Conducting a Capital Campaign in the Current Economy


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Should you launch a campaign, or put it on hold until the economy improves?

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Conducting a Capital Campaign in the Current Economy

  2. 2. The Curtis Group <ul><li>OUR MISSION </li></ul><ul><li>Committed to promoting philanthropy, </li></ul><ul><li>we help you plan your future, build awareness, </li></ul><ul><li>and raise substantial amounts of money. </li></ul>
  3. 3. The Curtis Group <ul><li>We offer fundraising consulting & marketing services for nonprofit organizations </li></ul><ul><ul><li>Development Assessments & Planning </li></ul></ul><ul><ul><li>Campaign Feasibility Studies </li></ul></ul><ul><ul><li>Campaign Management & Counsel </li></ul></ul><ul><ul><li>Fundraising Marketing & Communications </li></ul></ul><ul><ul><li>Planned Giving </li></ul></ul>
  4. 4. The Curtis Group <ul><li>Raised hundreds of millions for more than 80 nonprofits </li></ul><ul><li>Celebrating our 20 th anniversary this year </li></ul><ul><li>Only Virginia-based member of North America’s 35-member Giving Institute </li></ul>
  5. 5. Giving Institute: Leading Consultants To Nonprofits <ul><li>Offers thought leadership on philanthropy </li></ul><ul><li>Promotes high standards of ethical fundraising </li></ul><ul><li>Publishes annual Giving USA and quarterly Giving USA Spotlights </li></ul>
  6. 6. <ul><li>Are you considering </li></ul><ul><li>a major campaign? </li></ul>
  7. 7. <ul><li>Have you put your </li></ul><ul><li>campaign plans on hold? </li></ul>
  8. 8. 2008 Charitable Giving Total = $307.65 billion ($ in billions) Individuals $229.28 75% Foundations $41.21 13% Bequests $22.66 7% Corporations $14.50 5% Source: Giving USA 2009
  9. 9. Recipients of Gifts, 2008 Total = $307.65 billion ($ in billions) Environment and Animals $6.58 2% Grants to Individuals* $3.71 1% Human Services $25.88 9% International Affairs $13.30 4 % Arts, Culture, and Humanities $12.79 4% Public-Society Benefit $23.88 8% Unallocated giving $19.39 6% Health $21.64 7 % Gifts to Foundations $32.65 11% * *Foundation grants awarded to individuals Religion $106.89 35% Education $40.94 13%
  10. 10. Changes by Recipient Organization 2007–2008 2006–2007
  11. 11. Recent S&P Activity Source: BigCharts/
  12. 12. Importance of Individual Giving <ul><li>88% of giving comes from individuals </li></ul><ul><li>10% ($100,000+ incomes) give 51% of individual $ </li></ul><ul><li>Between 1996 and 2008, number of nonprofits jumped 81%, f rom 654,000 to 1.2 million </li></ul><ul><li>January 2009 survey by Cygnus found that: </li></ul><ul><ul><li>42% percent of donors would give to nonprofit they had not supported before if someone they knew asked for gift </li></ul></ul>
  13. 13. High-Net-Worth Households <ul><li>The more they volunteered, the larger their gifts </li></ul><ul><ul><li>Average gift, non-volunteers: $35,127 </li></ul></ul><ul><ul><li>Average gift, volunteers, 101-200 hours: $124,267 </li></ul></ul><ul><ul><li>Average gift, volunteers, 200+ hours: $132,315 </li></ul></ul><ul><li>Top reason they stopped giving to nonprofit: </li></ul><ul><li>“ No longer feeling connected to the organization” </li></ul><ul><li>Source: “2008 Study of High Net Worth Philanthropy” by Bank of America & Indiana University Center on Philanthropy (HNW = $200,000+ income or $1 million+ net worth) </li></ul>
  14. 14. <ul><li>Have you ever been involved with a major campaign? </li></ul>
  15. 15. What Is a Campaign? <ul><li>Large, intensive, volunteer fundraising effort conducted over long, defined timeframe </li></ul><ul><li>Raises large sum for specific purpose </li></ul><ul><li>Focus is big gifts pledged over multi-year period </li></ul><ul><ul><li>Not effort to seek average gifts </li></ul></ul><ul><li>Personal solicitations with specific asks </li></ul><ul><ul><li>By board members and volunteers who call on people they know </li></ul></ul>
  16. 16. Phases of a Major Campaign <ul><li>Phase I: Feasibility Study </li></ul><ul><li>Phase II: Planning & Organization </li></ul><ul><li>Phase III: Leadership, the Quiet Phase </li></ul><ul><li>Phase IV: Public Phase </li></ul>
  17. 17. Phase I: Feasibility Study <ul><li>Takes three to four months </li></ul><ul><li>Series of confidential interviews with potential volunteers and donors that: </li></ul><ul><ul><li>Assesses image and reputation </li></ul></ul><ul><ul><li>Identifies priority of need </li></ul></ul><ul><ul><li>Determines if volunteers are willing to help and contributors are willing to give </li></ul></ul><ul><ul><li>Lays groundwork for education and cultivation </li></ul></ul><ul><ul><li>Bottom Line: Will people give and get major gifts? </li></ul></ul>
  18. 18. Phase II: Planning & Organization <ul><li>Successful fundraising is 80% organization </li></ul><ul><li>and 20% solicitation </li></ul>
  19. 19. Phase II: Planning & Organization <ul><li>Takes six to nine months or more </li></ul><ul><li>In planning phase: </li></ul><ul><ul><li>Finalize funding priorities </li></ul></ul><ul><ul><li>Write case for support </li></ul></ul><ul><ul><li>Identify campaign leadership </li></ul></ul><ul><ul><li>Determine staff’s role </li></ul></ul><ul><ul><li>Solicit the board </li></ul></ul><ul><ul><li>Develop donor pool </li></ul></ul><ul><ul><li>Create campaign materials </li></ul></ul>
  20. 20. Guidelines for Capital Campaign Gifts <ul><li>Top Gift = 10% of Goal </li></ul><ul><li>Next 10 Gifts = 25% of Goal </li></ul><ul><li>Next 100 Gifts = 40% of Goal </li></ul><ul><li>Remainder of Gifts = 25% of Goal </li></ul><ul><li> 100% </li></ul>
  21. 21. Phase III: Leadership, the Quiet Phase <ul><li>Takes 12 to 15 months </li></ul><ul><li>Recruit campaign chair </li></ul><ul><ul><li>Must be visible in community, able to open doors </li></ul></ul><ul><ul><li>Must make a lead gift; must ask others </li></ul></ul><ul><li>Most critical function is leadership – form a strong Steering Committee </li></ul>
  22. 22. Phase III: Leadership, the Quiet Phase <ul><li>Solicit advance gifts and fundraising volunteers </li></ul><ul><li>Identify, research, and evaluate lead and major gift prospects </li></ul><ul><ul><li>Best prospects are current givers and your board </li></ul></ul><ul><li>Hold cultivation events </li></ul><ul><li>Begin to solicit lead and major gifts </li></ul>
  23. 23. Phase III: Leadership, the Quiet Phase <ul><li>Keep in mind: </li></ul><ul><li>If you were to start Phase I now, you would just be starting Phase III about a year from now </li></ul><ul><li>By early 2011, when there’s a good chance the economy has improved, you’ll be in early stages of quiet phase </li></ul>
  24. 24. Phase IV: Public Phase <ul><li>Takes six to 12 months </li></ul><ul><li>Announce campaign publicly when: </li></ul><ul><ul><li>At least 60% of goal raised </li></ul></ul><ul><ul><li>Pledges made by all board members </li></ul></ul><ul><ul><li>Leadership gifts in hand </li></ul></ul><ul><ul><li>Major gifts being solicited </li></ul></ul>
  25. 25. Phase IV: Public Phase <ul><li>Public phase </li></ul><ul><ul><li>Still involves face-to-face calls with bigger donors </li></ul></ul><ul><ul><li>Use direct mail for smaller gifts </li></ul></ul><ul><ul><li>Hold special events </li></ul></ul>
  26. 26. What We’re Seeing <ul><li>HNWI giving to fewer nonprofits but still giving </li></ul><ul><li>Fewer building and endowment campaigns; focus is on programs and operating efforts </li></ul><ul><li>More funding of human services vs. the arts </li></ul><ul><li>Private family foundations pulling back </li></ul>
  27. 27. What We’re Seeing <ul><li>Giving decisions taking longer; not getting declines but not getting responses </li></ul><ul><li>Some donors staging their gifts over time </li></ul><ul><li>Volunteers hesitant to make calls </li></ul><ul><li>Donors apologizing for not giving more </li></ul>
  28. 28. What We’re Seeing <ul><li>Some layoffs, cutbacks, talk of mergers </li></ul><ul><li>Income from fundraising events is down </li></ul><ul><li>Bank of America/Wachovia effect </li></ul><ul><li>BUT— </li></ul><ul><li>Nonprofits doing it right way are having success </li></ul>
  29. 29. What We’re Advising <ul><li>Giving tracks the stock market and personal income </li></ul><ul><li>A drop in giving is probable this year </li></ul><ul><li>Even so, people with money will still give </li></ul><ul><li>You must work to remain a philanthropic priority </li></ul>
  30. 30. Are You Ready for a Campaign? <ul><li>1. Now more than ever, your case must articulate needs and successes clearly and concisely </li></ul><ul><ul><li>Test your case; does it advance your mission? </li></ul></ul><ul><ul><li>Donors want specifics on how gift will make a difference </li></ul></ul>
  31. 31. Are You Ready for a Campaign? <ul><li>2. Board members must be clear about their role; </li></ul><ul><li>talk to them </li></ul><ul><ul><li>It’s not only about the ask </li></ul></ul><ul><ul><li>Must be advocates and thank donors </li></ul></ul><ul><ul><li>Should visit donors to begin campaign cultivation process </li></ul></ul>
  32. 32. Are You Ready for a Campaign? <ul><ul><li>3. Help your board by having regular training sessions </li></ul></ul><ul><li>4. Keep your current donors close </li></ul><ul><ul><li>Talk to top 10-20% about their funding interests </li></ul></ul><ul><ul><li>Make sure communication is one on one </li></ul></ul><ul><ul><li>It’s appointments vs. asking </li></ul></ul><ul><li>5. Create a cultivation plan for each top donor </li></ul>
  33. 33. Are You Ready for a Campaign? <ul><ul><li>6. Develop new leaders; they’ll be ready when </li></ul></ul><ul><ul><li>campaign launches </li></ul></ul><ul><li>7. Implement a consistent communications program </li></ul><ul><li>8. Invest in campaign tools, such as fundraising </li></ul><ul><li>management software and prospect research </li></ul>
  34. 34. Are You Ready for a Campaign? <ul><li>9. Don’t simply assume people won’t be able to </li></ul><ul><li>give; people with money will still give </li></ul><ul><li>10. Focus on planning needed to become campaign- </li></ul><ul><li>ready; work to remain a philanthropic priority </li></ul>
  35. 35. Campaign Must-Haves <ul><li>Community’s confidence in the board and staff </li></ul><ul><li>Strong case for support </li></ul><ul><li>A board willing to give and get </li></ul><ul><li>Not just any, but the right campaign leadership </li></ul><ul><li>Top 10 lead gifts to set the tone for the campaign </li></ul><ul><li>Leaders experienced in major-gift solicitation </li></ul>
  36. 36. <ul><li>757.496.2224 </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul>