Last year, a fledgling nonprofit asked if we would be interested in receiving an RFP to work on a capital campaign. After reviewing their business plan, I responded with the questions below. If you and your board members are contemplating bricks and mortar to fulfill your mission, these questions may be relevant to you, too – especially considering the current funding environment.
Have you conducted a feasibility study to see if community support for the capital campaign is there? (Or do you have other evidence?)
Does your nonprofit currently have significant donor support? (Capital campaigns usually follow major giving with long-term relationships.)
Along those lines, do you already have a “champion” donor, willing to give a lead gift of approximately 40% of the overall goal?
Is your board a group of influential and affluential individuals, willing to roll up their sleeves to give and get money?
Has key volunteer leadership been identified for the campaign—those who will lend their name and influence, in addition to making significant gifts?
Has the board explored all options for a renovation instead of buying land and building a new structure? Perhaps collaborating or creating partnerships for space or services might be more strategic than starting from scratch? (These are questions major foundations and individuals might ask—especially if they have not heard of your new nonprofit or are unaware of the community problem you’re trying to address.)
Has a strong fundraising case for support been developed? Have you collected local statistics of the problem, real-life stories, and some proof that your approach to a solution can make a difference?
Over the years, we’ve been in the room with many potential funders for capital campaigns or renovations. When considering yours in 2020 and beyond, keep in mind that we have all become more sensitive to how good environments affect every aspect of our lives. Capital giving will not go away, but the approach to potential funders may take some ingenuity. Donors want to invest in something that is strategic for the organization in the short-term, can be sustained in the long-term, does not duplicate any other nonprofit’s work, is innovative, and will really make an impact in the community. You will want to plan accordingly.
P.S. When following the progress of the fledging nonprofit that reached out to us, we learned that, sure enough, they were able to team with an organization already working in their cause space. That collaboration allowed them to be efficient, attractive to funders, and create impact for our community at a much faster pace. Well done.