The Cost of a Capital Campaign
Understanding the 3 major cost components for your budget
Many organizations are intimidated by the idea of launching a capital campaign. You know what your fundraising goals are but it can feel overwhelming to launch into a multi-million dollar fundraising program.
We want to help you take some of the mystery out of what it takes to actually get started, starting with how much should it cost. There are lots of programs available when it comes to fundraising for your fraternity, non-profit or membership based organization so how do you know which one to trust.
If you are considering a capital campaign for your organization, we want to empower you with the right information to help you make an informed decision for your future fundraising efforts. If you don’t have six figures to invest in getting help, don’t be resolved to going it alone. You can find the guidance and support you need by considering a different approach.
What can a capital campaign cost?
General Fees
While successful capital campaigns follow the same best practices, these major fundraising initiatives vary based on the goal, the scope of the project and the size of the donor base.
But there is a general rule that, if you hire a firm or consultant to help you raise funds, the fees should be around—and shouldn’t exceed—15% of the funds you raise.
While this is a fine rule of thumb to follow, it’s important to take other factors into consideration when evaluating fundraising firms and their costs.
For example:
Do you have a small staff?
Are your volunteers only moderately engaged?
Do your staff or volunteers have relationships with your donors?
If your organization has limited capacity to add such a large project and lacks volunteers who can engage in direct solicitation of donors, you might consider utilizing a lead gift officer model.
A Lead Gift Officer
A lead gift officer works with you to identify donors, then makes personal solicitations on your behalf. This approach takes the burden off your staff and volunteers, but—as you might expect—requires a significant investment to compensate a highly trained ‘salesperson’ to pitch your project to donors directly.
Firms who offer this model may charge up to $150,000 plus expenses for travel and lodging.
Peer-to-Peer Solicitation
If your organization has a stronger culture of community among its stakeholders—staff, volunteers and donors—or perhaps has no paid staff and relies only on volunteers, you should consider a model built on peer-to-peer solicitation.
In this model, groups of volunteers are trained to present your project and solicit others in your community for gifts. Consulting firms offer training, coaching and management of the volunteers to help ensure the campaign’s success.
These services may cost as little as $25,000, depending on your organization’s goal and existing volunteer infrastructure.
The takeaway?
Capital campaigns are not one-size-fits-all. When your organization is ready to raise major funds, make sure to evaluate the size of your volunteer base and their level of engagement, your campaign goal and your donor and prospect database to help guide you as you seek consultation.
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