A presentation (PowerPoint) on nonprofit capital campaigns for arts organizations, given at a November 2008 workshop offered jointly by the Massachusetts Cultural Council and the Nonprofit Finance Fund.

1. THE CAPITAL CAMPAIGN:
A Partnership
Critical Integration of Facilities Planning, Financial Management
and Fund-Raising Strategies for Successful Capitalization of
Expansion Projects in Today’s Nonprofit Organizations
Presented at a Workshop Conducted by
The Massachusetts Cultural Council and the Nonprofit Finance Fund
Worcester, Massachusetts
November 12, 2008
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2. Getting the Discussion Started
Plans for expansion of facilities and programs require a parallel plan for the organization’s
capitalization.
 Advance project/facilities planning and development of financing strategies should be fully
integrated with fund-raising plans early on in the planning process.
 Essential details of the expansion program should be settled and confirmed before fund-
raising initiatives are undertaken.
 Success requires viability, belief, commitment and lots of hard work.
 The governing board always must take the lead.
 Everyone in the organization being on the same page is ESSENTIAL for this partnership.
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3. Foundation of the Campaign
The expansion project must be defensible.
 The message (organizational “story”) of mission and accomplishment is critical.
 The case for support must be compelling for the expansion project to have credibility.
 The governing board must take the lead
 Everyone in the organization being on the same page is ESSENTIAL for this partnership.
 The advancement/fund-raising process should be inspirational and motivational.
 Fund-raising efforts should be productive and FUN, not gruesome tasks!
 A sense of humor always helps!
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4. NOW FOR THAT SENSE OF HUMOR!
Don’t shoot the horse until
you’ve learned to drive
the tractor!
 Sometimes the old ways are the best
ways!
 Always keep the horse in front of the
cart!
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5. AND SOMETIMES ……….
The old ways work even better
when combined with some
of the new!
 The process of major-gifts fund raising
has changed in many ways.
 Computer technology, improved
communication, and research
capabilities have enhanced results.
 At its most basic level, fund raising is
still a person-to-person process.
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6. COMPETING IN TODAY’S
FUND-RAISING ENVIRONMENT
 Philanthropy in the USA rises consistently on an annual basis -- always has.
 $306.39 billion contributed in 2007.
 Many new nonprofits and worthy causes making the “Ask.” Competition is stiff!
 Massachusetts nonprofits increased in number by more than 90% since 1996 (27,462 in 2008).
 All things considered, any time is the “best time” for a major-gifts campaign, if well-prepared.
 Difficult economic environments do NOT necessarily lead to campaign failure!
 Periods of economic downturn call for redoubled focus, commitment and effort.
 A strong case for support and firm board commitment are key factors.
 Assessment of external environment and internal readiness must come first.
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7. Nonprofit Growth in Massachusetts
(1996 - 2004)
SOURCE: National Center for Charitable Statistics
25,000
20,000
15,000
10,000
5,000
0
Foundations Nonprofits
1996 2,584 14,306
2004 4,068 20,882
NOTE: The number of registered nonprofit organizations in Massachusetts grew to 27,462 by October 2008.
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8. GIVING USA 2007 - FROM WHOM
$306.39 Billion in Gifts in 2007
(by source type)
Source: The Giving Institute - Giving USA 2008
Corporations
$15.69
5.1%
Foundations
$38.52
12.6%
Individuals
$229.03
74.8%
Bequests
$23.15
7.6%
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9. GIVING USA 2007 - TO WHAT
$306.39 Billion in Gifts in 2007
(by recipient type)
Source: The Giving Institute - Giving USA 2008
International Environment &
Affairs Animals
$13.22 $6.96
4.3% 2.3%
Arts, Culture, Humanities
$13.67 Foundations
Unallocated Giving
4.5% $27.73
$23.67
Public-Society Benefit 9.1%
7.7%
$22.65
7.4%
Health
$23.15
7.6% Religion
$102.32
Human Services
33.4%
$29.64
Education
9.7%
$43.32
14.1%
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10. THE GENEROSITY INDEX
Relative Ranking of States by Affluence & Charitable Giving
(Source: Ellis L. Phillips Foundation, 200 Generosity Index)
STATE HAVING GIVING RELATION INDEX
Mississippi 50 5 45 1
Arkansas 47 6 41 2
Oklahoma 43 8 35 3
Louisiana 42 10 32 4
Alabama 38 7 31 5
Minnesota 12 39 -27 46
Massachusetts 3 30 -27 47
New Jersey 2 35 -33 48
Rhode Island 15 50 -35 49
New Hampshire 8 48 -40 50
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11. A CAPITAL CAMPAIGN:
THE BASIC CONCEPTS
• A capital campaign is an extraordinary, extended and intensive major-gifts fund-raising
effort intended to generate philanthropic support for a capital project designed to
significantly strengthen an organization’s ability to carry out its mission and conduct its
programs.
• A capital campaign seeks to solicit major gifts from carefully selected and evaluated
prospective donors in order to support the acquisition or improvement of a significant
capital asset for the organization.
• A capital campaign can be conducted for “brick-and-mortar” needs (i.e., building or
renovating facilities, etc.), special projects (i.e., purchasing equipment or other assets),
an endowment fund for future needs, or a combination of such needs.
• A capital campaign is designed to advance the strategic interests of the organization,
while annual giving is intended to raise funds for current, annual operating needs.
• A capital campaign must be tied to a project that is justifiably needed and well-defined.
• A capital campaign must be “owned” and conducted by the organization’s board.
• A capital campaign must be based on VOLUNTEER commitment to the mission.
• A capital campaign helps to broaden the organization’s overall philanthropy program.
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12. INDIVIDUAL PROSPECTS:
MOTIVATIONS FOR GIVING
51% I strongly believe in the cause.
41% I want to give back.
34% I have a sense of obligation.
29% I feel I am doing something worthwhile.
24% I have the means to give.
23% My religious beliefs call me to give.
(Source: Fidelity Charitable Gift Fund)
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13. SAMPLE CAMPAIGN GIFT CHART
(A Capital Campaign for $8 Million)
Total Number of Dollar Range of Number of Prospects
Gifts Required Required Gifts Required
1-2 $1,000,000 10-20
2 $500,000 10
5 $250,000 25
10 $100,000 30
15 $50,000 100
30 $25,000 175
45 $10,000 200
100 $2,500 300
300 $1,000 600
508-509 between $1,000 and from 1,450-1,460
$1,000,000 each prospects
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14. ARE WE READY FOR
A CAPITAL CAMPAIGN NOW?
IF SO: IF NOT:
 Activate and energize the governing  Engage professional advancement
board; counsel;
 Engage professional advancement  Conduct an “audit” of the strengths and
counsel; weaknesses of the advancement
 Conduct the needed assessment of the program and resources;
external environment;  Begin a program of board-building and
 Conduct the needed assessment of -strengthening initiatives;
internal readiness;  Focus on building strength into the
 Begin the planning process; existing advancement/philanthropy pro-
 Organize the needed volunteer gram;
resources;  Place particular emphasis on
 Prepare a budget; strengthening the annual giving pro-
gram;
 Integrate the campaign plan into the
overall philanthropy plan;  Begin building a program of deferred
and “legacy” giving;
 Anticipate the campaign’s effect on
other aspects of the philanthropy  Partner with the PR/marketing staff to
program; strengthen and articulate the organiza-
tional “story.”
 Begin the prospecting process.
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15. A FINAL OVERVIEW:
CRITICAL FACTORS FOR SUCCESS
 A well-conceived project and a strong, well-articulated case for support
 A committed governing board and senior management
 Enthusiastic volunteer leadership and a sufficient volunteer corps
 A well-executed assessment of the external fund-raising environment
 A carefully conducted internal assessment of campaign readiness
 A practical plan for dealing with organizational shortcomings
 A realistic campaign goal and informed objectives
 An adequate budget for campaign expenses
 Adequate, internal staffing to support campaign activities
 Involvement by professional advancement/fund-raising counsel
 Sufficient sources of identifiable, interested and well-inclined prospects
 A well-conceived and manageable campaign plan and timeline
 Appropriate public relations, marketing and communications support
 EVERYONE IN THE ORGANIZATION ON THE SAME PAGE!
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16. IS EVERYONE ON THE SAME PAGE?
(A Discussion of Campaign Goal at a Steering Committee Meeting)
“Excuse me, but is it
$100 million in 5
years, or $5 million
in 100 years?”
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17. GOOD LUCK
WITH YOUR CURRENT OR
PLANNED PROJECT!
Achieve and celebrate your success!
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18. Trident Communications Group
Organizational Advancement Counsel
56 Augusta Way, Dover, New Hampshire 03820-5014
603/749-6547 603/749-6548 [FAX] • inquire@tridentcg.com • www.tridentcg.com