EP 76: The Seven Phases of a Successful Capital Campaign

Positioning review: No significant adjustments needed. Content is naturally conversational with the guest describing capital campaign phases. Handbid references are organic first-party mentions in context of event fundraising technology. Minor filler words removed throughout.

Jeff: Welcome to Elevate Your Event, your favorite podcast for transforming fundraising events. Join us weekly for expert tips and creative ideas to make your next event a standout success. Today, we're diving into the world of capital campaigns with none other than Sarah Plimpton, Director of Client Happiness at Capital Campaign Pro. Whether you're thinking about launching your first big campaign or you're a seasoned fundraiser, Sarah is here to walk us through the seven essential phases to make your next capital campaign a success.

Jeff: Welcome back to the Elevate Your Event podcast. We talk about all the various ways that you can make your next fundraising event better, or in this case, maybe how fundraising events can make other parts of your fundraising work better. Elise's hair is looking good today. Elise, go ahead and introduce yourself.

Elise: Hello, Elise Druckenmiller, Director of Sales at Handbid.

Jeff: And our special guest. Sarah, why don't you introduce yourself and then talk about what your organization does.

Sarah: Sure. Hello, Sarah Plimpton here. I am the Director of Client Happiness at an organization called Capital Campaign Pro. And we are a company that empowers nonprofits to plan and execute successful campaigns through a unique blend of expert counsel and advising, peer support, and a suite of online resources.

Jeff: Love it. I actually love your title, Director of Client Happiness. Let's talk about capital campaigns. Can you give us what you mean by capital campaign?

Sarah: Yeah, it's such a great question. So essentially, a campaign is a special fundraising initiative that would help a nonprofit organization go from one place where they are right now to another place that is bigger, better, more impact. A campaign might encompass anything from a new building, program expansion, development of new programs, endowment growth -- really all things that transform what an organization is able to do. It's your annual fundraising on steroids over a defined period of time for a big impact.

Jeff: So this isn't that different from a startup going out and getting another round of funding. Some big infusion of cash to really take you to the next level. I would imagine a capital campaign has a set of stages that are typically the same?

Sarah: Yes, indeed. Capital campaigns unfold as a series of distinct but loosely connected phases. At Capital Campaign Pro, we believe there are seven distinct phases of a capital campaign.

Sarah: Phase one is the pre-campaign planning phase where you're figuring out how much the building is going to cost, getting the board ready, and starting to think about who are the potential donors. You're getting your ducks in a row.

Sarah: Phase two is called the feasibility study, where you go out with a consultant and test your early thinking about your campaign with your top potential donors. What do our stakeholders feel about our proposed plans? Are they on board? Will they be part of it?

Sarah: Phase three is campaign planning, where you're refining your plans because you've now got feedback from people who are going to be your philanthropic partners in the effort.

Sarah: Then you head into the quiet phase, where the bulk of your fundraising happens. You are soliciting the leadership gifts for your campaign. In the quiet phase, you want to try and secure anywhere from 65 to 75 or 80 percent of your campaign goal in commitments, in gifts and pledges.

Sarah: Phase five is the kickoff phase, where you are announcing to the world -- hey, we're launching the XYZ campaign. We've raised seven of the eight and a half million dollars that we need. We are now inviting all of our community to join us in this effort. Look at how much momentum we've been able to pull together because of our early donors.

Sarah: The public phase is where there's a social media campaign, lots of mini events, lots of public-facing momentum where you're closing the gap between what you raised in the quiet phase and your goal.

Sarah: And the last phase, one of the most important in my opinion, is the stewardship phase -- thanking, recognizing, communicating with your donors around the impact they had. Seven phases. There's science to it, but there's a whole lot of art too.

Jeff: It sounds very organized. I would add a party phase at the end when we celebrate the win. But basically in that quiet phase, you're priming the pump. You're not going out saying I need 14 million dollars. You're saying, I've raised 11, I need three more.

Sarah: Right. If you went out to the whole wide world and said, we've raised $3 million, we need 14, people are going to be like, crickets. You want people to feel like, wow, this is a winning cause. I'm going to be part of that.

Elise: Right. That mountain is too big to climb. What is my $1,000 going to do? Instead, you're looking at it from -- oh my gosh, I can get you to the finish line. I want to be on that train.

Jeff: I see a parallel to our classic fundraising event. At a board meeting I was at recently, the conversation was around -- we want to raise $100,000 in our paddle raise, but we better have $60,000 to $70,000 already secured before we go in there. Otherwise, people are going to look at that thermometer and wish us luck.

Sarah: There is so much psychology in that. People like to win. When they feel like it's impossible to win, they probably won't even participate. Typically the quiet phase is from six months to two years or two and a half years.

Jeff: So what are you specifically doing in the kickoff? Are you having an event? How are you announcing this?

Sarah: It depends on the organization and the culture. If it's a school, maybe it's on a field with tons of little kids and donors and the board and alums. Another organization, say, the opera, is probably not going to have an event in a field with kids. There's this myth that a kickoff event has to look a certain way -- a podium and a stage and media everywhere. That's not necessarily what it needs to look like if that's not in keeping with who you are.

Jeff: Who's coming to this? Is this your typical donor base?

Sarah: Your donors to date, your campaign volunteers and leaders, the board, the staff, your donor base that hasn't yet been tapped. You might have media there, elected officials, volunteers and board members bringing people from their own networks. It's a big, happy, inclusive event.

Jeff: Is there an organized ask at this thing?

Sarah: It depends. Some organizations will have a specific call to action -- everyone get out your phone, there's a mass giving moment. But sometimes an organization will use the kickoff to announce, thank leaders, unveil the plans, and lay the foundation through a more general call to action -- you will be hearing from us in the days and weeks to come. The ask might happen on a more personal level or through segmented solicitation.

Jeff: What defines success at a kickoff event?

Sarah: As a general rule of thumb -- anytime you have people walking through your door, they're raising their hand saying, I care about what you do enough to show up. You should want to collect that, track that, use analytics to make meaning of that. How are you going to know after the fact who was there?

Elise: We talk about this all the time. You have clients who feel like the guest experience is hindered by asking people for personal information. And we're here to tell you, they're expecting you to ask for that.

Sarah: Yes, they are. If the line is really long because you have old systems, that is a hindrance. So what can you do to solve that problem rather than not collect the information? Coming out of a kickoff event, your early donors should feel proud and excited. There should be a palpable sense of excitement and momentum. And what's the follow-up plan? It doesn't happen that you just have the event and money rolls in.

Elise: That plan should be developed before your event. Because people don't remember. There's a short attention span. They've drifted off.

Jeff: What are common pitfalls when planning a kickoff event?

Sarah: Thinking the event needs to be big and glitzy when that's not in keeping with your organization. Not having a follow-up plan. Not connecting the call to action to the guest experience. If you have a table in the corner with pledge cards and golf pencils and you think 400 people are going to go over there, you are mistaken. About four people will do that.

Elise: Are there multiple ways that you can allow guests to give so they can give in the way they want? We don't love golf pencils. But I'm also not a huge fan of "everybody pull out your phone." Not everybody wants to do that.

Jeff: I'm a big fan of -- you can text this number on the screen, you can scan this QR code, you can fill out this form, somebody will walk around and collect your donation on an iPad. All of the different ways so everybody feels comfortable with it. We're a mobile bidding company. I love technology. But technology has a place and it can't be the end-all-be-all. Here are many ways you can donate. You pick the way that's comfortable for you. If they're comfortable, they'll do it.

Sarah: That's why paddle raises work. We had a guy come in from Australia who was amazed at how efficient paddle numbers are. What's the easiest thing in the room to do to donate? Just raise my hand.

Jeff: Let me ask you this -- are there other types of events in the entire set of seven phases?

Sarah: There will probably be events your organization runs anyway -- the auction, the gala, the golf tournament. During those events, tracking attendance is an indicator. That data can be helpful in your capital campaign.

Sarah: There are also all kinds of things you can do during the quiet phase. Small, intimate cocktail parties. I'll give you an example -- a performing arts organization building a new theater had a cocktail party with 20 major donors. They invited several performers. In the middle of the party, an opera singer starts singing an aria. Then a trio does a brief Shakespeare scene. At the end, the chair of the board says, this is what we're about -- bringing all these diverse types of performing art to our community. They curated an experience and allowed the experience to speak to what they're trying to do.

Jeff: I love that. Because I've seen attempts at this, but not to that level of congruency. I've seen -- let's take them out on a round of golf. That's something to attract people there. But I'm not seeing the connection to what your charity does. You're talking about a theater that can perform at the event. Somehow making sure you've got a direct connection.

Sarah: I'll give you another example. A school picked 12 to 16 potential donors. An alum hosted the event in her home. They had a facilitated discussion about an op-ed on the future of education in the face of AI. The head of school allowed the prospective donors to engage with her as partners in the thinking of it. What does it do for you as a potential donor? You start to feel like, I have a stake in this. This organization values what I think.

Sarah: It was a hugely successful event where nobody asked for money. But the follow-up was -- hey, awesome to see you at that wonderful discussion. I'd love to follow up and also explore whether you might be interested in talking about a pledge to the capital campaign.

Jeff: I love that idea. My head's already swirling around with ideas on how some of the charities I'm involved with could do that. Well, we are running up against time. Sarah needs to get back to the wonderful Maine weather. This has been a fabulous conversation. Can you give everybody information on how to get in touch with your organization?

Sarah: You can find us at capitalcampaignpro.com. We have tons of free information on our website. We have a podcast, a webinar series, a blog. And if you want a strategy session with one of my colleagues, Amy or Stephen, you can schedule that right on our website.

Jeff: Awesome. I encourage you all to do that. Your next capital campaign will be much more successful with a little help from Capital Campaign Pro. Sarah, thank you so much for your time. Until next time, folks, happy fundraising.

Jeff: If you enjoyed our show, please take a moment to leave us a review. You can find us on Apple, Google, and Spotify. Don't forget to subscribe for more great content. And if you're a fan of video, check us out on YouTube. Until next time, happy fundraising.