This presentation from NFCA's 2018 Start-up Workshop Day features Jacqueline Hannah (Food Co-op Initiative) and Bonnie Hudspeth (Neighboring Food Co-op Association) tips for setting your co-op up to have a successful Capital Campaign and avoiding pitfalls learned from other start-up food co-ops.

1. NFCA’s
NORTHEAST
START-UP
WORKSHOP
DAY
2018
ROCKING YOUR
CAPITAL CAMPAIGN
www.nfca.coop
Jacqueline Hannah, Food Co-op Initiative
Bonnie Hudspeth, Neighboring Food Co-op Association

2. OVERVIEW
• Why?
• Basics: Set Yourself Up For Success
• Factors in Successful Capital Campaigns
• Why Capital Campaigns Fail
• The Wrap
www.nfca.coop

3. WHY?
www.nfca.coop
YOU HAVE TO!
And, by raising money from your founding member-owners you :
• Build up Support/Loyalty/Commitment in your project
• Spend less (lower interest than money from conventional
lenders
• Have more flexibility (structured to meet your needs)
• Do not need collateral, unlike most other sources of capital
• Have capital that is easier to renegotiate or extend

4. SET YOURSELF UP FOR SUCCESS
¡ Choose the type of capital campaign most
beneficial to your co-op
¡ Find good legal support
¡ Plan into timeline/know in advance when
you plan to launch
¡ Get Your Board “on Board” early enough
¡ Select Your Campaign Team like you are
hiring them
¡ Plan for lots of condensed work: weekly
meetings, weekly updates to members
¡ BELIEVE & Project Positivity
www.nfca.coop

5. WHICH CAPITAL CAMPAIGN?
¡ How do you choose the type of capital campaign(s) most
beneficial to your co-op?
¡ MEMBER LOANS vs. PREFERRED SHARES vs. DPOs
www.nfca.coop

6. WHICH CAMPAIGN?
www.nfca.coop
TYPE PROS CONS
Owner Loans • Legally doable in most states
• High track record of success
• Many prefer to lend
• Tons of resources on how to
• Not always treated as equity by
lenders
• Less payback flexibility
Preferred
Shares
• Always treated as equity
• Wealthier owners understand
and often prefer this vehicle
• Overall the most flexible
• Many owners prefer to lend
• Many state co-op laws not set
up for this option
• More complicated to manage
Direct Public
Offering
(DPO)
• Can allow non-owners to invest
• Almost as flexible as P Shares
• Managing non-owner investors
long-term
Mixing It Up • Multiple vehicles, broader
appeal to owners/lenders
• Cost for legal set up can double
• Managing is complicated long
term

7. TIMELINE
¡ When:
§ Paired with major project announcement: securing site
¡ Best Times:
1. Mid September – Mid November
2. Mid January - Mid March
3. Beginning of May – end of June
¡ How much time? Campaign Timeline:
• 6 weeks to plan, 6 weeks to implement
• February 1 – March 1: Forming/prelim. training of
member loan team
• March 1, 2011: Planning
• April 1, 2011: Launch
• June 1, 2011: Conclude
www.nfca.coop

8. FACTORS IN SUCCESSFUL CAMPAIGNS
¡ Incredible & Frequent
Communication
§ Prepping far enough in advance:
updating all print materials, website,
etc.
§ Good Story: Feeling of “we’re in this
together” in messaging
¡ Good leadership
¡ Clarity in Roles
¡ Solid Campaign Team
§ Enough committed volunteers who are
thanked/acknowledged
www.nfca.coop

9. PREP IN ADVANCE TO PROMOTE
1. Prepping far enough in advance:
updating all print materials,
website, etc.
2. What images will you use to tell
your co-op’s story?
3. Review List of
Members w/Board
www.nfca.coop

10. MATERIALS
¡ Use every communication tool you have: web
page, newsletter, signage, banners, etc.
¡ Initial Mailing
§ History & Plan
§ Brochure
§ Cover letter
§ Q & A
§ Testimonials
¡ Investment packet:
§ Offering document
§ Current Bylaws
§ Rate table
§ Current newsletter/annual report
§ Contact Info
www.nfca.coop

11. JACQUELINE SUGGESTS…
1. HIRE
2. BELIEVE
3. CELEBRATE
4. PLAN 1 campaign…
Be Ready for 2
www.nfca.coop

12. GREENTOP GROCERY: CASE STUDY
1. Excellent Campaign coordinator
2. Started team a *year* before launch
3. Used outside training support
4. Amazing brand and communication
5. Everyone was a part of the campaign
www.nfca.coop

13. WHY CAPITAL CAMPAIGNS FAIL
¡ Not well planned before launching
¡ Didn’t hire/lack of capacity
¡ Launched with too few members
¡ Lack of Community support/buy-in
¡ Poor communication/momentum building
www.nfca.coop

14. THE WRAP
1. It is never too early to start researching and planning your capital
campaign.
2. Communication is key
3. Everyone has a role in the capital campaign – train like it, act like it!
4. Capital campaigns more than double the co-op’s overall workload,
build capacity.
5. Test your vision every step of the way toward capital campaigning –
if the member-owners are not deeply invested in your vision, the
story won’t resonate, the capital will not flow.
6. Talk about the capital campaign NOW with your member-owners,
not later.
“A core piece of the co-operative vision is funding our own store”
www.nfca.coop

15. QUESTIONS & DISCUSSION
www.nfca.coop

16. www.nfca.coop
PO Box 93
Shelburne Falls, MA
01370
www.nfca,coop
info@nfca.coop
IYOur Co-ops!The Neighboring Food Co-op Association // www.nfca.coop