A campaign feasibility study is a tool a non-profit uses to determine whether it should go ahead with a capital or endowment fund-raising campaign. It is essential for an organization to assess the likelihood of success for a campaign before entering into it. A non-profit that does not do so puts the campaign, the project for which the money is to be raised, and even the organization itself at risk.

An assessment of the feasibility of a campaign can be conducted by the organization itself or by outside professional counsel. If the organization is very well prepared (more about that later), it should be capable of making an internal assessment of feasibility. However, if a full-blown feasibility study is needed, then that study is best conducted by outside counsel having no ties to the organization. The reasons for this will be delineated later in this article.

At one time, a feasibility study for a capital or endowment campaign was little more than a process of identifying where the money was — who had it and how much they might be willing to give. No longer. In today’s donor-centric world, an organization needs to assess the:

1. Community’s perception of the importance of the need for which money is to be raised.
2. Feelings, both positive and negative, about the organization and its mission.
3. Size of the potential donor base and its ability to give.
4. Availability of strong campaign leadership and effective volunteers.
5. Internal resources available for the campaign and the preparedness of the organization to undertake it.
6. External factors that could influence the outcome of the campaign.

Let’s take a look at these six points, each of which is critical to a campaign’s success.

Community’s perception of the importance of the identified need

While we may understand and believe deeply in the importance of the cause for which we wish to raise money, the community at large, potential donors, or those who influence the views of others may not. A “Statement of Intention” for the proposed project must be prepared and presented. Don’t confuse this Statement of Intention with the proposed campaign’s Case for Support, which is a document developed from the knowledge gained from a feasibility study. The Case for Support is then used to recruit volunteers and solicit contributions. It is the reasoned argument for support.

A Statement of Intention is not an argument for support. It is a description of an identified need and the organization’s intention to fill that need. It is a hypothesis. We hope that others will see the “obvious” relative importance of this need, but that is not guaranteed. That’s why we must trot out our Statement of Intention and have people say, “Yeah, something needs to be done about that now,” or, “There are too many other things far more important that this community must address first.”

Feelings about the organization

If we’re going to ask people for money, it sure helps if they think highly of both our organization and its mission. Do they see our mission as vital and valid? Are we perceived as being successful at carrying out that mission? Has our organization earned and maintained trust and respect? Have we been efficient stewards of donations and resources? Has any controversy been associated with us? Have questions about any of our leaders arisen? Do people believe we are the right organization to address what we describe in our Statement of Intention? And finally, do they know enough about us to have formed any deeply held opinions?

Donor base

This is the part about where the money is. Given the fund-raising goal we are likely to set, is there a large enough group of potential donors for us to reach that goal, and how will we reach it? Can we identify a pool of lead donors? Will we be able to find the 20 percent who give 80 percent of the money?

Campaign leadership

Maybe there is a belief in the importance of the need, a feeling that we are the right organization to address it, and a base of donors able and likely to give at levels that make it probable we will reach our campaign goal. All that tells us is that we have the potential for a successful campaign. If strong campaign leadership and volunteers cannot be found, the campaign has no chance to succeed. That’s the reality.

We need to assess our likelihood of attracting a campaign chairperson capable of putting together a winning leadership team and a cadre of engaged volunteers. Without these people, our campaign is simply not feasible.

Internal resources and preparedness

Is our organization ready to take on this campaign? Do we have the staff needed? Do we have the money to invest to get the campaign off the ground? Do we have the know-how? Can the organization continue to carry out its everyday activities and simultaneously manage the campaign? If things go wrong, will we be able to recover? In a fund-raising campaign, like a military campaign, if our resources are stretched so thin that we have no reserves, we will not be able to overcome additional adversity.

External factors

Okay, everything that we can control is right for the campaign, but what about the things over which we have no control? Are other organizations about to kickoff campaigns that will draw from the same donor and volunteer base? What’s the economy in our community like? Is unemployment up or down?

There are other questions. Has any non-profit organization in the community been involved in a major scandal? If so, it is possible that public confidence in all non-profits will be lessened? Is local government turmoil great enough to distract attention from positive initiatives such as our campaign? Is it an election year? I could go on, but you get the idea.

External factors that can influence a fund-raising campaign will always exist. Some will be positive. Most of the negative ones will require nothing more than that we grit our teeth and charge ahead. We face them head on, take a positive position, and turn them into fund-raising strengths. However, there are things that have the potential to be so strongly negative that a campaign may need to be postponed or even canceled. All external factors capable of influencing a campaign must be assessed. Their impact on the feasibility of our campaign must be analyzed individually and in the aggregate.

Can you assess campaign feasibility yourself?

In-house feasibility assessments can often be the just the ticket. Many organizations are well positioned to determine for themselves the feasibility of a campaign. These organizations know which of their donors can give how much money. They have a well-developed case for support of the organization based on its mission statement and core values.

Is your organization one that should undertake its own in-house feasibility assessment? The answer may be yes if you have the following key elements in place:

1. A dedicated, committed board of trustees ready and willing to lead, give money, ask for major gifts, and help provide access to persons of affluence or influence.
2. A compelling Case For Support of the project to be funded, emanating from a clearly defined, fully understood, and completely accepted organizational mission statement and compatible with the long-range strategic plan.
3. Rated and evaluated prospects sufficient to provide enough gifts in the needed amounts to raise the most money from the fewest sources in the least amount of time.
4. Timing that assures the new endowment or capital campaign is spaced so that any major givers who are still making pledge payments from an earlier campaign need not be solicited.
5. A written campaign plan that includes leadership, volunteer, and staff job descriptions.
6. A realistic and compressed campaign timeline.
7. An unvarnished view of the organization’s fund-raising track record and the community’s history of providing support to it.
8. The necessary staff and clerical resources to fully serve the campaign’s needs, including generating lists, letters, proposals, meetings, progress reports, and posting and acknowledging gifts.
9. Assurance that the new fund-raising campaign will in no way defer, deter, or interfere with any other fund-raising activity, especially the annual fund.
10. Knowledge of other organizations’ current and planned major capital and endowment campaigns and what timing conflicts might arise, especially those involving availability of top leadership and other volunteers.
11. A budget for the proposed project the campaign will support showing as accurately as possible all line-item expenses, including direct fund-raising expense. The budget must be realistic and defensible.

Most organizations possessing these capabilities, resources, and knowledge will find internally developed campaign feasibility assessments sufficient. They will be just about as ready as possible to enter directly into a fund-raising mode.

Why would you turn to outside professional counsel?

Organizations lacking the resources and the know-how described above are not in a position to evaluate the feasibility of a capital or endowment campaign. In addition, a number of external issues may need to be addressed. These can include problems with name and mission recognition in the community, or harmful misperceptions about the organization or proposed project. Many such organizations will find it necessary and practical to engage outside professional fund-raising counsel to conduct a feasibility study.

A feasibility study conducted by an experienced, competent professional can reveal a great deal. Properly planned and executed it is in reality a survey of the philanthropic “market” and an organization’s place within that market. By asking affluent and influential persons the right questions, an organization can get information that has direct and positive bearing on its mission, governance, staffing, and the quality and delivery of its services.

I am a strong believer in using feasibility studies to explore an organization’s place in the community and the perceptions that community holds of everything from the organization’s fiscal responsibility to the value of its existence.

Perhaps the principal value of having outside counsel perform a campaign feasibility study is the opportunity to obtain candid answers to tough questions. A consultant is not part of the organization’s “family,” and that means the responses from study subjects will be more candid and complete.

An outside interviewer will not be placed in the position of having to respond to interviewee questions about why the organization does this or that. The interviewer should tell interviewees that their questions will be raised in the final report given to the organization’s management. Also, the interviewer can offer to pass along an interviewee’s specific questions, and request that the organization provide a direct response to the interviewee. In order to operate at this safe, arms-length distance, consultant interviewers must strictly adhere to three important rules.

1. Never speak for the organization or comment on it.
2. Never compromise the confidentiality of an interviewee without the interviewee’s permission.
3. Never treat an interviewee as a peer or friend.

What should you expect from a consultant?

If an organization chooses to use outside counsel for a campaign feasibility study, several proven and competent professional fund-raising firms should be considered. Key volunteers and staff should meet with representatives from each firm and apprise them of the organization’s intended project, its purpose, the preliminary fund-raising need, and other relevant information.

The consultants should then present the organization with written assessments and proposals. Included in these should be a description of study methodology and process, a working schedule, and total cost. Careful review of the proposals should identify the best consultant for the job.

Once a contract is entered into, the consultant will prepare a plan for the feasibility study that fleshes out the methodology, process, and schedule. The contract should be contingent upon acceptance of the plan.

Next month we will present part two of this piece: How should a feasibility study be conducted?

Tony Poderis is a development consultant, speaker and author of It’s a Great Day to Fund-Raise. You can reach him through his web site at www.raise-funds.com.