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What To Expect When You're Expecting a Capital Campaign

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Robert Stein

on 19 October 2013

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Transcript of What To Expect When You're Expecting a Capital Campaign

Ramping Up the Capital Campaign.
Planning

Your Capital Campaign MUST Have a Solid Case for Support
An Eloquent Document MUST Be Created That Expresses the Case Eloquently and Compellingly
This Document Will Be Used to Create Other Campaign Documents
The Case Statement Will Be Used in the Feasibility Study
The Case Will Make or Break Your Campaign

Making the Case

Local or National:
National Firms Have Enormous Prestige and Have Developed Highly Effective Standardized Materials, Methodologies and Strategies

Local Firms Have Less Prestige, But Often Know the Community and “Where the Bodies are Buried”
Counsel Often Charges Between $5,000 and $15,000 a Month, JUST for Consulting

Choosing Counsel

Option 3: Full-Time Staff Person

Same Benefits as Option 2
Usually Somewhat Less Expensive
Staff Member Can Stay on to Become a Major Gifts Officer

Staffing the Effort

Option 1: Pile it All on the Existing Staff

Results:
A Longer Campaign Erosion of Operating Support
Disaster

Staffing the Effort

The CEO is the Chief Fundraising Officer, NOT the Development Officer
The CEO, Along with The Board, is Ultimately Responsible for How the
Funds Will be Spent, and Should, Therefore, Be the Key Spokesperson for Requesting Funds
Major Prospects Expect to be Cultivated and Solicited by the CEO
A Capital Campaign Must Be a High Priority for Senior Administration; They Must Be Accessible and Visible

The Role of CEO and Senior Staff

Board Members Must Be Willing to Participate in Solicitations Within Their Means and Spheres of Influence
Volunteers Must Make Thoughtful and Proportionate Gifts Before Asking Others
Peer Volunteers Do More to Motivate Prospects to Give than Staff Members
Volunteers Should be Trained Properly to Ensure They Are Following Proper Procedures and Protocol

The Role of the Board And/Or Other Volunteers

To Determine that the Need for Funds is Justified and that a CC is Required
Prior to Solicitation of Others, the Board Must Commit Their Gifts First,
To Set the Standards and Pace
A CC is a Board Responsibility; the Example of the Board’s Giving is the Cornerstone for the Campaign

The Role of the Board And/Or Other Volunteers

Costs Should Include Feasibility Study
Costs Should Not Include Architectural Studies, etc.

Campaign Budgeting

The Lower the Campaign Goal,
the Higher the Percentage of Cost

Most of the Costs, Such as Counsel and Staff are Fixed
Anticipate 15%-20%+ for Campaigns of $1-$3 Million
Anticipate 10% + for Campaigns of $3-$5 Million
Anticipate 7% + for Campaigns of $5-$10 Million
Anticipate 5%+ for Campaigns of $10 Million +

Campaign Budgeting

You Must Be Realistic in Budgeting Your Capital Campaign—Being Cheap May Cost You Dearly

Staff
Counsel
Materials
Events

Anticipate anywhere from 5%-20% of campaign revenue for campaign cost

Campaign Budgeting

Issue Four - Prospects

Can identify prospects who have the CAPABILITY to give at least 50% of the goal
30 to 40 community leaders
Identify target amounts for each constituency

Assessing Readiness

Issue Three - Leadership

CEO
Day to day campaign management
100 % board commitment
Directors and senior staff are committed to the campaign
10 potential leaders from the community

Assessing Readiness

Issue Two:

Case for Support
A solid, written case for support for the campaign
Benefits to community vs. organizational need
What will the campaign fund?

Assessing Readiness

Planning Phase
Cultivation Phase
Solicitation Phase
Pledge or Fulfillment Phase

Phases of a Capital Campaign

Familiarize Constituency with Organization’s Special Needs
Encourage Donors to Think Big When Making Donations
Push Annual Giving to New Levels
Build Volunteer Leadership
Increase Organization’s Visibility
Enable Donors to Pledge Gifts Over Several Years

Benefits of Capital Campaigns

Facility Construction
Renovations
Equipment Purchase
Endowment Development
Programs and Scholarship

Purposes of Capital Campaigns

Robert Stein, CFRE
Principal
MajorGiving

Pacific Crest Trail Association
Board Weekend
October 19-20, 2013
What to Expect When You’re Expecting a Capital Campaign

No Campaign Should Begin Without Clear and Agreed-Upon Policies and
Guidelines for How the Campaign will Run and How the Funds Will Be Handled As the Campaign Proceeds

The Campaign Plan

Follow the Same Process as the
RFP for the Feasibility Study
Many Times, the Same Counsel that Conducted the Study
will Stay on for the Campaign
Many Times, Counsel Will Not Work on a Campaign Based on Another’s Feasibility Study

Choosing Counsel

Option 2: Full-Time Consultant On-Site

Results:
Motivated and Focused
Shorter Duration
Constant Activity
VERY Expensive

Staffing the Effort

"If you want advice, ask for money.
If you want money, ask for advice.“

The Study Process
Results
Next Steps

Feasibility Study

Issue One - Image and Reputation
Organization is well known and respected in the community
General Public
Top Community and Business Leaders

Assessing Readiness

Restricted Purposes or Endowment Development
Use Personal Solicitation vs. Current Income

Solicits Pledges from Cash or Assets payable over 3-5 Years
Special Events are Mainly Used for Visibility and Momentum Rather Than for Raising Money

Differences From Other Development Activities

AFP Description:

A capital campaign is an intensive, organized fundraising effort to secure philanthropic gifts for specific capital needs or projects, executed within a specific time period, usually over one or more years.

Capital Campaign Overview

Traditional Model
Suited to distribution of wealthy prospects in an organization
Multiple Lead-Gifts
You have enough prospects to raise 50% from your top two tiers
Dynamic leadership in place to influence and solicit the lead prospects

Which Model is for You?

Multiple Lead-Gift Model - $2 Million Goal

Multiple Lead-Gift Model

Traditional Campaign Pyramid - $2 million Goal

Traditional Campaign Pyramid

Advise on policies:
Gift acceptance
Gift acknowledgment and recognition
Cultivation time-line
A communications plan
Committee Communications
Donor Communications

Cabinet Members

Make a sacrificial gift
Attend one meeting per month at the onset
Be available be phone for consultation
Review prospect names, request levels, and timing of gifts
Search for new prospects
Participate in cultivation events
Ask for gifts

Cabinet Members

Honorary co-chairs help encourage campaign prospects to join their vision for the campaign’s goals in light of
their endorsement and lead gifts to the campaign. co-chairs may also help with targeted solicitations in certain instances.

Honorary Co-chair

People with capacity at or over the top of your scale
Willingness to give to your cause
Willingness to solicit others
People with access to wealth
People with leadership skills and charm
People with enough time for meetings, reading reports, calls, and visits
People who will do what they commit to do.

What to Look for in Leadership

This is the primary internal group that will focus
on the steps through preparation and planning. In the campaign, it may become the leadership committee, adding members to lead solicitation efforts.

Campaign Steering Committee

Advise on materials for use in campaign
Campaign name and logo
Strength of the case for financial need and scenario
Strength of the case for the program or mission benefit
Strength of the case for the fit of the campaign with the Institutional Plan
Representation of the case in the brochure

Cabinet Members

This person provides overall vision to the campaign
and is a symbol of the commitment needed to achieve the goal. Co-chairs solicit or help solicit strategic gifts. They may also chair meetings of the leadership committee. Top campaign leadership is accountable to the chair for meeting their commitments.

Campaign Co-chair

The Leadership committee provides general direction and active oversight of the program. Confidentiality and
anonymity are absolutely essential to this committee.

Campaign Leadership Committee (Campaign Cabinet)

Assessment
Leadership
Staffing
Getting To Your Goal
Full transcript