Carolyn's Nonprofit Blog

After years of working with nonprofit organizations on major gift campaigns to build buildings, secure endowments, and to fund other significant projects with five to seven-figure budgets, I have learned that if nonprofits are able to address a few key questions prior to embarking upon a major gift campaign, they will be more likely to succeed.

It is also true I have seen some nonprofits tackle a major gift fundraising effort after being told by respected fundraising consulting firms that they have absolutely no chance of succeeding. But, in fact, some have succeeded beyond their wildest dreams. As President Abraham Lincoln (1809-1854) once said,

“The probability that we may fail in the struggle ought not to deter us from the support of a cause we believe to be just.”

Regardless, a little advance consideration about where your organization stands vis-a-vis a potential major gift effort will save you time, money and potentially, embarrassment. Please don’t jump into fundraising before fully understanding what you are doing and the commitment involved. Enthusiasm only goes so far, in my humble opinion.

A few years ago, Ted Grossnickle formulated a list of basic questions your organization should ask before considering a major gift campaign. I have added comments of my own to dovetail with his suggestions. Originally posted on the website of the Association of Fundraising Professionals, Ted’s article is no longer available online, but I captured the information and am pleased to share it with you. Credit where credit is due.

1. Your nonprofit is needed. The organization is actively making a difference in the community and can make an even bigger impact in the future.

2. Your nonprofit is known and respected. The community knows about your organization, and when you recruit board members, they consider it an honor to be asked.

Note: do not assume this means your nonprofit must have been in existence for a long, long time. Ted might disagree, but I have been able to help “startups” raise significant funds, when seasoned consulting firms have told them that simply will not happen. There are several things for which one must prepare, of course, and you will find many of them discussed on this page.

3. Your nonprofit is focused and healthy. The organization has a practical strategic (or long range) plan that fits with a capital campaign. The organization is financially healthy, meaning it has a balanced budget, access to credit, and financial records that are in order. I would add a Candid GuideStar profile that is filled out to at least the gold seal level makes a lot of sense. Donors and professional advisors are online and reviewing trusted sources like GuideStar all the time, and it is free to flesh out your profile on the platform and shine. Make it easy for them.

4. You have a base for fundraising. A strong corps of annual donors exists, and you have had success with increasing gifting levels by active stewardship. I would also add engaging someone to conduct advanced research to unearth potential funders makes sense, and I have written a lot about this on Carolyn’s Nonprofit Blog.

5. Your board of directors is ready. Each member of the board should be contributing in some fashion through an annual gift or through meaningful volunteering. Board members should understand what a campaign would require in terms of their own individual and collective financial support and time. The board is willing to help cultivate and solicit gifts, and each member has helped identify one or two donors that can make a gift for the campaign.

I do know some donors who request a formal statement before one can submit an application, stating that each and every member of the Board has made a financial contribution, even if that is as low as say, $5. Do not let people sit on your Board who are unable to give even the smallest amount. Expertise is a lot, but it is not enough.

6. The staff leadership is ready. The CEO is respected by staff, board, donors, clients and the larger community, and willing to commit time to working on the campaign. The organization either has a full-time development director or has addressed which staff member will be responsible for the campaign.

Do not underestimate the many intricate details involved in capital campaigns. Advance preparation, ongoing management and follow-up are all time consuming and you should choose a staff member who can handle the responsibility. I would not recommend that an executive director assume this function, as I have seen that backfire. It is too much work to run and organization and also a major gift effort, plus, they often do not have the proper discipline and mindset.

7. You’ve done your homework. The organization knows what it needs to raise funds for, can articulate the outcomes, and has a written and refined case for support. A feasibility study can be conducted to test the case before going forward with a campaign and help you set a realistic campaign goal.

Here is a link to an article with additional discussion about feasibility studies. I believe given the uneven results I have witnessed over the years that advanced in-depth prospect research may be more effective than the standard feasibility study. Learn more from my talk during the Crescendo Interactive Practical Planned Giving Conference in 2022 (which I updated for a webinar in 2023 – the link takes you to the latest version of my slides on ISSUU).

8. You can effectively tell your story. You have a plan to communicate your campaign and its key messages. Staff and board members can tell the organization’s story and communicate why a campaign is necessary. I would add to this that the nonprofit should be active on social media (just a few platforms is all that is needed), and those information feeds are cleaned up regularly, and professionally managed. Donors and professional advisors are assessing your professionalism online, so don’t give them any reason to question it.

9. You can spend money to raise money. The organization has identified a budget for a campaign and has allocated funding for it. The budget includes funds for donor recognition and communication, training and materials, and equipment. It also has a provision for travel and meals.

And, most importantly,

10. Your campaign is important, exciting and will make a difference! Your board and staff are excited about what this campaign can mean. You can create important changes in people’s lives if you succeed in raising the funds.

In closing, I would like to share another article on Carolyn’s Nonprofit Blog you may find helpful, “Taking a Step Back Will Lead You Forward.” This is the text of a presentation given to ADRP: Association of Donor Relations Professionals in 2018. It provides real-life experiences with nonprofits wishing to launch major gift efforts and shows how I was able to overcome hurdles and fundraise with great success. In brief, I suggest you do your own, thorough internal review of positives and negatives, write those down, address them in writing, and incorporate them into your case for support. Honesty is the best policy. I have seen “impossible” major gift efforts succeed once such an introspective review has been conducted.

Additional Resources

• Feasibility studies – my follow-up article to this blog post shares some concerns that I have about feasibility studies, and provides some ideas for conducting more successful ones.
• Aly Sterling for Nonprofit PRO, “Organizing a Capital Campaign: The Essential How-to Guide” (2018). I like this opening line, “Your organization is working on a large project; maybe it’s a new building, a renovation or another ambitious undertaking. Projects like these are complicated, and one of the most important parts of the process is determining how to pay for it.”
• Training! I am impressed with the offerings of the Lilly Family School of Philanthropy. Follow the link to read about the educational programs it offers, including managing capital campaigns.
• My blog article, “Volunteering and Charitable Giving” points to one aspect of successful major gift campaigns that few mention. That is, volunteers and donors working on campaigns succeed best when they know staff members involved are fully engaged, that they genuinely care, and that they will go the extra mile to see the overall project succeed. Poor nonprofit staff morale will kill the positive energy of volunteers and donors working closely with your nonprofit. Be careful.
• You might enjoy Tom Watson’s article for Forbes, “Learning to Listen: Where Organized Causes Really Begin” (May 23, 2014). The kind of listening Tom describes is what those organizing major gift campaigns need to consider.

Last but not least, you can do a great deal of thoughtful preparation, and serendipity might happen. Follow the links to read, “Listening to Donors and ‘Serendipity’ Happens,” and “Everyone Matters.” You might also visit some of my “A Brief Account” and “asking” articles by looking the main menu in the margin.