So You Think You Want to Do a Capital Campaign

Over the years, I have noticed that being a veteran of a capital campaign tends to bestow a badge of honor on executive directors and directors of development. And so it should be. Successfully completing one is a very significant – and exciting – accomplishment for the key people involved. Especially for those new to the process, they are far more demanding than is usually anticipated. Here I offer a short primer on capital campaigns so that if you are dreaming of one, you can also start planning for one.

The Purpose of a Capital Campaign
In general, any capital campaign is undertaken to raise money for a project that is especially important and beyond the bounds of what could be expected to be accomplished through the “ordinary” generosity of people’s annual giving. The organization is asking its supporters to make an extraordinary gift in order to realize something extraordinary. This is the very first challenge in planning any special campaign. The desired outcome needs to be realistic enough to be attainable and yet grand enough to be compelling

A General Outline of a Capital Campaign
A “capital campaign” really is a campaign. It has a stated goal and a start and a finish. Within a specified timeframe (often a matter of a few months), there are typically several stages or phases. First is the Feasibility Study in which an investigation is made into what financial goal is reasonable and, more fundamentally, how ready the organization is to conduct a campaign.  Assuming the feasibility study indicates readiness, the Board of Directors must then make a formal decision to proceed with both the campaign and the project that the campaign is meant to fund. Under no circumstances should an organization launch a campaign without the full and formal endorsement of its board.  The feasibility study lays a solid foundation. Nevertheless, a pre-campaign preparation period is still necessary. During this period, a campaign committee is recruited, a campaign calendar is established, various materials are designed and produced, and other key volunteers beyond the campaign are also recruited.  The first actual solicitation occurs during a Leadership Phase. Board members make their commitments at this time, along with other key leaders. 100% participation is crucial. Anything less than total commitment can undermine solicitation efforts later.  Organization leaders next solicit major gifts during a “Major Prospect Phase.” Sometimes called a “silent” or “quiet” phase, the aim is to raise as much as half the goal from a pre-identified, small group of supporters before the campaign goes public.  In what I call the “Membership Phase,” the campaign reaches out to the organization’s base of regular support.  A “Community Phase” runs simultaneously with the Membership Phase. New sources of support from the general public are sought, commonly through special events and targeted mail solicitations.  A “Celebration Phase” wraps up the campaign. It’s a moment of great opportunity in itself in that it can showcase the collective capability of the organization.  The commencement of the actual project is, in a sense, the last phase of the campaign. Supporters need to be kept informed about the progress of the work so that they feel good about fulfilling their pledges.

Requirements for a Successful Campaign
A well-run campaign is an intense, demanding and exciting experience. It touches the life of the whole organization as well as its friends in the broader community. So what are the key elements for success? Essentially, there are four:
1. A compelling case that describes the urgency and the importance of the project;
2. A detailed plan that includes all the phases mentioned above;
3. Diligent and timely implementation of the plan, or – to put it simply – follow-through; and most of all,
4. Sustained commitment on the part of the leadership to focus on the campaign intensively throughout its execution.

Back to the Beginning
Sometimes a feasibility study will ascertain that a capital campaign is indeed feasible. However, for overall strategic reasons, the campaign and the project it is intended to fund may still not be advisable. The study report speaks to the likelihood of success if an organization were to proceed… But the organization’s leaders must decide if they want to proceed and whether or not they are truly committed to doing what it will take to succeed.