Managing Your Capital Campaign: Top Mistakes to Avoid
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If your nonprofit wants to renovate its facility, purchase costly equipment or conduct a large-scale project, you might be considering a capital campaign.
A capital campaign is a resource and time-intensive undertaking that can provide great value to your organization when planned correctly. However, many nonprofits rush into it or aren’t well-prepared to tackle the different steps of a capital campaign, leading to lower fundraising results than hoped for.
To make your capital campaign a success, let’s go over some common mistakes to avoid so you can streamline your planning and stay focused on your capital campaign goal:
- Not leaning on capital campaign experts
- Underselling your case for support
- Failing to sync with your stakeholders via a feasibility study
- Asking for major donations without relationship building first
By taking the time to properly prepare for your capital campaign, you’ll be in great shape to lead a winning fundraiser that will deliver the revenue you need to power your mission. Let’s begin.
Not leaning on capital campaign experts
Running a capital campaign requires your team to manage multiple moving parts, from conducting prospect research during the planning stage to hosting engaging fundraising campaigns once you reach the public phase.
You’ll need a robust team to help your nonprofit organize its capital campaign with ease. However, rather than just working internally with your staff and volunteers, it can be highly beneficial to bring in an outside expert, especially if this is your first time running a capital campaign.
A mistake that many nonprofits make is failing to seek out guidance and support from a capital campaign consultant. According to Aly Sterling Philanthropy’s guide to fundraising consultants, an expert with extensive fundraising experience can help your organization throughout the entire planning process and determine if you’re ready to launch a capital campaign. Your consultant can help you answer the following key questions during your feasibility study:
- Is the cause behind your capital campaign compelling enough?
- Does the project make sense and offer a solution to the problem at hand?
- Are your board members and volunteers eager and available to support your campaign?
- Who are your potential campaign leaders and prospects?
- What external concerns may affect your campaign and how can you navigate around them?
- Does the timing make sense for your campaign?
- How much should your organization expect to raise and what should your fundraising goal be?
By working through these questions with your capital campaign consultant, you can proactively address roadblocks and set yourself up for success early. Your consultant can also help you through essential steps of the feasibility study, such as interviewing supporters to gather their feedback and assess how much initial support you should expect to receive. This will also help to create early excitement for your campaign.
If your nonprofit discovers that it’s not ready to lead a capital campaign, your consultant can help you take the necessary steps to optimize your strategic plan and put you in a better financial position. If you are ready, your fundraising consultant can help guide you through the rest of your capital campaign to ensure you cross the fundraising finish line.
Underselling your case for support
Your case for support is a branded document that explains why your organization is running this campaign and why supporters should give. Ultimately, it is the selling point of your entire capital campaign and will make a huge difference in whether you’re able to reach your fundraising goal.
If your nonprofit isn’t able to make a compelling case for support, you might miss out on key support. Your case for support should include the following key elements:
- Your nonprofit’s mission and story, explaining your major milestones and the ones you still hope to achieve
- Your need for this project and the impact this campaign will have on your community
- Your solution and plan so supporters understand how you’ll use their funds and how it’ll make a difference
- The urgency of completing this project to emotionally move your donors to give
- The cost of your project to establish financial transparency and explain how you’ve come up with your fundraising goal
- How supporters can help so donors understand their role in making your campaign a success
It’s essential that your case for support is specific to your organization. By adding in branded elements, like your color scheme and informative graphic designs, you’ll be able to make your case for support more engaging and inviting for donors to read. Plus, pictures such as the building plan of your proposed new homeless shelter or photos of beneficiaries who will benefit from your campaign can make your case resonate with supporters and make them feel more connected to your organization.
Failing to sync with your stakeholders via a feasibility study
Before your capital campaign can begin, you need to assess whether your organization is ready to lead this project. This is where a feasibility study becomes essential. A feasibility study captures opinions and suggestions from your key stakeholders so you can determine the viability of your campaign. These stakeholders include your:
- Volunteers
- Staff members
- Board members
- Major donors and prospects
- Planned gift or legacy donors
- Corporate sponsors
Select stakeholders who have shown their commitment to your cause, from volunteering to donating at your events and campaigns, and are most likely to provide honest feedback that is in your best interest.
During the feasibility study, ensure that your major stakeholders have the opportunity to voice suggestions and different ideas to enhance your success. Your capital campaign consultant can also be helpful in gathering unbiased opinions from your supporters.
Set aside ample time to conduct stakeholder interviews and ask questions like:
- Do you believe this project is necessary?
- What is your opinion on our organization’s reputation?
- Do you think our organization is prepared for this campaign?
- Who should take on key leadership positions for this campaign?
- What questions or concerns might you have?
The right questions can help you gather integral information about whether your campaign will have the support it needs to move forward. Plus, your stakeholders’ feedback will inform your fundraising goal and strategy, helping you set up a productive fundraising framework to follow.
Asking for major donations without relationship building first
If you ask for significant contributions without developing a connection with donors, it’s unlikely that your request will be met. Your major donors’ contributions will make up the bulk of the funding for your capital campaign, so you’ll need to steward strong partnerships by using the following best practices:
- Set up face-to-face meetings. Use this opportunity to get to know your major donors personally. For example, ask them about their family, hobbies and philanthropic interests outside your organization.
- Make personalized donation requests. Your donation asks should be tailored to the individual and sent at the right time in your relationship. This will ensure the donor is likely to act on your requests.
- Express donor appreciation. Make sure to thank your donors for their involvement, especially after they give to your capital campaign. According to Kwala’s guide to donor thank-you letters, a handwritten note can help your donors feel more connected to your organization and eager to give again in the future. Make sure to create a personalized greeting and reference the impact of their donation.
Use prospect research to identify your major donor prospects based on their willingness and capacity to give. Then, spend ample time forming trusting relationships. This will lead to long-term support, even after your capital campaign is over.
Running a capital campaign doesn’t have to be stressful. By setting aside enough time to prepare with your team and working with a fundraising consultant, your nonprofit can boost your success and surpass your goals. Do your research to find a fundraising consulting firm with the expertise and know-how to support your organization through its campaign. Good luck!