When do you need a capital campaign?
A capital campaign is a targeted fundraising effort that takes place over a defined period of time. They are an important fundraising tool for charities and nonprofit organisations and are used to raise funds for new projects, expansions, or repairs to the organisation’s facilities.
The Benefits of a Capital Campaign
There are many benefits to running a successful capital campaign. These include:
- Increased Awareness
A well-run capital campaign can help your organisation become more visible to potential donors. Raising awareness of your organisation and its mission can encourage new people to donate money to support your work.
- Increased Donations
A successful capital campaign results in an increase in total donations. It’s also the perfect opportunity to seek a higher level of gift from existing individuals and organisations that already support your organisation. Funds raised can be used to fund new projects, expand your reach, or support ongoing operations.
- Wider Supporter base
A well-run campaign opens up networks and can lead to new donors and fundraising leaders. With careful donor care, they may support you long into the future. Increasing your donor base and raising more money can improve the quality of your programs and services.
A Capital Campaign is a Planned Investment
A successful capital campaign is important in building a strong foundation for your organisation. Investing in a well-planned campaign ensures that your organisation has the resources it needs to continue functioning successfully.
When Do You Need a Capital Campaign?
Capital campaigns are run when an organisation has a substantial need that requires a significant amount of financial input. There are a few key indicators that your organisation may need to pursue a capital campaign:
- You want to relocate, acquire land and/or construct a new building
- You want to expand your existing facilities or undertake renovations
- You want to purchase large-scale equipment
- You want to fund a specific large-scale project, such as rolling out a new service for beneficiaries
- Your organisation is growing and needs additional resources to support its growth.
How to Plan a Capital Campaign
- Define Your Campaign’s Purpose
The first step in planning a capital campaign is to define the purpose of the campaign. What are you trying to achieve? What are your goals? What are your priorities?
Once you have a clear understanding of the purpose of your campaign, you can begin to develop a plan that will help you achieve your goals.
- Consider the fundamentals
Develop a coherent case for support setting out what you need and why. Identify the most likely funding sources to achieve this and start to build up lists of prospects. Identify potential leadership who can help with approaches.
- Develop a Strategic Plan
Evaluating your fundamentals of case, need, constituency and leadership, consider the types of level of funding you may be able to secure. Depending on how much money you need to raise, and any deadlines, decide if the Appeal should be phased or one campaign. Develop your plan, making sure to include a timeline, a budget and a resourcing plan.
- Implement Your Plan
After you have developed your plan, it is time to implement it. This includes identifying potential donors, one-one relationship building and solicitations, and stewardship. Start with the largest gifts first.
- Evaluate Your Campaign
After your campaign is complete, it is important to evaluate your results. Did you reach your goals? What worked well? What could be improved? How did you rank overall? How did you rank compared to similar charities?
Typically, a capital campaign is needed when the organisation needs to raise more money than it has currently available. The purpose is to raise money from individuals, businesses, and other organisations so that the charity or nonprofit can use that money to fund its important mission.
Do you need help with capital campaign strategy? Craigmyle Fundraising Consultants is the longest established UK firm in the field. We have a strong vocational approach to our work with charities. Get in touch with us.