6 Reasons to Start a Capital Campaign in a Down Economy

Nearly every nonprofit leader with whom I’ve spoken in recent weeks has questioned whether our current uncertain moment is a good time to start a capital campaign.

My answer is a hard “yes.”

One board member suggested my answer was self-serving. While that may be true in part, this post provides six unequivocal reasons that support my position. Read on.

First, Ask Yourself a Crucial Question

Before considering a campaign, I’d like you to ask yourself an important question:

Is your case for support as strong (or stronger) than ever?

In the current administration, there are many obvious organizational missions under attack. That could make your case for support stronger than it’s ever been. Consider what’s at stake in our current moment:

• Immigrant rights
• Programs supporting women
• Trans rights
• LGBTQ rights
• Healthcare and scientific research
• Access to abortion
• Environmental causes
• Food insecurity
• Higher education
• And so many more

A Current Real-World Example

Here’s an example of a case for support that may not be as obvious.

The other day, I was speaking with the leaders of a science museum. As is the case with many nonprofit leaders, they were questioning the timing of a campaign. One board member asked, “Are donors really going to prioritize a museum?”

The honest answer is, “I don’t know.” And neither does she — until they ask. You can’t assume your donors won’t give until they tell you otherwise.

Remember — your job is to present the strongest case for support and then solicit that support. In the case of this science museum, it’s easy: science is under attack. For people who strongly believe in science and research, science education is more important than ever.

6 Reasons to Start a Capital Campaign During a Down Economy

Here are six reasons you should quell your anxiety and consider starting a capital campaign — even during a down economy and challenging times:

1. The Economy Goes Up and Down

Since the mid-1800’s, the average duration of recessions is 17 months. Over the past 80 years, that average has decreased to only 10 months. While I don’t have a crystal ball, history tells us that there are likely to be ups and downs during your three-to-four-year campaign. As they say, you can’t time the market.

2. The Rich Will Get Richer

Regardless of economic indicators, your lead donors are likely to get richer over the next few years with Trump tax cuts aimed the ultra-wealthy. Not only that, the wealthy also tend to thrive in challenging times. They’re able to buy up stock, businesses, and other assets which others are forced to sell.

3. Donors are Generous

Data tells us that donors are generous in times of need. We saw a surge of donations during the pandemic, as well as during other times of crisis. There’s every reason to believe, once again, donors will rise to the occasion and support the causes they care about.

4. Construction Costs Will Continue to Rise

Yes, tariffs are going to make the cost of construction even more expensive. The cost of construction went up during the Pandemic and hasn’t come back down. The longer you wait, the more expensive your project is likely to be. Again, you can’t time the market, so sooner is almost certain to be better.

5. There is Less Competition

One concern I frequently hear from nonprofit leaders contemplating a campaign is fear of competition from other campaigns in their community. Right now, nonprofit leaders everywhere are considering pausing their campaign plans. And many will pause. The ones who are brave enough to start will have a clear path ahead.

6. There’s Never a Perfect Time to Start

There’s rarely ever a good time to start a campaign. Consider the following truths:

• Your board is never likely to be flush with wealthy, well-connected people.
• There are always elections and political decisions that could quickly turn the tide.
• Construction prices will be high (and will likely continue to rise).
• There will always be other campaigns in your community.
• Natural disasters and other emergencies are always unpredictable.

The list of reasons to wait goes on and on. There’s never a perfect time to start. So, if not now, when?

The Risk of Waiting… and Waiting… and Waiting

Over the last few years, I’ve spoken to more nonprofit leaders than I can count who decided to pause their campaigns due to Covid. Over and over I’d hear them say, “Covid wasn’t a good time to raise money,” — despite our urging to the contrary.

And yet, the organizations that kept their campaigns going during the pandemic are long finished. Those who postponed are just getting started now… during yet more uncertainty.

We live in tumultuous times. And your organization’s mission is just as important now (if not more so).

So, the real question is this — three years from now, will you be at the finish line… or (still) just getting started?