This document summarizes an interview with John Martin, President of MGI Fund Raising Consulting, Inc., about common mistakes that cause capital campaigns to fail. Some key mistakes highlighted are: 1) Not doing proper pre-campaign planning such as a feasibility study; 2) Not asking for large enough leadership gifts at the start of the campaign; 3) Rushing the solicitation process and not properly cultivating donors before asking for gifts. Proper planning, cultivation of donors, and asking for significant leadership gifts are important for campaign success.

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martin L E T T E R
Publ ished by MGI / Ser vices and Counsel i n f und-r aisi ng and communications
Capital Campaign Sputtering!
An Interview with John A. Martin, CFRE
This issue of The Martin Letter is the fourth in a series of interviews with practitioners
in the field of philanthropy. Our Editor interviewed John Martin, President & Managing
Partner for MGI Fund Raising Consulting, Inc., on the subject of Capital Campaigns.
Martin identified some common mistakes that can cause a campaign to sputter and,
ultimately, fail.
Q What most commonly causes
capital campaigns to fail?
gift at the top of the gift range table. Many
campaign planners now presume that top
sessions with supporters. Carry a prospect list
to all meetings and ask donors to review it--
level gifts will be smaller than leadership gifts you can never tell when someone close to you
A. Too many organizations fail to do the
received by the organization in the past. Do will have a connection to a distant prospect.
pre-campaign planning that is so vital to
not downsize top gift expectations until they
the campaign’s ultimate success. They
are tried and proven to be too high. With I have heard you say that “choosing the
regard the feasibility study and pre-planning
many prospects, we do not know yet which wrong leadership is the number one reason
phases as a waste of time and money. But
assets have been affected in what manner, so campaigns fail.” What do you mean by that?
the feasibility study is key because it answers
making assumptions could be a mistake. Use
the question, “Where do we go from here?”
enhanced recognition options, gift matches Weak leadership from board and/or campaign
And careful pre-planning ensures there are
and challenges, or planned giving tools to leaders can doom a campaign. Now is the
clear guidelines for creating a compelling
raise the level of the top gift. It is much easier time for board and campaign leaders to stand
case for support of the organization and the
to raise one large gift in this economy than up and be counted. Leaders need to take
campaign. You need to know how to engage
many small ones! charge by addressing key financial issues,
your board and other volunteer leaders, and
cutting back if necessary, and taking part
what roles each person will play. You need to
Q. Is there a right number of prospects in the reassessment of the campaign. This
have a target goal and strategies for reaching
an organization must identify before also means ensuring they give to their level
it. You need to know what additional staff and
launching a capital campaign? of capability and continuing to ask them to
financial resources are required. Armed will
open the door to others who can give. Board
all that information, you will be positioned to A. There is no exact number. The key is members should be part of the solution--
engage your most important constituents in identifying and cultivating enough prospects to inform them, involve them, and give them
thinking along with you about the impact of meet your needs. Any campaign will absolutely important tasks to do.
a successful campaign on your organization need to identify new prospects. First, it’s
and the people it serves. important to make sure that current donors
are being treated well. Then invest in some Q. What are common mistakes
Q. What is the number one mistake organizations make when asking for
prospect research techniques, including new gifts?
organizations make with their capital
campaigns? ones like electronic prospect screening. Do
not dismiss older, more personal methods of A. There are quite a few. First, asking too
A. Not asking for a large enough leadership screening, like holding screening and rating soon. Some organizations have a short-

2. MGI / Ser vices and Counsel in fund-raising and communications
term approach to cultivation and campaign when it comes time to close the gift.
giving. They roll through prospect lists like a
steamroller, extracting the gifts that are easily Q. What else do organizations tend to
available and balking at donors with more get wrong?
complex demands. Take time to cultivate.
A. Taking donors for granted once a gift is
There is a better chance of getting a higher
closed is a common error. Treating current
gift level if the prospect truly understands
donors well means more than writing a Publisher: John A. Martin, CFRE
your needs. Do not rush large gifts. It may be
thank-you letter. Keep donors informed and
more important to wait and get a big gift next Editor: Pamela Capriotti, CFRE
involved, and they will keep giving back. It
year than to close a small one right now. Contributing Editors:
costs much less to return to a prior donor
Elizabeth Hamrick
for a gift than it does to find, cultivate and
Second, not asking at all. We have all seen solicit a new prospect. Implement a strong
John Schwietz
campaigns that never get to the point. stewardship program and it will pay you back
A prospect is cultivated, cultivated, and Published by:
many times over. MGI Fund Raising Consulting, Inc.
cultivated without an ask ever being made. 2925 Dean Parkway – Suite 300
This is not respectful to the needs of the Minneapolis, MN 55416
Some organizations make the mistake of
organization, to the volunteers, or even to MGI Fund Raising Consulting
going back to the same donors over and
the donor. Decide when enough is enough, (Canada), Inc.
over. If you are only soliciting prior donors,
and cut to the chase. Making an ask can be 120 Adelaide Street, West – Suite 2500
your organization will die on the vine. Toronto, Ontario M5H 1T1
tough, but spending all that time and money
New constituents are the lifeblood of any
on a prospect with nothing to show for it is
organization. If you cannot figure out how For information on our services, call toll-free
just not proactive.
to reach new groups, consider developing 1.800.387.9840 (U.S. or Canada)
a partnership with another organization in Visit our website:
And third, not closing the solicitation once it your community that has the kind of audience www.mgifundraising.com
has been made. Organizations should work you would like to reach. Offer to trade lists,
with volunteers, staff, and executive director/ to combine asks, or to develop programs
CEO on their skills, especially in asking for together to cement your partnership. Be levels on your behalf. If your campaign
and closing a gift. Too many solicitors lose creative about outreach to younger donors; needs are truly urgent, your constituents at
their focus during the last segment of a try social-networking or viral campaigns to all levels need to share that sense of urgency.
solicitation call and fail to get a gift closed. broaden your base. Create energy for a campaign by harnessing
There are real techniques to learn here, so
new electronic communication methods like
plan a workshop or do role playing to bring Q. Are there other things than can interactive websites and social networking,
everyone up to speed. After investing so derail a campaign? developing public events to showcase your
much in getting a prospect to the point of
A. Not energizing your constituents at all services, and creating a new PR plan to
an ask, do not let your staff or volunteers fail
build support for your cause. Find ways to
get people talking about your organization
and create a buzz.
About the author…
John Martin has more than 30 years Another one is not developing a strong
experience in the not-for profit field, on MGI is a full service fund-raising and communications consulting
firm operating across North America. We consult throughout the enough case to show why you need the
both the organizational and consulting United States and Canada for a wide range of not-for-profit clients:
sides. Through his consulting work with money. It can be surprising how weak some
clients seeking counsel for major capital Hospitals and Health Care Institutions campaigns are when it comes to making their
and endowment campaigns, Mr. Martin Social Service Institutions
has earned a reputation as one of North Private Schools, Colleges, Universities and Post-Graduate case. “Because we need it,” is not a case.
America’s top strategists for the not-for- Schools “We are doing good work,” is not a case.
profit sector. His brash mix of social Cultural and Arts Institutions
Churches, Synagogues and Religious Institutions Make sure that your case answers questions
concern and aggressive business smarts
has helped raised hundreds of millions The experience and resources of the firm have been used by a
like these: Why should I give? What are the
of dollars for colleges, hospitals, human variety of clients from well-established national not-for-profit needs I can give to? How urgent are these
service institutions and arts and cultural institutions looking to prepare themselves for the 21st century to needs? What will happen if I do not give
groups throughout North America. John first time start-up capital campaigns.
Martin was awarded the Association of now? What impact will my gift have? Spend
Fund Raising Professional, Outstanding For more information about planned giving and planned giving
consultancy, please contact John at: martinmgi@cs.com or call our more time sharpening your case to stand out
Professionals for 2007. He can be Toll Free Number: 1-800-387-9840.
reached via email: martinmgi@cs.com in the crowd and fundraising will improve
exponentially.