Yes, Small Shop Nonprofits Can Do Capital Campaigns Too!

In the world of nonprofit fundraising, capital campaigns are often seen as something for the big leagues only — complex, high-stake projects that can feel out of reach for smaller organizations.

But what if I told you that even small shop nonprofits — those raising less than $1 million per year in non-campaign years — can not only embark on capital campaigns but can also succeed spectacularly at them?

Yes, you read that right. Small shops can, and do, launch successful capital campaigns.

The notion that only large nonprofits can conduct successful capital campaigns is a myth that needs busting.

Many small organizations, even those undertaking their very first campaign, are finding success in reaching ambitious fundraising goals.

Yes, Small Shop Nonprofits *CAN* Do Successful Campaigns

The findings of our inaugural State of Capital Campaigns benchmark study showed that small shops demonstrate remarkable campaign achievements; and even out-performed their larger counterparts in a few areas.

We asked nearly 300 nonprofits in the US and Canada, all in various stages of a capital campaign, a series of questions about the planning and execution of their campaigns.

Because we also asked each respondent their annual revenue in non-campaign periods, we were able to compare and contrast small shops to the rest of the field.

Here are a few ways small shops stood out from the crowd.

Goal Attainment and Success Rates for Small Shop Nonprofits

Despite smaller goals, small shops maintained the same high success rate as their larger counterparts, landing in the high 90th percentile. The average amount raised in small campaigns was $3.5 million, compared to $11.4 million amongst all other respondents. As our colleague Andrea Kihlstedt likes to say:

“The only difference between 3 million and 30 million is the amount of zeros at the end of the number.”

One unsurprising finding from the study was that a majority of these small shop campaigns were the first in the organization’s history. This leap into capital campaigns represents a significant step towards growth and maturity, and actually generated some benefits not seen in their larger peers.

Campaign Challenges and Benefits for Small Shop Nonprofits

We asked survey participants to list the biggest challenges associated with their campaign, as well as any benefits to the organization besides dollars raised.

Three Key Campaign Benefits for Small Shops

While the overall averages of the entire pool of respondents was consistent, there were some interesting differences between small shops and everyone else.

1. For example, small shops reported building higher levels of major donor relationships and making more improvements to their fundraising systems than the rest of their peers. These are tangible illustrations of how capital campaigns can catapult small shops to a new level of operational maturity.
2. If a small nonprofit is embarking on their first campaign (as our data shows) the campaign likely acts as a catalyst for the organization to engage with donors in a way they never have before (especially if they do a feasibility study) .
3. A campaign also a way to “skill up” small shop employees who, like their organization, may be experiencing their first campaign.

These improvements are lasting benefits that extend well beyond the campaign itself, setting the stage for future growth.

Two Key Campaign Challenges for Small Shops

However, it’s not all smooth sailing for smaller nonprofits.

1. Small shops reported slightly higher levels of delaying their campaigns due to the pandemic and because of economic uncertainty.
2. Small shops were also less likely to have a campaign budget.

Though small organizations may feel anxious about their first capital campaign, they will be more successful if they move forward with confidence and invest appropriately in their campaigns.

Role of the ED and Board at Small Shop Nonprofits

The active participation of an organization’s leadership is pivotal to their success. And many small shops shined in that way during capital campaigns.

Their Executive Directors and Board tended to be more involved in the fundraising process, providing a personal touch that can make a significant difference in donor engagement and ultimately, campaign success. This involvement is crucial, especially considering that for many small shops, the campaign might be their first foray into major fundraising endeavors.

For small shop nonprofits considering a capital campaign, the key is preparation and understanding that the principles of success are the same, regardless of size. This involves thorough planning, from readiness assessments to developing a compelling case for support, engaging with your board and community, and leveraging your unique strengths to build meaningful donor relationships.

Capital Campaign Pro’s free resources offer comprehensive guidance through this process, emphasizing the importance of a strategic approach tailored to an organization’s specific context and needs.

Yes, Your Small Shop Capital Campaign Can Succeed Too!

Though it can be intimidating, small shop nonprofits shouldn’t be daunted by the prospect of a capital campaign. Your organization can not only undertake a capital campaign, but can achieve remarkable success — provided you have:

• The right preparation
• A clear, bold vision
• And a commitment to engaging your community deeply

The journey will require hard work and dedication, but the rewards — expanded capacity, stronger relationships, and the realization of ambitious projects — can redefine what’s possible for your nonprofit.

So, YES — small shop nonprofits can do capital campaigns, and they can do them exceptionally well!