Feasibility Studies and Capital Campaigns
Here at The Thomas Scott Company we have expanded our services to include capital campaigns and feasibility studies. It’s a significant expansion for us because of the time commitment required. However, it is a logical addition because so many of our clients need this service and they trust us.
Capital campaigns, and their accompanying feasibility studies, are the primary tool used by many constituency nonprofits to raise funds necessary for large capital expenses like new buildings and endowments. They not only provide a significant influx of cash but also energize the organization’s constituency and develop important new relationships. Typical organizations that utilize capital campaigns are churches, schools, museums, libraries and other similar member-based nonprofits.
Here are a few FAQs of capital campaigns and feasibility studies:
WHAT IS A CAPITAL CAMPAIGN?
A capital campaign is an effective way to involve your constituency in the financial support of your organization, particularly in regard to a particular high dollar projects like new buildings or endowments.
WHAT IS A FEASIBILITY STUDY?
A feasibility study answers the question, “What can we expect from a capital campaign at this time?” Before embarking on a capital campaign, it is helpful to know the level of interest in your constituency, their willingness to give, and how much money the campaign might generate. It is advisable to hire a professional to conduct your feasibility study in order to get unbiased results and accurate recommendations.
WHY SHOULD WE CONSIDER A CAPITAL CAMPAIGN RATHER THAN MAJOR DONOR DEVELOPMENT OR GRANT FUNDING?
The short answer is you should consider all three. Each of these fundraising options addresses a different need. However, a capital campaign often enhances the other two. There are many benefits to a capital campaign other than a fresh influx of needed cash. The campaign will refresh commitment to vision, generate enthusiasm, publicize advancement, challenge givers, engender unity, and increase involvement, to name just a few ancillary benefits.
WHAT CAN WE EXPECT IN A CAPITAL CAMPAIGN?
The first phase of a capital campaign is the feasibility study (see above). Depending on the results of the feasibility study, a commitment is made to the campaign and a goal is set. Typically a capital campaign specialist is hired at this point to act as guide through the campaign. A steering committee is appointed and the campaign consultant trains the staff and volunteers in their respective assignments. Campaign materials are compiled and published, important meetings are scheduled and publicity is managed. The typical capital campaign will last anywhere from two to five years with three being the norm. During that time there is often a quiet phase followed by a public phase when campaign pledges and contributions are solicited and received. A formal kick-off usually begins the public phase and a very public celebration concludes the campaign.
HOW MUCH MONEY CAN A CAPITAL CAMPAIGN RAISE?
That depends on your organization, your needs, your capacity and your fundraising history. Campaigns come in all shapes and sizes ranging from a few hundred thousand dollars to several hundred million dollars.
If you’d like more information on feasibility studies and capital campaigns, email us at info@thomasscottco.com or call Tom at: 615-708-0140.