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| SEPTEMBER 1998 |
The question-answer format of this guide is designed to help leaders in a nonprofit setting to determine the best course of action when special project funds are to be raised. Whether determining how a feasibility study is done, a case statement is written, a campaign committee is formed, or the length of a campaign, you will find the answers to these important questions in this straight forward guide.
Your nonprofit may need to raise money for a special project that is not part of a capital campaign. It could be for a one-time program opportunity or a building addition. But how do you go about doing this? These questions and answers should help you decide the best course of action.
Q: How do I know whether this qualifies as a capital campaign?
A: Anything over $1 million is generally considered a capital campaign for most mid-sized organizations. Capital campaigns typically include many aspects including buildings, programs and endowment. A special project campaign is generally only for one of these. However, the fund-raising should still be organized as you would for a capital campaign, complete with a feasibility study, board commitment, communications plan, case statement, campaign committee, and prospect lists.
Q: How do I go about doing a feasibility study and how useful will it be?
A: You can hire an outside firm to do the study, but for special projects under $1 million, you may want to do it in-house. There are many advantages to having a feasibility study besides just finding out whether the money can be raised. Other things you will gain are: identifying potential problems with the project; involving people and selling the project; and identifying major gifts and campaign leaders. To write your feasibility study, ask some of your larger nonprofits if you can see the questions used from their feasibility studies, review these and adapt them to your use.
Q: What is the next step after the feasibility study is completed and shows we can raise the money?
A: I cannot overemphasize the importance of involving the board in this campaign and having their commitment to support it - through their own gifts and willingness to ask others. Some experts state that 20% of the gifts in a campaign should come from the board. This may be a frightening figure for many and not all board members can give equally. But all MUST give.
Q: How important is a case statement to the campaign’s success and what is involved in writing it?
A: Your case statement will guide you throughout the campaign. It will help you define your objectives and prepare your communications campaign. Although the case statement is not a marketing piece per se, it needs the following components: simplicity; tastefulness; logic; perspective; a sense of history and continuity; and a feeling of importance, relevance and urgency. It should warm the heart and stir the mind while describing what needs to be done, why it should be done and why people will want to support it. Your case statement will serve as a business plan and should have a timeline and budget. In all, don’t make it more than five or six pages. There also should be a one, and at most, two-page executive summary which can be written in a question and answer format to be used for those wanting a quick overview. It is a good idea to review this document with your board while it is in draft form to be sure you are capturing the essence of your campaign. But while your board’s comments and suggestions are welcome, let them know that you are the final editor.
Q: What kind of campaign materials should be developed?
A: I believe that most people are turned off by expensive campaign materials. When they see these, they wonder if you really need their money. Another problem is that these campaign pieces can go out-of-date quickly when your committee or part of your project changes. Then you have hundreds of pieces of literature on-hand that have to be destroyed. And quite frankly, I have never seen any group effectively distribute as many pieces of campaign material as they had printed. Since you will get 90% of your money from 10% of the people, I believe a good case statement with a couple of visuals or graphics will do quite well for those few who will be giving you the most money. Then, if you want something for the public campaign, do a nice three-fold brochure. By then, you will be far enough along in the campaign to ensure your information will remain current.
Q: What about prospects?
A: There are a great many good ideas out there, but they will never get funded if they do not have a constituency. As part of your feasibility study, ask yourself the hard question - do I have a membership or constituency already in place to support this project with their time and money? Be very honest and if your answer is yes, set up a small, but well-connected and in-the-know prospect committee and have them suggest names and amounts to be requested. You should also be sure to develop a gift chart showing how many gifts are needed at various levels, always keeping in mind that 90% of the gifts will come from 10% of the people. Remember that not everyone will give and you will need at least 2-1/2 times more prospects than gifts. A good rule of thumb is you should have one gift worth 10% of the total, and two worth another 10%. These should come in almost at the very beginning of the campaign. And finally, except under extraordinary circumstances, you will be getting 90% of your gifts from individuals with only 10% coming from foundations and corporations. Then, force yourself to get those nucleus and leadership gifts in first. I have seen too many campaigns become distracted, sometimes for years, initially going after the smaller gifts because they thought they were easier or could be done through special events. This kind of campaign will always fail because there is no sense of urgency created. Your final success will be determined by getting in those big gifts.
Q: Who should be on the campaign committee?
A: Your committee will ultimately determine the success of your campaign and must be carefully chosen for their generosity, influence and willingness to work. A CEO or some other highly respected and giving member of the community should head up the campaign and ask others to serve. It is always good to have co-chairs, and couples are an extra bonus. If you have levels of giving such as leadership, major, or special, the chair from each of these levels should serve on the overall committee. Another method is to make this committee responsible for obtaining 90% of the gifts and then hold a public campaign to enlist the support of everyone else for the last 10%. In any case, your committee will need position descriptions and training to do their jobs. Never assume that people know how to ask for money just because they have earned it or have given it away.
Q: Should I hire a consultant to help us?
A: I think you would be better served by hiring someone from your community to manage the campaign. This person should have fund-raising experience, preferably with a capital campaign. The "carrot" here is that when the campaign is over, they might move into a development position with your organization. If your candidate doesn’t have campaign experience, there are many fundraising schools and books available on the subject. But just be sure your campaign director has a sense of urgency (their one-year contract should include meeting the goal) and keep in mind the 90/10 rule by focusing on the "big" dollars to begin with. As a fund-raiser, it is often personality, organization and willingness to learn that counts more than experience. In any case, you need to be able to provide your fund-raising committee with staff support to help them do their job and not be mired down in campaign details. You might want to call this person a development director rather than campaign manager so as not to appear to be too "big time" and put people off.
Q: Should we hold special events?
A: This is an easy one. Yes, but only for cultivation and celebration -- not to raise money. You do not have time to do a fund-raising event in a special projects campaign unless you choose the event as your sole source of raising money.
Q: How long should the campaign last?
A: This is a difficult question and depends on: adequate staff to allow the volunteers to do what they do best -- fund-raise for you; the amount of money you are raising; and whether you have identified leadership and prospects. An ideal campaign would be completed in a year. Volunteer recruitment and retention is the major reason for shorter campaigns. If you have a leadership committee charged with raising money for the largest gifts and bringing in the greatest percent of your gifts, you do not want to ask those people to attend any more than five report meetings or make more than five calls each. Even with two or three more committee levels, you are still looking at short time periods in order to keep volunteers enthused, involved and successful. A sample campaign timetable is included.
Q: When should the campaign go public?
A: Too many times we publicly announce a campaign without having the requisite 60 to 75% of the goal in hand. And I like to have 80% because those last dollars take so much time and energy. They are important monies because they represent giving by the entire community. But you are much better off having only a small percent of your goal left to raise before you go public so you can concentrate more on involvement rather than fund-raising.
Ten Plus One Important Point To Keep In Mind
Each campaign is different.
Leadership is the most important ingredient.
Always be realistic and not aim too high (best to go over your goal and be a hero).
40% of your prospects will not give but do not take this personally.
Always, always be positive.
Each campaign has at least one "windfall" gift.
The rule of thirds always applies: 1/3 will do most of the work; 1/3 will do something; and 1/3 will do nothing.
Watch out for in-kind gifts. You need money and in-kind does not usually count in the bottom line.
Those who have given in the past are your best prospects.
Do not waste your time on those who "should give" but never do.
In larger campaigns, 3 to 5-year (no longer than 5) pledges may be necessary but require administrative follow-up. Be sure you have someone to do this.
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