Category: Financing & Loans

It’s important to understand that, for many nonprofits, the benefits of conducting a successful capital campaign often extend beyond merely raising a specific amount of money. Of course, the purpose of the campaign is to raise the dollars, but an effective/successful campaign will also have a number of very worthwhile side benefits:

• The more people who support/give to the campaign, the more people who
  create/enhance a bond with the nonprofit organization.

  Where the “campaign” period (the actual timeframe needed to attain the dollar
  goal) should be as short as possible, the visible campaign can last much longer —
  as long as needed to involve as many members of the organization and/or the
  community as is realistic. To a point, the more people involved, as volunteers,
  donors and/or event participants, the larger your constituency becomes and the
  stronger your constituents bond with your NPO.

• It makes everybody feel good – campaign leadership, volunteers, donors. It makes
  all those folks feel good about success, and it makes them want to stay involved
  with the organization.

  People that have been leaders/volunteers for a successful capital campaign take
  away a feeling of accomplishment, of satisfaction, that they will likely want to repeat.

• It gives others (potential leaders & donors) a look at how an organization
  treats/recognizes its volunteer leaders and donors, and makes them think about
  how they could get the same “treatment/recognition.”

  Different people have different needs that have to be satisfied.
  If people who were not involved in your campaign see how the needs of others were
  satisfied, next time there is an opportunity to participate as a leader/volunteer these
  folks would be more likely to want to be involved.

• When properly publicized/marketed, it educates a broad spectrum of participants
  and non-participants about an organization’s mission, leadership and current
  and future programs/services.

  A campaign goal can represent many needs to be satisfied with a specific dollar sum.
  Once the goal is attained, each of those satisfied needs can be discussed in various
  kinds of publicity/marketing pieces over many months after the campaign. Every new
  and/or expanded service the NPO provides is something to brag about!!

• Donors tend to give more to a major campaign than they have to the organization’s
  ongoing fundraising; and, after completing their campaign commitment, they tend
  to give at levels higher than they gave before the campaign.

In essence, a capital campaign can have a great impact on an organization’s marketing and community relations.

=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a comment or a question about starting or expanding your basic fundraising program, your major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll likely be able to answer your questions.

Reading Hank’s postings on “Corporate Fundraising,” made me think about a recent series of conversations my firm has had with a potential client about managing a conference (including a major dinner event) for them.

During one of those conversations, I was asked about assisting them with getting corporate sponsors for the conference. My response to that question is always the same.

While I have contacts with some corporations, I will only make the connection between the client and the corporation provided the organization’s mission and interests dovetail with those of the corporation. No point in setting up a meeting that goes nowhere because the corporation is not remotely interested in the organization’s goals and objectives.

If there appears to be a match, then it will benefit both the organization and the corporation to have me call my contact at the corporation and set up an introductory meeting; and, there are times, depending on circumstances, when I will go with the client to their first meeting with the corporation.

I do that only as a part of my relationships with client organizations and with corporations, not for a percentage or commission of any support a corporation might provide to a nonprofit.

I make it clear to my clients that I am not a “fundraiser.” I do not sell tables to corporations for a client’s dinner or luncheon or ask them to sponsor a coffee break at a client’s conference. I do not “dial for dollars,” but I do make connections … there is a difference!

No one can legitimately make the case for a corporation to support a nonprofit as well as can be made by the board members and staff of the organization. And, by “legitimate,” I mean that when the nonprofit makes its own case it’s a lot clearer that no “middleman” is going to get a piece of the corporation’s support of that organization.

Sometimes nonprofit organizations don’t understand or ignore the difference between having a conference and special event firm help them make the connection versus raise the money for them. They often only hear what they want to hear.

To them, the idea that a conference and special event firm has connections to corporations means that they (the nonprofit) won’t have to “get their hands dirty,” that someone else will get the big bucks for them.”
=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a comment or a question about creating or expanding your special event? Email me at Info@NatalieShear.com. With over 30 years in conference and event planning, we can help you turn your vision into reality.
=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you seen Natalie’s ebook on Special Events ??

Being “ready” for a Capital Campaign does not mean that the CEO and/or Board/Staff members have decided they want or need to raise a lot of money.

Being “ready” means that all the elements are in place to assure success if a capital campaign is implemented. An organization/board cannot risk committing to a capital campaign until it is (formally) determined that they are “ready.”

The process of determining readiness, what we call a “Planning Study” (see: The Planning Study … Almost Always The First Step, addresses a number of issues, including:
1. Board Support for the Project — Emotional, Intellectual and Financial:
Do all board members feel strongly about the project; do they agree that
this project is the best way to provide for a specific need in the community;
and, will they support the campaign financially to the best of their ability?
2. Community Support for the Project:
Do the vast majority of community leaders agree that this project is the
best way to provide for a specific need in the community?
3. Competition — Other Regional Campaigns/Projects pending or active that
may detract from your visibility/need and may have a stronger attraction
to your potential donors.
4. Availability of Capable and Willing Campaign Leaders who will set an
example – will they help identify other likely major donors, give
significantly and ask others to do the same?
5. Access to Individuals with Wealth – just having a list of wealthy people
is a waste of time … if you don’t have real access to them,
6. The perception, by the wealthy, that you will satisfy their needs
7. Community perception of the need for your service
8. Community perception of the quality of your service
9. Community perception of how well you manage your money
10. Policies to guide leadership through a campaign
11. Sufficient funding on-hand to pay the expenses of a campaign
12. Sufficient staff with an understanding of the development process … to
support a campaign. To plan for and conduct a capital campaign one
should have the requisite broad experience in development. That’s why
most organizations hire capital campaign counsel to assist … in one or
more aspects of planning, investigation, preparation and implementation.

A properly constructed Planning Study helps to identify potential campaign leadership and prospective major donors, and begins/extends the cultivation and “buy-in” processes necessary to a successful campaign.

(Watch for Part #4 of Capital Campaigns, next Tuesday, November 2nd.)

=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a comment or a question about starting or expanding your basic fundraising program, your major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we should be able to answer your questions.

• A capital campaign is not a “fundraiser.” It is as far beyond a dinner event as building a motorcycle is beyond building a skateboard.

• A capital campaign is not for the faint of heart. In conducting a capital campaign, an organization puts its credibility and its future on the line.

It is one of, if not THE most important and risky things a nonprofit organization will ever do !! Should a campaign fail — as many do (because of poor planning, lack of long-term preparation, inadequate fundraising skill and/or insufficient campaign experience), an organization’s credibility and future fundraising prospects can be harmed, irreparably.

• A Capital Campaign is not (for the most part) about the needs of the NPO. It’s mostly about the needs of the potential donors. The question is, in essence, “What will the donor get by gifting/committing a large sum of money to support a specific project?

• A Capital Campaign is not for Public Awareness … until you’re ready to announce the campaign. And you don’t announce a campaign until (at least) 60% of the goal has been reached – 80% is better, 100% is best. (More on this, later). You don’t even discuss the possibility of a campaign outside of the organization’s leadership.

In the context of public awareness, a capital campaign should be pretty much completed before there is any groundbreaking or other visual sign that there is or will be a need to raise money. Beginning the project that the campaign will fund, before the campaign begins, (strongly) suggests that the organization already has most-or-all of the needed funding.

• Capital campaigns cannot be an excuse to raise a lot of money – there must be a goal that relates to specific URGENT needs.

• A capital campaign is not an effort that should be taken on by the inexperienced, even after reading my entire series of postings on the subject.

Capital campaigns are a synthesis of everything else we do in development; but, because much of it takes place in a relatively short timeframe, and because so much more is at risk, the skills and experience required to design and implement these efforts must be at a level much higher than those needed for ongoing fundraising.

=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a comment or a question about starting or expanding your basic fundraising program, your major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll likely be able to answer your questions.

This series of postings (don’t know yet how many will be in the series) is to help you understand and prepare for a capital campaign, so that, when you hire a staff campaign director or engage counsel, their time (and your money) will be used most effectively.

To start, a definition: A Capital Campaign is an intense effort to acquire sufficient commitments to add up to a specific large sum, for a specific valid/urgent purpose.

The word “Capital” refers to the money needed to erect/expand/renovate a building; it includes funding needed for the purchase/installation/overhaul of (major) equipment; and, has come to include funding to create/expand an endowment. (Endowment campaigns will be addressed in greater depth in a future posting.)

The term “campaign” has it’s origin in a military context — although it’s rarely used that way today. It referred to the actual period of time that the troops were in the field, engaged with the enemy. It was/is a period of action/activity that, ideally, had been planned very carefully. In this context, it is the period of time in which most of the needed dollars are solicited/pledged.

The “intensity” of the effort refers to having board members, staff and other volunteers commit the (additional) time and energy necessary to achieve the dollar goal in a specific (relatively short) timeframe. The typical campaign was designed to take 12 months – but it’s gotten a lot shorter. (More on that, later.)

Typically, a capital campaign solicits pledges – significant dollar commitments to be paid over an extended period. Fifteen/twenty years ago, the period was five years, but considering the societal changes and people’s reluctance to commit to that long an obligation, three years is now typical.

The “specific sum,” the goal of a campaign, is an amount that will allow the organization to pay for the (building/equipment) “project” that is outside its normal/ongoing budget requirements. This cannot be an arbitrarily chosen dollar figure voted on by a board or committee; it must be one that has been determined through a very careful/detailed process.

“Valid” means that it the nonprofit organization was asked to justify why the project was needed, the NPO could clearly explain/demonstrate that a real need exists in the community and that the project would address that need.

“Urgent” excludes any project for which the NPO could accumulate the funding over an extended period of time without the need for a special fundraising effort. It would also exclude any project for which there is not a demonstrable need for the service(s) that will be made available because of the project.
=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a comment or a question about starting or expanding your basic fundraising program, your major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll likely be able to answer your questions.

I received an email the other day, from a fellow who identified himself as someone with a sales and marketing background whose company was recently sold. He indicated that he had been approached about taking a development position at a local educational institution, and asked if there is a primer for the development/fundraising arena.

Since I didn’t know him, his knowledge base or his abilities, I had to respond to his request generically.

I indicated that would be unfair to any nonprofit organization (especially one that may not know what “development” is all about) if anyone new to the field pursues/takes any position in development other than at entry level.

For some reason(s), many people seem to think that fundraising and development are something that anyone can do. Most people have no idea what’s involved. All they see are the candy sales, special events or fundraisers, and they think, “Anyone can do that!”

Development, beyond entry level, is not a field you can or should jump into without sufficient training/experience.

And there are already too many nonprofits that have development officers that don’t know the difference between “fundraising” and “development.” (See: Development Is Not A Synonym For Fundraising)

And, yes, some of the experience and skills from marketing and sales (and other fields) are transferable, but the processes are not the same.

There is no such thing as a primer for “development,” just as there’s no primer for “marketing.” There is a definite body of knowledge required to be effective as a development officer … and the ability to apply that knowledge effectively.

Having said that, there are lots of books/courses out there that can get you started … can help you begin to develop the mind-set that is necessary to be an optimally effective development officer.

Check with your local associations of development professionals, your local libraries and www.cfre.org.

And, at the risk of sounding like I’m tooting my own horn, I suggest that you read through the postings on my blog — from the first post (March 2010) — that’d be a good beginning☺

=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a comment or a question about starting or expanding your basic fundraising program, your major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll likely be able to answer your questions.

Keeping in mind that only about 5% of all non-governmental giving to nonprofits comes from corporations, you’ll want to use your time and resources cost-effectively. That means not trying to get funding from every corporation that comes to mind. So, first, make a (wish) list of all those corporations, and then gather the material you need to begin your research.

Some Corporate Annual Reports list the amount(s) they’ve given to nonprofit organizations, and often list those NPOs. Check to see if they give to organizations that do what you do. Look to see if there’s a statement of policy as to the types/locations of NPOs they support. Some corps give only to NPOs that their employees support – check that out. Go to your public library or a branch of the foundation library and check the reports of corporate giving.

Check to see if the corporation has an office/department/division of charitable giving … or whatever they may call it. Call them, ask for a copy of the corporation’s giving guidelines. Talk with a corporate giving officer, if they have such, and (come right out and) ask what you have to do to get the corp to add you to their list of nonprofits they support. FYI, corporate giving officers are there to work with you to see if there’s a match – and sometimes work with you to create a match — between what you can do for them and what they can do for you.

Make a list of the officers and directors of the corporations and circulate that list to your board members, volunteers and major donors to see if anyone you know has a personal connection with a corporate board member or officer who can help you get corporate money.

That means that you must cultivate – build a relationship with – those corporate officers and directors … the same as you would with a prospective major donor.

See my recent three-part series on Asking for the Major Gift — the links to the three articles are at the right, under “Recent Blog Posts.”

Most corporations have been asked before. Don’t be bashful.

Sometimes the ask can be as simple as a conversation with the right person, and sometimes as formal as a grant proposal to a foundation. You’ll find out which when you do your research.

=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a comment or a question about starting or expanding your fundraising program, your corporate solicitation program, major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll be happy to answer your question.

In considering the creation of a corporate solicitation program (a CSP), the first questions I’d ask of a nonprofit is whether they realize that only five-percent of all “charitable” giving to nonprofits comes from corporations, and (considering “return-on-investment”) how much of their time, energy and assets do they want to dedicate to this effort?

Whether the NPO does or does not deal with that basic concept, the major issue in creating a CSP is evaluating whether the NPO can do it successfully.

The planning process begins with the questions: How do corporations view your NPO? Do they see a history of good service to the community and good fiscal management? Do they see a history of other corporations supporting your NPO and getting the “quid pro quo” that they want? How do they know they’ll get what they want if they support you? Do you have a mission/program/service that dovetails with a corporation’s mission and/or product/service line?

Corporate fundraising is about the needs of the corporation; and a corporation’s needs are pretty much about their bottom line – they have stockholders they must satisfy.

If supporting an NPO gives them good visibility and good credibility, that would likely result in increased sales of their products/services. A corporation might give to be a good member of the community, or just to appear to be a good member of the community. But a corporation would certainly not give, if giving would hurt their bottom line.

Corporate fundraising is also about the needs of the corporate officers and board members – what will they (personally) get out of having their corporation support you!! That becomes more of an issue of individual cultivation – getting one or more of those people to see how supporting you will benefit them, and getting them, therefore, to become your (?) advocate within the corporation.

So, the first step in the process is determining if a CSP can/would work for your NPO. Once you’ve done the study to determine that, you’ll have a better idea of the kind of help you might need to implement/expand your CSP.

=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a comment or a question about starting or expanding your fundraising program, your corporate solicitation program, major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll be happy to answer your question.

A thread in a listserve in which I participate addressed the question(s) of Creating-and-Implementing and Finding-and-Compensating a Consultant to help with a Corporation Solicitation Programs.

Interestingly, the latter issue stimulated most of the responses/comments, with little attention being paid to the former.

So, I’ll address the “more popular” issue first – compensating the “consultant” … and you’ll soon see why I use quotation marks around the term.

In my 30+ years as a fundraising consultant, I’ve seen corporate fundraising done by staff and/or volunteers, with a consultant advising/teaching/guiding; and, I’ve seen a “consultant” doing the fundraising from the corporations on behalf of the NPO. In both cases, it always created a conflict of interest if the consultant was to be compensated on a commission/percentage basis.

In the first circumstance, the relationship is between the NPO and the corporation. The consultant may make the initial contact with the corp, but the discussions are between the NPO family and the corporate people. In this case, the consultant actually consults. S/he is paid for her/his time/effort/expertise, with no consideration as to how much money the NPO may or may not raise.

In the second scenario, the “consultant” does little or no consulting. The relationships are between the “consultant” and the corporations. The “consultant’s” role is to “show” the corporation how their support of the NPO will benefit that corporation. Again, the “consultant” should be compensated on the basis of the time/effort/expertise that goes into making “it” happen, not on a percentage/commission basis.

Many corporations (especially those who are frequently asked to support NPOs) are aware of the “rule” prohibiting commission/percentage compensation for those raising money for a non-profit organization. Many of those corporations agree with and accept that concept. Some don’t!! Some don’t care!! The question is whether you want to risk appearing ignorant of “accepted practice” and/or seeming not to care??

(Conflict-of-Interest issues tend to become public information, and have hurt many nonprofits and their ability to raise money. It is, therefore, with good reason, that all of the major associations of nonprofit organizations and those of charitable-fundraising professionals accept and endorse this “rule.”)
=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a comment or a question about starting or expanding your basic fundraising program, a corporate giving program, your major gifts fundraising program or a capital campaign? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll be happy to answer your question.

There is a simple, but not simplistic, description of what major gift fundraising is all about: It’s having the right person, ask the right person, for the right amount, at the right time, under the right circumstances.

The two right people are the cultivator/solicitor and the prospective donor. They’ve developed a common interest, a relationship with and/or a feeling for one or more of the NPO’s programs. They’ve talked about the history of the organization, how effective it’s been, all the people whose lives have been changed because of that NPO, and what the NPO’s plans are for providing more service and/or serving more people. They are definitely the two right people !!

The right amount is not just a figure determined by the Development Committee, but is the dollar amount the prospective donor knows will accomplish what s/he wants to see accomplished. [Whether it’s feeding hungry children or getting his/her name on the side of a building, it’s the donor’s need that’s being satisfied.]

The right time is when both the solicitor and the donor know it’s the right time. It’s when they’ve had the conversations (possibly over many, many months), when they know each other well enough to know it’s time. When they both know that the donor is ready to say, “Yes.” That’s the right time.

The right circumstances depend on the two people. It can be in the office, at the home of either person, over a meal, with or without spouses, on the golf course or in a taxi. With all the time that these two right people have spent together, they’ll know….

There’s no script – it’s not needed. They know each other well enough to know when, where and how.

As I’ve said, many times before, “Major Gifts fundraising is about the needs of the donor;” and, learning about those needs is the first step toward planning the Ask.

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you seen The Fundraising Series of ebooks ??
=-=-=-=-=-=-=-=-=-=-=-=-=-=
If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.