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What Do Capital Campaigns Look Like for Small Shops?

Even if your nonprofit is a small shop, you still dream big. One of the things you likely dream about is a capital campaign that will help your organization accomplish an aspirational goal to reach the next level of growth. 

However, small nonprofits often make the mistake of waiting for the stars to align—in other words, they put off a capital campaign until their size, capacity, and donor bases seem just right. 

But if you’re waiting for the perfect time for a campaign, you may be waiting forever. There’s plenty of evidence out there that capital campaign success is possible for small shops. Let’s take a closer look. 

Addressing Misconceptions Small Nonprofits May Have About Capital Campaigns

First, let’s debunk a few common misconceptions small nonprofits fall victim to when it comes to capital campaigns: 

Misconception: “We must be a larger, well-established organization with a track record of major gifts.” 

Reality: According to new research from Capital Campaign Pro, small organizations (< $1 million in annual revenue) that conduct capital campaigns raise an average of $3.5 million. Capital Campaign Pro found that what mattered most wasn’t size, but careful preparation and internal and external support. 

Misconception: “Capital campaigns are only for building and renovation projects.” 

Reality: Many capital campaigns are aimed at funding a new program, investing in new technology, building an endowment fund, or increasing your organization’s capacity. Many campaigns focus on multiple goals at once. 

Misconception: “We don’t have a big enough donor base.”

Reality: Most of your campaign funding comes from a very small group of donors (this is true for large and small organizations). By putting in the donor research and campaign planning up front and backing that up with effective engagement and stewardship, you can accomplish your goal. 

Misconception: “Our organization just doesn’t have the necessary expertise for success.”

Reality: You don’t have to have a PhD in capital campaigning to reach your goal. There are plenty of resources to rely on for help, whether you’re looking for traditional consulting, an advisor with a light touch, or even a do-it-yourself (DIY) approach. (More on this later!)  

In short, as long as your plan is feasible and your team and community are excited about your goal, capital campaign success is fully within your small organization’s reach!

5 Steps for Getting a Strong Start to Your Capital Campaign 

How can you set your organization on the right path when it comes to your first capital campaign? Follow these steps: 

Understand the phases. There are multiple phases to planning and conducting a capital campaign: the pre-campaign planning phase, the feasibility study, campaign planning, the quiet phase, the campaign kick-off, the public phase, and ongoing stewardship. You can learn more about the specific phases and timeline of a capital campaign in Capital Campaign Pro’s comprehensive guide.

Set specific objectives. Capital campaigns aren’t meant to help your nonprofit maintain its status quo. Rather, they’re designed to help you achieve something out of the ordinary that will have a concrete impact on your ability to serve constituents. Determine your objectives and subsequent goals accordingly. 

Draft a case for support. A case for support will outline your project or goal and explain why your supporters should help with the project. You’ll use the case for support during the feasibility study, but it will also come in handy when marketing your campaign to the broader community later on in the process. 

Create a gift range chart and a depth chart. A gift range chart lays out how many gifts of specific amounts you’ll need for the campaign. A depth chart goes further, helping you identify specific prospective donors you can reach out to for each gift. 

Conduct a feasibility study. A feasibility study is your opportunity to determine if your initial goal and plan are achievable. During this process, you’ll conduct interviews with stakeholders to get their feedback on your campaign and determine how involved they’re willing to be in the process. 

Of course, each of these steps will require a lot of time and attention on your part. But this quick overview should give you an idea of how to start in on your campaign!

Different Ways Your Nonprofit Can Get Help With Its Campaign 

Each nonprofit will have a different preference for getting assistance with their capital campaign. Here are the options for your small organization to consider: 

Traditional consulting. Capital campaign consulting is a fairly hands-off process, where the consultant lays out the entire campaign strategy and plan for your team to execute.  The big value-add of hiring a consultant is that you’ll have an outside expert on hand to give you actionable suggestions for your campaign and help you stay on track from beginning to end. 

Advising and coaching. Working with a consultant isn’t always necessary. Instead, you can opt for an advisor-led approach, where experts provide you with the tools and resources you need (as well as a helping hand when you need it!) to succeed with your campaign in a more hands-on way. 

DIY. If you’re the type of person who likes to take things into your own hands, consider a DIY approach, where you still learn from the best resources and access a network of support but have full control over the direction of your campaign. This is a great option for small organizations with tight budgets. 

There’s no one-size-fits-all approach to getting assistance with a capital campaign. Choose the option that works for your organization, your budget, and your stress levels. 

Waiting for your organization to grow or your donor base to be perfect aren’t good reasons to put off a capital campaign. Remember, capital campaigns are what spur nonprofits to grow in the first place. So, embrace the possibility of success. With the right plan and help on your side, you can achieve your capital campaign goal!