Capital campaigns that end well, start strong.

As we referenced in our recent article, successful capital campaigns begin with a comprehensive planning phase. This phase includes laying out your goals, establishing your strategy, and setting deadlines.

Starting in this phase can feel a bit intimidating, which is why we’ve laid out a set of key questions your team can use to frame your planning efforts.

Answering these questions will help you and your team gain an accurate and clear understanding of the campaign description, size, and scope.

(We’d like to thank Andy Eber at Partnership Resources Group for assistance with this article.)

Questions for Fundamental Planning

Does your organization have a current strategic plan?

Strategic plans are essential to nonprofit success. They provide a host of benefits such as:

• Alignment between staff and team

• Confidence for donors to invest

• Measurable goals

• An actionable path to accomplish the organization’s mission

Your strategic plan isn’t something you set and forget, either. You should revisit and revise as changes occur.

In the Association of Fundraising Professionals (AFP) guide “Getting Ready for a Capital Campaign,” author Linda Lysakowski notes that “It is also crucial that the board ‘own’ or buy into this strategic plan. A good indication of ownership is that the board has developed a financial plan to support the goals and objectives of the strategic plan.”

A current and well-executed strategic plan will help set you up for success in your capital campaign.

What is the clear purpose and scope for the capital campaign?

A strategic plan outlines clear goals for your organization as a whole, but you need an equally detailed vision for your capital campaign.

The more specific you can be, the better. Donor Search defines a capital campaign as “a targeted fundraising effort that takes place over a defined period of time.” Your job in this planning stage is to determine the focus of the targets. Are you planning on building or purchasing a building? Buying some land? Creating an endowment fund? Whatever your targeted purpose and scope is, be sure to be clear and provide as many specifics as possible so you can plan accordingly.

What is the projected time frame?

Did you notice the second part of Donor Search’s definition?

It mentions a defined period of time.

Capital campaigns don’t last forever. Most take 2-3 years to complete, depending on your goal. Having a realistic time frame set at the beginning will help your organization stay on task and work together to keep things moving at a steady pace.

Questions for Funding Goals and Resources

What is the financial goal of the campaign?

This question helps you define the “capital” part of your campaign: how much do you want to raise?

If you’re hoping to construct a building, for example, be sure to include the costs for the project’s infrastructure and planning. Kevin Wallace of Campaign Counsel points out, “Most nonprofits mistakenly only include the obvious costs, like construction. Your capital campaign project budget should include cost estimates for the expenses that follow.”

Remember to also include the cost of managing and leading the campaign itself. As a benchmark, Wallace says that most donors will consider it acceptable for the cost to be 15% or less of the overall campaign goal. He also notes that anything less than 10% is often seen as “very efficient.” The larger the campaign, the smaller the percentage.

Who are the top donors that will provide leadership gifts for the campaign?

In the AFP guide, Lysakowski writes, “It is a proven fact that, no matter what the size of the campaign, 5-10 percent of donors will provide 90-95 percent of the goal of the campaign.”

You probably already have a few top donors in mind that can provide leadership gifts, which is why it’s so important to build and maintain those relationships as part of the quiet phase of the campaign.. Lysakowski says that neglecting those relationships will make it harder to identify, cultivate, and solicit major gifts for the campaign.

Who are the next thirty donors that can provide major gifts for the campaign?

After pursuing and securing key leadership gifts, the next part of the quiet phase is to approach those donors that can provide major gifts.

While a leadership gift may be $500,000, a major gift may be $25,000.

Roy Jones provides some differentiation between leadership gifts and major gifts in this article.

What percentage of your campaign funding will come from charitable donations, bonds, equity, financing, and lending?

Not all donors will simply write you a check. Some will prefer to give through other, more complex gifts such as equity or loans.

Considering and estimating the percentage of these gifts ahead of time will help you manage those funds properly.

Questions for Your Organization’s Leadership and Experience

What is your staff and board’s experience with capital campaigns?

A lack of experience does not necessarily lead to a lack of success. We’ve seen many first-timers lead extremely successful campaigns. However, they also received a significant amount of guidance from experienced campaign consultants. While it is possible to overcome any lack of experience, planning for it will help your campaign succeed.

Is there a strong, committed board of directors in place that will support the proposed campaign?

Acquiring agreement among board members for the need of a capital campaign is an absolute must. Even minor disagreements could become public, which Lysakowski says could cause people to “lose confidence in the organization and the campaign.” There’s too much at stake to risk it, so it’s better to make sure everyone is basically on board before you begin.

Does the executive director have the time and space to engage in a capital campaign?

Running a capital campaign is hard and time-consuming work for everyone in the organization, particularly for leaders.

As an executive director, you will be a fundamental part of the campaign, meeting with donors and overseeing the day-to-day processes. You and your team will need to work together to make sure that you have the time to carry out the campaign.

Who will serve as the capital campaign task force?

A capital campaign task force, also known as a planning committee, oversees a campaign plan.

According to Capital Campaign Toolkit, this is usually a group of 4-6 people that includes:

• Executive director

• Development director (if applicable)

• Board chair

• Campaign chair

• One or two other current and former board members

This group will often work hand-in-hand with a campaign consultant(s).

When the right people are involved in this task force, they will ensure that everything stays on track to accomplish the campaign’s goals.

Will you hire a campaign consultant? If so, who?

Many nonprofits combat their lack of experience or staff availability by hiring a campaign consultant or firm. These specialists offer critical guidance and accountability to ensure success in your campaign.

Picking the right consultant will come down to a variety of factors.

• Resume: According to Capital Campaign Toolkit, “there’s a large spectrum of experience, services, and capabilities available in the consulting marketplace.” If your organization is going to invest, you want to make sure you find the right people who have a proven track record of capital campaign success. .

• Access: Consultants offer different kinds of access. Some meet in person a few days a month; others utilize remote tools. Determining the kind of help you expect will help you find the right consultant.

• Cost: Campaign Counsel says that consultants can range from a few hundred dollars to $30,000, depending on the needs. Figuring out how much you need will help you build a budget for your consultant.

Questions for Operational Concerns

Is there a well-developed budget for a campaign?

Fundraising isn’t free, and budgeting for those costs on the scale of a capital campaign is important. To help you develop your budget, Campaign Counsel has outlined various cost considerations including:

• Acquisition or construction costs for infrastructure

• Testing, zoning, and permitting fees

• Design fees

• Furnishings, fixtures, and equipment

• Consulting fees

• Campaign management

• Indirect costs like promotional material, mailers, and other expenses

Is there high-functioning donor software in place?

Donor database software can help you track and manage your donor relationships. The best ones allow you to:

• Segment prospects into different categories

• Personalize messages and acknowledgment letters

• Track campaign results

• Generate reports

According to Lysakowski, such a tool “is a veritable gold mine” because it allows “the organization to monitor its donor pipeline and take the right steps to keep it on track.”

Can you easily track progress on the campaign?

Having the donor database software in place may help you generate reports, but it’s also important to know the best metrics to measure. Once you’ve got the right numbers in place, you can better monitor your progress and make informed decisions about what needs to change or what practices should be optimized.

Do you have policies and guidelines to help your team accept, record, and acknowledge gifts?

You will likely get various kinds of gift offers from your donors. It’s also expected that you’ll have various people participating in the fundraising efforts. It’s best to set those people up for success by giving them policies and guidelines that address:

• How to accept different gifts

• What kinds of gifts are acceptable

• Where to record the gift, so everyone stays aligned

The board should ensure that these policies are in place, not just for the campaign, but for fundraising in general.

Here is a primer on gift acceptance policies from the National Council of Nonprofits.

Closing Thoughts

Capital campaigns can be one of the most exciting initiatives for any nonprofit. They allow you to dream big and aim high. But for them to succeed, you need to plan well from the very beginning.

Asking and answering the right questions will help you plan your capital campaign so that you can reach those goals that you and your team are so excited to accomplish.