Many months have lapsed since our last FUNDRAISING DOs & DON’Ts entry. So it’s only rational to resume the series with some straight-forward advice regarding the management of special fundraising campaigns.
Charities, non-profits, religious organizations, NGOs, social enterprises and community groups must engage in different types of fundraising activities to pay the bills. The regular events and appeals these organizations execute on a yearly basis to support their programs and reduce their reliance on core funders is called their annual campaign.
Occasionally, charities and other groups also organize and launch special periodic fundraising campaigns. To raise money to construct a new building or renovate an existing structure, a charity will execute a capital campaign. If an organization wishes to procure funds for a principal that it intends to invest to generate discretionary income, it will launch an endowment campaign. Below are a couple of pointers for anyone involved in formulating special fundraising initiatives.
DO incorporate all campaign-related costs in the overall funding target to be raised. Let’s not kid ourselves. Successful fundraising campaigns require no small investment.
Additional staff and office space are frequently needed to manage and implement the campaign. Websites and social media pages that keep the community abreast of the campaign’s progress must be built and maintained. Flyers and brochures publicizing how people can support the campaign must be devised and printed. Volunteer training expenditures must be covered.
The above are some of the common costs that are associated with the delivery of a triumphant fundraising campaign. Organizations often lack sufficient funds to kick-off a campaign or keep it rolling, and their leaders are at a loss as to where to find crucial startup capital.
Rather than worry about how to bankroll all expenses related running a campaign, include them in the total sum you plan to achieve. For example, if it is going to cost $200K to complete a $1M campaign, the target should be $1.2M.
Better still, devise and launch a “quiet phase” of your campaign – an unofficial start prior to the public launch where your objective is to identify and approach warm donor prospects who are highly likely to respond positively to any solicitation. Allocate a significant portion of the proceeds generated from the “quiet phase” to campaign management expenses.
DON’T separate the special campaign from your annual fundraising campaign. When organizing special fundraising campaigns, non-profit leaders sometimes go to great lengths to keep it separate from their organization’s annual fund development initiatives. Now it’s understandable why some may prefer to keep them isolated. Leaders may fear the campaigns might compete with one another and confuse donors. Some believe that signature events and key appeals might be jeopardized if campaigns are combined.
However, your organization may be missing a tremendous opportunity to strengthen its fund development capacity by electing not to combine both campaigns. The momentum created by special campaigns can spill over into your annual fundraising activities. Seize it and encourage your most passionate supporters to increase their yearly contributions.
Multi-year fundraising campaigns are excellent chances to elevate gradually your charity’s annual campaign target. For instance, let’s assume the combined target of your three-year campaign consists of a $5M capital total and a $2.5M annual fund portion. The amounts of the capital component to be raised over the three-year period may be $1M, $2M and $2M. Let’s also assume that your current annual fund generates $650K or 25% of your overall budget. You can set incremental targets for your annual fund portion of $820K, $830K and $850K during that three-year period.
By the capital campaign’s conclusion, your annual fundraising fund would have increased by $200K (from $650K to $850K). Assuming your core funding remains constant, this means your annual fund as a percentage of your organization’s total budget would have climbed from 25% to 32.7%. Such a boost significantly reduces your charity’s reliance on core funding and provides you with greater autonomy.
Of course, the key to avoiding any confusion with donors is thorough communication. Give them plenty of advance notice that your campaign is forthcoming and get them excited about supporting both endeavours. Help them realize that both campaigns will produce greater positive change than before, and their involvement will make it a reality.
