NMP 641

Bay Path College

Capital Campaign and Major Gifts Fundraising for Nonprofit Organizations

Dianna M. ParksNovember 2013

What is a campaign?“Campaigns usually grow from some pressing need

that is limiting the organization’s growth.” (Kihlstedt, 2010, p. 12)

Campaign types• Brick-and-mortar – usually straightforward to fund capital improvements• Special project campaigns – less intensive than a larger campaign• Endowment campaigns – best for a well-established organization to build a

lasting fund; good for deferred gifts• Combined campaign – a combination of brick-and-mortar & endowment;

often will provide for an endowment to maintain the capital project• Comprehensive campaign – usually a five to ten year duration for all funding

needs of the organization, with a large goalSource: Kihlstedt, 2010, pp. 4-5

Mental preparation• “The key to a powerful case for support is to write it not from the

perspective of what your organization needs, but to push beyond that and articulate what difference an investment will make in the world. (Kihlstedt, 2010, p. 13)

• “Essential to the ask is knowing as much as you can about the person before making the Ask.” (Fredricks, 2010, p. 9)

• “When you are asking for money, you are not asking someone to give something up, you are giving them the opportunity to invest in your organization and to feel good.” (Fredricks, 2010, p. 17)

• A prospect is “someone you think might support your work. Not just because they might have money but because their interests match those of your organization.” (Hart, Greenfield, Gignac & Carnie, 2006, p. 10)

Readiness assessmentEssential Elements of Campaign Readiness

• involved governing board

• mission, vision, and values

• organizational planning

• an agreed upon statement of campaign objectives

• constituency

• history of giving

• prospect development plan

• information system/database

• communications

• executive team

• potential lead-gift and major-gift prospects

• fundraising leadership

• niche awareness

Source: Kihlstedt, 2010, pp. 24-28

If the organization is shaky in more than one key area, not only will the ride get hair-raising at times, but you’ll need to temper your goals to fit your growing pains. (Kihlstedt, 2010, p. 23)

Before the campaign - prospecting

Discover QualifyInitial

ResearchNurture Track Ask Steward

The Prospect Pipeline

Data mining: discovering records that show particular patterns within a database

Prospect screening: comparing data from database to other data

Prospect review: reviewing lists of prospects with colleagues and volunteers

Source: Hart et al., 2006, pp. 24-29

Campaign Preparation

• Set a campaign goal – 10X annual fund, 2 prospects per top 10 gifts, one donor to give 15% of goal, consistent with peers?

• Create a case statement – why is the project needed, why now, how will the project work, and what will it cost? Must be brief and easily recalled.

• Develop a gift range chart – campaign will depend on top 10 donors; three prospects per gift (on average)

• Conduct a feasibility study – uncover bad impressions in community (if any), test case with loyal supporters, use outside fundraising consultant for in-person interviews

Source: Kihlstedt, 2010, Chapter 3

Campaign Leadership

Selecting a campaign chair is an important decision. This person needs to give an early and impactful campaign gift, and be willing to have his or her commitment be public in order to inspire and attract other donors. Finally, this person will need to devote time to help solicit other gifts and volunteers.

Source: Kihlstedt, 2010, Chapter 4

Campaign Consultants

A consultant will…• be a good teacher• offer firm advice based on experience• keep board focused

A consultant will not…• serve as campaign manager• raise the money• convert all board members into fundraisers

Source: Kihlstedt, 2010, Chapter 4

Campaign Plan

1. Campaign objectives2. Campaign goals3. Case for support4. Gift range chart5. Donor recognition6. Campaign structure7. Campaign policies and practices8. Campaign timeline9. Campaign budget10. Communications plan

Source: Kihlstedt, 2010, p. 146

Pro$pect$

Can bemet

Can be interested

Cangive

Prospects

Rank prospects and apply effort

to those with most potential

Cold – Known capacity, but unknown interest.

Cool – Known capacity, give to similar organizations.

Lukewarm – Known capacity, known to us.

Warm – We think they will give with proper cultivation.

Hot – We know them personally, they are interested, able to make a large gift.

Red Hot – Behavior indicates a major gift is likely.

Hart et al., 2006, p. 144

Cycle of Understanding

Awareness

Commitment

Action

Understanding

Hart et al., 2006, p. 151

1. Awareness: potential donors must know of and understand the cause and the desired outcome.

2. Understanding: potential donors see the work you do and begin to appreciate the issues, problems and challenges.

3. Commitment: when prospects decide to support your cause; emotional buy-in has begun and prospect is ready to be cultivated as a donor.

4. Action: comes only when they are clearly ready and in a position to give.

Asking

Education + Involvement + Cultivation + Inclination + Assets

= THE RIGHT TIME TO ASK(Fredricks, 2010, p. 70)

“The anticipated responses you may receive

should not prevent you from asking if you feel

the time is right, provided the Ask is done with sensitivity

and understanding.” (Fredricks, 2010, p. 186)

Can You Hear Me Now?

Quiet Phase

• Solicit lead gifts• Solicit board members• Solicitations are in-person

and personal• Volunteers are influential

insiders

Public Phase

• Employ special events to announce

• Use media to help spread messaging

• Use variety of methods per prospect type: in-person, phone, mail, online

• Broad base of volunteers

Source: Kihlstedt, 2010.

Stewardship• Every donor should be acknowledged at least three times.

(Kihlstedt, 2010, p. 349)

• The effectiveness of a gesture is based more on the authenticity of the feelings that are motivating it than on the lavishness of the gesture itself. (Kihlstedt, 2010, p. 342)

• Every giver wants to hear that the money they entrusted with your organization and its leadership is having an immediate positive effect and that but for this investment and the investment of others, none of this would have happened. (Fredricks, 2010, p. 223)

• A “yes” now will lead to a “yes” later if you execute a solid stewardship plan for each person. (Fredricks, 2010, p. 227)

• A disciplined approach to gratitude and recognition is a true investment in your organization’s future. (Kihlstedt, 2010, p. 339)

Celebrate!“In a world in which many people measure success by money, people

will see your organization in a new light once you have successfully completed a capital campaign.” (Kihlstedt, 2010, p. 337)

“Your campaign will show you that if you have a clear vision and a compelling case, the money is just a campaign away.” (Kihlstedt, 2010, p. 374)

“Campaign celebrations both conclude the campaign and also begin a new phase in donors’ relationships with the organization… The celebration should thank them for their help and paint a picture of a future exciting enough to get them thinking about wanting to stay on board.” (Kihlstedt, 2010, p. 367)

Cultivate the habit of being grateful for every good thing that comes to you, and to give thanks continuously. And because all things have contributed to your advancement, you should include all

things in your gratitude. – Ralph Waldo Emerson

ReferencesReferencesFredricks, L. (2010). The Ask. San Franciso, CA: Jossey-Bass.

Hart, T, Greenfield, J.M, Gignac, P.M., & Carnie, C. (2006). Major Donors: Finding big gifts in your database and online. Hoboken, NJ: John Wiley & Sons.

Kihlstedt, A. (2010). Capital Campaigns: strategies that work. Sudbury, MA: Jones and Bartlett Publishers.

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