Problem: Sometimes nonprofits want to raise a lot of money for a big project but aren’t sure if they have enough support, resources, or the right plan.
Solution: A feasibility study checks what the organization has and asks people what they think so it can make a smart, clear plan for a successful campaign.
A feasibility study assesses whether an organization is prepared to undertake a significant fundraising initiative, such as a capital campaign. It identifies internal and external factors that can influence the campaign's success, focusing on aspects like donor interest, organizational capacity, and external market conditions.
Conducting a feasibility study offers several benefits:
- Assessing Readiness: Identifies gaps in organizational capacity or donor interest.
- Minimizing Risk: Reduces the chance of a failed campaign.
- Gaining Buy-In: Engages leadership, staff, and donors early on.
- Strategic Insights: Provides data-driven recommendations for campaign planning.
Steps to Conduct a Feasibility Study
a. Assembling a Task Force
Form a dedicated committee of board members, senior staff, and consultants to oversee the process. The task force ensures alignment between the study and the organization’s strategic goals.
b. Defining the Study’s Scope
Clearly outline the purpose and questions the study aims to answer. Examples include:
- Is the proposed fundraising goal realistic?
- Do we have the internal resources for a campaign?
c. Hiring a Consultant
An experienced fundraising consultant can provide objectivity and expertise. They bring best practices, guide stakeholder interviews, and ensure accurate data interpretation.
d. Engaging Stakeholders
Involve key stakeholders—board members, major donors, staff, and volunteers. Their participation not only enhances data quality but also builds early support for the campaign.
Organizational Assessment
Evaluate the organization's infrastructure, including staffing, financial health, and past fundraising performance. A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) can help identify gaps.
b. Case for Support Evaluation
A compelling case for support is the cornerstone of any successful campaign. Test your messaging with stakeholders to ensure it resonates.
c. Leadership and Volunteer Analysis
Strong leadership and committed volunteers are essential for a campaign’s success. Assess the availability and readiness of individuals to champion the campaign.
d. Donor Analysis and Prospecting
Examine donor data to identify high-potential prospects. Tools like donor pyramid models and wealth screening software can assist in segmenting and prioritizing prospects.
Developing Interview Protocols
Design structured interviews with open-ended questions to gather qualitative insights. Topics may include donor motivations, giving capacity, and perceptions of the organization.
Data analysis should identify patterns, gaps, and opportunities. Look for alignment (or lack thereof) between donor interests and the proposed campaign goals.
Use the study’s findings to shape a campaign plan. Prioritize activities like major gift cultivation, volunteer recruitment, and public launch strategies.
Key Elements to Include
- Executive Summary
- Key Findings (e.g., readiness, donor interest, obstacles)
- Recommendations (e.g., goal adjustments, staffing needs)
- Action Plan
b. Recommendations and Next Steps
Offer actionable recommendations to guide campaign planning, such as refining the case for support or expanding the prospect pool.
b. Sample Questions
- What do you perceive as the organization’s strengths?
- Do you believe this campaign is achievable?
- What would motivate you to give to this campaign?
c. Handling Objections and Concerns
Listen actively and address concerns transparently to build trust and encourage candid feedback.
Conducting a Feasibility Study
- Purpose and benefits of a feasibility study.
- Choosing the right consultant.
- How to interpret the results to refine your strategy.
Assembling Your Campaign Team
Recruiting Campaign Leadership
- Roles and responsibilities of board members, staff, and volunteers.
- Identifying and empowering your campaign chair.
Building Your Fundraising Committee
- The importance of diverse skills and connections.
- Training volunteers to be effective ambassadors.
Planning for Success
Setting Campaign Goals
- Establishing a realistic and ambitious fundraising target.
- Allocating funds: capital expenses, endowment, and operations.
Mapping Out Your Campaign Timeline
- Phases of a capital campaign: quiet phase, public phase, and beyond.
- Using project management tools like Gantt charts.
Budgeting for Your Campaign
- Forecasting costs for marketing, events, and donor recognition.
- Managing contingency plans.
Cultivating Major Donors
Identifying and Engaging Major Donors
- Researching prospects and using donor databases effectively.
- Building relationships through personal outreach.
Soliciting Transformational Gifts
- Crafting personalized asks.
- Strategies for face-to-face meetings.
Stewarding Major Donors
- Acknowledging gifts with personalized recognition.
- Keeping donors engaged throughout the campaign lifecycle.
Campaign Strategies and Tactics
Quiet Phase: Laying the Groundwork
- Securing lead gifts before going public.
- Building momentum with a sense of exclusivity.
Public Phase: Expanding Engagement
- Launching your campaign with high-profile events.
- Using digital marketing and community outreach to build visibility.
Overcoming Challenges
Addressing Donor Concerns
- Transparency in budgeting and reporting.
- Managing conflicts or donor pushback.
Adapting to Economic Changes
- Strategies for fundraising during economic downturns.
- Building resilience through donor diversification.
Measuring Success and Sustaining Momentum
Tracking Campaign Progress
- Using metrics to evaluate success.
- Adjusting strategies based on data.
Celebrating Success
- Campaign closure events.
- Communicating impact to donors and stakeholders.
Post-Campaign Stewardship
- Retaining donors for future campaigns.
- Transitioning from capital fundraising to ongoing development.