This document provides guidance on planning and executing a capital campaign. It discusses assessing organizational readiness, determining the type and goals of the campaign, analyzing annual giving and funding gaps, creating a needs assessment committee, developing the case statement, structuring the fundraising pyramid with major gift prospects, and planning a gala event to help complete the campaign. The overall message is that thorough preparation and stakeholder buy-in are essential to the success of a major capital fundraising initiative.

1. Moving the Needle: From
Great Annual Fund Raising to
Great Capital Planning
SUSAN BENDER
SENIOR VICE PRESIDENT/CHIEF
DEVELOPMENT OFFICER

2. Readiness Assessment
 Stable annual campaign?
 Event driven or donor based giving?
 Board giving percentage vs. outside support $$ and
percentage of each.

3. Type of Campaign
 Bricks and Mortar?
 Aged building?
 Lack of space for programs.
 Catastrophe repair?
 Building Committee?

4. Endowment/Programmatic
 Population cannot pay for services in large enough
proportion to cover cost.
 Federation or other funding not likely to rise, indeed
falloff expected.
 Program deemed too important to allow to be trimmed
or discontinued.
 No funds available to expand programs into new areas.

5. Annual Funds Analysis
 Sources of program support? Dollars by program vs.
operating cost of program.
 Membership covers which costs to what degree?
 Additional income from galas, foundations,
individual donors, planned gifts?
 Identify gap. How are you currently closing it or do
you have a deficit?

6. Metrics
 How many members contribute over and above
membership fee?
 How many use facilities regularly without capability to
pay?
 How many contribute but do not use facilities? Why?
 Population analysis…are you serving a constituency with
no support capability.
 Is your Board/Donor base willing to continue this?
Percentage yes or no.

7. Campaign Preparation
 Assuming Board wishes to at least assess a campaign.
 Feasibility Study:
 How to construct a viable study.
 Who should be interviewed?
 Use of a consultant to do this.

8. Campaign Preparation (cont.)
 Clarity of assessment to be decided upon BEFORE
any study begun.
 Costs associated with Feasibility Study. How will
this be covered?
 Staff assessment…if the study concludes to go
forward who will staff campaign?

9. How to go forward from the
Feasibility phase?
 Size of campaign.
 Board agreement ? Disagreement?
 Staff capability: enough people or need to hire?
 Need for Architect? Fees?

10. How to go forward from the
Feasibility phase? (cont.)
 Consultant to execute campaign? Cost associated?
Staff interface?
 Campaign to be one phase or more?
 Pledges payable over what period?
 Planned giving allowed? How?

11. Assuming Acceptance of findings
 Financing of early stages: how? Who? Over what
time period?

12. Creation of Institutional Needs
Assessment Committee
MOST CRITICAL STEP
 Who should be on the committee?
 How big should it be?
 Insiders and Outsiders?
 Number of meetings and frequency.
 Who does cost analysis of each item?

13. Presentation of Findings to the Board
 Who presents? How to handle questions?
 Presentation of time line for expenditures:
construction costs have a different time line.
 Payment schedules for consultants/contractors.
 Financing arrangements in house to avoid any debt.
 Phases for campaign i.e. construction phase followed
by program endowment?

14. Case Statement Development
 Board Committee to help on this, who do you select?
 Finance materials to substantiate case.
 Donor recognition categories.

15. Fundraising Pyramid
 Overall campaign size will drive lead gift.
 How to determine that gift size.
 Do you have donors to consider for lead gifts?
 How many? How do you know?

16. 25 Million Dollar Campaign
Number of Donors Monetary Contribution
1 $2.5 Million
4 $1 Million
6 $500,000
10 $250,000
12 $150,000
30 $100,000
50 $50,000
60 $25,000
135 $10,000
Campaign Total = $25 Million

17. 25 Million Dollar Campaign
1 @ $2.5M
4 @ $1M
6 @ $500K
10 @ $200k
12 @ $150K
30 @ $100K
50 @ $50K
60 @ $25K
135 @ $10K

18. 25 Million Dollar Campaign
Number of Donors Monetary Contribution
1 $5 Million
2 $2.5 Million
4 $1 Million
6 $500,000
8 $250,000
10 $150,000
15 $100,000
20 $50,000
40 $25,000
100 $10,000
Campaign Total = $25 Million

19. 25 Million Dollar Campaign
1 @ $5M
2 @ $2.5M
4 @ $1M
6 @ $500k
8 @ $250K
10 @ $150K
15 @ $100K
20 @ $50K
40 @ $25K
100 @ $10K

20. Board is capable and willing and you
have prospects for major gifts
and major naming opportunities
 Construction or refurbishment time line from
contractor?
 How long does he estimate?
 Can you raise costs for this in advance of starting
the project? Will it become more expensive?

21. Board is capable and willing and you
have prospects for major gifts
and major naming opportunities
 Does lead gift have to be associated with TOTAL
$$ i.e. $25,000,000?
 Do you need to have shorter payoff on these
pledges?
 Allow financials to drive your argument.

22. Assume three years to complete $10,000,000 first
phase with almost all construction costs covered in
first year both pledged and paid.
Nothing succeeds like success! Move directly into
second phase as soon as possible. Try to accomplish
total $25,000,000 in five years. Understand that later
pledges MAY require extended payouts.

23. Use of Gala to move into final phase
 How to expand donor base?
 How to recognize donors?
 How to create excitement?
 Who should Chair?
 Who should be honored?
 How does this help to expand your annual campaign
and giving levels?