It’s all in the planning!
By Renetta Holloway
Great news! Your Board of Directors has just approved a capital campaign. Your members/students/alumni/staff/athletes are finally going to get the brand-spanking new shiny building/facilities/equipment/future they so richly deserve. Fantastic! So, why are you trembling and your knees knocking together? Isn’t this what you have been asking for? Oh, you’ve never been involved in a capital campaign before. Got it. Or maybe you’ve been through the capital campaign process, but it didn’t go so well, or it was just really, really hard. Yep, got that too. In the following paragraphs, we’re going to unpack your next four plays to put you on sure footing for your most successful campaign ever.
First Play: Define Terms
Before you begin any new major project or process, it’s important to step back and make sure you and your team all have a clear, shared understanding the fundamentals and that everyone is using the same definitions. Let’s start with the very basics… What is a capital campaign?
Some have described a capital campaign as a major gift campaign on steroids. A capital campaign is a focused fundraising effort that takes place over a defined period, usually to raise money for new specific “big ticket” things including new construction, building renovations, endowment (general and restricted), new programming initiatives, or as some would say, the bricks-and-mortar campaigns.
Looking at capital campaigns from the outside, it might seem like they are not exactly common occurrences. There can appear to be a “locust effect” to campaigns: it seems like they don’t happen all that often; they arrive in what feels like a deluge, and then they’re gone, leaving everyone to heave a sigh of relief.
You may be wondering what makes it different from regular campaigns, like the annual giving campaign. Typically, there are two overarching phases for capital campaigns: the quiet phase and the public phase. In the quiet phase, expect to raise 50% to 70% of the funds through major gifts strategies. In the public phase, the remaining funds are raised by soliciting smaller gifts from a larger population of donors.
When you think of fundraising, the annual giving campaign is like a sprint occurring each year versus the capital campaign which is more of a marathon occurring over multiple years. In prospecting, the annual giving campaign donations will likely be based on the donor’s annual income versus the capital campaign which is generally viewed as coming from the donor’s assets – i.e., it may be a larger, potentially transformative gift. The donations to an annual giving campaign are used for general operations and generally not targeted to fund specific projects, as opposed to a capital campaign gift in which the donor knows exactly what they’re helping to accomplish. Keeping these things in mind could be the difference between a $5,000 gift versus a $5,000,000 gift.
Finally, in defining terms for your campaign, you must set clear goals. When you think of goalsetting for a capital campaign, many people tend to underestimate the need with an underlying belief and anxiety that they can’t raise more. To plan for a successful campaign, remember to:
Count the complete costs of what you want to fund. Make sure to include all potential expenses, such as real estate, design, construction, insurance, interim financing, equipment and furnishings, administrative costs, consultant and legal fees, and general campaign expenses.
Consider the potential impact of realizing your campaign goals. A capital campaign is about increasing your organization’s impact and catapulting your organization to the next level. Think expansively as you do this early work on your campaign goal. This is the time to be inspired by your dreams, not hampered by your fears.
And you might want to consider including endowment funds in your campaign goal, too. Remember, this is a draft goal that will be tested, cleared, and accepted by the board and campaign committee.
Second Play: Get the Board on board
When it comes to the board… Board members are often afraid of fundraising.
That’s because they think it’s all about “asking” rather than building long-term relationships and that fundraising is the primary role of the development team. Now’s the time to reset those expectations.
You must help your board members understand that fundraising is not just your role but EVERYBODY’s. Also, help them understand the fundraising cycle and acquaint them with the many ways to support the campaign that do not require them to make a direct “ask” of the donor.
Here are a few roles board members can – and should - play in your campaign:
Help to identify prospects.
Find ways to gain access to major prospects and schedule meetings with them.
Make introductions for the staff.
Have “listening” conversations with prospects to find out their hot buttons.
Host small socials and cultivation events.
Make thank you visits or send thank you notes to donor prospects.
Find ways to engage prospects before the ask.
Next, help board members understand the capital campaign strategy – and the donor pyramid. Specifically, explain clearly how a few leadership gifts (e.g., 20 gifts from 20 people) will account for most of the money raised in your campaign. Once board members understand that the campaign is focusing on just a few people for deep cultivation, then they are often more willing to get involved in relationship development efforts.
One way to bring board members along is to engage them in discussions about fundraising and how capital campaigning works. Consider inviting board members to a learning session… they generally like learning new things and the tools to make them successful. Engage them in discussions (not another PowerPoint presentation where they sit back and listen and then let you do all the work in the campaign, please!) that allow them to incorporate the knowledge into their own experience.
Here are a couple of ways a former colleague shared with me to engage them:
Ask board members: “What is the board’s role in this capital campaign?” When confronted with this question, it is hard for a board member to evade responsibility.
Break the board members into small groups and ask each group to come up with five different activities that board members can do to support the campaign.
Here are a few other things to consider that may make all the difference in the world when relating to and working with your board during the capital campaign:
Start using words that imply “team.” Stop using the words “I” and “you” and start using the word “we.” (Sometimes staff talk to the board members in these terms: “I need you to do this and this…” or “I can’t do all this by myself” instead, start saying, “We need to do this” and “How are we going to get this done?”
Get a knowledgeable and supportive board member or two on your side. It may be easier to rally the board members to the capital campaign cause through other board members. They can speak as equals/peers to the other board members.
Go ahead… “hide behind” a board member or two – and let them speak to and rally the troops.
Third Play: Go Prospecting
Developing the right constituency is REALLY where FUNDraising and FRIENDraising begins…
Ideally, the staff will set out to determine the “prospects,” or prospective contributors, volunteers, and solicitors. So, the constituencies are the same as the prospects, right? Yes, but there are two types of constituencies… prospects and suspects. These are two important terms to know in planning a capital campaign.
A prospect is ready for solicitation. A suspect is ready for cultivation, maybe.
Generally, discussions among staff and fundraising committees about potential donors are often focused on a well-known, influential person who is perceived to have considerable assets. This is particularly true when seeking a very large gift. Staff and committee agree that this person should be seen IMMEDIATELY. But no one knows or has access to this person. If there is no access, this person is not a logical candidate for the larger gift level. There is no access because there is no LINK to the person. Therefore, this person is not a prospect, but a suspect. Time devoted to soliciting a suspect for large gifts is time wasted. Instead, consider inviting the person to make a small gift as a beginning strategy to involve this person in the mission of your organization and begin developing a relationship.
A concept I found to be helpful is the L-A-I principle. This is helpful in determining the prospects and the suspects in the prospect identification process.
L – Linkage: The linkage relates to a contact, a bridge, or an access through a peer to the potential donor. Obviously, if there is access to the gift source, then this link makes it possible to arrange a meeting to discuss a potential gift.
A – Ability: If through research the potential gift source has sufficient discretionary holdings to justify a solicitation at the appropriate gift level or gift range, then the prospect’s gift capability is a reality.
I – Interest: Interest in an organization and understanding of its mission and accomplishments are imperative in the identification of valid prospects.
The L-A-I principle is key when separating prospects from suspects. The elimination of just one of the three principles will invalidate the process and reduce the gift candidate from prospect to suspect.
Getting to know your suspects, which is a separate body of work, is called the discovery process. The idea is to determine if the suspects are really going to be a prospect. But, of course, not all suspects will turn into prospects. Through both research and communications with the person, try to figure out where they stand. And then you want to nurture them through this discovery phase.
Fourth Play: Assemble your Team
If you want your campaign to be successful and keep it humming along, you’ll have to invest in it, right? Correct… you must assess your staff to make sure you have the right people doing the right tasks to fully support the capital campaign. You might find that your current roles need to be modified or you need to hire additional staff.
You simply CAN’T do it all yourself. Your campaign will suffer. You will burn out. And the details won’t be right. It is likely that you will need additional staff to help with your campaign. It is unrealistic to think that you can raise millions of dollars (above and beyond the usual annual campaign) without increasing the capacity of your staff. Capital campaigns require a lot of work — including time and effort. Some organizations hire additional administrative staff to free up the executive director and the head of development so they can spend more time on the campaign. Others hire a campaign director or manager, and/or campaign consultant.
You can raise the money to invest in your campaign through your campaign. That’s right. You can add this cost and other campaign expenses to your campaign goal. So, don’t cut corners on getting the support you need. Whatever your needs, don’t be anxious about spending money to raise money for your capital campaign. That’s an investment that will pay off in many ways. In fact, it will free you up to spend more time with your donors.
A colleague of mine managed a small development shop with just a couple full-time staff. That left the main campaign team with the Executive Director, Board Chair and Development Director to shoulder the bulk of the work with major donors. After all, major donors who make capital campaign-level gifts expect to meet with your organization’s top leadership! So, rather than hiring a high-level Campaign Director, it might make more sense to bring on a good Campaign Coordinator.
My colleague found that capital campaign support was INDEED a full-time job and that there was a myriad of tasks required to make a campaign look and feel seamless. With a skilled person supporting the campaign, the leadership can spend most of their time focusing on the all-important work of building relationships with your donors and… yes …asking them for gifts.
With a good Campaign Coordinator, you’ll know that the many small pieces that are necessary for a good committee meeting, effective donor meetings and everything else you need will not just get done–but will be done well. You’ll have the confidence to spend more time with donors! And your donors will feel confidence in you and their support for your organization.
Your Campaign Coordinator will:
Support all your work with major donors
Manage the work of the campaign committees
Organize and update campaign materials
Acknowledge and track campaign gifts
Make sure campaign progress reports are up to date and that the naming opportunities list includes the very latest “sale”
Handle all the arrangements for donor cultivation meetings and small campaign events, so everyone feels well cared-for
Many campaigns get bogged down because there’s no one to take care of the details.
A great donor meeting goes nowhere because no one follows up.
Thank you letters take days or even weeks to get out.
A committee meeting flounders because the material wasn’t well-organized or wasn’t available.
Volunteer solicitors who were willing in the beginning, become disenchanted when they realize that they aren’t getting the materials and support they need.
Your already overworked staff threatens to leave because of the extra burden of the campaign.
Don’t let these things happen to your campaign!
Choosing to embark on a capital campaign can be highly rewarding, but the decision should be made with the utmost due diligence and care. To conduct a capital campaign, you will need infrastructure and tools as well as a solid campaign plan. Your organization doesn’t need to be perfect, but you should have a solid understanding of your strengths and weaknesses so that you can fill in any gaps and be ready to launch and sustain your capital campaign, working through each stage for the betterment of the organization and the community it serves.
What is your Fifth Play?
Now that you’ve defined terms, engaged your board, identified prospects, and assembled your team, you are ready for your next step toward a successful capital campaign. For a free thirty-minute exploratory conversation to talk about Play Five, email us your most pressing questions and preferred dates and times. We look forward to hearing from you. Let’s talk.
About Renetta Holloway
A leader of many successful fundraising campaigns, Renetta Holloway brings over 25 years of resource development experience in greater Philadelphia and beyond to the Dunleavy & Associates team. She has led teams at the United Way of Greater Philadelphia and Southern New Jersey, Pendle Hill, and UNCF. Renetta works to elevate and focus development departments by recruiting and growing strong talent, creating mission-driven development strategies with a pathway to success, and building an organization-wide culture of stewardship.
She is a member of the Association of Fundraising Professionals and she is active in various community service capacities. Renetta received her Bachelor of Science degree upon graduation from North Carolina Central University in Durham, North Carolina and she is a member of North Carolina Central University Alumni Association.