MCC/NFF Workshop - Arts Capital Campaigns (11/08)

Trident Communications Group

THE CAPITAL CAMPAIGN:THE CAPITAL CAMPAIGN:A PartnershipA Partnership

Critical Integration of Facilities Planning, Financial Managementand Fund-Raising Strategies for Successful Capitalization of

Expansion Projects in Today’s Nonprofit Organizations

Presented at a Workshop Conducted byThe Massachusetts Cultural Council and the Nonprofit Finance Fund

Worcester, MassachusettsNovember 12, 2008

Trident Communications Group 2

Getting the Discussion StartedGetting the Discussion Started

Plans for expansion of facilities and programs require a parallel plan for the organization’s capitalization.

Advance project/facilities planning and development of financing strategies should be fully integrated with fund-raising plans early on in the planning process.

Essential details of the expansion program should be settled and confirmed before fund-raising initiatives are undertaken.

Success requires viability, belief, commitment and lots of hard work. The governing board always must take the lead. Everyone in the organization being on the same page is ESSENTIAL for this partnership.


Foundation of the CampaignFoundation of the Campaign

The expansion project must be defensible. The message (organizational “story”) of mission and accomplishment is critical. The case for support must be compelling for the expansion project to have credibility. The governing board must take the lead Everyone in the organization being on the same page is ESSENTIAL for this partnership. The advancement/fund-raising process should be inspirational and motivational. Fund-raising efforts should be productive and FUN, not gruesome tasks! A sense of humor always helps!


NOW FOR THAT SENSE OF HUMOR!

Don’t shoot the horse untilyou’ve learned to drivethe tractor!

Sometimes the old ways are the bestways!

Always keep the horse in front of thecart!


AND SOMETIMES ……….

The old ways work even betterwhen combined with someof the new!

The process of major-gifts fund raisinghas changed in many ways.

Computer technology, improvedcommunication, and researchcapabilities have enhanced results.

At its most basic level, fund raising isstill a person-to-person process.


COMPETING IN TODAYCOMPETING IN TODAY’’SSFUND-RAISING ENVIRONMENTFUND-RAISING ENVIRONMENT

Philanthropy in the USA rises consistently on an annual basis -- always has. $306.39 billion contributed in 2007. Many new nonprofits and worthy causes making the “Ask.” Competition is stiff! Massachusetts nonprofits increased in number by more than 90% since 1996 (27,462 in 2008). All things considered, any time is the “best time” for a major-gifts campaign, if well-prepared. Difficult economic environments do NOT necessarily lead to campaign failure! Periods of economic downturn call for redoubled focus, commitment and effort. A strong case for support and firm board commitment are key factors. Assessment of external environment and internal readiness must come first.


Nonprofit Growth in Massachusetts(1996 - 2004)

0

5,000

10,000

15,000

20,000

25,000

1996 2,584 14,306

2004 4,068 20,882

Foundations Nonprofits

SOURCE: National Center for Charitable Statistics

NOTE: The number of registered nonprofit organizations in Massachusetts grew to 27,462 by October 2008.


GIVING USA 2007 - FROM WHOM$306.39 Billion in Gifts in 2007

(by source type)

Source: The Giving Institute - Giving USA 2008

Individuals$229.03 74.8%

Corporations$15.695.1%

Foundations$38.52 12.6%

Bequests$23.15 7.6%


GIVING USA 2007 - TO WHAT$306.39 Billion in Gifts in 2007

(by recipient type)

Source: The Giving Institute - Giving USA 2008

Religion$102.3233.4%

Unallocated Giving$23.677.7%

Foundations$27.739.1%

Education$43.3214.1%

Human Services$29.649.7%

Health$23.157.6%

Public-Society Benefit$22.657.4%

Arts, Culture, Humanities$13.674.5%

InternationalAffairs$13.224.3%

Environment &Animals$6.962.3%


THE GENEROSITY INDEXRelative Ranking of States by Affluence & Charitable Giving

(Source: Ellis L. Phillips Foundation, 200 Generosity Index)

145550Mississippi

50-40488New Hampshire

49-355015Rhode Island

48-33352New Jersey

47-27303Massachusetts

46-273912Minnesota

531738Alabama

4321042Louisiana

335843Oklahoma

241647Arkansas

INDEXRELATIONGIVINGHAVINGSTATE


A CAPITAL CAMPAIGN:THE BASIC CONCEPTS

• A capital campaign is an extraordinary, extended and intensive major-gifts fund-raisingeffort intended to generate philanthropic support for a capital project designed tosignificantly strengthen an organization’s ability to carry out its mission and conduct itsprograms.

• A capital campaign seeks to solicit major gifts from carefully selected and evaluatedprospective donors in order to support the acquisition or improvement of a significantcapital asset for the organization.

• A capital campaign can be conducted for “brick-and-mortar” needs (i.e., building orrenovating facilities, etc.), special projects (i.e., purchasing equipment or other assets),an endowment fund for future needs, or a combination of such needs.

• A capital campaign is designed to advance the strategic interests of the organization,while annual giving is intended to raise funds for current, annual operating needs.

• A capital campaign must be tied to a project that is justifiably needed and well-defined.• A capital campaign must be “owned” and conducted by the organization’s board.• A capital campaign must be based on VOLUNTEER commitment to the mission.• A capital campaign helps to broaden the organization’s overall philanthropy program.


INDIVIDUAL PROSPECTS:INDIVIDUAL PROSPECTS:MOTIVATIONS FOR GIVINGMOTIVATIONS FOR GIVING

51% I strongly believe in the cause.41% I want to give back.34% I have a sense of obligation.29% I feel I am doing something worthwhile.24% I have the means to give.23% My religious beliefs call me to give.

(Source: Fidelity Charitable Gift Fund)


SAMPLE CAMPAIGN GIFT CHART(A Capital Campaign for $8 Million)

10$500,0002

from 1,450-1,460prospects

between $1,000 and$1,000,000 each

508-509

600$1,000300

300$2,500100

200$10,00045

175$25,00030

100$50,00015

30$100,00010

25$250,0005

10-20$1,000,0001-2

Number of ProspectsRequired

Dollar Range ofRequired Gifts

Total Number ofGifts Required


ARE WE READY FORA CAPITAL CAMPAIGN NOW?

IF SO: Activate and energize the governing

board; Engage professional advancement

counsel; Conduct the needed assessment of the

external environment; Conduct the needed assessment of

internal readiness; Begin the planning process; Organize the needed volunteer

resources; Prepare a budget; Integrate the campaign plan into the

overall philanthropy plan; Anticipate the campaign’s effect on

other aspects of the philanthropyprogram;

Begin the prospecting process.

IF NOT: Engage professional advancement

counsel; Conduct an “audit” of the strengths and

weaknesses of the advancementprogram and resources;

Begin a program of board-building and-strengthening initiatives;

Focus on building strength into theexisting advancement/philanthropy pro-gram;

Place particular emphasis onstrengthening the annual giving pro-gram;

Begin building a program of deferredand “legacy” giving;

Partner with the PR/marketing staff tostrengthen and articulate the organiza-tional “story.”


A FINAL OVERVIEW:CRITICAL FACTORS FOR SUCCESS

A well-conceived project and a strong, well-articulated case for support A committed governing board and senior management Enthusiastic volunteer leadership and a sufficient volunteer corps A well-executed assessment of the external fund-raising environment A carefully conducted internal assessment of campaign readiness A practical plan for dealing with organizational shortcomings A realistic campaign goal and informed objectives An adequate budget for campaign expenses Adequate, internal staffing to support campaign activities Involvement by professional advancement/fund-raising counsel Sufficient sources of identifiable, interested and well-inclined prospects A well-conceived and manageable campaign plan and timeline Appropriate public relations, marketing and communications support EVERYONE IN THE ORGANIZATION ON THE SAME PAGE!


IS EVERYONE ON THE SAME PAGE?(A Discussion of Campaign Goal at a Steering Committee Meeting)

“Excuse me, but is it$100 million in 5years, or $5 millionin 100 years?”


GOOD LUCKGOOD LUCKWITH YOUR CURRENT ORWITH YOUR CURRENT OR

PLANNED PROJECT!PLANNED PROJECT!

Achieve and celebrate your success!

Trident Communications GroupOrganizational Advancement Counsel

56 Augusta Way, Dover, New Hampshire 03820-5014603/749-6547 603/749-6548 [FAX] • [email protected] • www.tridentcg.com

MCC/NFF Workshop - Arts Capital Campaigns (11/08)

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