Capital campaign

From CEOpedia | Management online

A capital campaign bases on fundraising and outreach activities that involve raising money from donors for a particular need or even set of needs.

The aim of most capital campaigns is to construct or renovate a building or facility. However, a lot of capital campaigns these days seek to raise funds for capital, endowment, program, and operations all at once. In other words, capital campaigns collect money for a new building, including funds for another spending which will appear in connection with the relevant undertaking, such as furnishings, landscaping, equipment, exhibits and technology support. Furthermore, capital campaigns may be used when there is a need to pay staff, support programs or cover ongoing maintenance costs for a new facility (J. I. Walker 2004, p. 2).

Characteristics of capital campaign

Most capital campaigns have the following characteristics:

  • a defined set of needs, stating the goal of the campaign,
  • an identified financial goal, determining the campaign's size,
  • a specified timetable for meeting the goal which is normally longer than one year,
  • a determined group of volunteers that help in raising the required sum of money,
  • a concentration on collecting gifts which are greater than the normal annual fund support that the organization receives,
  • a prepared plan for public recognition of donors who support the organization by proffering gifts (J. I. Walker 2004, pp. 2-3).

Main stages of capital campaign

Capital campaigns are one of the most efficient and cost-effective ways to raise money for a nonprofit organization. Nevertheless, such a campaign requires a lot of planning, preparation and the total commitment of every people who work at the project. That is why each successful campaign should be based on six different but complementary phases, such as:

  1. Preparation - this stage contains: defining mission and vision, determining the campaign's need, strengthening staff and board, finding donors and volunteers, selecting consultants and elaborating prospect lists.
  2. Planning - it involves: conducting a feasibility study, creating a steering committee and subcommittees, stating campaign timetable, establishing campaign policies, identifying the campaign's goal, determining campaign leadership and enlisting volunteers.
  3. Lead-gift phase - it includes among others: reviewing prospect list for lead gifts, assessing prospects, elaborating solicitation strategy for each gift, preparing proposals, training volunteers and collecting gifts.
  4. Advanced-gift phase - it contains for instance: evaluating prospects, developing solicitation strategy for each category of prospects, training volunteers, preparing proposals, collecting gifts, enlisting volunteers for the general phase.
  5. General phase - it involves mainly beginning the campaign and soliciting gifts.
  6. Cleanup and celebration - the last stage includes writing reports to volunteers and rendering thanks to volunteers and donors (A. Kihlstedt 2005, pp. 7-8).

Examples of Capital campaign

  • A capital campaign for a new performing arts center might include fundraising efforts to cover all the costs of building the center, including construction, equipment, furniture, security systems, and more. It might also include outreach activities to build awareness about the project and to get the community involved in the process.
  • An educational institution might use a capital campaign to raise funds for tuition assistance. This could include activities such as hosting fundraising events, engaging in social media campaigns, and reaching out to alumni and other potential donors.
  • A nonprofit organization could use a capital campaign to acquire a new facility or to improve existing facilities. This could include things such as fundraising events, direct mail campaigns, and online giving platforms.
  • A healthcare organization might use a capital campaign to fund a new wing or facility, or to purchase new equipment. This could include activities such as direct mail campaigns, online giving platforms, and engaging in social media campaigns to reach potential donors.

Advantages of Capital campaign

A capital campaign is an effective way to raise large sums of money for a particular need or set of needs. The following are the advantages of launching a capital campaign:

  • It allows for the efficient and comprehensive identification of potential new donors, both individual and institutional. Due to the extensive outreach efforts associated with a capital campaign, organizations can gain access to a larger donor base than they would have otherwise.
  • It provides an opportunity to engage existing donors in a more meaningful and rewarding way. Through the capital campaign process, organizations have the opportunity to deepen relationships with existing donors by providing them with a more personal experience and showing them the impact their contributions have.
  • It allows organizations to take a long-term approach to fundraising. Capital campaigns are typically focused on a specific need or project, and the resources raised can be used to ensure that the project is completed and the need is met.
  • It can help organizations increase the visibility of their mission. Through the process of engaging more donors, a capital campaign can help organizations increase awareness about their mission and the impact it has on their community.

Limitations of Capital campaign

Capital campaigns can be a powerful tool for gathering resources to support a particular initiative or project, but there are several limitations to consider when planning such an effort. These include:

  • Difficulty in predicting how much money will be raised: It can be difficult to accurately predict how successful the campaign will be in terms of total donations. This is because many potential donors may not make a decision about their contribution until the campaign is close to its end.
  • Limited reach: Capital campaigns typically require a significant amount of outreach to potential donors. It can be difficult to reach everyone who may be interested in contributing to the cause, especially if the budget for the campaign is limited.
  • Time constraints: Planning and executing a capital campaign can take a considerable amount of time, and it may not be feasible if the timeline is too tight.
  • Lack of control: Once the campaign is launched, there is limited control over how much money will be raised and who will provide donations. This lack of control can be difficult to manage.

Other approaches related to Capital campaign

A Capital campaign can involve many other approaches apart from fundraising and outreach activities. These include:

  • Strategic planning: This involves putting together a plan that outlines the objectives of the campaign and how they can be achieved. It should include research into potential donors, the development of a fundraising timeline, and the identification of potential resources.
  • Marketing and communication: This involves using a variety of tools, such as direct mail, email, and social media, to reach potential donors and inform them about the campaign.
  • Events: Events such as dinners, galas, and auctions can be used to engage potential donors and generate donations.
  • Legacy giving: Legacy giving involves encouraging donors to commit to supporting the campaign after their death or during their lifetime.
  • Stewardship: This involves managing relationships with donors and ensuring that they are kept informed about the progress of the campaign.

In summary, a Capital Campaign can involve a variety of approaches, from strategic planning to legacy giving, in order to raise the necessary funds.


Capital campaign — recommended articles
Marketing in local government — Resource plan — Strategy deployment — Skills transfer — Bottom up budgeting — Disease Management Program — Advertising plan — Short-term objectives — Internal marketing

References

Author: Klaudia Nycz

Retrieved from "https://ceopedia.org/index.php?title=Capital_campaign&oldid=90066"