The Fundraising Feasibility Study: It's Not About the Money

ABOUT THE EDITOR XV

ABOUT THE AUTHORS XVII

PREFACE XXI

CHAPTER 1 Stepping Up to the Challenge—Philanthropic Program Effectiveness 1
Martin L. Novom, CF RE

Important Trends 1

An Increase in Requests for Charitable Contributions 1

Intensification of Public Scrutiny on the Nonprofit Sector 2

Greater Attention by Donors on Improving Fundraising Effectiveness 2

Increased Emphasis on Improving the Quality of Relationships with Donors 3

How Nonprofit Organizations Are Responding to These Trends 3

Increasing Philanthropic Program Budgets 3

Renewed Emphasis on Ethics and Ethical Behavior 4

Greater Focus on Strategic Thinking in Philanthropic Programs 4

Increasing Sophistication of Trustees and Staff 4

Is This Enough? 5

Paying Attention to Risk 5

Minimizing Risk and Maximizing Effectiveness 6

CHAPTER 2 Looking in the Mirror—What Is a Precampaign Planning Study? 7
Elliot S. Oshry, CF RE

Introduction 7

Planning or Feasibility? 7

Benefits of a Well-Crafted Study 8

Case for Support 9

Gift Table 9

Quality Control 10

Educational Organizations 12

Healthcare Organizations 12

Areas of Inquiry 13

Objectives and Deliverables 14

Process 14

Timing 15

When to Do a Study 16

Summary 17

CHAPTER 3 Standing at the Threshold—It Takes More Than a Feasibility Study to Get Ready for a Capital Campaign 19
Betty Ann Copley Harris, FA HP

Introduction 19

Are You Ready to Undertake a Capital Campaign? 20

Why Conduct a Study? 21

Two Years before Starting a Campaign 21

One Year before the Campaign 21

Six Months before the Campaign 22

Form a Precampaign Planning Committee 22

You Know You’re Ready When . . . 23

What You Want from Your Feasibility Study 23

Elements of Campaign Success 24

Benefits of a Feasibility Study 25

Gaining Internal Consensus 25

Board Members Begin Thinking of Their Own Commitments 26

The Urgency of the Case for Support Is Validated 26

Top 10 Prospects Are Qualified 26

Cultivation Value 27

Donors Are Asked for Advice 27

The Fundraising Acumen of Leaders and Staff Is Tested 27

Development Off ice Readiness Is Assessed 27

Your Image in the Community Is Confirmed 28

The “Feasibility” of Your Campaign Goal Is Tested 28

The Best Sources for Campaign Leadership Are Confirmed 29

Timing for Your Campaign Is Indicated 29

Other Important Discoveries 30

Benefits Beyond the Dollars Raised 30

When a Feasibility Study Is Unnecessary 31

CHAPTER 4 Development Assessment—Ready! Aim! Fire! 33
Anne Peyton, CF RE, CF P

Rocket Science and Magic Bullets 35

“We Want to Start a Campaign . . . ” 36

Speak Truth in Love to Power 37

What’s in a Development Assessment? 37

Audit or Assessment ? 38

Methodology 38

Recommendations 39

 “You Can Start the Process”—Resources to Help You 40

“What’s in It for Me? So What?” 42

A Governance Assessment? 43

Development Assessment and/or Precampaign Planning Study? 45

“Whew, That’s a Lot to Think About” 46

CHAPTER 5 Ensuring Successful Outcomes—Assignment of the Tasks 49
Linda Lysakowski, A CF RE

The Consultant 49

The Steering Committee 51

Chief Development Officer 54

Chief Executive Officer 56

Administrative Support Staff 57

The Board 58

The Interviewees 59

A Word about the Report 61

Summary 62

CHAPTER 6 Listening to the People—Selection of Interviewees 65
J .A . Tony Myers, CF RE

Introduction 65

Choosing the Right Categories of People: Giving Voice to Constituents 66

Whom Do We Choose? (Concerns about Stacking the Deck) 67

Listening Deeply 69

Ensuring Those Who Can Make a Difference Are Heard 70

Access to Wealth: How Money Is Created and Distributed in Our Culture 70

Movers and Shakers and the Reputation of Your Organization 71

Making Sure That Potential and Current Volunteer Leaders Are

Given an Inside Seat 73

Creating an Atmosphere and an Opportunity for Leading Contributors to Help in the Development of Potential Campaign Momentum 73

Finding Room for Critics and Gadflies 74

Gadflies 75

Fitting the Design of the Study to the Ethos and Culture of the Organization! 76

Authentic Leadership 77

The Attractiveness of Developing Greater Distinctiveness 77

Summary and Conclusions 78

CHAPTER 7 Coming from Donors—Conduct of the Interviews 79
Betty Ann Copley Harris, FA HP

Introduction 79

Capturing the Interest of Donors to Participate in Your Study 79

Letter of Invitation to Participate 79

Scheduling the Interviews 80

Anticipating Questions and Objections from Invitees 80

Preparing for the Interview 81

Conducting the Interview 81

CHAPTER 8 Telling Our Story—Use of the Case for Giving 85
William L. Carlton, A CF RE

The Statement of Need 85

Outgrowth of Strategic Plan 85

Consensus of the “Family” 86

Distinctiveness of the Document 86

A Common Guide Outline 87

Anticipating Concerns 88

A First and Lasting Impression 89

CHAPTER 9 Sifting and Sorting—Compiling of the Data 91
S. Sanae Tokumura, A PR, A CF RE

Garbage In, Garbage Out 92

The Next Step 92

Interpretation 93

Affinity 94

Respect 95

Case for Support 95

Confidence 96

Philanthropic Readiness 96

Issues 96

CHAPTER 10 Tell Me What I Say—Findings, Conclusions, and Recommendations 99
Eugene Scanlan, CF RE, PhD

An End and a Beginning 99

The Quality Report 99

The Report Process—It’s More Than Paper 102

The Report and Variations on a Theme 103

Element 1: The Executive Summary 104

Element 2: The Consulting Process 106

Element 3: Findings 107

Element 4: Analyses (or Conclusions) 109

Element 5: Recommendations 111

Element 6: Attachments 114

Other Considerations 115

Conclusions 116

CHAPTER 11 What Strengthens Our Institution—Integrating Results 117
Linda Lysakowski, A CF RE

Success Factors 117

Typical Study Process Issues 119

Public Relations 119

Staffing 120

Donors and Volunteers 120

Overcoming the Obstacles 121

The Campaign Plan 122

Campaign Timeline 123

Campaign Budget 124

Scale of Gifts and Numbers of Prospects 124

Organizational Chart and Position Descriptions for Campaign Cabinet 125

Study Report Results 126

Following Up on Recommendations 126

Validity of the Study 127

Extenuating Circumstances 127

CHAPTER 12 Seeking Help—The Benefits and Burdens of Working with a Consultant 129
Simone P. Joyaux , A CF RE

What Is a Consultant? 129

Who Decides That Your Organization Needs a Consultant? 130

When Does Your Organization Need a Consultant? 131

Your Organization Needs an Expert 131

Your Organization Needs Additional Resources 132

Your Organization Needs Objective Outside Evaluation 132

But Maybe Your Organization Does Not Need a Consultant! 133

Is Your Organization Ready for a Consultant? 134

The Benefits of Working with a Consultant 135

The Burdens You Face When Working with a Consultant 136

The Consultant as Change Agent 137

What Expertise Should You Expect in Your Consultant? 138

What Kind of Consultant Do You Want? Here’s What I Want 139

Use the Interview to Help You Pick the Right Consultant for Your Organization 141

Check References! 142

Summary 143

CHAPTER 13 Taking It Home—Applying What You Learned 145
Martin L. Novom, CF RE

Introduction 145

Further Exploration—When There Is Little Pressure to Pursue a Study 145

Why Look Beyond This Book? 146

Considerations for Consultants 147

Applying the Subject Matter—When a Study Seems Likely 149

Green Light, Red Light 150

The Most Positive Situation 150

The Most Negative Situation 150

A Solo Inquiry or One with an Institutional Authority 151

Utilizing the Information in This Book 151

Determining Readiness for an Expenditure of Organizational Resources 152

Moving Slowly or Moving Rapidly 152

Moving Slowly 152

Moving Quickly 153

Who Decides? 153

Networking with Other Organizations 154

Summary 154

My Final Thoughts—We Can Make It Much More Than a Diagnostic Tool 155

APPENDICES 157

APPENDIX A Planning Study Action Plan 158

APPENDIX B Letter Requesting Names of Interviewees 159

APPENDIX C Potential Participants Form 160

APPENDIX D Planning Study Interview Schedule 162

APPENDIX E Letter Requesting an Interview 164

APPENDIX F Telephone Script 165

APPENDIX G Letter Confirming Interview Appointment 167

APPENDIX H Planning Study Appointment Schedule 168

APPENDIX I Appointment and Personal Data Form 170

APPENDIX J Interviewer Questionnaire 172

APPENDIX K Letter Thanking Participant(s) 176

APPENDIX L Mountain View Waldorf School Feasibility Study Report 177

APPENDIX M Jersey University of Pennsylvania Planning Study Report 221

APPENDIX N AFP Code of Ethical Principles and Standards of Professional Practice 273

APPENDIX O AFP Donor Bill of Rights 274

BIBLIOGRAPHY 275

INDEX 281