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Safranek, Thomas W.; Usyk, Patricia A.Steps for Launching a Capital Campaign.National Catholic Educational Association,Washington, D.C.ISBN-1-55833-178-69674p.National Catholic Educational Association, 1077 30thStreet, N.W., Suite 100, Washington, DC20007-3852.Guides Non-Classroom Use (055)

MF01/PC03 Plus Postage.*Catholic Schools; Corporate Support; *Donors;Elementary Secondary Education; Financial Support;*Fund Raising; *Institutional Advancement;Institutional Mission; Long Range Planning; NeedsAssessment; *Private Financial Support; School Funds;

Strategic Planning

The capital campaign in the Catholic elementary andsecondary school must be viewed as an essential component in the

total development program. This document addresses many of the

specifics regarding the proper positioning steps and procedures for acapital campaign. The introductory chapter provides a historicaloverview of the capital campaign. Chapter 2 explains why the campaign

must be part of the total development focus, and chapter 3 offers

guidelines for evaluating capital-campaign readiness. Procedures forconducting an internal performance audit of the existing developmentprogram are outlined in the fourth chapter. Chapter 5 highlights the

steps to be taken before beginning the campaign--developing a mission

statement, formulating a long-range plan, and creating aninstitutional case statement. Chapters 6 through 9 describe the

phases of the campaign, specific campaign activities, and campaign

models and sample budget. The ninth chapter discusses the benefits ofusing external counsel and the roles of campaign leadership. Theconcluding chapter reiterates that the capital campaign has proved tobe the most cost-effective method for raising a significant amount ofmoney within a condensed time frame. It also stresses the value ofvolunteers. Appendices contain samples of mission statements and apledge card, an organizational leadership chart, and 21 suggested

readings. (LMI)

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2

Steps forLaunchinga CapitalCampaign

byThomas W. Safranek & Patricia A. Usyk

Edited by Sister Mary E. Tracy, SNJM

AlleAmmimdNational

r---w CatholicWEducationalAssociation 3

©1996National Catholic Educational Association

1077 30th Street, NW, Suite 100Washington, DC 20007-3852

ISBN 1-55833-178-64

-1-V4077's"

Table ofContents

Dedication iv

About the AuthorForeword vii

Acknowledgements viii

Chapter I. Introduction 1

Chapter II. The Total Development Focus 5

Chapter III. Evaluating Capital CampaignReadiness 11

Chapter IV. Appraising the Need fora Campaign 21

Chapter V. Pre-Campaign Steps 27

Chapter VI. Phases of the Capital Campaign 33

Chapter VII. Campaign Specifics:Announcements and Materials 39

Chapter VIII. Campaign Models and SampleBudget 45

Chapter IX. Benefits of Using ExternalCounsel in the CapitalCampaign 53

Chapter X. Conclusion 59

Appendices A: Sample Mission Statements 61

B: Campaign OrganizationLeadership Chart 63

C: Suggested Readings 64D: The Pledge Card 66

E: A Tale Worth Reading 69

Li4

Dedication

This publication is dedicated in loving memory to Tho-mas W. Safranek, co-author. After completing the entiremanuscript in fall, 1995, his unanticipated death saddenedfamily, friends and colleagues.

May Steps for Launching a Capital Campaign impact thegrowth of Catholic elementary and secondary schools justas his life touched the hearts and minds of generations ofdevelopment practitioners.

6

About theAuthor

Patricia A. Usyk has been director of development at St.Gregory the Great Parish/School (Grades K-8) since 1991.During that time she has conducted a $4 million capitalcampaign, which exceeded its goal by $700,000. Mrs. Usykwas director of development at St. Rose of Lima Elemen-tary School in Miami Shores, Florida, where she was re-sponsible for raising $2 million for the endowment pro-gram. She is founder of the Florida Catholic DevelopmentDirectors Association. This association places special em-phasis on the tri-county area of Dade, Broward and WestPalm Beach. She has conducted several seminars on devel-opment. She received the Distinguished Faculty Awardfrom Catholic School and Parish Development June 30,1994. She was a panelist for the National Catholic Educa-tional Association's (NCEA) "Building a Premier Develop-ment Program in a Catholic School" inMay 1994. She is afrequent presenter at NCEA conventions; she earned herB.A. & M.A. from Barry University, Miami Shores, Florida.

',01.41.0.1:t4i;.4.40.e*

ForewordThe capital campaign in the Catholic elem-entary and secondary school has become asignificant program in the development opera-

tion. A major campaign holds the potential to instillinstitutional vigor, transform volunteer commitment, cre-ate momentum and attract unprecedented resources.

Thomas Safranek and Patricia Usyk are to be com-mended for crafting a thorough and substantive review ofpre-campaign steps and campaign design. Their respec-tive experiences as consultant and development directorequip them with reliable authority as authors.

I thank the critical reviewers of the manuscript: JanetBurke, development director, Xavier College Preparatory,Phoenix, AZ; Sr. Kathleen Collins, SFCC, associate execu-tive director, elementary schools department, NCEA; andC'Ann Reilly, principal, Our Lady of Peace School, Wheel-ing, WV. Tracy Toon, administrative assistant for the NCEAsecondary schools department, also deserves special rec-ognition for her editorial efforts.

Sister Mary E. Tracy, SNJMAssistant Executive Directorand Development AssociateSecondary Schools Department

1/M110111M.4-aY

Acknowledgements

The authors acknowledge Mrs. Mary LouO'Brien, administrative assistant at St.Gregory the Great. Mrs. Usyk gives special

acknowledgement to her mentors Jerry A. Jarc, CSPD,Cleveland, Ohio and Msgr. Noel T. Fogarty, pastor of St.Gregory the Great; men who over the last decade haveshared their experiences in development, marketingand nonprofit governance and taught the process ofdevelopmentespecially capital campaigns.

I. Introduction

The capital campaign has undergone a tremen-dous evolution since its beginnings in the earlypart of this century. America's first capital cam-

paign manager was Benjamin Franklin who established afree lending library for the City of Philadelphia. Many ofthe methods for the capital campaign have been borrowedfrom the late Mr. Charles Sumner Ward, founder of theconsulting firm, Ward, Dreshman and Reinhardt, who in1905, utilized the short-term intensive procedures for aYMCA capital campaign in Michigan.

The intensive capital funds appeal was a unique re-sponse to the needs and desires of a specific institution.The early capital campaign offered primarily only oneproductbuilding projects. The campaign for endow-ment was not yet developed. In addition, sequential pat-terns of giving, which included traditional gift standards,evolved from many of the concepts practiced by CharlesSumner Ward.

Prior to the 1970s, the capital campaign placed emphasison correct technical applications. A good capital fund-raiser was defined as one who demonstrated excellence inorganizational skills as well as in possessing capital cam-paign techniques. Regardless of how minute the detail,many worked within a time and sequence design whereineverything flowed smoothly within a condensed timeframe.

The intensive capital funds drive was a unique Ameri-can response to the need and the desire to provide neces-sities for an identified segment of the community. At thebeginning of this century, the vast majority of Americanslived in relatively self-sufficient villages and towns whichconstituted a nearly homogeneous population. This popu-lation adhered to the same values, subscribed to the samefolkways, and exhibited pride in "our town" and its insti-tutions.

1. 0

As a result of the closely held reins of power in thecommunity, the feasibility or planning study usually in-volved a survey of thirty or so innovators. Professionalcapital campaign consultants talked to the mayor, theleading clergy, the newspaper editor, president of the localbank, local business people and landowners. It was ac-cepted that should the leadership of the town agree to theprogram, the townspeople would then follow. This as-sumption was extended to sequential giving in the imple-mentation of standards based on a rule of thirds. This ruleidentified a goal that established a reasonable level ofgiving, where the most important lead gifts were solicitedfirst, and 50 to 60 percent of the goal committed silently; theremainder would follow in descending order of gift size.

For many years, knowledgeable fundraising practitio-ners have been aware that the intensive community cam-paign, which served the nonprofit sector so well in the past,became grossly unreliable when used in many metropoli-tan areas. There is no reason to wonder, for the typicalintensive campaign is based on a model developed for therural midwest.

Since the late 1970s, conglomerates have merged withother conglomerates. The capital campaign has grown torecord breaking $1 billion goals with comprehensive casestatements: annual fund, building, program, endowment.In addition, many have abandoned the rule of thirdsstandard of giving to tailor specific situation formulasrelevant to their constituencies; top lead gifts now com-prise about 20 to 25 percent of most campaign goals.

More importantly, because of the work undertaken by aHarvard educated gentleman at Northwestern University,there are new techniques available. The intensive andapplied genius of Dr. Philip Kotler, author of severalleading best sellers including his co-authored book withKaren Fox entitled Strategic Marketing for Educational Insti-tutions, has impacted giving across the country. Dr. Kotlerapplied marketing principles that had served Americanbusiness so well to nonprofit institutions.

Today a capital campaign is currently thought of as aplanned mobilization of friends supporting a cause orinstitution, for a voluntary solicitation of proportionategifts from an informed constituency, always toward aspecific goal or objective and usually within a specifiedperiod of time. I.1

As the 21st century nears, the capital campaign must beviewed as an essential component in the total developmentprogram. The capital campaign:

Creates an opportunity to build new enthusiasm andtrain new development volunteers as well as imple-ments institutional leadershipRaises the goals and broadens the base of new philan-thropic supportFeatures greater visibility for all current and futuredevelopment effortsEnhances the effectiveness of the annual fund andplanned giving programs, if coordinated appropri-ately, so that the program continues to grow in depthand relevance

122

47.=

H. The TotalDevelopmentFocus

TheCampaignas a ilfajorComponentof aCompre-hensiveDevelopmentProgram

dvancementd programs should concentrate ontotal development. Perhaps the development

ction can best be described by the followingformula. (This is not a mathematical equation, but a proventeaching device.)

Model #1A (B/S) + P (A/F) + N/O S + BC + C2 -f- P (R) +V +ASK x DP A+C+P x S/G = $$

Explanation:A - Authenticators

B - Governing BoardS - Sponsors/CouncilP - PlansA - AcademicF - FinancialN - Needs0 - Opportunities

C Case

C2 ConditioningP ProspectsR - ResearchV - VolunteersASK - The Asking

ProcessG Goals

DP - DevelopmentPlan

S StaffB - BudgetA - Annual GivingC - Capital GivingP - Planned GivingS Schedule

* Credit is given to Arthur Franzreb of Alexandria, Virginia.

Annual Funddefined as that fund which is the resultof annual support of repeat or new monies not covered bythe operational budget. It must be emphasized that theannual fund needs to be kept in place. Quite often cam-paign committees/institutions utilize a dual request tosecure both an annual fund and capital campaign gift.

Planned Giving/Estate Planningdefined as a care-fully designed program to secure a major or once-in-a-

1 'I

le

lifetime ultimate gift from individual or family assets.Mature prospects must be identified for solicitation andcultivation.

The following planned gift opportunities should besuggested but not limited to the following:

Charitable lead trustLegaciesGifts of appreciated property, securitiesUnitrustPooled income fundsLife insurance policiesCharitable remainder trustAnnuities

Matching Giftsidentify companies who will matchpledges to a capital campaign as the donor's pledge ismade. The Council for the Advancement and Support ofEducation (CASE), located in Washington, DC, publishesan annual listing of companies who will possibly matchfunds given by those whom they employ.

Challenge Giftsutilized increasingly for annual fundprograms as well as for capital campaigns. They are oftenused in the alumni phase to motivate givers.

Often when dealing with a major donor prospect, thesolicitation involves the formulation of three requests: thecapital gift, the planned gift and the legacy. In any capitalcampaign the top 5 percent of donors should be targetedfor the requests. In the 1970s Mr. Adrian Cockerill devel-oped a formula for a Yale University campaign which wassimply stated 1X-5X-15X. In other words, the securing ofthe capital campaign gift represented 1X. Should a donorgive a planned gift, that gift would represent five times thecapital campaign gift. Thus, the 15X represents the estategift or legacy gift, which totals fifteen times the amount ofthe campaign gift. Therefore, to simplify the formula:

1X - is the capital campaign gift5X - is five times the value of the pledge by also

securing the planned gift15X-represents fifteen times the amount of the origi-

nal gift through securing planned gift assets

Ultimately, capital giving is planned giving, and plannedgiving is capital giving. The major reason people neglect to

14

Donors

enhance their personal financial planning, or to boostcampaign potential and outcome, is the outdated percep-tion of the campaign as an immediate goal rather than acomponent of a long-range plan for the full development ofthe greatest aggregate financial support an institution iscapable of building. The traditional development organi-zation, which separates capital acquisition from plannedgiving, then seems irrational. These two efforts are reallyone, and a synthesis is apparent in mature developmentprograms where programmatic or intensive capital acqui-sition means the development of planned major gifts,legacies and testamentary substitutes from the donor.

Today's campaigns seek carefully planned packageswhich comprise current gifts, trusts and bequests fromindividuals through heavy emphasis on donor financialplanning (DFP). Any capital campaign lacking the appro-priate emphasis on campaign-related donor financial plan-ning is simply not an all-out effort and will fail to achievea goal that measures its full potential. Tailored, plannedmajor gifts and legacies are essential to modern campaignsuccess and to long term capital acquisition for endow-ment. A campaign is a means to an end rather than an endin itselfthe major planned gift package from thewealthholder being the reward for all that is done infundraising.

As an integral part of the total development focus,solicitors in the 1990s must understand individuals interms of a perceived personality type. More and moredevelopment staff are becoming involved in direct solicita-tion of prospects and they need to understand the follow-ing behavioral groups and their tendencies.

The Type A personality might be associated with peoplewho display:

a high work ethicappear result and task orientedcommunicate a basic fear of being taken advantage ofa refusal to consider others views and feelings

The Type B personality tends to reflect a social "bumblebee" or "butterfly" characteristic. The common behavioraltendencies include:

15 7

Vierot.e.VA':-4!

optimisticsocially oriented, very talkative and flexiblemotivated by social acceptancefearful of social rejection

The Type C personality tends to reflect a certain posses-siveness, a desire to be in complete control of things. TheType C may bear these basic characteristics:

being pragmatic: the team player typeconcrete action orientedmotivated by traditional practicesfearful of losing stabilitylead lives of "order" and "tranquillity"

The Type D personality can be described as detailed andself-disciplined. Common behavioral tendencies may in-clude:

accurate, motivated by precision quality controlhighly intuitivemotivated by the "proper" wayfearful of having others criticize their work effortprivately over critical and demanding of themselvesas well as others

Model #2Personality Types

Non-verbal Verbal- ..

Non-assertive.

,

Assertive , r

Credit given to Dr. Gayle Carson of Miami, Florida

While the categorizations may lack substantial psycho-logical credibility, recognizing the varying A, B, C, Dpersonalities may assist in communicating more effec-tively with donors. Today solicitors must ask themselves,"What can our institution do for our donor?" Solicitorsmust know what appeals to a donor's interests. Solicitorsmust never ask themselves, "What can this donor do for theinstitution?" Institutions have opportunities for the donor,not needs.

16

Deep Sell To understand the total development focus more fully,solicitors must understand that the "hard sell" approach iswaning. "Save Our School" may have a nice ring to it, butit won't motivate a prospect to make a gift, especially if thedonor is not committed to the institution. The 1980s "softsell" approach, while less insulting, is by far too easygoingand indirect. "Perhaps you can help keep our school open?"is simply not forceful enough.

Today, solicitors succeed when they adopt a deep sellapproach to both institutional development solicitationsas well as to capital campaigns. The best way to influenceand motivate donors is try to understand their view-pointand then base communication on that understand-ing. Dr. Philip Kotler in Marketing For Non-Profits com-ments that instead of setting out to change a person'sdesires a school community should respond to the desiresa donor already holds.

Development aims to move both potential donors andvolunteers. This can be done on two levels: first, to movepeople emotionally, and second, to move them to directaction. Whether the objective is to encourage a boardmember to make an appointment with a prospect or toencourage a prospective donor to make a substantial in-vestment, the solicitor must first move people emotionally.Then, they will take direct action. In marketing, thistechnique is referred to as positioning. The solicitor tries toposition the appeal in a person's minda mind that usu-ally places work, family or religion ahead of an institution'sconcerns.

In today's highly competitive environment for philan-thropic dollars, when seeking to capture and hold theattention of the same small group of leaders, the "hard sell"and the "soft sell" are equally ineffective. Only through the1990s "deep sell" which springs from the values and aspi-rations of the donors and volunteers themselves, can oneexpect to succeed in reaching the donors and move them togive of their time, talent and financial resources.

17

he word'philanthropy' comes, as you knOW, from the

Greek words 'philo anthropos'. It literally means,according to Webster,--"Love of humankind;-devotion to

human welfare; good will to all.",Charles N. Wonacott

18

7117E'w', .L2

M. EvaluatingCapitalCampaignReadiness

prior to undertaking a capital campaign, thefollowing checklist of factors should bepresent in the proper proportions, for if they

are not, the undertaking is likely to encounter problems.There must be a total commitment by the entireinstitutional constituency to the campaign.There must be a known constituency including pros-pects with potential for making substantial majorand ultimate gifts.The school's mission must be well-defined, impor-tant, relevant and appealing to both internal andexternal constituencies.The majority of the constituency must have faith andconfidence in the institution and its leadership.The case statement must be compelling to a majorityof the institution's key benefactors.There must be evidence of sound long range/strate-gic planning and confidence in the planning andmanagement processes, with the institution demon-strating sound financial management through a con-sistently balanced operating budget.The campaign goal must be within the philanthropicgiving capacity of the constituency. (Financial needand a long list of projects needing to be funded do notdetermine feasibility.)There must be 7a commitment to give the highest

1911

priority to obtaining major gifts.The institution must make a financial commitment toadequate staffing, campaign budgeting and securingcampaign counsel at appropriate levels of time andfunding.

There must be a commitment to recruit leadership ofthe highest qualitythe core of individuals who arewilling and able to provide the necessary organiza-tional and financial commitment as well as externalcontacts.

Leaders of an institution who feel that they may beembarking on a treacherous journey for a capital campaignneed to examine a number of areas. Some common dangersignals could include:

lack of commitment from the institutionlack of commitment of board memberslack of a master plan, mission statement or a visioncoming from the institution's chief executive officer

and boardomission of unexciting needs and opportunities thatwere affirmed in the the feasibility/planning studyprocessabsence of potential to secure major giftsquestionable volunteer and contact leadership avail-ability or potentialrapid turnover of an institution's chief executiveofficer (CEO), development staff, volunteer leadersor board members

Potential for obtaining support from foundations andcorporations should be reviewed when evaluating thereadiness to conduct a capital campaign. Often, obtaininga windfall gift or challenge gift from a foundation orcorporation, may make the difference in a capitalcampaign's achieving its maximum potential.

Prospect research needs to be conducted regarding thefoundation or corporate potential. The appropriate time totest this research is during the feasibility study processwhen individuals are introduced to the institution's plansand invited to express their level of commitment. Develop-ment office personnel should conduct research on localand national foundations and corporations which match

211

Hints toSecureFoundationandCorporateSupport

an institution's case and have an historical pattern ofgiving to elementary and secondary schools.

Understanding Types of Foundations1. Family foundationsestablished by individuals or

families with assets to support a limited number ofactivities of interest to the founders.

2. General foundationsestablished to support a widerange of activities and usually run by a professionalstaff.

3. Community trustsestablished in cities or regionsand composed of smaller foundations whose fundsare pooled for greater effect.

4. Corporate foundationsestablishedby corporationswith funds derived from endowment or current in-

come.

Writing an Effective ProposalA brief outline for a corporate or foundation proposal

should include:1. Cover Lettersigned by the head of governing board

and president/principal, if appropriate.2. Project titlefewer than 10 words.3. Project summary-200 words or fewer which de-

scribes the purpose, timing, and dollarrequirements.In addition, validates organization submitting theproposal.

4. Problem statement or needs assessmentvalidatesthe existence of unmet needs in the community,defines the client group to be served and acknowl-edges what has been done in the past, or is currentlybeing done, to address the problem by other groups,as well as the organization submitting the proposal.

5. Objectivesspecific, explicit, measurable statementsof what the project will achieve in addressing theproblems described in the previous statement. Avoidoverly ambitious statements which may notbe sup-portable.

6. Methodsthe "how" related to the "what" of theobjectives. A detailed description of the activities to

be implemented in providing a solution to the iden-

21 13

1A

tified problem. Must include information on thepeople who will be key implementors plus data onwhy the chosen methodology is superior to anythingtried in the past or is currently being attempted.

7. Evaluationthe description of tools and /or proce-dures to be used in determining whether or not theobjectives have been achieved and the methods usedappropriate.

8. Short and long range plansanalysis of how theprogram will continue, including an evaluation oflong term funding requirements and sources for thatsupport.

9. Budgetpersonnel, facilities, equipment, supplies,communications, travel, dues, subscriptions.

46The main thing

is to have an idea and a dearly thought out plan toaccomplish something important...The project or pro-

gram should be concisely described in straight forwardEnglish, with a minimum of technical jargon."

Manning Pattillo, November 1982

22

Suggestions when approaching afoundation

1. Obtaining an interviewa. The telephone approachb. The letter approach

2. Meeting with the foundation directorsa. Preparationb. The dress rehearsalc. The dialogued. Follow-up

3. Proposed packaginga. What has traditionally worked for that

foundation?b. What are their published guidelines?

Securing support from foundationsThe development director, school head and board must

work together to secure foundation and corporate support.1. Work continuously to identify those foundations

who are interested in the institution's programsand projects.

2. Concentrate on those foundations with a relation-ship or link to the school.

3. Foundations are interested in bold ideas, not justneeds.

4. Timing is important.5. State the school's case in a clear, concisely written

proposal.6. Approach the foundation through a local contact, if

possible.7. Invite foundation officials to visit the school at a

specific time.8. Follow-up is critical; do so in 5 days.9. Follow the foundation's preferences about publi-

cizing and acknowledging the gift.10. Be sure to report within a reasonable time frame to

the foundation's officers on how the grant wasused.

When conducting a capital campaign or seeking foun-dation or corporate support on an ongoing developmentprogram basis, it is imppitant to distinguish between them.Corporations regard gift giving as a minor activity, while

23 15

arekti:t,

it is the major activity for foundations. Traditionally,corporations tend to pay more attention than foundationsto the direct and indirect benefit that any grant may returnto them. Corporations tend also to award a greatervarietyof gifts than foundations.

Characteristics of the best prospectsfor corporate funding

1. Local corporationsCorporations located in the im-mediate community find it difficult to refuse supportto worthwhile local institutions.

2. Kindred activitiesCorporations operating in a kin-dred field to that of the school are excellent prospects.

3. Declared areas of supportAn institution shouldtarget corporations that have a declared interest insupporting its type of area. Development directorsshould review company annual reports or prospectifor patterns of charitable giving.

4. Large donorsLarge corporations and those withgenerous giving levels are good prospects, yet onemust realize that large companies receive numerousrequests and may favor institutions in a local area orkindred field. Research suggests that large corpora-tions with no direct tie to the institution are not strongprospects.

5. Personal relationships or contactsInstitutionsshould review their personal contacts as an indicatorto corporations that the school head, developmentdirector and board members may solicit through awebbing contact. Corporations tend to respond topeer influence.

6. Specific capabilityA development officer may iden-tify a corporation as a prospect because the corpora-tion has a unique resource needed by an institution.A school, for example, might solicit a company seek-ing technology, fine arts equipment or maintenanceservices.

24

7 4

Model #3Prospective corporate donors

(classified according to level of interestand giving potential)

Giving Potential

High Medium Low

InterestPotential

High

Medium

Low

Summary of corporate proposal1. Letter should include:

a. recognition of gift and appreciation for previousgift(s)

b. description of the work and organizationc. evidence of recent achievements to illustrate sound

managementd. brief description of the project and relationship to

corporate objectivese. evidence of the advantages the organization of-

fers to corporate employeesf. an opportunity to meet with corporate giving

officers to discuss the project and answer anyquestions

2. Appendices or attachments should include:a. table of contentsb. application form (if required)c. description of projectd. supporting statements or quotationse. audited financial statementf. IRS Tax Exempt Statementg. annual reporth. other pertinent brochures, surveys, organization

information

Common reasons foundation proposalsarc declined

The need hasn't been documented properly.The project does not seem significant to the reviewerfails to motivate.

A

Prospective client groups have not been involved inplanning and/or determining the project goals.The proposal is poorly written; it is difficult to under-stand.The proposal's objectives do not match the objectivesof the funding source.The proposal's budget is not within the range offunding available through the funding agency.The proposal's program has not been coordinatedwith other individuals and organizations working inthe same area.Funding source does not know the capabilities ofthose submitting the proposal.Project objectives are too ambitious in scope.The writer did not follow guidelines provided by thefunding agency.There is insufficient evidence that the project cansustain itself beyond the life of the grant.Pre-evaluation procedure is inadequate.

Checklist for evaluating rejected proposalsHow closely do the corporation's charitable goalsand priorities match those of the requesting organi-zation?What benefits can the corporation expect in return forcontributing funds or professional services to thisschool?How effective from a cost/benefit perspective is therequesting school in d slivering its programs or ser-vices?Does the school's board of directors effectively repre-sent the community at large as well x, the constitu-ency it is chartered to serve?Is the school requesting a realistic gift in view of theactivities it expects to support?Is the school's request for funding within thelimits ofwhat the corporation can support?

26

44Don't judge each day

by the harvest you reap, but by the seeds you plant."Robert Louis Stevenson

27

W. Appraisingthe Needfor a Campaign

TheInternalDevelopmentAudit

The first step prior to launching a capitalcampaign should be to arrange an internalperformance audit of the existing development

program. An internal performance audit will providespecific recommendations to build on existing strengthsand remedy identified weaknesses. In other words, aninstitution must have its internal development structure inorder prior to seeking external funding.

An internal development performance audit criticallyevaluates the following:

An institution's planning and missionThe quality of the school administrationCampaign leadershipVolunteersPublic relations and publicationsAlumni programsFund raising potentialProspectsPersonnelBudget

Experienced consultants often utilize the ideal equilateraltriangle model when conducting the internal developmentaudit. This model is used to mathematically measurewhether or not an institution meets basic criteria neededfor conducting a successful capital campaign.

9 k

ook I,

Model #4The Ideal Equilateral Triangle

A

BA. CEOB. Chair of the boardC. Director of resource development

As this model indicates, each of the angles is assigned avalue of 60. Thus, an institution receiving a perfect scorewould achieve 180. If the CEO, president or principal of St.Victory School dislikes fundraising, and if there is poordirection on development, it could seem reasonable thatthis person may receive a low score of 15.

Conversely, St. Victory School may be fortunate to havean experienced director of development who likes people,has the confidence of the board and the school's constitu-ency, and has taken the development program from zero in1990 to $300,000 in 1996. St. Victory School's total opera-tional budget is just over $1 million for the 1995-96 schoolyear. Therefore, it may seem reasonable that the director ofdevelopment may receive a score of 50.

One of the most overlooked and yet one of the majorleaders in the development process is the school's chair-person of the board. Should St. Victory School's chairper-son not enjoy fundraising, dislikes the CEO, tries to imposeviews at board meetings, refuses to make solicitation callsand is not recognized as a community leader, any hopes forphilanthropic success would seem improbable. A consult-ant may assign a score of 18.

The three scores total 83 which seems low in relation-ship to the 180, of the ideal equilateral triangle. St. VictorySchool may be wise to heed the consultant's advice to defer

29

TheFeasibility/PlanningStudy

7;"

launching a capital campaign, and immediately recom-mend that both the chair of the board and CEO, presidentor principal become more educated about their roles andhow these roles fit into the whole concept of institutionaldevelopment.

Prior to initiating a capital campaign a feasibility studyis usually conducted by external counsel. The purpose ofthe feasibility study is to determine how much money aninstitution can raise for a specific purpose. Who will be thecontributors? Who will be the volunteers? Who will assistin raising the money? Who will assume campaign leader-ship positions?

Fundamentally, the feasibility/planning study involvesa review of an institution's needs and the opportunitiesavailable through philanthropic investment in the institu-tion. The process involves the development of a prelimi-nary vision case statement which can be made for support-ing these needs.

If using a consultant, it is very important to select onewho has had many years of experience in conductingphilanthropic studies. The rationale for this rests with theselection comparisons of institutions, goals, matchingsimilar cases of support and experience with similar cam-paign situations that need to be made.

Three measures are important in gauging the fundraising potential for a capital campaign: statistical, histori-cal and cross-cut. The statistical method provides therange of giving of which the community is capable (ameasure of capacity rather than probability). The histori-cal method involves examination of the track record of thecommunity or constituency. The cross-cut method includesactual interviews to determine the disposition of personswho will ultimately control various sources of major gifts,or who possess the power to influence the outcome of acampaign. Taken together and analyzed by an experi-enced objective consultant, these analyses will provide theinstitution with some guidance in establishing a realisticgoal.

The benefits of using a consultant for the campaignprocess will be detailed later in this book. However, the

tiiistai04001%.

benefits of an experienced interviewer conducting a feasi-bility/planning study include:

A written analysis of the institution's readiness toachieve specific goals (short and long term)An assessment of one's constituency and communityattitudes toward the institutionCareful analysis of the philanthropic potential avail-able utilizing the statistical, historical and cross-cutanalysesA series of concise recommendations balanced witha number of viable optionsProviding new insights into the donor constituencyand recommendations for cultivation and outreachwhich may include long-shotsThe discovery of new sources for philanthropic po-tential, cultivation of potential donors and/or cam-paign leadersA written case statement for support

Experienced feasibility/planning study consultantsanalyze key elements as components important to success-fully launching a capital campaign. The following execu-tive evaluation summary taken from a recent feasibility/planning study report should provide an approximationof the elements examined in the feasibility/planning studyprocess. A rating of five indicates where the school shouldbe. One (1) is the lowest rating while 10 is the highest.

31

^I A

Model #5Executive Evaluation Summary

of the Feasibility/Planning Studyfor St. Victory School

1 2 3 4 5 6 7 8 9 1(

St. Victory public image X

Public relations and visibility X

Knowledge of the urgency ofthe need X

Opinion of the plan to meetthe need X

Competing campaigns X

Economic outlook X

Opinions about St. Victoryadministration X

Opinions about the board X

Availability of top leadership X

Receptiveness to a campaign X

Top gift availability X

Top 11 gifts available X

Feasibility of a $4 million goal X

Proposed timing for a campaign X

Enthusiasm of interviewees X

Adequate funds in theconstituency/community X

Foundation-corporate support X

Availability of volunteers X

Adequate funds in the parishes X

*Where St. Victory Schoolshould be X

32

..,hemealth otdemocratic society may bemeasured by:the(.quality

of function_s performed by,privatecitizens."Alexis deliicquevill

33

Pre--CampaignStepsThe ission is a reason the school exists. TheMission mission gives meaning and direction to pro-

Statement grams and activities. It should be stated inbrief, concise and succinct terms with essential compo-nents described in simple language. Not surprisingly, theamount of effort directed toward defining the mission willpredict the results. A well thought-out mission statementbased on input from representative constituencies of theeducational institution, including administration, faculty,board, major donors, and key volunteers, willobviously bemore valuable and useful than one which is assembled lesscarefully.

A number of important questions should be addressedin the development of a mission statement:

What does the educational institution do?How does the educational institution fulfill its mis-sion?Whom in the community does it serve?Why does the educational institution exist?How is the educational institution distinguished fromother competing institutions?

The LongRangePlan

The long range plan for an educational institution mustbe carefully thought out, arise from its own needs anddevelop consensus among the institution's constituency.It should not be conceived by an individual or individuals,and not developed only for the purpose of launching acapital campaign.

The goal in formulating a well-received long rangeplanning process is to establish ownership throughout theentire process. Both ownership and consensus buildingmust be fostered by the board, institutional staff, major

34 27

TheInstitutionalCaseStatement

ani

donors and the volunteers in order for the planning pro-cess, as well as the plan itself, to be implemented success-fully. It is imperative that the plan project an institution'sprograms and services, short and long term goals, specificobjectives, along with a realistic time table to accomplishthe plan's goals.

Long range plans need to include a detailed financialanalysis with appropriate projections. It is imperative thatdata be extrapolated from the feasibility study report andinclude specific plans and time tables relevant tophilanthropy's role in the capital campaign process. It isalso worthwhile to include a standards of giving chartwhich details the appropriate gifts needed to accomplishthe capital campaign's objectives.

It is vital to convey in the institutional case statementhow a school is distinctive whether a school is planning amulti-million dollar capital campaign or a small annualappeal. The school's case statement should explain thebasis for its capital project and should be sufficientlycomprehensive to answer any question about the capitalcampaign.

The following guidelines should be helpful in the re-search, development and writing of the case statement.The statement should:

Convey a sense of urgencyemphasizing universalappealHave broad approvalBe both rational and emotionalBe supportableCenter on matters of current interestBe briefAnswer specific questions about: why? what? where?when?Be written in simple language to make it easy torememberFoster a sense of urgency to move donors to makemajor gifts

An outline for any school developing a case statementcan include:

35

A. IntroductionBrief history of organizationSignificant institutional accomplishmentsCurrent missionDescription of programs/servicesDistinctive featuresLeadership position among peers

B. Organizational ResourcesExtent of service areaCharacteristics of service areaEnrollment/beneficiary service statisticsSummary of operating budgetSpecial facilities or equipmentStaff/board membersGrowth of support/private gifts

C. GoalsStrategic plansShort-term goalsLong-term goalsProgress toward goals

D. Fundraising projectDescription of projectRationale for projectImportance of projectHow project will advance organizational goalsCommunity benefits of project

E. Campaign statisticsOverall financial goal of projectCampaign divisionsDivisional goalsCampaign calendarSources of support to dateWays of givingTax advantages of givingCampaign leadership

36

only do I IciiOwafor_sertain-an fman'sjudgments o ow, his wishes for'- -r ".,;1

happines:ja:c;cordiiigly they, are:aryatteMpt toStipp() USKTawitivargutnents

and Freud,Civtlizatton and .ItS-Discontenis

The institutional case statement defines the needs andprojected means to meet those needs of the educationalinstitution. The statement also defines the institutionalgoals and objectives; it becomes the educational institutionon paper.

The institutional case statement may be used as both aninternal and external document. Five important uses of thecase statement include:

1. Obtaining consensus2. Recruiting volunteer leadership3. Securing major gifts4. Testing the market5. Obtaining resources for publications and publicity

Other specific uses for the case statement are listed inModel 6.

Model #6Case Statement Use

Corporations Foundations General Direct Mail Social Event New Media

Brochures Proposals All Letter copy Invitations Press

Brief General purpose Brochure Journal kit

proposal support brochure News

Fact sheet Project Pledge releases

Misc. support cardscorrespon- Volunteerdence info kits

30

In essence, the case statement is the central piece ofliterature in a fundraising program. It is the source ofinspiration for the program, the reference point for allvolunteers and the cause of new concepts for prospects. A

37

case statement should undergo a stringent revision pro-cess prior to becoming the focal institutional document,and must be approved by the board. Generally speaking,case statements average between one to five typed doublespace pages.

At its heart, the case statement is an institution's mostviable marketing tool, not a sales pitch. In preparing thecase statement, take the opportunity to focus on the donor'sperceptions, motivations, needs and desires. The needs ofan educational institution may be related to donor benefits,and opportunities to donate should be made attractive tothe philanthropic community. In summation, market theinstitution's donor involvement by:

A. Invitingthe key prospects to participate in deter-mining how the plan will be presented

B. Encouragingownership of the plans among con-stituents

C. Positioningthe school is the one that listens andresponds to the philanthropic marketplace

D. Buildinga people powerbase who will hold thesacred trust for long term institutional advancement

Model #7Case Statement "Sphere of Influence"

.z1.-c-ERSE (PRosp,with Similar in,

eSTc'.,sVotoer Participai;

38

21

44t's not very difficult

to persuade people to do what theyalready long to do."Aldous Huxley

39

VI. Phasesof the CapitalCampaign

The capital campaign is based on a conceptoften referred to as the campaign plan ofaction. If any of the steps are rushed in the

phasing process, the final steps ultimately become moredifficult to execute. It is imperative that all steps be fol-lowed maximally, especially in the silent phase of thecampaign when 50-60% of the goal in pledges, prior togoing public, must be raised.

Planning All activities necessary to the smooth running of thecampaign must be planned and systematically carried out.These activities can include:

A strategic plan must be in place and ratified by theboard.An institutional case statement must reflect develop-ment opportunities available for investing in theinstitution over a 3 year period.The mission statement must be meaningful to boththe institution and its constituency.The board must give approval that the capital cam-paign is needed.A development audit should be undertaken prior tothe feasibility study to insure sound internal devel-opment operations.

40

ConsultantSelection

34

The development audit and the feasibility study shouldstand on their own merits and results. In other words,there should not have been any conditions or inherentlimitations attached to hiring the consultant for the capitalcampaign. The consultant should be hired to probe and testand asked to give objective recommendations for position-ing the capital campaign, should the internal developmentaudit or the feasibility study process raise serious concernsin its recommendations.

The consultant selection process should include all ofthe following questions:

Would a large or small firm better serve the institu-tion?Will a part-time freelance consultant be sensitive tothe school's specific circumstances?Will the institution review five or six suitable propos-als?Will proposals be based on solutions to a series ofquestions the institution has provided?Is full-time resident counsel feasible or is part-timecounsel more sensible, productive, and cost-effec-tive?Has the director of development, CEO, and cam-paign committee prepared a series of interview ques-tions?When interviewing a consulting firm, the questionshould be asked, "Who will be responsible for thecapital campaign?"Is the individual's track record in similar campaigns,educational institutions, and campaign models ap-propriate to the institution?Will the fee be all-inclusive, or a fee with "plusexpenses" that includes airfare, hotel and car rental?Is the fee based on time specifically invested in thecampaign?Does the firm have campaign specialists who canprovide expertise in marketing, prospect research,donor financial planning, planned giving, communi-cations and computer based information systems?Do specialists come at varying rates based uponbackground and experience?Will the consultant provide lists of clients who willstate that campaigns have been successful as well as

41

IndividualDonorProspectResearch

rap

unsuccessful?Will the consulting firm provide at no cost to theclient an opportunity to meet the proposed consult-ant and ask incisive questions about the person'sbackground, experience and assessment of the pro-posed campaign?

Successful capital campaigns are 90 percent researchand only 10 percent the ASK. Lack of quality research isakin to a ship being without a rudder.

Detailed research must be completed on the top 150-200 prospects where goals are projected to exceed $3million and above.Where substantial funds will come from the parish ormulti-parishes as the base of support for a capitalcampaign more reliance is placed on the parish vol-unteers and pastor to evaluate prospects.Various interlocking directories such as Standard &Poor's and Who's Who should be cross-referenced ontop prospects. In order to properly identify and directthe campaign to the top 5 to 10 percent, Boyd's CityDispatch and the "Potential Plus" electronic screen-ing systems could be utilized.In parishes that are a closed constituency, the weeklycollections of donor records should be evaluated andassessed.

Organization Organization is essentially the method by which leader-ship is secured and the prospective donors are identified.The use of charts and written descriptions is essential priorto enlisting campaign leadership.

Specific areas which come under the organizationalphase are:

Leadership and development identificationProspect list acquisitionDivision organizational chartsProspect evaluation guidelinesReporting systems and formsFinalizing prospect lists

.422G

Preparing gift tables for pledgesFinalizing fund accounting methodsApproving the campaign plan, administration andboard case statement and the campaign time sched-ule, which consists of

Organizational chartBoard approval (pre-campaign review)Case video presentationCommemorative opportunitiesPublic relations/awareness activitiesNames for honorary chairpersons and cam-paign chairs or co-chairs

Education Educating all segments of the public is fundamental toa successful capital campaign. All volunteers must begiven the opportunity to learn what the institution standsfor, as well as how to ask for its financial support.

Volunteers and board members can be educated in anumber of settings, using a variety of tools:

Educational meetingsSocial with videoExplanation and distribution of campaign literatureBoard member briefing (communication)Prospect cultivation/leadership awareness programsMajor prospect cultivation visitsCommunity dinnerSpeakers bureauCommunications, brochures and question and an-swer flyers

Commemorative opportunities

Evaluation

A6

There should be time for evaluating the anticipatedlevels of giving. Anticipated non-monetary contributionsmust be evaluated. Care must be taken to establish realisticplanning guidelines to avoid possible discouragements orrejections of unnecessary services or equipment.

Specific areas of evaluation include:Review of guidelines of giving levelsOrganize committees

43

AldvancedMqjor Gifts

Design rating formsSelect committee meetingsdates and timesIdentify major, special gifts, foundations, corpora-tions and industry prospects

The success of the capital campaign depends on thenumber and size of the advanced major gifts. In the past,80 percent of the campaign total came from 20 percent ofthe prospects; today, closer to 95 percent of the total comesfrom 5 percent of the donors. Therefore, it is imperativethat this effort involve all the top leaders.

Important steps that must be accomplished include:Secure the board's leadership pledges first prior toimplementationEstablish recognition guidelines and peer assign-ments

Solicit advanced major gift prospects (see Model #8)

Hold weekly report meetingsCommunicate weekly to volunteers

Model #8Major Capital Gifts Cycle

RepeatCycle Identification

Thanksand

Recognition

Asking CultivationInvolvement

A

Sometimes, however, modification may be required toextend the solicitation time frame for a particular divisionor to spend more time in cultivating major gift prospects.It is unwise to change the campaign master schedule enddate for the following reasons:

Volunteers expect to complete their assignmentswithin a specified reasonable time frameMany volunteers sit on other non-profit boards andplan to undertake various philanthropic endeavorsonce the institution's campaign has been completedPeople need structure and must be given the oppor-tunity to complete a task within a reasonable periodof timeWithout a schedule, procrastination sets in and vol-unteers constantly will ask "When is this campaigngoing to end?" or "Is this the campaign that neverends?"

45

VII. CampaignSpecifics:Announcementsand Materials

Tie institution's campaign leadersthrough theparish bulletin or any currently planned mediaevent at the institutionissue a formal announce-

ment of a constituency-widefundraising campaign. Pledgesfrom the executive board of the campaign should be se-cured prior to the public announcement;also, board mem-bers should have solicited their peers. One hundred per-cent board participation is critical to the success of thecampaign.

Because there are few truly predictable results in acapital campaign due to the many institutional variables,the general rule for a campaign is that 50-60 percent of thegoal should be secured in pledges prior to going publicwith the campaign's progress. Traditionally, 20 percent ofthe capital campaign goal comes from both the board andcampaign leadership. Another 20 percent comes fromleadership gifts where contacts have been made by boththe board and the campaign leaders. The CEO, president,

or principal of an institution usually will commit them-selves to raising 30 percent of the goal prior to publicizingthe campaign.

Specific campaign opening activities should include butnot be limited to the following:

Develop the appropriate press releases for the newsmediaOrganize introductory activities, breakfasts, lun-cheons, dinners c-

46

Materials

Invite a popular personality to speak on behalf of theinstitution's campaignInitiate divisional and regional campaign kick-offsPublicize a thermometer to show constant progresstoward achieving the goal

In a capital campaign a full cache of communication andpublicity materials must be prepared. They must be dis-tributed to campaign leaders, division chairpersons andvolunteer workers for their use in soliciting gifts. Allcommunication articles should be written to provide com-plete information on the campaign's objective, so prospec-tive donors can make informed decisions about giving.

The following list represents a breakdown of variousmaterials and publications often utilized during a capitalcampaign:

1. The marketing position paper2. The case for support and program3. AV / slide presentation or campaign video woven

around the case for the campaign4. Campaign division newsletters (published on a

monthly basis)5. Campaign logo and theme6. General campaign materials:

a. The case summaryb. Campaign fact sheetc. Mission statementd. Pledge cardse. Letters of intentf. Letterhead and envelopesg. Campaign brochure with commemorative

opportunity listings available to the donorh. Question and answer brochure

7. Volunteer worker kit:a. Manual of instructionb. Tax guides (for a specific calendar year)c. Techniques of solicitationd. Pledge report envelopese. Matching gift brochuresf. Gift clubsg. Timetables and division plan

an 47

8. Proposals (corporate and foundation)9. Prospecti (individualkey instruments in ap-

proaching large gifts. Some approaches will em-phasize estate-planning concepts as appropriate.)

10. Publicity releases11. Campaign goal poster12. Division goal poster13. Thermometers (to be displayed in an appropriate

public area)14. Campaign premiums

a. Calendarsb. Door prizesc. Bumper stickers

15. Campaign bulletins to be distributed in the parishesand neighborhood

16. Pulpit announcement and suggested homilies forthe multi-parish phase

The This step marks the beginning of the broad-basedFormal fundraising effort. It continues throughout the final statesDrive of the campaign. During this drive all volunteers must be

urged to complete their assignments. Strong motivationand direction are essential.

Various campaign activities usually include:Assign prospects for special and general giftsEducate solicitors to make calls on prospectsRemind the volunteers, on a daily basis, to makeprospect callsHold weekly report meetings for solicitorsHold weekly updates and goals by divisionsPrepare weekly press releases (human interest sto-ries, campaign leadership, major donor biographies)

PlannedGiving

It is important to set up a planned giving committee ofattorneys, certified public accountants, stock brokers andtrust officers. Develop a campaign planned gifts brochureand educate committee members on the specific steps to befollowed.

4 8

The FinalPhase oftheCampaign

Some specific activities to facilitate planned giving in-

clude:Distribute planned gift brochures to all campaignvolunteers, especially in the major gift phaseDistribute brochures to banks, clubs, accounting of-

fices, insurance companies and other appropriatebusinesses

A traditional approach to complete the final phase of the

campaign can be direct mail, or a mail/phone solicitation;

direct mail has proved to be the second most effective

solicitation method following traditional personal solicita-

tion. An elaborate invitation is mailed to prospective

donors announcing the campaign and informing them that

they will be contacted within the next two weeks by

telephone. Several days later a letter is mailed explaining

the specifics of the case; the personalized letter suggests a

specific gift request and size. The dollar figure should

focus on that specific figure at the inception of the phone

call. Direct mail letters should always be personalized and

include a specific dollarfigure request. Consider including

in the P.S. a simple sentence wrap-up summarizing the

appeal; this sentence is often the only sectiondonors choose

to read.Another method often used is the parish pulpit appeal.

Utilized at the end of the parish campaign drive, this

concept follows a specific schematic to insure that this

appeal is successful. Usually on the first Sunday a homily

is delivered about the merits of the capital campaign. A

video may be shown at the same time. Collateral written

materials usually include a bulletin insert which explains

a breakdown of the different ways of giving througheither

memorials or gift plans. On the second Sunday, the priest

or lay volunteer reiterates the need for the campaign and

explains the different ways of giving available to the pa-

rishioners. Pledge cards should be placed in pews along

with pencils, with parishioners completing pledge cards

and the ushers collecting them just prior to the startof the

procession of gifts.

49

VictoryAnnounce-ment

When the campaign has surpassed the goal, it is impor-tant that:

News releases communicate the success"Thank You Victory Dinner" celebrations be held forall volunteers with key celebrities

Campaign An extensive follow-up system must be established to

Follow-Up handle:Pledge redemptions: set up billingsweekly,monthly, quarterly, semi-annually/yearlyPersonal visits to those donors who are delinquentbycontinuing committee membersAccounting procedural follow-up, that includes let-ters, thank you up-dates, delinquents receive noticesSubmission of a final report describing the strengthsand weaknesses of the campaignSolicitation of new constituent prospects

hunder is good,thunder is impressive, but it is lightning

that does the work."Mark Twain

43

VIII. CampaignModels andSample Budget

Singleparishmodel

Multi-parishmodel

In a mature, vibrant parish community, an intensiveparish campaign may be the most viable option foran elementary or parish high school. A feasibility

study will identify both the goal and the timing of thecampaign.

The single parish campaign traditionally utilizes threephases which include major, special and general gifts.Sometimes goals can be accomplished in a campaign span-ning eight to twelve weeks. Where there is a matureconstituency, other divisions can be added to the three tiermodel, which may include alumni/business/industry,foundations and corporations, and planned giving.

Costs to run a campaign utilizing this model averages.02 to .08 cents per dollar contributed. This amount in-cludes campaign budget, staff time and consultant fees.

This model is considered to be ideal for a regionalelementary school or a regional or diocesan high school.This model enables parishes to maximize the base of sup-port by appealing to an entire deanery or possibly a dioc-esan-wide constituency. In other words, the potential do-nor base is sometimes 50 percent greater by implementingthis model.

Traditionally, capital campaigns which employ themulti-parish model use an average time frame of 12 to 24weeks to raise a significant amount of money. When aregional parish school opts not to use parishes as a base of

Mt

Pyramidprogram

support, the campaign usually takes from 6 to 12 monthsfor completion. The benefits of a multi-parish modelinclude a short intensive campaign time frame and costsrange from .02 to .07 cents per dollar.

In capital campaign fundraising the pyramid model isgenerally used. This model features various divisions (par-ents, major gifts, board, alumni, etc.), each having anestablished goal, and raising the money in a condensedtime frame. The majority of religious sponsored schoolshave utilized this model since they cannot appeal to theparishes for philanthropic funds.

Campaigns of this nature usually follow the pyramidsystem, through use of the standards of gift chart or tradi-tional rule of thirds. Therefore, it is imperative that thesegifts be secured where 50 to 60 percent of the gifts comefrom the top 20 to 25 gifts. Programs of this nature usuallyraise between 250 to 500 gifts rather than 1,000 to 2,000 giftsin a multi-parish type program. Cost per dollar for apyramid program generally average between .06 to .12.

Select A number of avenues of thought relate to the role ofmajor gifts major gifts in a capital campaign. Some school heads and

development professionals do not believe their entire con-stituency should be approached during a capital cam-paign, thinking that it diverts funding from other ongoingprograms of philanthropic support. Those who have beeninvolved in capital campaigns always hear the concern thatthe campaign will have a negative impact on the annualfund. There should be no withdrawal from ongoing an-nual support if the capital campaign has been set upproperly. In fact, many times there is an increase in annualgiving as people become more aware of the general needfor total institutional philanthropic support.

Should an institution contemplate a mini campaign, aselect major gifts program may be the more viable ap-proach. Institutional leaders, who have undergone manysuccessful capital campaigns, believe that proper position-ing of select major gift prospects can develop into a thriv-

46 52

ing program. Within the capital campaign industry a"creme skimming" campaign is utilized whereby the ulti-mate objective is to secure no more than 200 gifts. Cam-paigns of this nature often require a lengthy time frame dueto the technical aspects of cultivation, involvement, tai-lored prospectus development and solicitation. Cost onthe dollar can vary between .04 to .06 per dollar raised.

Model #9Major Gifts 5 Step "I" Approach

Credit given to the consulting firm of Gonser, Gerber, Tinker &

Stuhr, Naperville, Illinois

When focusing on major gifts, a moves concept is appliedwhen orchestrating this particular approach. The majorgifts campaign should be designed so that each moveaccelerates the prospect toward one of the five functions(identification, information, interest, involvement and in-vestment), which lead to the next gifts' objective. Once aprospect is identified, the next four functions should fol-low in order. Presidents, principals, board members orconsultants should focus potential donors on aspecific giftobjective toward which these five functions are directed.

No one can predict how many approaches are necessaryto bring a major gift prospect to the point of making a majorgift. For some, it may be two or three approaches,while forothers it may take as many as 20 tailored moves strategies.Recognize that major gift prospects give to satisfy theirneeds, as well as the institution's!

Research suggests that those who make major gifts do sobecause they believe that the organizations they are invest-ing in are worthwhile. People stand to make major giftswhere they have been personally involved in the institu-tional process, whereby "ownership" has become the by-

product.The process of obtaining major gifts just doesn't hap-

pensomeone has to make it happen! The specific task is0

to develop the donors to their maximum potential and notbe satisfied with obtaining a token donation. Research andevaluation are the key factors in determining the needs ofthe prospects, and how they can be satisfied by making amajor gift to the institution. Financial commitment re-quires a systematic effort involving the entire board, CEO,development staff and campaign leadership.

Types of contacts for major gifts include phone calls,letters, and personal visits by the campaign leadership,principal, volunteers, or staff. Other methods of contactinclude awareness programs, involvement as leadershipin the campaign and involvement in the events. A typicalweighted system in a "moves approach system" very oftenlooks like this:

Cultivation/Moves Contact Contact Points'Letter from a staff member 1

Phone call from a staff member 1

Letter from a volunteer 2Invitation from event 2.Phone call from a volunteer 3

Phone call from the principal 3:Visit by a staff member 4

Letter from the principal 4Visit by a volunteer 5

=Attendance at an awareness program 5Meeting with the CEO . 6

,-. Visits to the school 6Meeting with the board chair 6Meeting with a Bishop and lay volunteer 7Meeting with the CEO and lay volunteer 7Meeting with two volunteers 7Submission of a prospectus/proposal 7

54

4.R

Cons bittedCompre-hensiveCampaign

Model #10Central Catholic High School$6,000,000 Capital Campaign

GiftRange# of Gifts Total

CumulativeTotal

$1,000,000 + 1 $1,000,000 $1,000,000

$ 750,000 + 1 750,000 1,750,000

$ 500,000 + 3 1,500,000 3,250,000

$ 100,000 + 5 500,000 3,750,000

$ 50,000 + 10 500,000 4,250,000

$ 25,000 + 25 625,000 4,875,000

$ 15,000 + 35 525,000 5,400,000

$ 10,000 + 50 500,000 5,900,000

Below $10,000 Many 100,000 6,000,000

* Number of gifts over $10,000: 155

Looking at Model #10 it is clear that a relatively selectnumber of donors are responsible for the success of thecampaign.

This utilizes a majority of the sophisticated plannedgiving vehicles. Often a capital campaign pyramid modelis utilized as the structure to jump start the program fromone or two years.

This model, traditionally used in universities andmedi-cal centers, is a viable option for elementary and secondaryschools. The focus is on a multi-year goal combining theresults from annual fund, new revenue from the capitalcampaign, planned giving, federal and state support, andfoundation and corporate giving.

The selection of a campaign model to be used in aparticular situation will be used by a number of factorsincluding:

Commitment to quality strategic planning for theschoolLevel of sophistication of the development staffMaturity of the development programExperience and competence of the development staffCommitment of the CEO and board

55

774:4; fa

Quality of campaign leadershipUrgency of the case for supportPotential for securing major giftsRange and scope of the anticipated campaign effort

In undertaking the capital campaign, understand thatan institution must invest its money in order to realizesignificant funds. Whether or not a school chooses toutilize external counsel, a campaign budget still must beestablished for a capital campaign. Whether a school raises$500,000 or $2 million, the fixed budget costs sometimesamount to the same.

The following is a sample budget for a capital campaignwith a goal of $4 to $5 million conducted over a period ofone year:

Model #11Sample Campaign Budget Expenses

for a $4 to $5 Million CampaignItems Projected Budget1 full-time office manager $ 14,400($1,200 per month x 12 months)1 part-time clerk & typist 8,000

General expensesOffice supplies/equipment 7,000Photocopy and printing 15,000Postage 10,000Telephone (local and long distance) 1,600A/V Slide show and related materials 8,000Special meetings and meals 6,000Miscellaneous and cartage 700Petty Cash 300Contingencies 1,000Community Dinner 10,000Computer system for the chairperson's office 8.000Total $ 90,000

Consultant's fee and expenses

Combined Total

$ 200.000

$ 290,000

Special note: The combined fee of $290,000 represents a cost ofalmost 7% of a $4 million goal. If $5 million were obtained, thecombined budget and consultant fee would represent a cost of6%.

* With a full-time director of development the fees are closerto $75,000.

50 56

",-4.:AW#400;a: *Jatgimw:.1.,--7.7,44feAuKty.

The above sample expenses represent a campaign usingresident counsel. A growing trend in campaign counselrelationships is to use counsel for a certain number of daysper week or per month rather than full time residency fora period of months. This model reduces the cost of cam-paign counsel substantially.

44here is no one

correct capital campaign model for all situations. Infact, there may be opportunities to incorporate features

of more than one of the models to bestserve a particular situation."

James Gregory Lord

57

IX. Benefitsof Using ExternalCounsel in theCapital Campaign;Roles of CampaignLeadership

Benefits e modern daycapital campaign fund raiser mustgo beyond being a technician working within aprescribed time table. Capital campaign fund rais-

ers have evolved whereby they are expected to have devel-oped diversified people skills, to know the art of listeningand to understand the various techniques of solicitation.The capital campaign fund raiser must understand that thecapital campaign is a modern day science as well as an art.

A school can experience many specific benefits if itconducts a capital campaign:

Raises the dollars required immediately and long termas well as increases permanent interest in and good-will for the institutionForces an institution to articulate its mission and toset prioritiesAdvances the understanding of the institution amongits friends and potential friendsDevelops loyalty among the school's constituenciesBuilds a stronger base for the annual fund and plannedor deferred giving programsIncreases and refines informationabout constituentsfor better research for future campaigns

58 53

Provides an opportunity for the development staff toreceive an invaluable staff training educationBroadens the base of philanthropic supportBuilds and identifies new leadershipBecomes a morale booster while working toward thesame goal in harmonyForces both the staff and volunteers to meet dead-lines, keep on schedule and demonstrate that thecampaign effort is relatively brief and intense, notlong termEstablishes a follow-up pledge redemption programwhich keeps the donors involved and continuallyrefills the donor poolShould never be thought of as an end unto itself, butthe beginning of an accelerated total developmentprogram

Often school administrators perceive the contracting ofan outside consultant as a defeat for the institution. How-ever, once an institution secures a consultant, it quicklyrealizes the choice as one of the institution's best invest-ments. Some advantages to utilizing outside professionalcounsel include:

Objectivitythe consultant is interested in resultsand is devoid of the local politics of the institution.Experiencethe consultant has been through similarcampaigns and experience is the best teacher.New ideasthe consultant and /or firm can bringnew ideas in computer technology, donor financialplanning, and training that can enhance the capitalcampaign effort.Voice of authoritythe consultant is looked upon asthe outside expert or voice of authority and some-times can achieve the seemingly impossible.Keeps everything on scheduleConsultants haveone goal in mind: to keep everything on budget, ontarget, and to achieve the goal within the contractualtime frame.

Development staff supportoften it allows the regu-lar development staff to continue their routine devel-opment duties, with specialized consultants workingon the capital campaign.

59

Campaign In a capital campaign or major gifts program the CEO,

Leadership principal, president, head, or pastor:

Roles Acts as liaison between the campaign cabinet, devel-opment office and fund raising counselAttends each of the ad hoc and campaign cabinetmeetingsMakes personal visits to the top prospects and iscommitted to raising personally 30 percent of thegoal

Assists in the selection of campaign leadershipCommits 40 percent of time weekly for campaigninvolvement during the brief, intense periodEnjoys positive relationships with both the campaignchairperson and major gifts chairperson

The chief development officer (eg., vice president fordevelopment or director of development):

Is responsible for monitoring the campaign budgetand making sure that the budget is balanced at theend of the campaignWorks with external professional fund raising coun-sel in a specifically defined role throughout the cam-paignPrepares, revises and maintains the capital campaignschedule under the guidance and recommendationof professional counselOrganizes and conducts cultivation programs andorchestrates the solicitation of volunteers and pros-pectsAssists in the coordination of gift evaluations byvolunteers

Provides informational and technical assistance to allvolunteers through the solicitation processTranscribes and distributes reports and the progressof the campaign at meetings to committee members

Coordinates the campaign communications program,training for volunteers for solicitation, andphonathonsActs as liaison to campaign leadership and coordi-nates all capital campaign committee activities ac-cording to the general plan of the campaign

60

The ad hoc recruitment and steering committee:Screens names of appropriate candidates for top lead-ership positionsShapes policy and direction of the campaignDevelops an expanding roster of potential candi-dates for all committees necessary to the success ofthe capital campaignAttends all meetingsUntil campaign leadership is fully operational, actsas the board's operational link to professional coun-sel and the development officeOnce campaign leadership of fitting stature has beenrecruited and has assumed the reins of leadership,the ad hoc recruitment committee will cease to exist;its members are encouraged to assume other essen-tial roles in the campaign or become members of thecampaign cabinet

The board and campaign cabinet:Reviews policy plan and schedules for the capitalcampaignRemains available for consultation on all campaignplansHelps identify and solicit key prospectsKeeps in close contact with the campaign's progressand deals with emerging problems as they developLeads, encourages and pushes to keep all campaignactivities on trackAttends all cabinet meetingsMonitors the progress of the campaign from initia-tion to completionSolidifies a reasonable and achievable campaign goalParticipates in the nucleus fund, and is responsiblefor contributing 20% of the campaign's goal and forraising an additional 20% through personal contactsStands before the entire constituency as responsiblefor a successful final outcome

61

`. .. ,

'aith a good conscience

our only sure reward, with history the final judge ofour deeds, let us go forth to lead the land we love,

asking His blessing and His help, but knowing here onearth God's work must be truly our own."

John Fitzgerald Kennedy

62

X. Conclusion

the e specifics regarding the proper positioning stepsand procedures for a capital campaign. The ideas

derived from this publication must be tailored to aninstitution's specific situation or circumstances.

The capital campaign has proved to be the most costeffective method for raising a significant amount of moneywithin a condensed timeframe. The capital campaign hasa positive impact on all aspects of the institutional develop-ment program. Schools have found that competition toobtain volunteers today has become increasingly difficult.In order for schools to thrive, they must learn to marketeffectively and to compete to capture volunteer attention.

Proper definition of an institution's mission is a keyingredient for obtaining philanthropic funds. Philanthropicunderstanding and investing stem from the mission of theinstitution. Today, the value of volunteers is heightened bythe increased scrutiny from veteran fundraisers about thelong-term impact on capital campaigns that use paid staffto conduct the major portion of solicitations. We believenothing can replace volunteers as the right entre' for donorsolicitation and development staff must be involved inboth cultivation as well as direct solicitation. Recent re-ports indicate that comprehensive stretch goal campaignsmay be relics of the past. Today, trustees of institutions areinterested in the bottom line, or what new funds have beenraised. More and more institutional leaders are realizingthat the short-term intensive capital campaign has been thebest method for retaining volunteers for a condensed timeframe.

When contemplating a capital campaign, it is stronglyrecommended that outside professional counsel, appro-priate to the scope of the campaign and the budget, be

63 59

utilized. If the school has a modest budget, it is preferableto bring in outside counsel from the very beginning ratherthan when the campaign has been underway, and majorproblems have already developed.

Those who have completed a successful capital cam-paign know that one comes to really understand the mean-ing of PHI-LAN-THRO-PY"human's love for human-kind." Understanding the donor is the essence of thesuccessful capital campaign as well as longterm friend-raising for all schools.

64

1404r, .

Appendix A

7:1117,1].

Sample MissionStatements

St. Victory School, a co-educational CatholicElementary School affiliated with St. VictoryParish, serves to foster the educational and spiri-

tual development of children from pre-kindergartenthrough eighth grade by emphasizing basic skills, art,music, physical fitness and religious education.

The

Mission of Marian High School, an institutionsponsored by the I.H.M. Congregation, is toprovide a college preparatory education for young

women in a community based on belief in Jesus. Thecurriculum is characterized by a tradition of excellence in

an environment and atmosphere conducive togrowth and

learning. The academic and extra-curricular offeringsprovide students the opportunity to develop as wholepersons and to realize their full potential in order to as-sume their roles and responsibilities as Christians in soci-ety.(Marian High School, Bloomfield Hills, MI)

+ +

Mission Statement:1. To teach the message of Jesus2. To build community3. To offer service

The program, curriculum and planning at Holy Cross

65 61

.4.17`21' ,A.Nsjad:74,,

Area School is focused on achieving a sensitivity to thespiritual and moral truths taught by Jesus. Students learnto live and grow in a Christian society of work, play andworship...to build community.

(Holy Cross Area School, Portland, OR)

+ + +

Cretin-Durham Hall is committed to Catholicvalues and academic excellence. We will educateyoung men and women of diverse abilities, cul-

tures and socio-economic backgrounds for opportunitiesin life-long learning.(Cretin-Durham Hall, St. Paul, MN)

+ + +

The mission of Catholic High School is to teachGospel values in an environment of academicexcellence according to Catholic tradition and the

spirit of the Brothers of the Sacred Heart.(Catholic High School, Baton Rouge, LA)

66

. ..kgtiftlet4tArkmat-Wi0

Appendix BCampaignOrganizationLeadership Chart

HonoraryCampaign

Chairperson(s)

IBoard I

CampaignChairperson

CampaignSecretary

ProfessionalFundraising

Counsel

r Ad Hoc 7-I Steering I

L Committee

CampaignCabinet

Vice Chairperson

CampaignTreasurer

AuditCommittee

Board Local Nuclear FamilyStaff, Faculty, Parents,

Students, Religious

MajorGifts

Non-SolicitingCommittees:Evaluation & ListingArrangementsSpeakers BureauPublic Relations

Business, Industry& Corporate

Foundations

Clubs &Organ.

Alumni

AlumniParents

Vendors

Multi-12 Parish PhaseMajor, Special and General Gifts

Pulpit Appeal

Appendix C

SuggestedReadings

ALL

Brake ly, George A., Jr., Tested Ways To Successful FundRaising. Amacom, New York, 1981.

Broce, Thomas E., Fundraising: The Guide to RaisingMoney From Private Sources. University of Oklahoma Press,Norman, 1979.

Coldren, Sharon, The Constant Quest: Raising BillionsThrough Capital Campaigns. American Council on Educa-tion, Washington, D. C., 1982.

Conrad, Daniel Lynn, How to Solicit Big Gifts. ThirdSector Press, Cleveland, Ohio, 1985.

Cummerford, William R., Start-to-Finish Fundraising.Prescott Press, Chicago, Illinois, 1993.

Dove, Kent E., Conducting a Successful Capital Campaign.Jossey-Bass, San Francisco, California, 1988.

Fox, Karen and Charles Kotler. Strategic Marketing forEducational Institutions, Prentice-Hall, Inc., EnglewoodCliffs, NJ, 1985.

Grasty, William K. & Shienkopf, Kenneth. SuccessfulFundraising: A Handbook of Proven Strategies and Techniques.Charles Scribner & Sons, New York, 1982.

Greenfield, James M. Fundraising: Evaluating and Manag-ing The Fund Development Process. John Wiley & Sons, NewYork, 1991.

68

stTi. 1.1*Aosil,:i4kfio

Gurin, Maurice G., What Volunteers Should Know ForSuccessful Fundraising. Stein and Day, New York, 1981.

Gurin, Maurice G., Confession of a Fundraiser: Lessons of

An Instructive Career. The Taft Corporation, Washington,D. C., 1985.

Kotler, Philip, Marketing for Nonprofit Organizations.Prentice Hall, New Jersey, 1975.

Lord, James Gregory, Building Your Case. Third SectorPress, Cleveland, Ohio, 1984.

Marts, Arnard C., Philanthropy's Role in Civilization.Harper & Brothers, New York, 1953.

Nichols, Judith, Pinpointing Affluence. Prescott Press,Chicago, Illinois, 1994.

Pray, Francis C., Handbook for Educational Fundraising.Jossey-Bass, San Francisco, California, 1981.

Rowland, A. Westley, Handbook of Institutional Advance-

ment. Jossey-Bass, San Francisco, California, 1977.

Schneiter, Paul H., The Art of Asking: A Handbook forSuccessful Fundraising. Wacker & Company, New York,

1970.

Seymour, Harold J., Designs for Fundraising. McGrawHill, Inc., New York, 1966.

Warner, Irving R., The Art of Fundraising. Harper & Row,

New York, 1975.

Williams, Mary Jane. Capital IdeasStep byStep: How to

Solicit Major Gifts from Private Sources. Fundraising Insti-tute, Ambler, Pennsylvania, 1979.

69

Appendix D

The Pledge Card

The PledgeCard

44

A pledge is a promise made in good faith. It is notlegally binding.

The pledge card has 3 parts:1. Left sideThe name and address of the person

would be the same as that recorded on the center.Print the appropriate names. Detach this part andreturn it to the team captain. This part is forcampaign office record and control purposes.

2. MiddleThe name and address of the family/person to be visited is recorded. When a pledge isreceived, enter the (amount of) down paymentgiven to you. Mark the appropriate box indicatinghow the pledge balance will be paid, request thecontributor to sign the card, and record the date.This part of the card is returned at the reportmeeting in the worker envelope.

3. RightDetach this part and use it as a temporaryreceipt. After the report meeting, the campaignoffice will prepare and mail an official receipt andthank you letter to the contributing person.

4. BackCheck off appropriate remarks made by theprospect. Write in wording on pledge.

- Please be accurate in making entries on the pledgecard. This helps in speeding up acknowledgementsand in setting up campaign office records.Should a name be spelled incorrectly or an address beincorrect, please print the correction change on thepledge card. In this way, you will be improving thecampaign's current records.

70

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71

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72

Appendix E

A Tale WorthReading

Tee magnificent church and hospital ofSan GiovanniPaolo in Venice was built as a monastery in the

year 1234 on ground given to the Dominicans bythe Doge Tiepolo, and with a gift for construction that theDoge made from his personal treasury. In The Stones ofVenice, Join Ruskin writes that according to popular tradi-tion, the Doge's monumental gift was occasioned by adream. In the Doge's dream the ground on which themonastery would stand was covered with roses and the airwas filled with their fragrance. White doves bearing goldencrosses flew in the midst of the flowers. Then two angelsdescended from heaven and Doge heard a loud voiceproclaim: "This is the place I have chosen for my preach-ers." He awoke from his dream, went directly to theSenate, and made his pledge to build the monastery.

The 4:ca ). tal campaign ig,:to:captivate theimagination 1 t d do yo eers art, onors, o a degree

that the campaign's become the subject ofeii ams.

LA

n

(9/92)

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