FOUR QUESTIONS BEFORE STARTING A CAPITAL CAMPAIGN
By Richard Berlin, JD, MBA
Undertaking a capital campaign is an important effort for every Chamber. From raising new funds for a new building to aiding an economic development initiative in the community, a capital campaign can be a vital source of needed dollars. Before embarking on this fundraising drive, however, a Chamber must answer at least four questions first.
What is your image and reputation in the community? While its likely that your Chamber enjoys a positive reputation in your area, its important to make an honest assessment of your strengths and weaknesses. Does your community know what your Chamber does? How many businesses in your area are active boosters of your Chamber? Can your board even recite your mission statement clearly and exactly? Finally, do your members feel that they Asking your members if they feel they get value from their membership, and is a good return on their investment.
Asking your board members, staff, a random sample of your membership, and non-chamber members can reveal a great deal about how your Chamber is truly perceived in the community. Assuming your Chamber has a positive image and reputation in the community, the next key question involves making a case for support.
How compelling is your case for support? Ultimately, raising money is about persuading donors to contribute to a worthwhile effort. The more persuasive your case is, the more successful you will be in your fundraising. Given the state of the economy in the last few years, getting donations is certainly a much more challenging task than in the past. As a practical matter, developing the campaign case will be a cooperative effort between staff, the Board of Directors, consultants, and other interested parties to the Chamber.
How supportive will your leadership be in the Capital Campaign? A successful capital campaign always involves support from the Chamber’s volunteer leadership. If your Board of Directors supports the campaign, then undoubtedly the campaign will be successful. If not, then don’t even consider moving ahead.
A true sign of commitment from your Board means that every person has agreed to make a campaign contribution and will support the campaign by reaching out to others on behalf of the Chamber. While these contributions will likely span three to five years, it does indicate tangible support from your Chamber’s leadership.
How many prospects can we identify that have the ability to give at least half of our campaign goal? Once you have your Board solidly behind the Chamber in your campaign, the next issue is having enough prospects to fund your campaign goal. As a general rule of thumb, it is useful to target between 30 to 50 prospects to fund at least 50% of your campaign goal. It isn’t necessary that all prospects give to your campaign, just that they could. These individuals and companies must have the ability to make introductions, give a lead gift, and lend their support and names to the cause. Your goal is to identify solid prospects to fund your campaign. Are there any other “friends of the Chamber” that you can consider including on your target list?
Embarking on a capital campaign is an important effort for your Chamber. Only by giving careful consideration to your Chamber’s reputation, the persuasiveness of your case, the support of your Chamber’s leadership, and the potential pool of prospects, can you expect to succeed.
About Richard Berlin and Fremont Development Group
P. Richard Berlin, JD, MBA is a Senior Principal at Fremont Development Group, a fundraising consulting firm. Since 1994, Fremont Development Group has used its proven methodologies and innovative strategies to help raise funds, increase charitable giving, and clarify vision for Chambers, non-profits, and economic development organizations across the United States.
As a fundraising consulting company, Fremont partners with clients who seek to grow their financial resources and execute successful campaigns. We have raised over a quarter of a billion dollars since our founding and have been involved with more than 250 Fundraising Campaigns. By assisting clients in developing a clear vision, involving diverse stakeholders, planning for the future, and executing against plan, Fremont helps non-profits accomplish their mission by generating the revenue needed to become self-sustaining organizations.
Headquartered in Atlanta, Georgia, Fremont Development Group serves clients across the United States. Please visit www.fremontdevelopment.com to learn more or call (404) 459.0401.