Effective Fundraising

5Capital Campaign

ONE OF THE most important tasks of a development organization is the running of a capital campaign. Although they put enormous stresses on the organization, in return, these campaigns often offer transformational possibilities to the social sector organization. New buildings, new product service lines, and endowment are just a few of the potential benefit streams from a successful capital campaign.

Capital campaigns normally require enormous time and energy commitments from the CEO as well as the full endorsement and commitment from the board. Indeed, it is not unusual to increase the size and mix of the board at the time of a capital campaign to bring major donors and connectors closer to the institution to jump-start the effort.

Campaign Feasibility

The beginning of a capital campaign normally starts with a feasibility study to add substance and breadth to what has been up to that point a lot of internal dialogue. This study is usually done by an outside consulting organization, experienced in both helping shape and execute capital campaigns, as well as assessing their potential viability.

Three dominant questions have to be addressed at the start—namely,

1. Is the right CEO in place for a capital campaign?
2. Is the timing right for a campaign?
3. Is the board composition right for a capital campaign?

These questions are not easy to answer. Let me address the CEO question first. At the start of the campaign, the CEO must have a compelling vision for the organization, ...