Evolution of the Capital Campaign – A BIT OF HISTORYWhen asked how often capital campaigns occur, one seasoned fundraiser replied that they used to be promoted as “once in a lifetime,” then “once in a generation,” and finally “once in a while.” No matter how often they occur, it seems that there is no real substitute for the traditional capital campaign; it is here to stay. Over the years, however, many changes have occurred in just how they are managed and the scope of their operation. Educational institutions were early pioneers of the capital campaign. When Harvard’s $82.5 million campaign--A Program for Harvard College--was launched back in the 1950’s, it was the most ambitious and successful fundraising effort in the history of higher education. It ended up raising more than $100 million, and its success led other universities to follow suit, securing a firmer financial footing for higher education in general. Not long afterwards, Princeton launched its $56 Million for Princeton effort, and out west Stanford followed with its successful $100 million PACE program—A Plan of Action for a Challenging Era. Today, those million dollar goals have turned to billions for some of the larger institutions as Americans continue to support their favorite charities like no other country in the world. The publication Giving USA estimated that in 2008--despite a recession—charitable giving, capital and annual, exceeded $300 billion for the second year in a row. Planned Gifts Get a New PlanOne of the most significant changes over the years is how Planned Giving has become an integral part of successful fund-raising efforts—be they capital or annual. Years ago, it was “Deferred Giving,” focusing primarily on bequests. Today Planned Giving encompasses a myriad of creative giving methods. Thanks to many of the pioneers in this area, it looks at giving much more from the donors’ perspective than that of the charity seeking their support—when he or she is ready to give and efforts to build relationships toward this end. While focusing more on the “ultimate” gift—one that can be quite substantive--it can often lead to all or part of a gift that satisfies an organization’s need for current funding. Pioneers in Planned Giving also helped to put to bed certain myths that existed then--for example,
Other significant changes:
And yet with all these changes, certain tried and true methods still abound. A successful campaign will have challenging but reasonable and defendable objectives. It will begin with a comprehensive feasibility study to test the waters. It will include a timetable that begins with participation by those closest to your institution setting the pace, continue with your best prospects seen personally, and postpone any public announcement until more than half your goal is committed. (60% or more is more ideal). For almost every non-profit organization, individuals will still give the greater percentage of the funds raised (in 2008, according to Giving USA, individuals accounted for 75% of the funds donated to all charities; bequests--still one of the best sources for increasing endowments some 7%). Tables denoting the size and number of gifts needed to reach the campaign dollar goal are still valuable fund-raising tools. However, there have been changes to the old rule of thumb that one-third of your gifts will come from the top 10 donors, the next third from the next 100 donors, and the last third from all the rest. With development officers utilizing better research and more creative methods for making gifts, we are witnessing a much higher percentage of the total coming from few individuals in the top 10 category. Probably the most important criterion for a successful capital campaign, however, continues to be a group of respected and committed volunteers determined to see it through to completion. During the recent recession, several non-profits have postponed launching capital campaigns and others involved in them are experiencing tough times. The bottom line: if your institution isn’t out seeking these gifts, or preparing to do so, your competition just might beat you to the punch. Today, it’s tough to find non-profits who aren’t planning a capital campaign, engaged in a feasibility study, in the middle of a campaign, or just completing one. It’s not hard to find experienced help, however. John Brown, Ltd. has been assisting institutions with their capital campaigns and other fund-raising efforts for more than three decades. If we can help you, please call us at 603-924-3834.
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August 2010:Archived Newsletters |
