It’s understandable if your not-for-profit has been putting off launching a capital campaign — despite having grand plans to build a new facility, make major purchases or expand a key program. After all, myths abound about the risks of pursuing such large fundraising projects.
According to the Association of Fundraising Professionals, included in these myths are that only big, established nonprofits can hope to be successful and that capital campaigns aways cannibalize on annual fundraising. Neither of these are necessarily true. So long as you plan carefully, choose the right leaders and communicate your goals forcefully, you can execute a rewarding capital campaign.
Vision and stamina required
Capital campaigns typically are long-term projects of three or more years. To carry out yours, you’ll need a champion with vision and stamina. Consider board members or look to leaders in your greater community with:
- A fundraising track record,
- Knowledge of your nonprofit’s mission,
- Familiarity with current issues that affect your organization’s work,
- The ability to motivate others, and
- Time to manage projects and attend meetings and fundraising events.
Your leader will need a small army to achieve capital campaign goals. Volunteers, board members and staffers will be required to raise funds through direct mail, email solicitations, direct solicitations and special events. If you need more help, look to like-minded community groups and clients who have benefited from your services.
Securing significant gifts early
Traditional fundraising wisdom holds that you shouldn’t go public with your campaign until you’ve secured significant “lead gifts” from major donors. It’s generally easier to solicit donations under $1,000 from the public after you’ve already landed several large gifts —typically equal to 50% to 65% of your total fundraising goals.
To secure these initial gifts, identify a large group (for example, 1,000 individuals) to solicit. Draw your list from past donors and event attendees, local business owners, board members, volunteers and other likely prospects. Then narrow that list to the 50 or 100 largest potential donors and talk to them before reaching out to the rest of your list.
The right message
Pay particular attention to how you craft your message. Make sure your financial goal is achievable and your plan for spending the funds raised can capture the imagination of supporters.
Potential donors must see your organization as strong and capable of innovating and thriving well into the future. However, they also need to know that your nonprofit is the same, steady group they’ve championed for years. Instead of focusing on what donations will do for your nonprofit, show potential donors the impact on their community. Regularly report gifts, track your progress toward reaching your ultimate campaign goal and measure the effectiveness of your activities on your website and social media accounts.
Analyze financial aspects first
The Association of Fundraising Professionals argues that “unfounded fears and self-doubt” may be the most serious obstacles to launching a capital campaign. Contact us if you need help analyzing the financial aspects of such a project.
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