Capital campaign refers to an intensive process carried out by an organization to raise a given amount of money for a specified period of time. The money raised is used for a particular project or undertaking. The specified period may range from one month to five years or even more. Capital campaigns often require a lot of coordination from the organizers, community and targeted contributors.
Common Characteristics of Capital Campaigns
A highly effective campaign should exhibit the following characteristics:
- A specific financial target.
- A well-defined timeline for meeting the target.
- An identified list of volunteers.
- A brief definition of the need and focus of the campaign.
Importance of Capital Campaigns
Capital campaigns are very popular among nonprofit organizations and in the construction sector. Nonprofit organizations use such campaigns to receive funding for projects and undertakings that require a lot of money to run. These may include the purchase of a large piece of equipment, major renovations or budgetary allocations.
In the construction sector, capital campaigns can help individuals and companies acquire money for constructing new buildings, upgrading the existing ones or acquiring new land for development.
Types of Organizations That Use Capital Campaigns
Healthcare and educational institutions often find capital campaigns very useful. Hospitals and nonprofit healthcare facilities launch capital campaigns once in a while to help them construct new buildings, expand the existing ones, purchase large equipment or fund groundbreaking medical research. Educational institutions may use capital campaigns to raise money for new classrooms, scholarship cash or new learning equipment.
Other organizations who may find campaign funds useful include civic organizations, environmental nonprofits, community organizations, religious institutions and animal conservatories.
How to Organize Capital Campaigns
The first step to organizing a capital campaign is to assemble a team that consist of members of the board of directors, staff and community volunteers, according to Nonprofit Accounting Basics. All members should show commitment and support to the course.
Once you have settled on a team, you need to carry out a feasibility study. This is a series of interviews you conduct on the members of the community and potential contributors to determine whether or not the campaign will raise the targeted amount. During the study, look at how the interviewees perceive your project, their ability to make large donations, the potential size of the support base and the external factors that could affect the campaign. You should also screen all your donors, set a contribution deadline, plan a budget, set a financial goal and create a campaign timetable.
When organizing a campaign, focus more on donors who give major gifts. It is such donors who make a big impact in the campaign. Track them and spend some quality time with them to build strong, deep and meaningful relationships. Make the vision of your campaign to conform with the needs of the community, not what your organization does and its grand plans. Above all, master the art of asking. Learn to ask for gifts by mastering the basics of persuasion and coercion.
Raising funds from well-wishers, donors and the entire community is a challenge to many organizations. But through a capital campaign, organizations can obtain funding nowadays without too much trouble.
