63. New Research: The State of Capital Campaigns
About this episode
Hey there, wonderful fundraisers and nonprofit champions! Today, I've got something truly exciting to share with you. It's a topic that often sparks both curiosity and trepidation in the nonprofit world: Capital Campaigns. And no, this isn't going to be your typical discussion about fundraising statistics and case studies. We're about to dive deep into the heart of capital campaigns, debunking myths, and revealing extraordinary insights that will completely transform the way you perceive these monumental fundraising efforts.
In this episode of The Intentional Fundraiser Podcast, I had the pleasure of sitting down with the brilliant Steven Shattuck, an expert in nonprofit fundraising and Chief Engagement Officer at Capital Campaign Pro. Today, we're talking about The State of Capital Campaigns – new and groundbreaking research conducted by Capital Campaign Pro!
Unmasking the Truth About Capital Campaigns
We kicked off our conversation by acknowledging the widespread myths and fears that surround capital campaigns. One of the most common misconceptions is the belief that embarking on a capital campaign will cannibalize your annual fund. I mean, who hasn't heard that one before, right? The fear that asking for those big campaign gifts will somehow deter your annual donors. Well, we dug into some real, empirical data, and guess what? It turns out that this fear isn't as justified as we might think.
According to Steven's research, 79% of organizations either maintained or increased their annual fund during their capital campaign. And guess what? Only 20% saw a decrease, and there are numerous reasons behind it. So, before you let this myth hold you back, know that you're not alone, and there's evidence suggesting that these campaigns can indeed coexist and even thrive together.
Feasibility Studies: Are They Worth It?
Now, I know many of you have probably grappled with this question before: “Are feasibility studies really worth it?” I've heard the debates where some believe these studies are crucial in gauging the appetite for your campaign and ensuring you've got the right financial goal in mind. While others argue that nonprofits are going to do what they want regardless, rendering feasibility studies a waste of money.
Well, Steven and I delved into this debate as well. And the findings from the research shed some light on the matter. Here's the deal: Over half of the organizations that conducted feasibility studies ended up increasing their fundraising goal. That's right, they were undervaluing their campaign's potential! Imagine what those extra funds could mean for your mission.
Plus, here's the kicker: 94% of the organizations that conducted a feasibility study reported strengthened major donor relationships. That's a significant boost! And they raised, on average, 15% more than their goal. Yep, a 15% bump in funding. So, if you've ever questioned the value of feasibility studies, this might just change your perspective.
The Role of Endowment in Capital Campaigns
Now, let's talk about endowments. With economic uncertainties and rapid shifts in the nonprofit landscape, endowments have taken on a whole new level of significance. It's not just about growing them but also recovering from market fluctuations and ensuring financial sustainability. So, where does endowment stand in the realm of capital campaigns?
The surprising part is that a very small percentage, around 6%, of organizations solely conduct a capital campaign for their endowment. It's rare to see a campaign purely dedicated to endowment building. In fact, Steven suggests that endowment is often better packaged as a component of the case for support. And with his research backing this up, it's a perspective worth considering.
Beyond Dollars: The Benefits of Capital Campaigns
I've got more for you; it's not just about dollars. You see, capital campaigns have these fantastic side effects, much like your favorite superhero's superpowers. Here are some of the remarkable benefits that come along:
Major Donor Relationship Strengthening: 72% of respondents considered this as one of the biggest benefits of capital campaigns. It's the golden opportunity to build deeper connections with your most generous supporters.
Confidence Boost: 50% of organizations felt that they got better at soliciting larger gifts during the campaign. It's a massive confidence booster for both the organization and the fundraisers involved.
Staff Effectiveness: It turns out that conducting a capital campaign often leads to increasing the overall effectiveness of the development staff. It's like a professional development boot camp, but better.
Fundraising Systems: Putting in place better fundraising systems was another bonus. For many organizations, this process acts as a catalyst for improving processes that might have been lacking before.
Board Engagement: For a third of organizations, their board became more engaged in fundraising during the campaign. It's an excellent opportunity to get your board members more involved in this crucial aspect of nonprofit work.
Now that we've scratched the surface of the wealth of knowledge shared in this episode, I want to leave you with a compelling call to action. There's a treasure trove of insights and revelations waiting for you in the full episode. It's a game-changer, a myth-buster, and a confidence booster all in one.
Here's What I Want You to Do
Listen to the full episode. Trust me; you won't want to miss this journey through the fascinating world of capital campaigns. We're unmasking the truths that will empower you to take your fundraising to the next level.
Whether you're a seasoned nonprofit professional or just starting your journey, this episode has something for everyone. So, go ahead and hit that play button. Your future in fundraising is about to get a whole lot brighter.
Thank you for being a part of our community and for your dedication to making the world a better place. Let's make some waves in the world of fundraising together!
With gratitude and excitement,
Tammy
Our guest
Steven Shattuck, Director of Engagement, Capital Campaign Pro, Author
"Those who did a feasibility study, beat their goal by 15% versus those who did not."
– Steven Shattuck, Director of Engagement, Capital Campaign Pro, Author
Resources mentioned in this episode
The State of Capital Campaigns 2023 by Capital Campaign Pro
A Brave Space for Black Fundraisers: A PATH TO ACTION 2023 VIRTUAL CONFERENCE
Resonate: Present Visual Stories that Transform Audiences by Nancy Duarte
slide:ology: The Art and Science of Creating Great Presentations
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