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