Avoiding Common Capital Campaign Mistakes

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With the economy improving, more nonprofits are launching capital campaigns to reach more people. Sadly, many campaigns stall from a few common mistakes. Brent A. Hafele, M.A. will show you how to avoid these mistakes and make your fundraising campaign a great success.

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Avoiding Common Capital Campaign Mistakes

  1. 1. Best  Foot  Forward:
 Avoiding  Common
 Capital  Campaign  Mistakes   ! Brent  A.  Hafele,  M.A.  
 NewDay  Nonprofit  Solutions   ! 4/24/14   1pm  EDT
  2. 2. Your  Presenter Brent  A.  Hafele,  M.A.  
 NewDay  Nonprofit  Solutions   ! Through  his  consulting  practice,   NewDay  Nonprofit  Solutions,  he   provides  counsel  on  a  variety  of   nonprofit  leadership  areas  including   capital  campaigns,  general   fundraising,  strategic  planning,   board/governance  relations,  and   vibrancy  planning.   ! Master  of  Arts  degree  in   Philanthropy  and  Development  from   Saint  Mary’s  University  of  Minnesota. 3
  3. 3. A Time to Plant:
 Preparing for Your Capital Campaign
  4. 4. Agenda Defining  Capital  Campaigns Four  Common  Mistakes  (and  how  to  fix  them) Lots  of  Questions  and  Answers A Time to Plant:
 Preparing for Your Capital Campaign
  5. 5. What is a Capital Campaign? !vs.  !                      -­‐  Bob  Duncan
  6. 6. What is a Capital Campaign? 1. Intensive,  highly   coordinated   fundraising  effort   2. Large  goal  (typically   3-­‐10x  annual   income)   3. Defined  period  of   time
  7. 7. Capital Campaign Goals • Larger  facility • Add  onto  or  remodel  current  facility • Additional  locations • Expansion  of  programs • Upgrade  equipment • Endowment  and  reserve
  8. 8. Capital Campaign Goals • Larger  facility • Add  onto  or  remodel  current  facility • Additional  locations • Expansion  of  programs • Upgrade  equipment • Endowment  and  reserve -­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐-­‐ Provide better services to more.
  9. 9.                1,000 donors give $1,000. Mistake #1: Expecting Uniform Gifts
  10. 10. Not                1,000 donors give $1,000. Mistake #1: Expecting Uniform Gifts
  11. 11. Donor Pyramid
  12. 12. Donor Pyramid ! Lead Major Middle Regular Donors Universe
  13. 13. Donor Pyramid
  14. 14. Donor Pyramid         $
  15. 15. Raising $1.1 Million
  16. 16. Raising $1.1 Million Cumulative #  Gifts Range  + Prospects $  in  Range Dollars Percent 1 $150,000 3 $150,000 $150,000 14% 2 $75,000 6 $150,000 $300,000 27% 2 $50,000 6 $100,000 $400,000 36% 4 $25,000 12 $100,000 $500,000 45% 7 $20,000 28 $140,000 $640,000 58% 15 $10,000 60 $150,000 $790,000 72% 20 $5,000 80 $100,000 $890,000 81% 45 $2,500 180 $112,500 $1,002,500 91% 65 $1,000 260 $65,000 $1,067,500 97% 150 $250 600 $37,500 $1,105,000 100% Many $100 Many $30,000 $1,135,000 103%
  17. 17. Raising $1.1 Million Cumulative #  Gifts Range  + Prospects $  in  Range Dollars Percent 1 $150,000 3 $150,000 $150,000 14% 2 $75,000 6 $150,000 $300,000 27% 2 $50,000 6 $100,000 $400,000 36% 4 $25,000 12 $100,000 $500,000 45% 7 $20,000 28 $140,000 $640,000 58% 15 $10,000 60 $150,000 $790,000 72% 20 $5,000 80 $100,000 $890,000 81% 45 $2,500 180 $112,500 $1,002,500 91% 65 $1,000 260 $65,000 $1,067,500 97% 150 $250 600 $37,500 $1,105,000 100% Many $100 Many $30,000 $1,135,000 103%
  18. 18. Raising $1.1 Million Cumulative #  Gifts Range  + Prospects $  in  Range Dollars Percent 1 $150,000 3 $150,000 $150,000 14% 2 $75,000 6 $150,000 $300,000 27% 2 $50,000 6 $100,000 $400,000 36% 4 $25,000 12 $100,000 $500,000 45% 7 $20,000 28 $140,000 $640,000 58% 15 $10,000 60 $150,000 $790,000 72% 20 $5,000 80 $100,000 $890,000 81% 45 $2,500 180 $112,500 $1,002,500 91% 65 $1,000 260 $65,000 $1,067,500 97% 150 $250 600 $37,500 $1,105,000 100% Many $100 Many $30,000 $1,135,000 103%
  19. 19. Raising $1.1 Million Cumulative #  Gifts Range  + Prospects $  in  Range Dollars Percent 1 $150,000 3 $150,000 $150,000 14% 2 $75,000 6 $150,000 $300,000 27% 2 $50,000 6 $100,000 $400,000 36% 4 $25,000 12 $100,000 $500,000 45% 7 $20,000 28 $140,000 $640,000 58% 15 $10,000 60 $150,000 $790,000 72% 20 $5,000 80 $100,000 $890,000 81% 45 $2,500 180 $112,500 $1,002,500 91% 65 $1,000 260 $65,000 $1,067,500 97% 150 $250 600 $37,500 $1,105,000 100% Many $100 Many $30,000 $1,135,000 103%
  20. 20. Raising $1.1 Million Cumulative #  Gifts Range  + Prospects $  in  Range Dollars Percent 1 $150,000 3 $150,000 $150,000 14% 2 $75,000 6 $150,000 $300,000 27% 2 $50,000 6 $100,000 $400,000 36% 4 $25,000 12 $100,000 $500,000 45% 7 $20,000 28 $140,000 $640,000 58% 15 $10,000 60 $150,000 $790,000 72% 20 $5,000 80 $100,000 $890,000 81% 45 $2,500 180 $112,500 $1,002,500 91% 65 $1,000 260 $65,000 $1,067,500 97% 150 $250 600 $37,500 $1,105,000 100% Many $100 Many $30,000 $1,135,000 103%
  21. 21. Mistake #2: 
 Skipping the Study
  22. 22. Mistake #2: Skipping the Study
  23. 23. Mistake #2: Skipping the Study a) Test  Case    ➔ Is  it  compelling?
  24. 24. Mistake #2: Skipping the Study a) Test  Case    ➔ Is  it  compelling? b) Assess  Capacity    ➔ Can  it  be  funded?    From  where?
  25. 25. Mistake #2: Skipping the Study a) Test  Case    ➔ Is  it  compelling? b) Assess  Capacity    ➔ Can  it  be  funded?    From  where? c) Identify  Leadership    ➔ Who  will  raise  it?
  26. 26. Mistake #2: Skipping the Study a) Test  Case    ➔ Is  it  compelling? b) Assess  Capacity    ➔ Can  it  be  funded?    From  where? c) Identify  Leadership    ➔ Who  will  raise  it? d) Evaluate  Readiness    ➔ Can  the  Org  handle  it?
  27. 27. Mistake #2: Skipping the Study a) Test  Case    ➔ Is  it  compelling? b) Assess  Capacity    ➔ Can  it  be  funded?    From  where? c) Identify  Leadership    ➔ Who  will  raise  it? d) Evaluate  Readiness    ➔ Can  the  Org  handle  it? Plan  for  Success  (strategy,  timing,  budget,  etc.)
  28. 28. Mistake #2: Skipping the Study a) Test  Case    ➔ Is  it  compelling? b) Assess  Capacity    ➔ Can  it  be  funded?    From  where? c) Identify  Leadership    ➔ Who  will  raise  it? d) Evaluate  Readiness    ➔ Can  the  Org  handle  it? Plan  for  Success  (strategy,  timing,  budget,  etc.) Prepares Donors and Leadership
  29. 29. Mistake #3: “Going Public” Too Soon
  30. 30. Mistake #3: “Going Public” Too Soon Help Us Reach Our Goal! $500,000 $1,000,000 $1,500,000 $2,000,000
  31. 31. Campaign Phases
  32. 32. Campaign Phases Pre-Planning
  33. 33. Campaign Phases Planning Pre-Planning
  34. 34. Campaign Phases Quiet Phase Planning Pre-Planning
  35. 35. Campaign Phases Public Phase Quiet Phase Planning Pre-Planning
  36. 36. Campaign Phases Public Phase Quiet Phase Planning Pre-Planning Go  Public
  37. 37. Celebration Campaign Phases Public Phase Quiet Phase Planning Pre-Planning Go  Public
  38. 38. Mistake #4: Launching Prematurely Campaign  Cycle Growth Cycle © 2014 NDNS
  39. 39. Mistake #4: Launching Prematurely Campaign  Cycle Growth  Cycle Growth Cycle © 2014 NDNS
  40. 40. Mistake #4: Launching Prematurely newdaynonprofit.com
  41. 41. Mistake #4: Launching Prematurely • Strategic  Planning newdaynonprofit.com
  42. 42. Mistake #4: Launching Prematurely • Strategic  Planning • Fundraising newdaynonprofit.com
  43. 43. Mistake #4: Launching Prematurely • Strategic  Planning • Fundraising • Staffing newdaynonprofit.com
  44. 44. Mistake #4: Launching Prematurely • Strategic  Planning • Fundraising • Staffing • Board  Development newdaynonprofit.com
  45. 45. Mistake #4: Launching Prematurely • Strategic  Planning • Fundraising • Staffing • Board  Development • Project newdaynonprofit.com
  46. 46. Mistake #4: Launching Prematurely • Strategic  Planning • Fundraising • Staffing • Board  Development • Project • Counsel newdaynonprofit.com
  47. 47. Book Recommendation Capital  Campaigns: Strategies  that  Work ! By  Andrea  Kihlstedt
  48. 48. Questions?
  49. 49. Free Campaign Check-up Bring  your  questions • Planning,  Campaigning,  or  Post • Growth  Cycle ! brent@newdaynonprofit.com !
  50. 50. ! ! ! Upcoming  Topics:   ! Winning  Strategies  for  Nonprofit  Compliance   ! Donor  Thank  You  Videos,  Infographics,  and   Other  Fun  Ways  to  Say  Thanks   ! Getting  Your  Board  To  Fundraise https://bloomerang.co/resources/webinars

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