With capital campaigns, nonprofits can inject a large capital investment into their organizations to fulfill any major undertaking. Since these campaigns are large and intense, they demand a strategic approach and dedicated efforts to succeed.
Read on to define capital campaign, learn about capital campaign phases, capture best practices for your fundraising efforts, and feel inspired by unique campaign ideas.
What is a Capital Campaign?
Let’s start with a capital campaign definition. A capital campaign is a multi-faceted fundraising endeavor conducted on a larger scale to raise a significant amount.
The funds raised support nonprofits in carrying out large-scale projects, such as expanding their facilities, purchasing essential equipment, or launching new programs.
For instance, an animal welfare organization might use capital campaign funds to construct a new shelter, while a school could invest in cutting-edge technology for its classrooms. Faith-based organizations often utilize these funds to renovate or build new places of worship, ensuring they can continue to serve their communities effectively.
The campaign lasts for a set period, usually several months or a year, and is carried out outside your regular programs and annual initiatives.
Why Should Nonprofits Launch a Capital Campaign?
Capital campaigns require work, but they are well worth it. Your mission, beneficiaries, projects, and donor loyalty can all be impacted by your capital campaign success.
Apart from building your nonprofit capacity and funding your major projects, capital campaigns for nonprofits come with benefits like:
- Enhance the likelihood of attracting new donors, both major and mid-level.
- Build an endowment fund to offer ongoing financial stability.
- A great deal of publicity and increased awareness of your organization in the community.
- Help to pay off existing debt from a loan or mortgage.
- Finance expansion of your organization to a new place.
- Enhance board engagement and development of effective internal fundraising systems.
- Strengthen relationships with existing donor bases.
If you're wondering where to begin for your own capital campaign, we've got you covered. Below you'll find everything you need to know to get started or to level up your existing efforts.
12 Steps in Planning a Successful Capital Campaign
Take your time to walk through the following steps to boost your nonprofit's capital campaign in the planning phase. Remember, it's not a race, and you can be most effective when you feel confident as you go through each step.
Steps to creating a capital campaign plan:
The Pre-Planning Phase
1. Set Capital Campaign Goals
Setting up your working financial goal is the most essential step, and with it, you can enter other phases of your capital campaign. It will depend on the scope and size of the proposed project you’re planning to undertake.
You should decide on this amount after carefully calculating the overall cost of your project. For instance, if you plan to open an animal shelter, connect with the construction company to understand the entire expense.
Set your end capital campaign goal at an amount that considers this price alongside your budget, unexpected costs, and hidden costs. This will ensure you have enough funds for your project, even if something unanticipated happens.
2. Define a Budget
Running a capital campaign involves certain expenses. You will have to cover costs such as:
- Campaign planning support
- Compensation for campaign leaders
- Organizing events
- Creating marketing materials
- Promoting your campaign
According to Capital Campaign Pro, your campaign budget should be approximately 10% of your fundraising goal to ensure you meet your targets without additional funding. You may want to look into a capital campaign budget template as you start.
3. Draft the Capital Campaign Timeline
Your capital campaign timeline should include:
- Start and end dates of the campaign
- Milestones for each phase (pre-planning, planning, implementation, follow-up)
- Specific deadlines for key tasks
- Dates and times for team meetings
- Key dates for a donation match or momentum-building launch
Based on your fundraising targets, allocate sufficient time for the quiet phase and the public phase. Set a firm end date to maintain momentum.
A clear timeline keeps everyone on track and ensures the campaign progresses systematically towards your goal. It also helps you plan your resources and efforts effectively.
4. Assemble a Team to Run the Capital Campaign
Before you start with the capital campaign plan, you'll want to create a committee of dedicated individuals to help with planning and execution.
Feel free to create a large committee with every board member, major donor, and staff member of your organization. The committee must be large enough to handle the particulars of your campaign but small enough to allow everyone to present ideas.
Here are the members you should consider for your capital campaign committee:
- Campaign Chair: In charge of the whole capital campaign, who will keep every other member on track.
- Board members: Before you start planning, make sure that you enlist certain key board members instead of asking your entire board.
- Staff members: Depending on your organization, these will be department heads, senior executives, or faculty. Try to involve certain people from all levels of your organization.
- Community volunteers: Rally up people who regularly support and advocate for your nonprofit. Make them a part of your team, as they will work hard and enthusiastically to help you throughout the capital campaign process.
- Major gift officers: They are responsible for finding, cultivating, and soliciting donations from potential major donors of your capital campaign.
Another way you can assemble your capital campaign committee is by dividing it into two parts:
- Planning committee comprising of volunteers and staff who will create your capital campaign plan.
- A steering committee comprises individuals who will ensure the smooth running of the campaign after its launch.
5. Conduct a Feasibility Study
Before launching a capital campaign, conduct a feasibility study to assess the viability of your project and determine whether your supporters and donors are willing to back your organization's initiative.
A capital campaign consultant or hired specialist with extensive capital campaign experience can conduct this study by gathering input from key stakeholders, including the organization's leaders, donors, and community partners.
The feasibility study results will provide valuable insights into the potential success of your capital campaign. Once the study is complete, present the findings to your board of directors, as their approval is crucial for moving forward with the campaign. The board plays a vital role in the organization's governance, oversight, and decision-making, so securing their support is essential.
Come Up with a Plan of Action
When presenting the feasibility study results to the board, emphasize how the findings align with the organization's mission and long-term goals. Highlight the potential impact of the project and how it will benefit the community you serve.
Provide a clear action plan and budget to demonstrate that you have carefully considered the resources needed.
If the feasibility study reveals that you may need more than your current donor base to reach your goal, consider conducting wealth screening to identify new potential donors to target during the campaign. This proactive approach will help you expand your support network and increase the likelihood of achieving your fundraising objectives.
The Planning Phase
6. Create a Gift Range Chart
The below gift range chart is for a hypothetical $1,000,000 capital campaign.
Create a gift range chart once you've completed the feasibility study of your fundraising plan and established a more solid financial goal. This chart will visualize how many gifts your nonprofit needs to secure at specific levels. It will help you break down your working goal into more manageable parts so that you can set smaller milestones throughout your campaign.
In this chart, you will list the number of gifts of a specific size you're hoping to receive. Try to list the gift amount and the number of prospective donors you must reach for each amount. You can take things further by attaching specific donor names to each gift.
7. Research Prospective Donors
Prospect research is an excellent way to understand your donor base more deeply. It will help you identify major gift donors and lead supporters you should reach during the quiet phase and spot the community members you must specifically target during the public phase.
To learn about them, you can tap into your donor base, leverage your board's and volunteers' network, and even analyze your past campaigns. Your prospect research should focus on finding the following information about your donors:
- Past giving history to your nonprofit
- Previous donations to other charities
- Employment information
- Basic details like name, address, and phone number
- Interests and capacity
- Inclination to donate towards what causes
- Likelihood for raising money through peer to peer fundraisers
You can focus your capital campaign planning on donors who are more likely to donate. It will help you reach them through channels and fundraising methods that resonate with them.
8. Write a Case for Support
A case for support is a document that outlines your organization's justification for hosting the capital campaign. It is useful during the feasibility study and in the campaign's quiet and public phases.
Prioritize writing a compelling and convincing case for support. It must touch the hearts of your supporters while clearly showing them why you need the funds. Donors are interested in learning why you need their support and how you plan to use their funds.
When writing the case, keep the following things in focus:
- Nonprofit's background
- Cause and mission
- Future goals
- Reasons for running a capital campaign
- Details about the campaign, like campaign goal and purpose
The Implementation Phase
9. The Quiet Phase of Fundraising
The quiet phase of your capital campaign is when your committee members reach out to major donors to collect a higher amount of funds.
You don’t publicly market the campaign yet, but solicit donations from the small number of top donors mentioned in your gift range chart who will offer major gifts. Generally, this phase raises 50-75% of the total fundraising goal.
10. The Public Phase of Fundraising
Once you’ve secured most of your capital campaign goal from major donors, it's time to make your campaign public. Many nonprofits start this phase by organizing groundbreaking fundraising events and ceremonies highlighting how much they’ve earned for their project.
During the public phase, your focus should be on raising higher awareness of your campaign and attracting as many donors as possible. While you can still solicit major gifts, you should focus on broad marketing within the community.
Partner with the local media, send direct mail appeals, share personalized emails, use social media campaigns, and ask your volunteers to spread the word about your capital campaign. This phase is similar to your typical fundraising campaigns, as you’ll host many fundraising events to collect donations.
You can also add engaging element that create a sense of urgency and motivates donors to contribute, knowing that their support is crucial in reaching the campaign's objective. One such idea is to add a fundraising thermometer.
As donations come in, the thermometer fills up, providing a visual representation of how close they are to achieving their target.
This is the end stage and your last chance to raise funds and meet your target.
The End Phase
This is a time of excitement and celebration for successfully launching your major campaign. At the same time, we're not quite done yet until the following steps are taken to bring it home.
11. Thank Donors and Show Gratitude
Once you’ve earned the required revenue for your project, it’s time to celebrate and thank your supporters. After all, your campaign success wouldn’t be possible without them.
Send out kind and unique thank-you notes and gifts, and even share about the incredible impact their donations will have on your organization.
12. Focus on Retention
If you’ve secured new donors or supporters during your campaign, focus on nurturing your relationship with them. Retention of these donors will expand your donor base and future fundraising efforts.
With Zeffy zero-fee donor management software, organize and segment your donor base to engage with the right people at the right time in a personalized way.
Try to keep every donor updated about the project. Send out monthly newsletters or share on social media whenever you complete a milestone in your project.
This will inform your donors that their funds are being used responsibly, increase their trust in you, and strengthen ties.
6 Capital Campaign Best Practices
1. Hire a Capital Campaign Consultant
If you're unsure about how to conduct capital campaigns, and if resources allow it, you can hire a nonprofit fundraising consultant. They will provide valuable advice and expert guidance to help you develop and implement a successful campaign.
Look online for consultants who offer the specific services that you need. Consider their experience, cost, location, and projects. Ask other charitable organizations in your network for recommendations.
Request a proposal from the selected consultants and choose the one who understands your unique needs and brings new, refreshing ideas to the table.
2. Personalize the Appeal
As you work on your capital campaign, remember that while a well-defined strategy is an excellent starting point, you should pay attention to the power of personalization. When reaching out to your donors, choose ways that resonate with them and persuade them to donate.
Consider the following tips to personalize your campaigns:
- Allow supporters to give through their preferred donation method.
- Use the right communication channels when spreading the word about your campaign. For instance, with an older donor base, direct mail and email are good options, while social media is perfect for a younger one.
- Address the recipient by their preferred name and acknowledge any past giving or engagement with your organization.
3. Establish Contingency Plans
Every capital campaign encounters challenges along the way, and yours will likely face some obstacles as well. That's why preparing for this is crucial by creating a contingency plan. This plan outlines how your organization will respond if the capital campaign does not go as per plan.
The contingency plan should also discuss preventive measures to avoid roadblocks, such as staff shortages or lack of resources. Ensure your entire team is ready to tackle any problems that may arise during the capital campaign.
Having a solid contingency plan in place allows your nonprofit to pivot effectively when difficulties emerge, keeping your capital fundraising efforts on track despite potential setbacks. Proactive preparation is key to navigating the inevitable challenges and achieving capital campaign goals.
4. Hold Regular Capital Campaign Team Meetings
When your campaign is in the implementation phase, you must keep everyone updated on the project. Host monthly or weekly meetings with your steering committee and nonprofit board to ensure everyone knows what milestones they’re working towards and that everyone is on the same page.
These meetings will further help address any doubt or problem, and the team can offer a strategic solution. Inform everyone about progress and discuss the future course of action.
5. Offer Incentives to Major Donors
If you have a few potential donors with deep pockets and strong support for your charitable organization, you may want to offer them an incentive to secure more funds. For instance, you can offer to name a wing of the building or a room you're developing after the donor or hang a plaque in their name.
6. Run Capital Campaigns With Strong Data
You can learn a lot from past fundraising success to help you raise money during your next capital campaign. Campaign planning that’s informed by what’s been proven to work in the past can lead to more success for many organizations.
Take a close look at where large donations have come from and the factors that lead to significant campaigns in your organization’s history. You can often tap on nonprofit leaders and board members who’ve been around for a while to maximize the potential your capital campaign can offer.
4 Unique Ideas for Successful Capital Campaigns
While we'll always empower you to make these ideas your own, there are a few ways to feel inspired to conduct successful capital campaigns. Your nonprofit organization can take what you like, and align these ideas to your larger goals to complete your planning process.
1. Organize Fundraising Events
Capital campaigns run for months or even years, allowing you to host fundraisers that will bring your community together to raise funds.
Try to diversify your fundraising efforts during both stages. This will help to maintain not only engagement with your cause but also to ensure consistent fundraising throughout the timeline of your campaign.
Quick fundraising ideas
Here are some fundraising ideas tailored for the quiet phase:
- Host a Special Dinner for Major Donors: Come up with an intimate dinner or reception for your major donors where they can learn about your campaign goals and impact. Use this chance to interact with them and personally discuss their future involvement.
- Site Visits and Tours: Arrange site visits and tours for your donors to show them the firsthand impact of their contributions and encourage them to donate more.
- Themed Gala: Plan a traditional gala event with a twist by choosing a theme that aligns with your capital campaign. Make sure to offer live entertainment, but keep the event focused on your capital campaign goals.
Ideas to consider in the public stage
- Peer-to-peer: Encourage supporters to fundraise on your organization’s behalf with peer-to-peer fundraising campaigns. Empower them with essential resources to solicit donations from their networks.
- Challenge events: Come up with challenge events such as bike rides or marathons where participants fundraise for the campaign. Offer prizes at the end of the event to encourage participation.
- Community events: Organize fundraising events that help to engage a specific community, perhaps your local neighborhood. These could include silent auctions, golf tournaments, carnivals, trivia, and more.
2. Look for Matching Gifts
Raise twice the funds on your capital campaign with matching gifts. These corporate giving programs reward employees who give to charities by doubling or sometimes even tripling their donations or volunteering to eligible organizations.
Every company has different guidelines and restrictions on their employee matching program, you should still promote matching gifts to all of your capital campaign donors. Even if not all but a few capital donors can double their donations, it will make a difference to your end goal.
3. Ask for Corporate Donations
Companies are often willing to support nonprofit fundraisers like capital campaigns. Not only is it good philanthropic practice for them, but it also offers major tax benefits and presents their company in a positive light.
They will have certain guidelines about the types of nonprofits and projects they donate to.
Research which companies support charities like yours and regularly donate. Ask them for cash or in-kind donations for your capital campaign.
4. Apply for Grants
Grants should be a primary focus of your capital campaign fundraising strategy. Many foundations and companies are interested in backing projects instead of nonprofit daily operations, and your capital campaign can provide these organizations with the perfect opportunity.
Try to search for grants that support nonprofits and projects like yours.
For instance, if you're looking for funds to support your faith-based organization's construction projects, grants such as the National Fund for Sacred Places are worth considering. It supports religious institutions looking to preserve their historic buildings and offers support for various projects, including structural repairs, renovation, and more.
Chinatown Service Center: Zeffy Supports Over $240K in Fundraising and an Additional $12K Saved in Fees
Chinatown Service Center ran a capital campaign to support its initiatives to close the gap in healthcare disparity. A straightforward donation form optimized for conversions invited $243,655 in fundraising dollars to the CSC Health Center and PACE Center, which provides a higher standard of care and overall quality of life to immigrants and community members in need.
A few ways Chinatown Service Center delivered such a strong experience throughout their capital campaign include:
- Keeping the donation form fields simple and concise
- Adding suggested donation amounts that will move the needle for patients
- Offering options around donations from corporations, in someone’s honor, in memory of a loved one, or to celebrate a significant life milestone
- Giving multiple ways to pay quickly through Google Pay
- Including an image of the center and an option to learn precisely where the gift goes
- Easy ways to share the campaign with more community members to make a difference
The organization thoughtfully appreciates donors and keeps loyalty funding such important work by mentioning that each donation will be displayed at the PACE Center as part of each supporter’s legacy. The campaign, built on Zeffy’s 100% free fundraising platform, supports the PACE Center’s goals to more than double the number of individual patients served by 2025.
Final Thoughts on Capital Campaigns
Organizing and executing a capital campaign may seem like a daunting task. With careful planning and the support of your ardent board members, dedicated volunteers, and passionate staff, you can run a winning capital campaign.
When it comes to running a successful capital campaign, every dollar counts. That's where Zeffy comes in - a 100% free fundraising platform, covering all the fees for nonprofits (even transaction fees).
Don't let fees hold you back from achieving your capital campaign dreams. Sign up with Zeffy today and experience the difference of a truly free fundraising platform.
FAQs on Capital Campaigns
