Imagine you lead a small environmental conservation nonprofit. You want to renovate its outdated facility or purchase new equipment. All signs seem to point toward conducting a capital campaign, but you feel hesitant. Shouldn’t your nonprofit grow a bit more before diving into such a big endeavor?
Actually, no. It’s a major misconception that capital campaigns are only achievable for large organizations with mountains of fundraising revenue and sophisticated operations. In fact, a campaign fuels growth, helping you scale up your organization, improve your fundraising systems, and strengthen your community.
As long as your nonprofit has an existing base of support, including those who can make transformational gifts, you can achieve capital campaign success. The only difference is the amount of zeroes in your goal!
Of course, you’ll need to prepare thoroughly in order to succeed with your campaign, especially if this is your first time taking on a project of this magnitude. In this guide, we’ll explore how you can get off to a strong start. Let’s begin.
First Things First: Understand the Research
A recent report on the state of capital campaigns provides some useful information about what capital campaigns look like for small nonprofits (defined as organizations that generate $1 million or less in annual revenue). Here are some exciting findings and what they mean for your capital campaign journey:
- On average, small nonprofits raise $3.4 million during capital campaigns. It is totally possible for your organization to set a lofty financial goal for your capital campaign and achieve it. Setting your goal is one of the first things you’ll do when preparing for your campaign, and you’ll test that goal during a feasibility study and adjust it as needed.
- Small nonprofits report higher levels of major donor relationship building and fundraising system improvement during capital campaigns. Remember, a capital campaign is a growth opportunity. It’s a time for you to connect with your major donors (or potential major donors!) on a deeper level and to establish more sophisticated fundraising strategies. Don’t be afraid to roll out improvements to your operations during a campaign—it will benefit you on your way to meeting your goal and beyond!
- Executive directors and board members are typically more deeply involved in capital campaigns for small nonprofits. As a smaller organization, your team and leadership are likely more close-knit than those in larger organizations. Since capital campaigns require buy-in and assistance from everyone on your team, this is a blessing—take advantage of leadership’s investment, especially from board members. They should not only be making gifts to your campaign but also assisting with fundraising and other tasks.
Unfortunately, research shows that it is less likely that a small nonprofit will hire a consultant to engineer their campaign. Traditionally, nonprofits work with external fundraising consultants who plan and direct the capital campaign for them. Small nonprofits should not be afraid to make this investment, as it can pay great dividends through the amount raised in a successful campaign. Working with a campaign advisor who guides you through the process but keeps your team at the helm will set your nonprofit up for future success.
These insights should get your team excited about running its campaign! Not only is a capital campaign totally within your reach, but so are exciting learning opportunities, organizational improvements, and more.
Now, let’s dive into some specific tips for planning your campaign.
1. Create a compelling case for support.
According to Capital Campaign Pro, a case for support is “a clear and compelling set of ideas that literally make the case for why donors should give to your capital campaign.” In the early phases of planning your campaign, you will develop a case for support draft that outlines the following:
- The challenges your organization is currently facing
- How your campaign will help you overcome your challenges and better serve your community
- Why your nonprofit is qualified to accomplish the campaign
- Why the campaign needs to happen now
- How much you need to raise to complete the project and how you plan to raise that money
- How donors can contribute to the campaign
Keep in mind that you’ll typically refine your case for support as you work through the early planning stages of your campaign, especially the feasibility study. As you polish it up, work to improve it as a public-facing document. Lean into storytelling and include emotional appeals to encourage campaign support.
Eventually, your case for support will serve as a foundational messaging system your entire team can draw from when actively campaigning. Depending on your plans, it will likely take several forms over the campaign, such as a campaign brochure, a social media campaign, and more.
2. Test your initial campaign plans with a feasibility study.
To gauge how realistic your campaign financial goals are, how well your case for support communicates the need for your campaign, and how much initial support you have from key stakeholders like major donors, you’ll need to conduct a feasibility study. This will involve meeting with stakeholders and getting their thoughts and advice on these campaign elements.
Traditionally, nonprofits rely on their fundraising consultants to conduct feasibility study interviews for them and report their findings back to their boards. However, this hands-off approach actually results in your team missing out on valuable face time with donors and other stakeholders.
Instead, consider trying a guided feasibility study. During this process, you’ll be guided by an experienced campaign advisor but meet with your donors yourself. This gives you the chance to touch base with them and get a full view of their perceptions of your organization and willingness to commit to supporting the campaign.
Typically your organization will either discover that it’s good to move ahead with its initial plans or needs to make some adjustments to its campaign plan before proceeding. If you need to make changes, stay optimistic and open to your stakeholders’ suggestions—ironing out issues in your plan early on will help you stay on track for success later in the campaign.
3. Engage your board.
Even though the research about small nonprofits shows that your board members may be more inclined to lend a hand with your campaign, you still need to take steps proactively to engage them in the process. Here are a few tips to ensure their active involvement:
- Get them on board with the project early on. Without your board members’ buy in, your campaign will struggle to get off the ground. When you know that you’d like to start preparing for a capital campaign, present your initial ideas and preliminary plans to the board to secure their support.
- Remind them of their obligation to provide a gift. Every board member should remember from their orientation that one of their responsibilities is to give gifts to the organization. Remind your board members of this and encourage them to give a gift that is personally significant to them.
- Get them involved in additional activities. Much of the time, nonprofits will have their board members get involved in the fundraising process. If this is what you wish to do, make sure to provide them with some training in how to connect with donors and make convincing and successful fundraising appeals. Board members may also advocate for the campaign in their personal and professional circles, lead a campaign committee, attend campaign events, and more.
Capital campaigns are all-hands-on-deck endeavors, so use these tips to get your board involved from day one. This will also give board members a chance to deepen their commitment to your cause and possibly share their expertise in different ways as you work toward your campaign goal.
As a small nonprofit organization, you have nothing to fear when it comes to considering a capital campaign. These projects are daunting, but you have the power to reach your goals and experience a wealth of benefits by conducting one. Use the guidance above to start preparing for your campaign!