Capital Campaigns 101An Introduction for First-Timers, CEOs,

Volunteers and Support Staff

Patricia P. Jackson and Mark W. JonesTuesday, December 11, 2007

9:15 to 10:30 a.m.

© Mark W. Jones, 2007

Before We Get Started… A few words from your speakers

What is a campaign? Why do we have them? Are there different

types? How do we plan for a

campaign? How does a campaign

unfold?

“Seven years in three hours….”

What is a “Campaign”? CASE’s Definition*

“A campaign is an announced, public effort to secure an extraordinary level of support for specific objectives during a finite period of time.”

* CASE Management and Reporting Standards, 3rd edition (2004)

What is a “Campaign”? Other Definitions

“A dream with a deadline.”

Why a Campaign?

Why not just raise the money through ordinary fundraising?

Why a Campaign?

Gives urgency to a vision that requires philanthropy

Galvanizes internal and external constituencies

Is the only fundraising tool proven to achieve meaningful, lasting growth . . . campaigns work!

Campaigns Work!

University #1Inflation Adjusted Total Gift Growth Rates

-10%

-5%

0%

5%

10%

15%

20%

(81-86) (94-98) (87-93)

Ave

rage

Ann

ual G

row

th (I

nfla

tion

Adj

uste

d)

Campaigns Work!

University #2Inflation-Adjusted Total Gift Growth Rates

-10%

-5%

0%

5%

10%

15%

20%

(58-64) (79-85) (94-98) (65-73) (86-94) (73-78)

Aver

age

Annu

al G

row

th (I

nfla

tion

Adju

sted

)

Campaign

Non-Campaign

Growth rates calculated using end-of-fiscal-yearfor year prior to era as base.

Campaigns Work!

University #3Inflation-Adjusted Total Gift Growth Rates

-10%

-5%

0%

5%

10%

15%

20%

Third Century (67-71)

Campaign forDartmouth (77-82)

Will to Excel (90-97)

(72-76) (83-89) (98-99)

Aver

age

Annu

al G

row

th (I

nfla

tion-

Adju

sted

)

Why is a Campaign not “Business as Usual”?

Greater focus on major gifts Targeting of “capital” projects:

Endowments for programs, faculty and students

Renovation and construction projects Other new resource-intensive initiatives

More intense engagement of campus community

Significant volunteer participation

Types of Campaigns

Single purpose Capital purposes only Capital and expendable Comprehensive

The Comprehensive Campaign

Fac ilities (Major Gifts)

Endowment (Major Gifts - Outright & Deferred)

Unrestric ted (Annual Giving)

Restric ted Current Use

(Foundations & Corporations)

6 Objectives of Successful Campaigns

By Bill McGoldrick, Washburn & McGoldrick

1. Exceed your financial goal2. Strengthen your infrastructure and build

campus support for the fund-raising process3. Create an enthusiastic, educated cadre of

volunteers4. Increase institutional unity and morale5. Enhance your institution’s external

reputation6. Position yourself for success in the next one

The Seven Phases of a Campaign (with thanks to Sue Washburn and Bill McGoldrick)

Phase 1 Pre-Campaign Planning The institution prepares

Phase 2 Campaign Planning The staff prepares

Phase 3 Advance Gifts Phase Key donor solicitations

The Seven Phases of a Campaign (with thanks to Sue Washburn and Bill McGoldrick)

Phase 4 Public Announcement The campaign goes public; solicitation of all constituents begins

Phase 5 Plateau of Fatigue Work, work, work!

Phase 6 The Homestretch Victory is in sight; prepare for post- campaign activities and priorities

The Seven Phases of a Campaign (with thanks to Sue Washburn and Bill McGoldrick)

Phase 7 Post-Campaign Shifting direction but

maintaining momentum . . . and preparing for the next campaign

Phase 1: Pre-Campaign Planning The Institution Prepares (6 months to 2 years)

Complete an institutional strategic plan Define, winnow and focus the

institution's needs and priorities Prepare first draft of a formal case

statement Begin "testing" the case statement and

institutional priorities

Strategic Plan Elements

Vision Assessments

Trends Strengths Weaknesses Opportunities Threats “Customer”

demand

Stakeholder concerns

Strategic directions Resource

requirements Financial plan Role for

philanthropy Priorities

Why Vision Is Essential?

Clarifies direction Inspires action Helps coordinate the actions of

different people quickly and efficiently It generates extraordinary gifts

Coupling Vision with Reality

An effective institutional plan is more than just a comprehensive wish list:

The priorities list must pass through the “crucible of choice”

There must be an action plan for making the vision a reality

Phase 1: Pre-Campaign Planning The Institution Prepares (6 months to 2 years)

Start to define program, scope and duration

Begin shaping campaign’s dollar goal Begin developing a prospective table of

gifts (more on this later) Increase donor research and evaluation Enlist 4-6 key volunteers Proceed to Phase 2

Estimating the Potential Goal

Some Useful Formulae:

2 x last campaign total Average of last 5 yrs. x 2 x #yrs. of

campaign More later….

Phase 2: Campaign Planning The Staff Prepares (6 months to 1 year)

Conduct a feasibility study Refine analysis of institutional priorities

and featured objectives Intensify research of top 100-300

potential donors Refine the table of gifts Establish a tentative campaign timeline

Feasibility Studies

Internal readiness assessment tests institutional will and measures strengths and gaps in staffing and infrastructure

External readiness assessment tests vision, image, priorities, donor readiness and fundraising climate

Assessing Your Readiness

A Suggested Guide…

Use the accompanying “Campaign Readiness Rating System” to help you determine whether or not your institution is positioned for success in a comprehensive campaign.

A Cautionary Note

“Care should be taken to design campaigns that reconcile the needs of the institution with the interest and capacity of its constituencies to fund them.”

* CASE Management and Reporting Standards, 3rd edition (2004)

The Gift Pyramid (or Gift Table)

Shows number of gifts needed at various levels to reach campaign goals

Works on the assumption that approximately 90% of the dollars will come from fewer than 10% of the givers

Useful, but never works out exactly Shows magnitude of the task

A Sample Gift PyramidA Sample Gift Pyramid2 …gifts of $100M = $200M4 ...gifts of $50M = $200M8 ...gifts of $25-50M = $200M

12 ...gifts of $10-25M = $120M20 ...gifts of $5-10M = $100M

40 ...gifts of $1-5M = $40M 80 gifts of $500K = $40M 120 gifts of $250K = $30M 200 gifts of $100K = $20M 400 gifts of $50K = $10M 800 gifts of $25K = $20M ? gifts of <$10K = $20M

A Sample Gift TableA Sample Gift Table

Average GiftRange

# of GiftsNeeded

# ofProspects

Needed

Actual # ofProspects

Total Giftsin Range

Cumulative Total

$7,500,000 1 4 3 $7,500,000 $7,500,000

$5,000,000 1 4 4 $5,000,000 $12,500,000

$2,500,000 4 16 6 $10,000,000 $22,500,000

$1,000,000 9 36 36 $9,000,000 $31,500,000

$500,000 14 56 24 $7,000,000 $38,500,000

$250,000 16 64 23 $4,000,000 $42,500,000

$100,000 22 88 42 $2,200,000 $44,700,000

$50,000 45 180 n/a* $2,250,000 $46,950,000

$25,000 60 240 n/a* $1,500,000 $48,450,000

<$25,000 Many Many Many $1,550,000 $50,000,000

172+ 688+ 138+ $50,000,000

More Dollars from Fewer Donors

Top 1% contribute 50% of total dollars Top 5% contribute 90-95% $1 million+ gifts give 50% $100K+ gifts, give 85%

Campaign Timelines

What needs to be done? When does it need to be done? Who needs to do it? In what order should be done?

Early Campaign Timeline (Sample)Task

Appoint Nat'l Philanthropy Committee Chair Assess regional staffingIdentify campaign themeAddress staffing needsAssess/adjust regional task force leadershipDraft Case StatementAssess/adjust reg. task force membershipReview campaign timeline feasibilitySolicit UWF BoardBrief UW community on campaign statusSolicit lead prospectsSolicit regional task force members

Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 22000 2001 2002

Phase 2: Campaign Planning The Staff Prepares (6 months to 1 year)

Start developing a detailed campaign proposal

Finalize budget and funding sources Fill vacant staff positions and begin

training Adopt trustee-approved policies for gift

acceptance and campaign counting

Campaign Plan Elements

Capacity analysis Anticipated target Prospect

identification Feasibility testing

External interest Internal readiness

Budget Gift acceptance

and campaign counting policies

Gift opportunities list Communications

platform and tactics Leadership

Board CEO Volunteer structure

Sight-raising initiatives

How Much Will It Cost?

It Depends. . . The more mature your program, the

smaller the incremental increase that is needed beyond current operating budget

The greater the readiness of the prospective donor base and its giving potential, the less the investment in advance cultivation

Phase 2: Campaign Planning The Staff Prepares (6 months to 1 year)

Determine advance gifts (“nucleus”) goal

Set a tentative date for public launch Communicate campaign plans and

priorities to key internal audiences Proceed to Phase 3

Phase 3: Advance Gifts Key Donor Solicitations (12 to 18 months)

Engage CEO and other campus leaders Enlist leadership volunteers Begin intensive volunteer training Solicit early leadership (“nucleus fund”)

gifts Solicit governing board Focus on "sequential fundraising"

Board Leadership

Early gifts 100%

participation Stretch gifts Priority

responses

Informed ambassadors

Identify potential donors

Involve others Ability to ask

others Ability to steward

others

Board Leadership

Partnership with the CEO

What is expected of him/her?

Can your CEO make the case with passion?

Can s/he ask? Will s/he ask?

Will s/he make the time?

Partnership with the CEO

“Nucleus” Phase Milestones

Focus on the few Solicitation of big,

big gifts Steering

committee and Board set the standard

30-40% by kickoff (>50% for less mature programs)

Celebrate/announce big gifts

Engage and educate donors

Confirm communications platform

Build case for support

Phase 3: Advance Gifts Key Donor Solicitations (12 to 18 months)

Involve leadership donors Solicit governing board Confirm public campaign goal Finalize communications plan

(strategies and tactics) Plan public launch(es) and constituency

involvement activities

Involving Leadership Donors

Communications Platform Expresses vision,

urgency, passion Provides

historical context Links institution

to larger societal goals

Defines goals and objectives

Provides ways to give

Focuses on opportunities as opposed to needs

Provides supporting data, third party endorsements, and stories that illustrate impact of philanthropy

Phase 3: Advance Gifts Key Donor Solicitations (12 to 18 months)

Continue staff and volunteer training Complete advance gifts solicitations

Remain flexible . . . things will change! Proceed to Phase 4

Phase 4: Public Launch Solicitation of All Constituents Begins (1 day to 1 year)

Hold launch event(s) Announce goal, leadership and advance

phase result Recognize advance gift donors and begin

public stewardship activities Present campaign brochure, video, DVD,

etc. Convey excitement of early success and

generate enthusiasm for more

Pre-Kickoff

Board votes on the goal(s) Close leadership gifts Engage new volunteer

leadership Plan event(s)

“Kickoff” Planning

What do we want the attendees to think, feel, do?

One event? Several events? Regional events? Education

component?

Messages? Announcement of

goals and gifts? Individual “moves”

or initiatives And, a good time

was had by all!

Phase 4: Public Launch Solicitation of All Constituents Begins (1 day to 1 year)

Expand volunteer base (if necessary) Solicit remaining leadership prospects Involve general donors (regional

campaigns) Define and explain role of annual giving Continue staff and volunteer training Proceed to Phase 5

Phase 5: Plateau of Fatigue Work, work, work! (1 day to 1 year)

The campaign engine should be firing on all cylinders… work your plan

Re-solicit stalled donors Continue solicitation of leadership

donors Continue cultivation and stewardship of

all donors (don’t forget those who were your earliest participants!)

Phase 5: Plateau of Fatigue Work, work, work! (1 day to 1 year)

Continue marketing and communication efforts

Begin solicitation of general constituent populations

Maintain/boost annual giving momentum Conduct special component campaigns

(faculty, parents, challenge grants, etc.) Continue training of staff and volunteers

Phase 5: Plateau of Fatigue Work, work, work! (1 day to 1 year)

Address staff and volunteer burnout Expect and cope with turnover of staff,

volunteers…and campus leaders Announce (and celebrate) goal

achievements as they occur Proceed to Phase 6

Phase 6: The Homestretch Victory is in sight (12 to 18 months)

Assess program results and cash flow Adjust plans (increase the goal, redirect

efforts or extend the timeframe?) Continue cultivation and stewardship of

all donors Close any outstanding solicitations Re-solicit donors who are appropriately

ready

Phase 6: The Homestretch Victory is in sight (12 to 18 months)

Thank and honor volunteers and donors Begin planning for post-campaign

advancement programs: Annual fund Major and planned giving Alumni programs Stewardship of gifts secured during campaign

Celebrate!

Whom should we thank?

How do we make everyone feel successful?

How do we set stage for future success?

Why Include Annual Giving in Your Campaign?

1. To sustain the Annual Fund’s continuity and forward momentum

2. To provide additional opportunities for alumni and friends to participate in the campaign

3. To increase volunteer engagement4. To raise donors’ sights5. To broaden and deepen the donor

base for future campaigns

Why Include Annual Giving in Your Campaign?

6. Annual Giving is the base for future giving7. Modest Annual Fund gifts are pre-cursers

to subsequent major gifts8. The Annual Fund is too important to

annual operating budgets to take any chances

9. The majority of donors during a campaign will participate solely via the Annual Fund

10. All campaign donors should be asked for Annual Fund gifts

Why Include Annual Giving in Your Campaign?

11. Get support—and leadership gifts—from the governing board, the president and cabinet, the alumni board, and the Annual Fund’s volunteer leaders

12. Provide Annual Fund training and reference materials for all campaign volunteers

Phase 6: The Homestretch Victory is in sight (12 to 18 months)

Identify post-campaign development priorities

Develop post-campaign budget and staffing plan

Share post-campaign plans with key volunteers and constituencies

Prepare final campaign report to stakeholders

Celebrate success!

Phase 7: Post-Campaign Shifting direction but maintaining momentum…and preparing for next one

Post-campaign plan goes into action to sustain a heightened level of philanthropic support

Major gift fundraising becomes the norm Annual giving should benefit from a

post-campaign “bounce” Volunteers are dismissed or re-directed

to other tasks (with appropriate thanks)

Phase 7: Post-Campaign Shifting direction but maintaining momentum…and preparing for next one

Advancement programs sharpen their focus as a result of lessons learned during the campaign

Institution continues to steward and engage the campaign’s donors and volunteers

Write a retrospective analysis of the campaign

Start thinking about (gulp) the next campaign

Phase 7: Post-Campaign Shifting direction but maintaining momentum…and preparing for next one

The cycle begins again with a new vision: Strategic planning New goals and aspirations New potential donors Need for clear articulation

6 Objectives of Successful Campaigns

By Bill McGoldrick, Washburn & McGoldrick

1. Exceed your financial goal2. Strengthen your infrastructure and build

campus support for the fund-raising process3. Create an enthusiastic, educated cadre of

volunteers4. Increase institutional unity and morale5. Enhance your institution’s external

reputation6. Position yourself for success in the next one

Some Issues to Consider…

“Vapor campaigns” Campaign fatigue Are campaigns still special? Are we just dressing up “business as

usual” as a campaign? Are we leveraging our investments in

campaigns? Have the numbers become so big that

they don’t seem real—a campaign “arms race”

Want More Information? We’d be pleased to help!

If you’d like a copy of this presentation, or want to talk further, please leave us your business card at the end of the session or send us an e-mail:

Trish Jackson, (413) 585-2667 or pjackson@smith.edu

Mark Jones, (920) 265-0851 or mwj150@hotmail.com

Available Resources Copies available upon request

Sample gift tables Gift acceptance

policies Counting

standards Stewardship plans Sample receipts ROI measures Calculating # of

staff needed

Campaign reporting formats

Pledge forms Faculty/staff

campaign plan Peer comparisions Sample mission

statements And more…just ask!