If your organization wants to pursue a major project like constructing a building, renovating an existing facility, or buying land, a capital campaign can help you raise the funds needed while improving your vital donor relationships. But the prospect of launching a multi-year fundraiser can feel daunting for anyone, especially small nonprofits. You might even wonder if it’s possible for small organizations like yours to run capital campaigns successfully.
We’re here to reassure you that yes, small nonprofits can absolutely plan and launch successful capital campaigns. They may look a little different than campaigns run by larger organizations, but they’re no less possible or important. If your growing nonprofit is interested in launching a capital campaign, these key components can help you find success.
Clear, attainable goals
Before you dive into a capital campaign, you need to set a topline fundraising goal that your organization can realistically reach. Capital campaign goals vary widely from nonprofit to nonprofit due to factors like organization size, existing resources, and the cost of your chosen project. For instance, if a building contractor estimates that the construction of a new community center will cost $500,000, you know you must raise at least that much from donation revenue (and you would be wise to add a healthy contingency to account for unexpected costs).
But how do you know if you can actually raise $500,000 from your nonprofit’s audience? How can you ensure that a goal is attainable for your organization? This is where your donor data comes in.
Whether your nonprofit uses a complex CRM like Salesforce or a basic donor database to track fundraising data, your database should help you access and analyze the information you need to choose a realistic fundraising goal. Dive into data like annual campaign revenue, average major gift size, and individual donors’ giving potential. These data points, along with qualitative feedback from a feasibility study or assessment (which we’ll discuss below!), will help you predict how much your organization can raise and tailor your goal based on that number.
Additionally, remember to set smaller goals based on your organization’s strategic priorities. If one of your goals is to increase the size of your donor base, for example, plan to track metrics like donor acquisition rate and cost to acquire a new donor during the campaign.
An invested inner circle
Even if your data indicates that your fundraising goal is reasonable, it’s your donors who will ultimately determine whether or not you reach that goal—specifically your major donors. Because of this, organizations traditionally conduct a feasibility study to gauge how invested their donors are in the campaign before moving forward.
However, many small nonprofits find it isn’t cost-effective or even necessary to conduct a full-blown feasibility study, especially if you already know who all your major donors are.
Instead of using a feasibility study to gather anonymous feedback, have open conversations with stakeholders like major donors, community leaders, and board members. Find out what they think of your potential capital campaign while ramping up their excitement about the future of your organization. Donorly’s capital campaign guide suggests creating space for meaning conversations about the donor’s relationship with your mission by asking questions like:
- What excites you about our organization’s vision for the future?
- What do you see as our organization’s greatest strengths and challenges?
- What are your philanthropy priorities, and where does our nonprofit fall on that list?
- Can you see yourself giving to this capital campaign? At what level?
Your conversation around questions like these is one way to help you estimate the level of support major donors will contribute to the campaign while also making donors feel valued as key players in your organization’s inner circle. Cultivate strong relationships with invested donors, and you’ll be in a good position to raise the 60-80% of your revenue goal from major donors that you need to succeed.
Strong community-building
Remember that major donors aren’t the only supporters who will help you reach your capital campaign goal. In addition to a strong inner circle, you also need a large, diverse community of supporters to sustain your nonprofit long-term. That’s why you should include several ways to build community in your capital campaign plan.
Strategic efforts to engage your local community before and during the public phase of your capital campaign will help you:
- Grow your nonprofit’s audience. As a small organization, boosting awareness of your organization and expanding its support base is likely an ongoing priority. Community outreach, like free events and partnerships with community leaders, will help you expand your reach.
- Gather support to reach your goal. If major donors contribute 60-80% of your total campaign fundraising goal, you still have 20-40% of donations to raise from smaller-dollar supporters. Community engagement efforts will draw attention to your campaign and encourage both new and existing minor donors to give.
- Build a foundation for future support. If all your major donors make significant gifts during the capital campaign, what happens when it ends? Can you expect them to give additional support once the doors of your new building open and you have more costs to cover? By building a strong foundation of community support now, you can rest assured that you’ll have a wider base of support to earn donations from once the campaign ends.
- Identify potential major donors to cultivate. Low-pressure events can draw in brand-new community members who may have hidden potential to become major donors down the line. By introducing your organization to new people, you’ll plant the seeds for potentially significant, lasting relationships.
Your community-building efforts may involve various activities depending on your cause and your audience’s preferences. For example, if your organization supports children's welfare, you might start hosting a weekly free yoga class for families. Or, NXUnite suggests trying community outreach ideas like hosting an open house, cause-relevant webinar, or peer-to-peer fundraising event.
Specialized support from experts
Finally, many small nonprofits benefit from tapping into resources like campaign consultants to help them navigate the complexities of capital campaigns. Launching a major campaign for the first time comes with plenty of challenges, but you can feel more confident and prepared to take on those challenges with the right support.
Look for a fundraising consultant who offers capital campaign services like:
- Feasibility studies or analysis of your resources and support
- Strategic campaign planning
- Major donor identification and research
- Fundraising training for your team
- Ongoing strategic counsel and campaign guidance
For the best results, seek out tailored support from consultants who specialize in working with small nonprofits on major campaigns. These experts will understand exactly what you’re going through and know how to overcome common challenges like tight budgets and limited fundraising resources. Plus, they’ll realize the importance of setting your organization up for long-term fundraising success that extends well beyond the timeline of your campaign.
With these essentials and the determination to make your project a reality, your small nonprofit can run a successful campaign that donors will remember for years to come. Keep your focus on relationships and your organization’s future, and you’ll be in a better position to reach your capital campaign goals.
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