Capital Campaign 101: Understanding the Basics

P RESENTED BY:R HONDA N EWMAN, N EWMAN C ONSULTING

10/14/17

1

What is a Capital Campaign?

� A capital campaign is "an intensive fundraising effort designed to raise a specified sum of money within a defined time period to meet the varied asset-building needs of an organization"

10/14/17

2

Benefits of a Capital Campaign

üMoneyüAwarenessüLeadershipüMajor DonorsüInternal Strength & CapacityüAnnual Giving

10/14/17

3

Where Will the Money Come From?

üGrants/ FoundationsüIndividualsüCorporationsüOther organizations

10/14/17

4

Charitable Giving Sources

10/14/17

5

Link, Interest & Ability

Max.Gift

Ability

Interest

Link

10/14/17

6

Sample $1M Gift Table

10/14/17

7

How long will the campaign take?

Pre-Campaign Planning 6-9 months

Community Phase 5-6 months

Lead & Major Gift Phase 8-12 months Follow Through

Pre-Campaign Planning• ClarifyObjectives• SetWorkingGoal• IDandEngageProspects• DraftCaseforSupport• ConductFeasibilityStudy Quiet Phase

• ConductBoardCampaign• Initiategrantrequests• DonorCultivation/Engagement• SolicitLargestGifts• PlanCampaignKick-off

Public Phase• Solicitalllevelgifts• SolicitMembershipGifts• SolicitBroad-baseGifts• HostHousePartiesandEvents• Donorstewardship

Follow Through• ThankDonors• Show Donors Impact• FinalCampaignReport

Plan Campaign• BoardApprovesCampaign• EnlistCampaignCommittee• IDMoreProspects• FinalizeCaseforSupport• DevelopCampaignPlanTimeline• CreateDonorRecognitionPlan• DevelopCommunicationsPlan

Campaign Kick-Off• 60%+ofGoalRaised• AnnounceCampaignGoal• AnnounceProgresstoDate• CelebrateSuccess• PressandMediaCampaign

Draft Campaign Timeline

3-4months

Feasibility Study• EngageConsultant• AssessReadiness• RecommendPlan

10/14/17

8

Will We Need a Feasibility Study?

� Tests specific objective and financial goal with key donors and community leaders

� DO not undertake a FS until you have a clear plan for what you want to do and how much is it going to cost and your Board is fully committed.

10/14/17

9

What Role Does the Board Play?

� Campaign will excite and engage or remove those less effective

� Design project structure (project mgmtis different than capital campaign)

� Board determines and approves campaign objectives

� Review and accept policies, regular reports, oversight of campaign progress

10/14/17

10

What about Individual Board Members?

� Every Board member should GIVE that is personally significant and within the context of their means

� Must attend Campaign events� Assist in ways that fit their abilities

10/14/17

11

Donor Cultivation Cycle

Identification

Qualification

Cultivation & EngagementSolicitation

Stewardship

12

Identification – 10%Qualification – 20%Cultivation – 40%Solicitation – 5%Stewardship – 25%

10/14/17

What Will the Campaign Cost?

10/14/17

13

� Smaller than $3M as much as 12-5%; more than $10M maybe as low as 4-5 %

� Expenses include: consultant, materials, campaign events, donor relations, staff…

� Adding campaign expenses to goal� Bridge financing

Will We Need a Campaign Consultant?

� Few orgs have staff and volunteers with experience in capital campaign fundraising

� Consultant will guide through campaign to avoid common pitfalls

� Same consultant for FS as campaign

10/14/17

14

Campaign Success Factors

1. A compelling reason to have a campaign!

2. Engaged donors with capacity to make large gifts

3. Capable leadership and a good reputation

4. Committed Board

10/14/17

15

NEWMANCONSULTING.CA

NEWMANCONSLT

NEWMANCONSLT

Questions

10/14/17

16