Book Review – Kent Dove“Conducting A Successful Capital Campaign”, 2nd Edition
Chapter 1: Key Components of a Capital Campaign
-Capital campaigns are a modern aspect of fundraising
-Initially Andrew Carnegie, J.D. Rockefeller underwriting libraries, museums, research projects and universities; YMCA first official capital campaign
-“Hopes & aspirations to critical market segments” = large gifts from few
-Trend is that they keep getting bigger
-Three categories:
- Under $25 million
- $25 million - $100 million
- Over $100 million (in ’87 already more than 43 known campaigns at this level)
Why increasing fundraising through capital campaign is increasingly important:
-Budgets tightened
-Demand increasing (service provision, e.g. hospital patient care loads)
-Competition for funding
-Public grant programs reduced (gov’t)
-Donor public more discriminating as resources more scarce/competition increases
-Fixed operating costs escalating rapidly
-10 Pre-requisits for readiness to launch a Capital Campaign,
plus other factors including: Age of the organization, Caliber of Constituency, Range of giving program (Planned Giving, annual, Major gifts, Prospect Research), Size and Geographical Distribution of Constituency (urban= easier), Previous Campaign Success, Quality of Program and Impact of Services, Location of Organization, State of Economy, Competing Campaigns, Publicity, Local Issues, Challenge/Matching Gifts
Four forms:
i)Historical Capital Campaign (Bricks & Mortar)
ii)Comprehensive
iii)Single Purpose
iv)Continuing Major Gifts Campaign
Chapter 2: Preparing…3 Essential Steps & a Checkpoint
Step 1: Strategic plan
Step 2: Market Survey
-provide assessment of other factors that may affect campaign
-investigate & evaluate external opportunities for the institution to mount & accomplish large scale major gifts campaign
-determine reaction to case statement (institutional priorities, goal)
-educate potential major gift donors and campaign leaders
-id and evaluate best people suited to provide leadership /volunteer role
-afford the institution an analysis of all the information gathered
Step 3: Development program readiness assessment
DPI (Dove Preparedness Index)…Dove scoring tool to assess readiness…75+ score ideal readiness
There are ten areas, each rating on a score of 1 to 10 and three of these areas are KEY (score within these areas if 25-30, also demonstrates readiness):
i)written document that makes a compelling case for supporting the campaign
ii)enlistment and education of leaders
iii)ability and readiness of major donors to give substantial lead gifts
Chapter 3: Defining Roles of Leaders & Volunteers.
There are two types of leaders in a campaign; Layman leads campaign, staff manages & serves
3 Key roles: Chair of the Board, the Campaign Chair, and the CEO
Characteristics of a Campaign leader:
-job descriptions including time commitment expectations
-four types:
-recruit from top down – avoiding this approach sets the wrong tone from the beginning
Governing Board “Single most critical”
-Bring Visible and unanimous commitment to the cause
-Impossible to motivate others to participate without a strong board
CEO role – ID the needs (NOT the details of how to get there…that is a development staff function)
Process;
-Staff creates plan
-Board ensures proper planning in place/endorses the plan
-Board asked to give (use formal for board giving, e.g. % net worth or % of annual income/ board sets a board goal and CEO or other board members do the soliciting / team visits of 2 work best). **20 – 50% of the goal can come from the board and their firms
Chapter 4: Volunteers
Important decision making process….key element is matching the right people for the right tasks (take time to research these individuals before asking)
See handout, pg. 51 – 53
Chapter 5 : The Case – handled in other sessions
Chapter 6 – Major Gifts Chart….ties directly into market survey and tests reality
-80/20 rule combined with Rule of 3rd’s (Seymour):
-Top 10 Gifts = 3rd of Campaign (Top Gift based on 10% of goal)
-Next 100 Gifts =3rd of campaign
-Remaining Gifts = remainder
-Naming Opportunities should align with the Major Gift Chart
Chapter 7: Structure / Solicitation Process
-staff driven
Org Chart; RIFLE SHOT (only asking major donors for major gifts….use staff time wisely) vs. SHOTGUN approach (broader donor base segments asked)
TOP DOWN, INSIDE OUT
-make sure those with busiest schedules’ time is channeled for most effective result (ratio for lead gifts = 1 prospect: 1 volunteer, Special gifts 2-3Prospects: 1 Volunteer, General Gifts 5 Prospects: 1 Volunteer)
Consider best way to approach in tandem with annual campaign ask:
- Separate Ask: Capital & Annual ask done separately at different times (not ideal for “comprehensive capital campaign” since seems very fragmented
- Double Ask: ask for both at the same time (capital could be multi-year ask, annual as single or annual also as multi-year ask)
- Triple Ask: include planned giving ask at the same time as Capital request & Annual request
Chart pg 93-94
Chapter 8: Researching/Qualifying Donors
Definition of a Major Gift for a capital campaign: e.g. on a $5million+ campaign; $100,000+ = Lead,
Special Gifts = $10,000 - $999,000 and
General = gifts under $10 million
“Lead gifts” set the trend for others soon to be asked
Nucleus Gifts = board giving at the lead level to set Momentum early on in the campaign (inside out)
Chapter 9: Cultivation
Prospect management = Systemized approach to identify and track Major Gift prospects
Handout pg. 116
Chapter 10: RelationshipBuilding & Developing Lead Gifts
-quality is stronger than quantity
-multi-level relationship development (volunteer, staff etc.)
-advancement listening, p. 129
Chapter 11: Managing Day to Day Operations, p. 137; expected time
Chapter 12: Technology, Adapting
Chapter 13: PR & Campaign Materials
Chapter 14: Concluding the campaign…next steps
Chapter 15: Trends, future growth;
-Women more involved (giving, volunteering)
-Volunteers, as valuable as major gift prospects, studies showing correlation between volunteering and philanthropic activity over lifetime
-Regulation withing the industry (e.g. DO NOT CALL lists, privacy implications)
-Increased use of Technology (personalization, multimedia, solid research)
-AT Kearney Study (private sector insight into development of a ‘Lifetime Donor Cycle”)
Remainder of Book = resource guide
See handout; pg 210….Table of Contents