in a comprehensive campaign.
A Cautionary Note
“Care should be taken to design campaigns that reconcile the needs of the institution with the interest and capacity of its constituencies to fund them.”
* CASE Management and Reporting Standards, 3rd edition (2004)
The Gift Pyramid (or Gift Table)
Shows number of gifts needed at various levels to reach campaign goals
Works on the assumption that approximately 90% of the dollars will come from fewer than 10% of the givers
Useful, but never works out exactly Shows magnitude of the task
A Sample Gift PyramidA Sample Gift Pyramid2 …gifts of $100M = $200M4 ...gifts of $50M = $200M8 ...gifts of $25-50M = $200M
12 ...gifts of $10-25M = $120M20 ...gifts of $5-10M = $100M
40 ...gifts of $1-5M = $40M 80 gifts of $500K = $40M 120 gifts of $250K = $30M 200 gifts of $100K = $20M 400 gifts of $50K = $10M 800 gifts of $25K = $20M ? gifts of <$10K = $20M
A Sample Gift TableA Sample Gift Table
Average GiftRange
# of GiftsNeeded
# ofProspects
Needed
Actual # ofProspects
Total Giftsin Range
Cumulative Total
$7,500,000 1 4 3 $7,500,000 $7,500,000
$5,000,000 1 4 4 $5,000,000 $12,500,000
$2,500,000 4 16 6 $10,000,000 $22,500,000
$1,000,000 9 36 36 $9,000,000 $31,500,000
$500,000 14 56 24 $7,000,000 $38,500,000
$250,000 16 64 23 $4,000,000 $42,500,000
$100,000 22 88 42 $2,200,000 $44,700,000
$50,000 45 180 n/a* $2,250,000 $46,950,000
$25,000 60 240 n/a* $1,500,000 $48,450,000
<$25,000 Many Many Many $1,550,000 $50,000,000
172+ 688+ 138+ $50,000,000
More Dollars from Fewer Donors
Top 1% contribute 50% of total dollars Top 5% contribute 90-95% $1 million+ gifts give 50% $100K+ gifts, give 85%
Campaign Timelines
What needs to be done? When does it need to be done? Who needs to do it? In what order should be done?
Early Campaign Timeline (Sample)Task
Appoint Nat'l Philanthropy Committee Chair Assess regional staffingIdentify campaign themeAddress staffing needsAssess/adjust regional task force leadershipDraft Case StatementAssess/adjust reg. task force membershipReview campaign timeline feasibilitySolicit UWF BoardBrief UW community on campaign statusSolicit lead prospectsSolicit regional task force members
Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 22000 2001 2002
Phase 2: Campaign Planning The Staff Prepares (6 months to 1 year)
Start developing a detailed campaign proposal
Finalize budget and funding sources Fill vacant staff positions and begin
training Adopt trustee-approved policies for gift
acceptance and campaign counting
Campaign Plan Elements
Capacity analysis Anticipated target Prospect
identification Feasibility testing
External interest Internal readiness
Budget Gift acceptance
and campaign counting policies
Gift opportunities list Communications
platform and tactics Leadership
Board CEO Volunteer structure
Sight-raising initiatives
How Much Will It Cost?
It Depends. . . The more mature your program, the
smaller the incremental increase that is needed beyond current operating budget
The greater the readiness of the prospective donor base and its giving potential, the less the investment in advance cultivation
Phase 2: Campaign Planning The Staff Prepares (6 months to 1 year)
Determine advance gifts (“nucleus”) goal
Set a tentative date for public launch Communicate campaign plans and
priorities to key internal audiences Proceed to Phase 3
Phase 3: Advance Gifts Key Donor Solicitations (12 to 18 months)
Engage CEO and other campus leaders Enlist leadership volunteers Begin intensive volunteer training Solicit early leadership (“nucleus fund”)
gifts Solicit governing board Focus on "sequential fundraising"
Board Leadership
Early gifts 100%
participation Stretch gifts Priority
responses
Informed ambassadors
Identify potential donors
Involve others Ability to ask
others Ability to steward
others
Board Leadership
Partnership with the CEO
What is expected of him/her?
Can your CEO make the case with passion?
Can s/he ask? Will s/he ask?
Will s/he make the time?
Partnership with the CEO
“Nucleus” Phase Milestones
Focus on the few Solicitation of big,
big gifts Steering
committee and Board set the standard
30-40% by kickoff (>50% for less mature programs)
Celebrate/announce big gifts
Engage and educate donors
Confirm communications platform
Build case for support
Phase 3: Advance Gifts Key Donor Solicitations (12 to 18 months)
Involve leadership donors Solicit governing board Confirm public campaign goal Finalize communications plan
(strategies and tactics) Plan public launch(es) and constituency
involvement activities
Involving Leadership Donors
Communications Platform Expresses vision,
urgency, passion Provides
historical context Links institution
to larger societal goals
Defines goals and objectives
Provides ways to give
Focuses on opportunities as opposed to needs
Provides supporting data, third party endorsements, and stories that illustrate impact of philanthropy
Phase 3: Advance Gifts Key Donor Solicitations (12 to 18 months)
Continue staff and volunteer training Complete advance gifts solicitations
Remain flexible . . . things will change! Proceed to Phase 4
Phase 4: Public Launch Solicitation of All Constituents Begins (1 day to 1 year)
Hold launch event(s) Announce goal, leadership and advance
phase result Recognize advance gift donors and begin
public stewardship activities Present campaign brochure, video, DVD,
etc. Convey excitement of early success and
generate enthusiasm for more
Pre-Kickoff
Board votes on the goal(s) Close leadership gifts Engage new volunteer
leadership Plan event(s)
“Kickoff” Planning
What do we want the attendees to think, feel, do?
One event? Several events? Regional events? Education
component?
Messages? Announcement of
goals and gifts? Individual “moves”
or initiatives And, a good time
was had by all!
Phase 4: Public Launch Solicitation of All Constituents Begins (1 day to 1 year)
Expand volunteer base (if necessary) Solicit remaining leadership prospects Involve general donors (regional
campaigns) Define and explain role of annual giving Continue staff and volunteer training Proceed to Phase 5
Phase 5: Plateau of Fatigue Work, work, work! (1 day to 1 year)
The campaign engine should be firing on all cylinders… work your plan
Re-solicit stalled donors Continue solicitation of leadership
donors Continue cultivation and stewardship of
all donors (don’t forget those who were your earliest participants!)
Phase 5: Plateau of Fatigue Work, work, work! (1 day to 1 year)
Continue marketing and communication efforts
Begin solicitation of general constituent populations
Maintain/boost annual giving momentum Conduct special component campaigns
(faculty, parents, challenge grants, etc.) Continue training of staff and volunteers
Phase 5: Plateau of Fatigue Work, work, work! (1 day to 1 year)
Address staff and volunteer burnout Expect and cope with turnover of staff,
volunteers…and campus leaders Announce (and celebrate) goal
achievements as they occur Proceed to Phase 6
Phase 6: The Homestretch Victory is in sight (12 to 18 months)
Assess program results and cash flow Adjust plans (increase the goal, redirect
efforts or extend the timeframe?) Continue cultivation and stewardship of
all donors Close any outstanding solicitations Re-solicit donors who are appropriately
ready
Phase 6: The Homestretch Victory is in sight (12 to 18 months)
Thank and honor volunteers and donors Begin planning for post-campaign
advancement programs: Annual fund Major and planned giving Alumni programs Stewardship of gifts secured during campaign
Celebrate!
Whom should we thank?
How do we make everyone feel successful?
How do we set stage for future success?
Why Include Annual Giving in Your Campaign?
1. To sustain the Annual Fund’s continuity and forward momentum
2. To provide additional opportunities for alumni and friends to participate in the campaign
3. To increase volunteer engagement4. To raise donors’ sights5. To broaden and deepen the donor
base for future campaigns
Why Include Annual Giving in Your Campaign?
6. Annual Giving is the base for future giving7. Modest Annual Fund gifts are pre-cursers
to subsequent major gifts8. The Annual Fund is too important to
annual operating budgets to take any chances
9. The majority of donors during a campaign will participate solely via the Annual Fund
10. All campaign donors should be asked for Annual Fund gifts
Why Include Annual Giving in Your Campaign?
11. Get support—and leadership gifts—from the governing board, the president and cabinet, the alumni board, and the Annual Fund’s volunteer leaders
12. Provide Annual Fund training and reference materials for all campaign volunteers
Phase 6: The Homestretch Victory is in sight (12 to 18 months)
Identify post-campaign development priorities
Develop post-campaign budget and staffing plan
Share post-campaign plans with key volunteers and constituencies
Prepare final campaign report to stakeholders
Celebrate success!
Phase 7: Post-Campaign Shifting direction but maintaining momentum…and preparing for next one
Post-campaign plan goes into action to sustain a heightened level of philanthropic support
Major gift fundraising becomes the norm Annual giving should benefit from a
post-campaign “bounce” Volunteers are dismissed or re-directed
to other tasks (with appropriate thanks)
Phase 7: Post-Campaign Shifting direction but maintaining momentum…and preparing for next one
Advancement programs sharpen their focus as a result of lessons learned during the campaign
Institution continues to steward and engage the campaign’s donors and volunteers
Write a retrospective analysis of the campaign
Start thinking about (gulp) the next campaign
Phase 7: Post-Campaign Shifting direction but maintaining momentum…and preparing for next one
The cycle begins again with a new vision: Strategic planning New goals and aspirations New potential donors Need for clear articulation
6 Objectives of Successful Campaigns
By Bill McGoldrick, Washburn & McGoldrick
1. Exceed your financial goal2. Strengthen your infrastructure and build
campus support for the fund-raising process3. Create an enthusiastic, educated cadre of
volunteers4. Increase institutional unity and morale5. Enhance your institution’s external
reputation6. Position yourself for success in the next one
Some Issues to Consider…
“Vapor campaigns” Campaign fatigue Are campaigns still special? Are we just dressing up “business as
usual” as a campaign? Are we leveraging our investments in
campaigns? Have the numbers become so big that
they don’t seem real—a campaign “arms race”
Want More Information? We’d be pleased to help!
If you’d like a copy of this presentation, or want to talk further, please leave us your business card at the end of the session or send us an e-mail:
Trish Jackson, (413) 585-2667 or [email protected]
Mark Jones, (920) 265-0851 or [email protected]
Available Resources Copies available upon request
Sample gift tables Gift acceptance
policies Counting
standards Stewardship plans Sample receipts ROI measures Calculating # of
staff needed
Campaign reporting formats
Pledge forms Faculty/staff
campaign plan Peer comparisions Sample mission
statements And more…just ask!