It is our business to know how to deal with these challenges.
In four decades of experience Compton International has found that the first
hurdle to clear in understanding how to raise large amounts of money, is to
appreciate that you don’t need to convince everybody to give, to succeed.
In fact, major fundraising campaigns achieve their goal with at most only a
few hundred gifts. Invariably over 80% of the fundraising target is raised
from less than 20% of the total number of givers, with one gift in excess of
10% of the total amount secured. In other words, if you plan to raise ten million
pounds, you should aim to achieve a top gift of at least one million pounds.
Too often we have seen essential improvements to a worthwhile not-for-profit
organisation put off or never completed because of a misguided belief that the
support of the whole constituency is necessary before mounting a major fundraising
campaign. While for some this is yet another convenient excuse for ignoring
change and avoiding fundraising,
for most it gives the cynics and nay-sayers in an organisation more influence
than they deserve.
To successfully meet future financial challenges the leaders of your organisation
should guard against falling hostage to the few who inevitably avoid change.
Rather than expending limited resources on attempts to convert them, you should
consider focusing your efforts on how to convince the few people that you need
to give generously to your project for it to succeed.
Apathy will be your greatest threat. While the vast majority of the supporters
of your organisation may accept the need for the changes you propose, to move
them all to make a meaningful gift will take a Herculean effort. So why not
focus your efforts on securing the support of those who are most able to help
you achieve your goal? Our experience is that this is the key to raising really
significant sums.
The first step in the process is to determine the extent of the human and financial
resources that may be available to your organisation. It is essential that
you involve your most affluent and influential supporters from the very outset
in a constructive way such as participating in a fundraising resources study.
Do we mount a campaign or an appeal?
A capital fundraising campaign is an organised course of action focused
on raising a large sum of money, as quickly as possible, from a relatively small
number of prospective givers for a specific project or programme. It is not
a broad-based community appeal for funds from the wider public, although
that may come later.
The first step to campaigning…
The first step in organising a successful campaign is to work out where the
money might be for the project you have in mind and who would be willing to
join the fundraising team. The feasibility of mounting a campaign can best
be determined by ascertaining the human and financial resources available for
your project through the research done as part of a resources study.
Why bother with research?
While the response to this question would appear to be obvious, it is remarkable
how many eminent institutions move straight into multi-million pound fundraising
campaigns without consulting their prospective givers and volunteer workers.
The heroic “let’s just get on with it and jump in at the deep end!” mentality
(usually put forward by those with no experience of capital campaigning) is
nothing but a sink or swim strategy that has led to some epic institutional
‘sinkings’.
All for the want of a bit of common sense in testing the water first to take
some sensible soundings.
Test the water!
In fact, in an age when the demands of accountability and fiduciary responsibility
placed on not-for-profit Boards have never been greater, it is increasingly
being seen as a lack of due diligence not to begin fundraising planning with
some form of resources study.
While there is little as positive for the long term well being of an organisation
than a successful capital fundraising campaign, sadly the consequences of a
failed campaign can be devastating.
So, what is a resources study?
In a nutshell, a resources study is a qualitative research process that identifies
your organisation’s readiness for a fundraising campaign and identifies two
important resources: contributable funds, and the volunteer workers who will
become the champions to give and get them.
Guidance from your Godparents
In some respects, the resources study can be regarded as a visit to your institutional
Godparents to seek the benefits of their wisdom before you embark upon
a major venture.
The combination of your godparents’ influence and affluence (and
their access to others with these qualities) is usually impressive. Their willingness
to get involved in your project, at this important time in your institutional
development, will be a crucial success factor for your campaign, if it proceeds.
What form does it take?
The resources study takes the form of confidential, behind the scenes
interviews with a cross-section of your organisation’s leaders, givers, influential
friends, staff members and other prospective supporters.
The response of these key constituencies to your proposed project, and their
guidance on how best to make it a financial and community relations success,
will determine if and how you make your campaign public.
In planning for a resources study you need to undertake three important steps.
Step 1: Case Statement
Harold J Seymour is regarded as one of the grandfathers of capital fundraising.
In his book “Designs for Fund-Raising” he offers a description of the case statement
that, in our opinion, has never been bettered:
“The basic document [required for the enlistment of leadership,
the enrolment of workers and the solicitation of the first pace-setting gifts]
has come to be known as the “case statement”. And this is the one definitive
piece of the whole campaign. It tells all that needs to be told, answers all
the important questions, reviews the arguments for support, explains the proposed
plan for raising the money, and shows how gifts may be made and who the people
are who vouch for the project and will give it leadership and direction.”
However, at this stage of the process there’s no need to make a meal of the
case statement. It should look and feel like an advanced draft document - not
a finished piece. Otherwise, your interviewees will feel that the exercise
is fait accomplis, that their opinions are redundant and that you are only after
their money!
Therefore your case statement should detail:
- The vision that has inspired the project.
- A description of the project, its cost and the fundraising target.
- A brief history, philosophy and achievements of your organisation.
- The reasons the constituency will respond.
- The identifiable facts that justify the project, including the urgency of
the need.
The preliminary case statement can also be brought to life by including basic
architect’s drawings, artist’s impressions and people-based photographs as appendices.
These will help interviewees to better visualise the project and the people
and community benefits that will flow from it.
The following questions should helpful in formulating your campaign case statement:
- What is the specific need for which funds will be sought and over what time
period are they required?
- What constitutes the market for this need?
- Is there a current statement of your organisation’s philosophy and objectives?
- Who are the key people associated with your organisation whose names will
give stature to this project?
- Who will respond to your organisation’s needs and why?
- What benefits will accrue to them as a result?
If the project for which you are considering seeking funds cannot be written
into a positive case statement that justifies its objectives, then you need
proceed no further with your planning for a study.
Step 2: Test scale of giving
The test scale of giving is a pattern of gifts (drawn up from past experience
of capital fundraising campaigning) that shows how many gifts need to be achieved,
and at what levels, for a funding goal to be attainable. It has been our experience
in managing over 1,000 campaigns that:
- Most multi-million pound campaigns achieve 80% of their target from only
100 to 150 gifts, of which
- The top ten gifts usually account for 45% to 55% of the target, which would
include
- The largest gift at normally 10% to 15% of the amount raised.
The test scale of giving is reviewed with interviewees during the resources
study and depending on their comments about where funds may be for your project,
it should then be adjusted accordingly.
Step 3: Quality interview list
A resources study is only as good as the calibre of the interviewees. As we
have said before, successful capital campaigns need to access influence
and affluence. Your organisation will probably have access to such influencers
(albeit, sometimes, two or three spheres removed from your core constituency).
Your organisation’s Godparents need to be interviewed and involved in
helping to expand the interview list.
Nevertheless, it should be remembered that the resources study is a qualitative
research process. Most experienced fundraising consultants will quietly admit
that positive studies (and subsequent recommendations for an organisation to
move to a full and public campaign) hinge upon the comments of half a dozen
powerful interviewees! This applies for campaigns big and small.
(Which begs the question as to why some studies we have seen in the ‘marketplace’
have involved over 100 interviewees and take six months to deliver - with resulting
exorbitant professional fees!)
Setting the scene …
Once these three preparatory steps have been completed, it is time to get on
with the all important personal interviews.
The shape and direction of study interviews will vary from project to project
and interviewee to interviewee. Generally, we do not recommend the preparation
of formulaic check-lists or questionnaires completed by the study manager as
interviewees are push-polled through their responses.
Conducting resources studies is as much of an art as it is a science: ‘gut’
instinct as much as empirical evidence. Inexperienced interviewers generally
let the mechanics of the process get in the way of an intuitive reading
of what the interviewee is really thinking and feeling about the project.
A good study manager creates a professional but relaxed environment in which
interviewees really feel they can speak their minds.
Asking the right questions …
As a result of the resources study, your organisation should have honest answers
to the following questions:
- Is your institution’s community relations environment conducive to fundraising
success?
- Is the project regarded as attractive, urgent and worthy of financial support
at high levels?
- Is the test scale of giving realistic and attainable?
- Is the volunteer leadership necessary for the success of the campaign available?
- When should you embark upon your campaign - and over what sort of period
of time?
- Are your institutional resources geared for a successful capital campaign?
Winning your fundraising campaign on paper
In getting frank answers to these key questions through a detailed resources
study report and preliminary action plan, your organisation begins the important
process of transferring ownership of the fundraising project to volunteer leaders
and winning the campaign on paper.
So when you next endeavour to meet the financial challenges that come with
change in your organisation, remember to focus on converting the few
that you need to give generously and avoid being paralysed into inactivity by
the those who fear change and fundraising.
Summary
- A capital fundraising campaign is an organised course of action focused
on raising a large sum of money, as quickly as possible, from a relatively
small number of prospective givers for a specific project or programme.
- Test the water first with a resources study which is a qualitative
research process that ‘raises the campaign on paper’ by identifying sources
of financial support and volunteer leadership.
- A resources study involves confidential interviews with people of influence
and affluence with an affinity to your organisation.
- The fundraising resources study has three components:
- The preliminary case statement
- The test scale of giving
- The quality interview list
- Ask the right people the right questions before you embark upon your capital
campaign.
- This common sense process will generate volunteer ownership of your project
and allow you to better position your fundraising campaign to achieve its
full potential.
Compton House High
Street Harbury
Leamington Spa Warwickshire CV33 9HW United Kingdom
Tel: +44-(0)1926-614555 Fax: +44-(0)1926-614599
Enquiries@ComptonIntl.co.uk
www.ComptonIntl.com
AUSTRALASIA • EUROPE • NORTH AMERICA • AFRICA
Other fact sheets in Capital fundraising
Fact sheet index
Email a question
Copyright of Alba Fundraising Ltd or the individuals or companies who contribute to this website. This material may be copied and distributed freely on the understanding that no profit is made from doing so.
Disclaimer: No payment is received from suppliers, companies or individuals for publishing their details on this website. The information is offered by those in the fundraising arena and whilst we try to make every effort to ensure the integrity of this information, Alba Fundraising Ltd cannot be held responsible for any inaccuracies, or any loss or inconvenience that may be caused by using this site.
home | resources
| fact sheets | services
site map | download
the site
Alba Fundraising Ltd.
Tel: 44 (0) 7775868768, Email:
alba@alba-lewis.demon.co.uk
Web: www.professionalfundraiser.org.uk
Web site design by Vivid Interactive.
Asking for the money
Raising the money on paper
