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With the best will in the world, and the good wishes of impulse donators large and small, there are times when only a Capital Campaign will do.
What exactly is a Capital Campaign, and why are they so important?
A capital campaign is a short-term intensive fund-raising effort, the aim of which is to raise a predetermined amount of money within a set period of time.
But it’s not only the time period, or the amount of money required from this fundraising effort, which is set in advance.
The purpose and desired result of the fundraising is also made crystal clear. Such campaigns often have as their goals the construction or renovation of buildings or dwellings, the purchase of land or medical supplies, or an additional revenue stream for an environmental or educational endowment.
Even though the initial fundraising effort may be short-term, the objectives (and ongoing endowments) are almost always geared towards the long-term maintenance of the charity’s goals.
For example, pledges are rarely made on a one-off basis. Rather, they are classed as long-term commitments payable over several years, or via the transfer of real estate to the charitable body, who then use the proceeds or sale or lease to further their goals.
Capital Campaigns are also characterized by requesting larger than normal donations (as opposed to those sought during an annual fundraising event).
Another characteristic is the effort of those known as “key volunteers”, evangelists for the organization willing and able to commit their gifts and also provide access to or solicit from other potential donors. This “human capital” and their availability—or otherwise—has the potential to make or break a campaign.
There are several key factors to take into consideration when planning a capital campaign…
- A clear understanding of the project costs involved (in order to avoid unforeseen and unnecessary project overruns)
- A factoring-in of the costs of attrition. Given that capital campaigns attract pledges paid over many years, the potential for non-payment, or loss of revenue through the passing of the donor, are important issues to consider. However, proper planning should make provision for this happening.
- An awareness of Inflation and cost overruns. Although inflation rates in the developed world and U.S. are currently low (at time of writing), the impact inflation can have on project costs should not be underestimated. Nor should potential cost overruns, even though it’s hard to predict the final costs upon completion. That said, contingencies should and must be factored into overall budgetary planning.
- The realization that ‘Organization Is The Key To Success’. This includes thorough planning, attention to detail, ambitious yet realistic goal-setting, and most important of people, key personnel ensuring that key performance targets are adhered to, met, and surpassed from start to finish…
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