Post on 24-Feb-2016
description
Capital CampaignsErnie Vargo, CFRE
President and CEO, Eskenazi Health Foundation
Faculty, The Fund Raising School
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Capital Campaigns Are . . .
“The ultimate test of an organization’s philanthropic potential.”
Sheldon Garber, Rush Presbyterian St.
Luke’s
“A dollar goal up against a time deadline.”
Bob Duncan, consultant
Characteristics of Capital Campaigns
• Large/stretch dollar goal
• Feasibility study• Defined, intensive
time period• Dependent on lead
gifts• Volunteer driven• Sequential
solicitation
• Face-to-face solicitation
• Quality over quantity of gifts
• Highly cost-effective fundraising method
• Continuation of annual fund
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ANNUAL FUND
SOURCE
BENEFIT
4-Legged Stool of FundraisingDONOR
Current Income Income
&Assets
SpecialProgram
s,Projects
OngoingPrograms/Services
PLANNEDGIVING
MAJORGIFTS
PROGRAM
CAPITALCAMPAIGN
Unrestricted
AnnualCapital
EstatePlannin
g
Endowment,
Capital
Assets
Buildings,Equipment,Endowmen
t
Sequential SolicitationTop down
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Types of Capital Campaigns
• Traditional Bricks and Mortar• Combined– Bricks and Mortar– Ongoing– Endowment
• Endowment• Project– Left over from previous campaign – one focus
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A Successful Campaign Requires . . .
• Sound plan
• Qualified lead gift prospects
• Capable executive staff
• Volunteer leadership
• Involved, concerned board
• History of gift support
• Positive track record
• Capable development staff
• Case for support
• Prospect development system
• Communications plan
• Record keeping system
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The Case . . .
• ...is an investment prospectus• ...answers basic questions• ...must be supportable and defensible• ...has broad implications for the community• ...is both emotional and rational• ...must be optimistic• ...should be brief and easy to remember• ...should move people to action
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Capital Campaign Consultants
• Necessity
• Roles
• Types
• Services
• Costs
• Selection
This way that way. Retrieved from image search www.villasilvana.net
Campaign Feasibility Study should answer the following:
1. Does the organization enjoy a POSITIVE IMAGE?
2. Is there CLEARLY PERCEIVED SUPPORT?3. Who will make the LARGE GIFTS needed?4. Is the volunteer LEADERSHIP AVAILABLE AND
WILLING to sign on to the campaign?5. Is there a FAVORABLE ECONOMIC CLIMATE to
support a campaign at this time?
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Campaign Feasibility Study
• Case• Needs• Goals• Commitment• Communications• Stewardship• Management• Leadership• Fundraising programs• Prospect and donor
development• Readiness for volunteer
impact and volume of activity
Internal Assessment External Assessment
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• Environment• Understanding of case• Goals and constituency• Markets• Leadership• Attainability of giving
standards• Public image and
understanding
Campaign Feasibility Study
• Case• Proposed goal• Leadership• Gift potential (as
defined by gift chart standards)
• Timing• Public relations• Referrals for other
interviews• Special areas of
concern
Key Areas for Feasibility Study Interviews
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Campaign Policy Questions
• Pledge period
• Start and end dates
• Gift accounting
• Gift valuation
• Relationship to annual givingQuestions. Retrieved from image search www5.esc13.net
The Tip of the Iceberg
STEP SEVEN: Wrap up
STEP FOUR: Beginning in-house phase (6 months to 1 year before public phase)
STEP THREE: Pre-campaign activity (1-2 years before public phase) STEP TWO: Testing for readiness
(1 to 2 years before public phase)STEP ONE: Institutional readiness (2 to 3 years before public phase)
STEP FIVE: Advance gift phase(during year before public phase)
STEP SIX: Public phase
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Constructing a Capital Campaign Gift Range Chart
• Lead Gifts 40-60% of goal– One lead gift 10-20%– Two-three gifts 5-10% each– Four-six gifts 2.5-5% each
• Mid-Range Gifts 30-40% of goal– 30-6- gifts in 3 giving categories
• Low Level Gifts 10-20% of goal– All others at several lower levels
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Gifts Needed to Raise $1,000,000 (Three-year pledge period)
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Gifts Needed to Raise $3,000,000 (Five-year pledge period)
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Information
Awareness
Interest
Involvement
Commitment
Appreciation
Identification
The Solicitation Cycle