What Is A Capital Campaign, And When Do You Need One?

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A capital campaign, by definition, is an intense effort on the part of a nonprofit organization to raise significant dollars in a specified period of time.
Usually, the money raised is to fund acquiring or renovating a building, but often the campaign’s focus is on building an endowment for the future.
In some cases, campaigns are initiated to fund extraordinary expenditures of a capital nature, such as an expensive piece of equipment for a hospital or a new fire truck for a fire company.
In cases where a capital campaign is for a new building or expansion of an existing facility, consideration should always be given to adding an endowment portion to the campaign goal.
Organizations need to remember that a larger facility will almost always involve increased operating expenses.
It is also important to remember that the focus of the campaign should not be on the building or amassing a large endowment fund, but on the benefits to the community that this facility or endowment will provide through expanded, increased, or more efficient programming.
For many people, the emphasis in a capital campaign may be on the “pain.” Campaigns do tend to disrupt the routine of the development office and the entire organization may feel the strain of the extra effort required for a year, two years, or more, depending on the size of the campaign.
However, campaigns have several great benefits, which for many organizations offset the work involved. Some of these benefits include:
The organization first needs to decide whether they need a campaign, how much money they need to raise, and whether or not they are ready for a campaign.
Any discussion of a capital campaign should start with the strategic planning process. The board and staff must together evaluate the organization’s needs for programs and services, and in the planning process should ask questions like:
Many organizations will plan a daylong retreat with board and staff, facilitated by a capital campaign consultant to lead them through this process. At this point often an architect or construction manager will also be brought in to help the organization determine how its facilities need to change in order to fulfill its mission.
The finance committee then needs to look at how the organization can finance these needs:
Once the organization reaches a consensus that a campaign is in order, a Steering Committee is then appointed to take the organization to the next step. Members of this Steering Committee usually include someone with experience in construction, finance, and fundraising. Both board and staff members generally serve on the Steering Committee.
After learning about capital campaigns through this guide, you may be feeling apprehensive about whether your organization can handle the extensive planning and coordination needed to successfully execute one of your own.
It’s important to understand that there are resources available to help your organization navigate a successful capital campaign— even if you’re not interested in hiring a traditional, in-person fundraising consultant.
For example, the Capital Campaign Toolkit is a fully virtual, remote platform that equips organizations with the tools and resources they need, as well as support and guidance, to complete a successful capital campaign. The Toolkit gives your organization access to:
Striking a balance between online resources and traditional consulting, the Capital Campaign Toolkit is one of the most accessible and comprehensive capital campaign resources. With it, your organization can effectively and successfully navigate your next campaign. Learn more here.
How do you approach the creation of a capital campaign? Let us know in the comments below.
Want to learn more about successfully carrying out a capital campaign? Brush up on your expertise with these helpful additional resources:
This post is an excerpt from Linda’s book: Capital Campaigns: Everything You NEED to Know.
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Taylor Bishop
Balla
Blake Conover
Donna Starr