Capital Campaigns: Laying the Groundwork Sophie W. Penney, PhD November 2015

Failing to plan is planning to fail. Alan Lakein

Program Goals Help you determine what groundwork needs to be laid Understand lead time needed to lay the groundwork & implement a campaign.

Groundwork Determining Organizational Readiness Board and constituent support? Leadership/Staffing? Strong case for support? Policies and procedures? Willingness and ability to plan and implement?

Board Support Board understands organizational investment needed to complete a campaign and is willing to engage in planning and provide resources.

Board Support Planning Resources Strategic – clear mission/vision and ability to identify programs/projects to be funded Campaign – feasibility, planning, & implementation Resources Staffing Funding

Constituent Support Belief in organizational mission and knowledge that mission is being fulfilled Preferably significant history of giving + capacity/willingness to give at higher levels Volunteerism Willing spokespersons Believe in leadership – board & executive

Case for Support Clear compelling Life changing programs & projects to be funded

Case for Support Powerful case regarding impact on those who will benefit -- “Fundraising is about changing and saving lives.” Jerry Panas Sense of urgency – Why philanthropy, why your donors, why now? (Harvey McKinnon, 11 Questions Every Donor Asks).

Leadership/Staffing Executive leadership that understands campaigns or is open to learning Volunteers to lead and serve on committees and assist with solicitations. Staffing to support volunteers, plan and implement campaign, and in some cases solicit prospects. Clerical support to record and acknowledge gifts.

Policies and Procedures Gift acceptance policy and procedures Donor research Campaign Counting Stewardship and Recognition

One More Key Element A Culture of Philanthropy All gifts are valued, no matter the size All donors are appreciated, no matter their capacity to give All donors are appreciated no matter their position, e.g., staff, resident, family member. Donors know their gifts make a difference.

Exercise – Testing for a Culture of Philanthropy* Small groups – discuss the following Does everyone from the receptionist to ED to Board members to residents know what your organization’s mission is? How long does it take for a donor to receive a thank you note, what is the format (form letter/personal note), and who signs?

Exercise – Testing for a Culture of Philanthropy* 3. Do you connect with donors in ways other than asking them for a gift or inviting them to a gala/event that requires a ticket purchase? 4. Do you share information with donors/in writing, through information sessions, etc. about how their gifts make a difference? *From Capital Campaigns: Strategies That Work, Third Edition. Andrea Kihlstedt, Jones and Barlett Publishers, 2010.

Testing for Support The Feasibility Study Pros Unbiased third party collects information Provides unvarnished perspective regarding constituent perspectives about mission, vision, organization Gives you detailed feedback about the case and ability to achieve financial goal.

Feasibility Study Cons Time consuming (before and during) Can be costly If not done well does not provide quality information to inform campaign.

Alternatives to Feasibility Study Focus Groups Volunteers complete interviews Other?

Campaign Timeline/Timing Timing depends on where your organization is within it’s lifecycle Timing depends on whether the previously outlined items are in place (or not) Timing depends on ability to ramp up for a campaign.

Timing Does Not Depend On?

Timing Does not Necessarily Depend On Board Readiness Capable volunteers Markets Best time to plan can be during a down cycle Best time to implement during an up cycle, but does not guarantee success. Current Events Penn State

Case Study Foxdale Village Therapy Pool Foxdale dedicated in 1990 Benevolent fund established in 1990s, residents raised funds from one another Development Committee formed in 2000s First Director of Development hired 2009 DoD builds relationship/established infrastructure

Case Study Concurrently from 2008-2012 expansion and renovations took place – added 57 unit apartment building and doubled size of healthcare to 101 private rooms. Therapy pool, to be attached to apartment building, included in the plans, but not funded. Education about benefits of therapy pools implemented.

Case Study Development Committee discussed launching campaign feasibility study for therapy pool. Committee interviewed four firms, recommends Lindsley Development Consulting to the Board. Board approved contract, study commenced.

Case Study Final report presented to Board August 2012 Leadership changes occur report tabled until spring 2014 New residents move into apartment building 11/11/11, the campaign chair is among them. New ED has capital campaign experience

Case Study Board revisits campaign study spring 2014 Campaign approved, chair identified along with campaign committee Committee solicited in summer 2014 Quiet phase launches fall 2014 Public phase November/December 2014 Final mailing January/February 2015

Healing Waters Campaign Goal $1.8 million $600,000 $1:$1 match from unrestricted gifts fund $600,000 from donors $600,000 to be borrowed or taken from reserves

Outcome 1,000,000 +

Resources Preparing Your Capital Campaign, Marilyn Bancel, CFRE. Jossey Bass, 2000. Capital Campaigns: Strategies That Work, Third Edition. Andrea Kihlstedt, Jones and Barlett Publishers, 2010. Eleven Questions Every Donor Ask: And the Answers All Donors Crave, Harvey McKinnon. Emerson & Church, Revised Edition, 2015.

Resources Asking: A 59-Minute Guide to Everything Board Members, Volunteers, and Staff Must Know to Secure the Gift, Gerald Panas. Emerson & Church. Newly Revised, 2013. Seeing Through a Donor's Eyes: How to Make a Persuasive Case for Everything from Your Annual Drive to Your Planned Giving Program to Your Capital Campaign, Tom Ahern. Emerson & Church.