CRAWL BEFORE YOU START RUNNING & TALKING

Recently I spoke with a representative of a non-profit who mentioned that their organization planned to conduct a $200 million capital campaign. Prying into their planning would have been impolite, however, it reminded me of Barack Obama’s recent joke: The campaign for the Democratic presidential nomination has been going on so long, babies have been born, and they’re already walking and talking!

A capital campaign, an organized, intensive fundraising effort to secure extraordinary gifts for a specific goal (bricks and mortar, cash reserves, endowment funds) during a precise period of time, is similar. You can’t overlook the gestation period -- in Obama’s case, the primary. When contemplating a capital campaign, don’t overlook the feasibility study!

A thorough examination of the ability and willingness of an organization’s community to provide the requisite leadership and funds to make a capital campaign successful is a different animal than annual fundraising planning. Organizations usually have a history and a mission statement, a strategic plan, leadership that concurs with fundraising programs, development staff to lead activities from the rear – components necessary for conducting normal fundraising. But, when deciding whether and/or when to conduct a capital campaign, determining feasibility is crucial. Skip this step and all else will very likely fail.

An organization must amass as much relevant information as possible on, about and from valid stakeholders: the prospective individual donors, foundations, corporations and government entities who will affect the outcome of a campaign. As Hank Rosso, founder of The Fundraising School, noted, “Their level of loyalty and commitment can be an essential factor in the nonprofit’s decision to implement or to delay the start of a much-needed capital campaign.”

A parallel question when designing a feasibility campaign is the question of whether an organization has experienced staff available or whether it is better to hire outside counsel. Having been staff and consultant, the advantages of using competent outside counsel exceed any possible detriment. First and foremost is that prospective participants will speak with more forthrightness given the confidentiality afforded by outside consultants. Additionally, third parties bring greater objectivity.

It is profoundly important to clarify how an organization is viewed in the eyes of prospective donors, to know whether a community understands the importance of the proposed capital campaign and has the ability to support such an endeavor, to determine if there is adequate access to sufficient financial resources, to assess organizational infrastructure and human capital to conduct a campaign, to assure the organization’s need can inspire prospective donors to commit significant contributions well before a campaign is launched.

If you would like information on capital campaigns or on hiring campaign counsel, feel free to call me: 847/227-7174.