Running a Capital Appeal Samayasri

What is a Capital Campaign? An appeal for a large sum of money usually to acquire, build or renovate a building or other valuable object (a painting!)– but it can be for other less tangible things (e.g. a campaign to save something) In many ways, a capital campaign is similar to any other fundraising, but because you are asking for a lot of money, you need to plan carefully and resource it sufficiently

Why do a capital campaign? Often a tangible, exciting and new way to motivate your supporters and engage with new major donors Can galvanize organisational energy & deliver needed change. Can help forge a new more dynamic vision. Works well for people & bodies who like to make irregular large gifts You can raise lots and lots of money! More can be easier.

Why not do a capital campaign? It will expose all your org’s weaknesses and demand they are addressed Will build on the inheritance of previous giving and relationships – is this in good shape? It will take huge energy and commitment. It will test relationships Will raise profile of your org – do you want this?

Four phases to a campaign Spend most of your time in phases 1 & 2

Phase 1 Preparation Phase Define case, list of needs, feasibility study, campaign plan, identify and research top donors, recruit campaign chair and board, recruit campaign team

Phase 2 Quiet or Private Giving Phase Engage additional campaign board members, cultivate and ask top donors, research next 100 donors

Phase 3 Public Phase Official public launch of campaign, ideally with 50% of goal pledged and announced, cultivate and ask broader range of mid to upper level gifts, expand campaign team, public awareness events

Phase 4 Consolidation Phase Formal announcement of goal achieved, celebration and thanking events, chasing up on remaining gifts and pledges. Ensuring a clear outcome communicated.

Phase 1 - Preparation a health check to see whether the organisation is ready & fit to embark upon a capital appeal; what steps need to be taken in preparation and what timeline is achievable. a fundraising feasibility study which gives an external perspective on whether the appeal target can be achieved and where the funds are likely to come from. It typically includes developing the ‘case for support’, the business case as to why a donor should support the project, quantitative desk and on-line research to identify possible sources of funding, qualitative research, personal interviews with a sample pool of potential donors and supporters to test the case for support, seek opinions on the project and assess the potential level of financial support, and preparation of a campaign plan Recruitment of an appeal committee, and in particular the appeal chair who will lead on the appeal

The Health Check – is your organisation up for it? Is you general NGO in good shape? Is it healthy, generally positive, achieving most of its goals? Is the proposed project necessary? Can we anticipate real benefits? Can we show that the community will be better off because of it? Have we firm costings? Do we have government or other funding input (eg property sales)? What is the shortfall – the fundraising target? Is the cost justifiable as compared to benefits? Have we considered other options? Is the Board in favour? Wholeheartedly? Will the Board support the fundraising effort - collectively and individually? Internal resources – sufficient skills and capacities? Good track record of relationships & donor care? No major systems problems?

Feasibility Study A feasibility study will test: Community perceptions of your organisation and the project (focus groups?) Potential leadership – financial and volunteer Possibilities for corporate, community or individual donations It will provide the basis for your campaign plan The feasibility study should include; Costs including office requirements, staffing assistance and general operating expenses Volunteer involvement and leadership Outline of roles and responsibilities for the campaign A time frame and best timing for the appeal A framework for the actual campaign implementation – fundraising activities etc. It tells you whether the task is achievable in theory

From feasibility study: create campaign plan: Timelines – realism but clear boundaries Resources required Staff time and skills needed – training needs! Board skills and contribution Donor sources Campaign messaging and brand Case for Support – strong vision! How much do you need to raise? – BE REALISTIC BUT AMBITIOUS

The ‘secret’ ingredients of a successful plan: Creativity & Passion Inspired vision Clear & shared team anchors – in leadership, cultural references, images, zeitgeist United voice All of which leads to strong shared faith that communicates itself

Research and establish your fundraising ‘Committee’ People give more generously to people with causes than to causes alone; "askers' should first be givers; "askers" generally obtain no more than they themselves give; and, therefore, In developing the fundraising plan, we also accept that: People do not give equal amounts; People do follow, or are influenced by, a lead or example; "givers" will give to join success; therefore; A successful appeal needs to establish early, high standards of giving and credibility.

Private Phase – behind the scenes Reaching out – identify your leaders – wealth/profile/skills. Using your leaders to seek support Pareto principle: You will expect 80% of your donations to come from 20% of your supporters – your major donors

The fundraising pyramid! Make the totals planned add up to more than 100% ALL OTHER GIFTS 20% NEXT TOP 90 GIFTS 40% NEXT TOP 9 GIFTS 30% TOP GIFT 10%

Seeking your Major Donors They make a major difference to an organisation They give much more than the average donor They require more resourcing and more time to cultivate They require more servicing to support and repeat They can help transform an organisation rather than just do more of the same thing You need to treat them as an individual!

Why do major donors give? Major donors give through a number of motivations: Philanthropy Faith, Community and Ethnic traditions Family heritage Personal or professional esteem Peer pressure or acceptance Personal experience of the cause Understanding how they can make a particular contribution Enjoyment of constructive use of wealth

The ladder of effective asking Ind to peer as friend (121 meeting) Ind to wider peer group Peer to peer but no personal friendship As the first item but by letter rather than in person General mailing from someone who is respected, not known personally General letter, no personal connection or knowledge of letter signatory

Phase 3 – The Public Phase A public launch Well planned & executed – create a buzz Clear asks – what do you want? Use success so far to traction more. Can you name any of your donors? (ask first!) Even better – will they help you launch? Still maintain golden rule – as personal contact as possible

Phase 4 - Consolidation When you are close to your appeal target (hopefully somewhere towards the end of stage 3), go back to people who turned you down or have already given and suggest one last small effort to see the appeal reach target. a vital part of this phase is the thanking. You should have been thanking & appreciating your donors & volunteers throughout the campaign, but now is a fantastic opportunity to get back to everyone to let them know of your joint success.

Success comes through: Huge exciting vision: creativity, excitement Top gifts Top leadership: drive and commitment Top direction: keeping on plan

You just need to know: why you are asking, who to ask, how to ask, when to ask, how much to ask for; and who should do the asking!