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Writer's pictureAlison Finstad

How to Set a Capacity-Building Campaign Goal in 4 Steps

Your organization is ready to take the next step and launch a capacity-building campaign to purchase property and construct a building. Capacity-building campaigns have all kind of advantages! How will you figure out how much to raise? It’s more than just the cost of construction, and here we list the factors to take into consideration.

 

1.      Determine project scope

Building capacity is always more than just purchasing land and constructing a building – it includes increased programming, staffing, maintenance, and other expenses to do bigger and better things. To determine the scope in its entirety, imagine yourself in that future building – walk through it and around it, envision the activities taking place, see the people, notice the details – and ask your planning committee to do the same. List every way your organization’s capacity will expand due to the campaign.

 

2.      Determine the type of campaign you need

A capital campaign covers the cost of the building, land, and increased programming. A comprehensive campaign covers all of the above plus normal operations during the course of the campaign, and may even include an endowment component. There are pros and cons to each; if you have questions about what kind of campaign you should have, reach out to us for a free call and we can help you discern.

 

3.      Create a project budget

Once you are clear on the scope of the project and the type of campaign you need, work with architects, contractors, financial advisors, legal fees, engineers – anyone who can help you gain an accurate estimate of the actual costs of building or renovation. If you are launching a comprehensive campaign, add your normal operating budget plus any anticipated increases, staffing, and benefits. If there is an endowment component, instead of setting a monetary goal, set a goal of the number of bequests you hope to attain during the campaign.

 

Anticipate that fundraising for capacity-building campaigns may cost approximately 10-15% of the campaign goal. This includes fundraising consulting, campaign materials, fundraising events, travel to visit donors, donor recognition, graphic designers, printing costs, postage, and upgraded technology.

 

Lastly, consider permits and insurance, and add a buffer to cover any unexpected expenses. It might sound like a lot, but it’s better to set a campaign goal that’s too high than too low!

 

4.      Assess current financial position

Does your organization have existing funds or reserves that can be allocated to this campaign? Pledges that have already been made? Is there a line of credit that can be leveraged? Can the organization afford to take on any debt, if at all, to offset the campaign goal? Check with your organization’s treasurer or financial advisor on what they recommend.

 

Add everything up and voila! You have your capacity-building campaign goal. During the quiet phase of your campaign, you will gather valuable input from prospective donors and stakeholders who can help you determine whether the goal is achievable so at this point, don’t be afraid – shoot for the moon!


And contact us for trusted and experienced counsel if we can help you along the way.

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