Is a Capital Campaign Right for Your Organization? 6 Key Questions

If you’re thinking about a capital campaign for your organization, you should put yourself through this little checklist to make sure a campaign is the best way for you to raise money now.

Capital campaigns are among the most powerful form of fundraising, but they are not right for every organization. And to conduct a campaign that is likely to fail or undermine your annual fundraising is bad idea.

6 Key Questions to Ask When Considering a Capital Campaign

Check your situation against the six questions below before you decide to move forward. If you answer YES to all six questions — by all means, move ahead and start your campaign planning.

However, if you answer NO to one or more of these questions, stop and reconsider whether a capital campaign is the best option for you right now.

Question 1

Does your organization have something specific and exciting to raise money for that is not a recurring expense?

Capital campaigns are fueled by projects that enable an organization to do more good. Sometimes the projects themselves aren’t all that exciting. But once they’re completed, the organization will be able to serve more people, more effectively. The promise of the increased impact their gift will make inspires donors to give generously.

So, don’t conduct a campaign unless you know that the money raised will have a compelling impact.

Question 2

Can you identify ten people who are current supporters that you could approach for a large gift (relative to your campaign goal)?

Capital campaigns are structured to rely heavily on a few large gifts. The top gift to a campaign usually constitutes 25% or more of the campaign goal. And at least half of the campaign goal will come from ten gifts.

Because more of the top gifts to a campaign will come from people who already give or have a relationship to the organization, your ability to identify at least ten potential top donors before you begin a campaign is an excellent indicator of your chances of success.

Conversely, if you don’t know where most of these top gifts are likely to come from, then you are probably not ready for a campaign.

Question 3

Do you have a history of fundraising and the staff and systems to support it?

Most people who make large capital campaign gifts have been giving to the organization for some time. Through their lower level, recurring gifts, they come to trust the organization and its leadership.

In most organizations, building a strong and trustworthy relationship with donors over years requires a solid fundraising program with capital staff and effective and structured development systems.

If you are just starting out in fundraising, a capital campaign is probably not the best way to begin. Start instead by creating an annual giving program through which you can develop ongoing relationships with your donors.

Question 4

Does your board know about and support your plans for the project that will be funded by a campaign?

Boards play two important roles in capital campaigns:

1. First and foremost, board members must know about the project(s) to be funded and must be fully supportive of the plan.
2. Second, board members should understand their roles in capital campaign fundraising and be willing to take on those roles.

Don’t move forward with your capital campaign until your board is fully behind the idea.

Question 5

Is your organization financially sound?

The most effective capital campaigns are undertaken by financially-sound organizations. The organization must be strong enough financially to be able to justify the growth that will be fueled by the campaign.

If your organization is on the verge of going under, do not consider a capital campaign to save the organization. Campaigns of that sort are seldom successful.

Question 6

Do you have at least 18 to 24 months to plan and execute a campaign before you need the money that will be raised?

Capital campaigns should be complete before the project they fund is fully complete. Once the ribbon is cut and the new program or project is fully functional, it will be more challenging to raise money for that project. So, plan your campaign far enough in advance so you can reach your goal before your project is complete.

Don’t consider a capital campaign for a short-term fundraising process. Most campaigns take 2-3 years to complete. So, if your project will be done in four months, a capital campaign is not the best strategy for you.

If You Answered ‘YES’ to All 6 Questions…

Successful capital campaigns are among the most remarkable and effective form of fundraising. And if your organization has answered YES to all of the questions above, then you should begin to get ready for a campaign. Assessing your campaign readiness is a great first step.

Additionally, if you think you’re ready for a campaign, schedule a free strategy session with someone on our team to discuss your campaign. We’d be happy to review your campaign plans with you and help you set yourself on the road to success.