by Barbara Barron | Posted November 13th, 2024 | Subscribe to this newsletter
It’s always nice when empirical data confirms the best practices we’ve been using, and teaching others to use, for years. Just this month, I read the second annual report on the state of capital campaigns completed by Capital Campaign Pro.
CCP is a women-owned firm that specializes in capital campaigns. That’s all they do. For all kinds of nonprofits. I know and respect these women and their team of advisors. Not everything they recommend applies perfectly to independent schools, especially small ones, but – if you follow this link – there are some great takeaways that confirms and supports what we know works.
And moreover, encourages us to keep at it!
The report is based on data collected from over 500 nonprofits in the US and Canada. The organizations included range from those thinking about conducting a capital campaign to those in the middle of one, to those who have completed one. The amounts they were raising ranged from $1M to $10M with an average of around $7M.
Here are some key takeaways.
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1. Head of School Involvement Matters
The degree to which the Head of School (or Executive Director) is actively involved in the campaign (or any fundraising) really matters. They report that 86% of organizations who said their leaders gave a “moderate“ or “considerable” amount of time saw big results: they literally raised millions more compared with those who had little or no involvement from the top person.
This tracks for me. And while I do not believe that the Head must be the only fundraiser (campaign or no), they need to accept that they are the chief one. And that makes sense. They are the person who is leading the school every day. It is into their hands that families wish to place their gift as a testament of their faith in the school and its leadership. The DoD may have been the one cultivating the gift and bringing it in but in many cases, the donor wants the Head of part of that process. Making sure the Head allots time for this important work is part of our job. And it is also the job of the Board Chair who supports and guides the Head by overseeing their goals and objectives. It really pays off.
2. Boards Don’t Matter As Much As You Think
Boards play a key role in the success of a campaign (or, again, all fundraising) but not as much as we used to believe and promote. This was news to me. While 100% early, stretch giving participation is ideal and we ought to strive for it, the CCP data reports that only 63% of those organizations in the study said they achieved the 100%. AND dollars raised by the Board was only about 15% of the campaign goal.
Wow. I hesitate to even cite those stats here because I continue to believe strongly, and therefore teach my client schools that as the key volunteer leaders of the school, the Board simply MUST support all strategic fundraising efforts, particularly high-stakes big public moments like capital campaigns. True, our schools’ Boards continue to evolve to be more diverse and inclusive, and that’s right. But when someone agrees to serve as a trustee, they need to understand the expectation that they will give a gift that is meaningful and right for their family. But give, they must. Our other savvy donors will ask: is the Board all in? If not, why? What does that imply about the project or about their commitment to the school? I don’t relish THAT conversation with a donor, do you?
3. Strategic Planning Is Important — NOT an Anniversary
The best, most compelling reasons for a campaign come out of good strategic planning work. The data shows that 74% of campaigns rose out of priorities identified in a strategic plan and all the inclusive work that goes into that. Only 3% were mounted because of an anniversary. This is an important myth-busting fact since we often hear from well-meaning volunteers that we “need” to raise money around an anniversary. And while it’s lovely that your school is turning 50 or 200, and there are many ways to leverage the occasion, to celebrate the milestone, and to recognize former and current faculty –the works–this is not a solid case for a campaign.
Campaigns Can Increase Annual Fundraising
I’ll end with some reassuring news. The most common fear I hear from schools and Boards about campaigns is that it will cannibalize the Annual Fund. And if not done correctly, they can. But this study revealed the upbeat findings that during the campaign, only 22% of organizations saw a decrease in the Annual Fund, 35% saw an increase, and 43% stayed the same. That ought to calm nerves.
But the even better news is that two or more years out from the end of the campaign, a whopping 74% said their annual fundraising increased! Why? Because campaigns help you build deeper, closer relationships with your supporters. They inspire donors to raise their sights. And if successful, the results of the campaign – the reasons for which you were raising money – have transformed the organization in important ways that help you deliver more fully on the promise of your mission. And that is worthy of increased support.
Feeling motivated? I am!
So, lets:
· Get crystal clear about why you are raising money and don’t be convinced to muddy the waters by including campaign objectives that are, let’s face it, “good for you” moments but not reasons donors will feel inspired to dig deeply.
· Engage the Board and Head in this good work by giving them the support and training they need to be successful.
· Set and hold high standards and be proud of that.
· Be sure the messaging about giving to both the campaign and the Annual Fund is clear so donors’ priorities are likewise.
· And if you aren’t sure you have the resources to be successful, seek outside help. There is plenty of great counsel out there.
And as always, thanks for all you’re doing!
Barbara Barron
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BARBARA BARRON is one of the most respected and highly sought-after independent advancement professionals in the country, having worked with dozens of schools in every corner of the United States.
She has raised over $20 million for schools where she served as the Director of Development. Barbara is a New York Times bestselling author, speaker, and presenter who currently advises dozens of schools in various capacities. She is considered a thought leader in the world of advancement, with her writing widely shared by professionals in development offices worldwide.
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