How to plan and manage successful capital campaign

YoungWoo Choi, CEO & President

Doum & Nanum Brakeley

Understanding Capital Campaign

Capital Campaign: Interconnected with key fundraising genre

Mass FundraisingCommunityFundraising

Relationship Fundraising

Major Gift

Capital Campaign

Key Features of Capital Campaign

• Planned and Systematic • Specific financial goal• A clearly defined period of years• Volunteer Driven• Big Money• Strong Case-Big Idea• Key development needs

Diffusion of Fundraising Skill across Sectors

UniversityUniversity MedicalMedical Culture/ArtCulture/Art CharityCharity

Major/Capital Campaign

Harvard Univ

Major/Capital Campaign

Harvard Univ

MassFundraising

YMCARed Cross

MassFundraising

YMCARed Cross

Religious Philanthropic Tradition, Community Fundraising, Marketing Skill Development

Religious Philanthropic Tradition, Community Fundraising, Marketing Skill Development

Integration

Myth & Reality of Capital Campaign

• “It is made in USA and it will not work in different cultures”

• “It is only for Super Mega Organizations”

• “There is no philanthropy culture in my country to carry on capital campaign”

• “5-7 years are too long”

The Fundraising Pyramid

Leadership Gifts

Major Gifts & Sponsorships

Corporations

Premium Annual Giving

Annual Giving

Foundations Individuals

THE NORMAL GIVING PROFILE

10%

30%

40%

20%

1

10

100

1000+

GIFTS % OF TOTAL

• Planned and systematic

• Specific financial goal

• A clearly defined period of years

• Strong relationships with friends and supporters

• Solicitation of substantial gifts

• Very specific purposes

• Key development needs

The most cost-effective means of fundraising for large

not-for-profit organisations

CAPITAL CAMPAIGN

Campaign Planning and Management ABC

Success

Compelling Case

Organizational Capability

Prospect ResearchAnd Management

Leadership

Campaign Success Factor

� A convincing and motivating case for support

� Realistic projects and plausible financial needs

� Access to sources of support

� Committed voluntary leaders and project advocates

� Internal readiness of the organisation to carry out a fundraising campaign

KEY INDICATORS OF READINESS FOR FUNDRAISING

Campaign Process

Planning

Public Stage

Silent Stage

Preparation

Feasibility StudyDraft Case

Planning Committee

Volunteer Leadership Enlistment

Fundraising OrganizationProspecting etc

Lead Gift SolicitationPath Finding Gift

SolicitationInternal Gift SolicitationPlan Campaign LaunchPlan Mass Campaign

Campaign Launch

On going major giftAggressive PR

Mass FundraisingDonor Recognition

“A” TYPICAL CAMPAIGN PROCESS

• FIRST YEAR

Preparation of Case and Needs. Enlistment of leaders. Cultivation of top 10 donors. Identification of next 100 donors. Top three gifts.

• SECOND YEAR

Cultivation of next 100 donors. Completion of top 10 gifts. Public launch. Securing of first 100 gifts.

• THIRD YEAR

Direct approach to wider constituency. Completion.

Lead

Gift

Inside Gift

Major Gift

General Gift

Top Down

Inside Out

Premium Regular Donor

Regular Donor

Source: Andrea Kihlstedt, Capital Campaigns-Strategies That Work , Adapted and revised

THE FEASIBILITY AND PLANNING STUDY

• ANSWERS THE QUESTIONS

HOW?

WHAT FOR?

WHEN?

FROM WHOM?

WHY?

HOW MUCH?

HOW LONG?

AT WHAT COST?

• DEFINES AND EDUCATES THE MARKET

• BEGINS THE PROCESS OF CULTIVATION

• FOCUSES THE ORGANISATION

cont…

A CONVINCING AND MOTIVATING CASE FOR SUPPORT

Formulation:

• Appeal to emotions

• Motivate to act

• Point to the future

• Introduce level of importance

• Demonstrate benefit to the donor

A CONVINCING AND MOTIVATING CASE FOR SUPPORT

• Its traditions

• Its past accomplishments as these serve the needs of today

• Its present provision

• Its plans, ambitions and vision of the future

Content – the central factors for which an organisation stands:

Case Development Process and Uses

Case StatementCase Statement

Strategic

Planning

Strategic

Planning

Internal

Review

Internal

ReviewExternal

Review

External

Review

ProposalProposal PRCommunication

PRCommunication EducationEducation

The Stanford Challenge ($ 4.3 B)

• Seeking Solutions• The Initiative on Human Health $500 M

• The Initiative on the Environment and Sustainability $250 M

• The International Initiative $250 M

• Multidisciplinary Research Across the University $400 M

• Educating Leaders• Improving K-12 Education $125 M

• Engaging the Arts and Creativity $250 M

• Reinventing Graduate Education $500 M

• Extending the Renaissance in Undergraduate Education $300 M

• Sustaining a Foundation of Excellence• Core Support $1.325 B

• Annual Giving Across the University $400 M

Source: Stanford Univ Website

Source: Stanford Univ Website

Source: Stanford Univ Website

FUNDRAISING PRINCIPLES

• PEOPLE GIVE TO PEOPLE

• IMPORTANCE OF LEADERSHIP

• THE FIRST GIFTS SET THE EXAMPLE

• APPROPRIATE RECOGNITION ESSENTIAL

• PLANNING AND PATIENCE

THE FUNDRAISING CYCLE

Needs

1. IDENTIFY

2. RESEARCH / EVALUATE

3. PLAN CULTIVATION

4. CULTIVATE

5. ASK

6. NEGOTIATE / CLOSE

7. INVOLVE

SOURCES OF SUPPORT

There must be identified sources of donations and sponsorship

• Individuals:

• Emphasise the good which a gift will do first and then talk about the benefits to the donor

• Companies:

• You may need to get quickly to the benefits to the company.

• Foundations

LEADERSHIP TRIANGLE

Director/CEO Chair of Board/Campaign

Head of Fundraising/Development

LEADERSHIP

●●●● INTERNAL – Motivated and ready to champion fundraising

●●●● EXTERNAL – Committed and willing

to use their networks

VOLUNTEER LEADERSHIP

• Selection of the right Chair is often the single most important decision of a Campaign

• Volunteers must be fully supported to do what they do best - give and get, introduce, promote, persuade

• A campaign is a process of continuing involvement.

INTERNAL READINESS OF THE ORGANISATION TO CARRY OUT A FUNDRAISING CAMPAIGN

• Positive attitude to fundraising and broad support inside

the organisation

• Committed and inspiring leadership

• People who are able to give fundraising their undivided

attention(fundraising personnel)

• Budget for fundraising activities

• Time, planning and patience

• Database of potential donors

Donor Relationship Management

Donor Acknowledgement

DonorRecognition

Supervision & Reporting

TechnologyTechnology

Information ManagementInformation Management

Implementation SupportImplementation Support

InnovationInnovation

& Creativity & Creativity

Thank You!

감사합니다!

young@doumnet.net