Fundraising Feasibility Study

Martin L. Novom (Wilton NH), CFRE, is the Principal and founder of the Alexis de Tocqueville Institute, an advisory, educational, and research organization focusing on issues of charitable giving, volunteerism, and volunteer leadership. Mr. Novom has 17 years of full-time professional experience in the nonprofit sector and 26 years experience as a volunteer leader and trustee. He is a board member of AFP of Northern New England and its Vice President of Education. He has presented seminars/lectures on fundraising feasibility for AFP of Northern New England (CFRE Review Course), New England Association of Healthcare Professionals (Annual conference), and the Waldorf Administration Certificate Association of Continuing Education in Fundraising (CONFR).

"If you want to learn as much as possible in one publication about precampaign feasibility studies, this is the book for you." (CharityChannel.com, 7/28/08)

• ABOUT THE EDITOR XVABOUT THE AUTHORS XVIIPREFACE XXICHAPTER 1 Stepping Up to the Challenge—Philanthropic Program Effectiveness 1Martin L. Novom, CF REImportant Trends 1An Increase in Requests for Charitable Contributions 1Intensification of Public Scrutiny on the Nonprofit Sector 2Greater Attention by Donors on Improving Fundraising Effectiveness 2Increased Emphasis on Improving the Quality of Relationships with Donors 3How Nonprofit Organizations Are Responding to These Trends 3Increasing Philanthropic Program Budgets 3Renewed Emphasis on Ethics and Ethical Behavior 4Greater Focus on Strategic Thinking in Philanthropic Programs 4Increasing Sophistication of Trustees and Staff 4Is This Enough? 5Paying Attention to Risk 5Minimizing Risk and Maximizing Effectiveness 6CHAPTER 2 Looking in the Mirror—What Is a Precampaign Planning Study? 7Elliot S. Oshry, CF REIntroduction 7Planning or Feasibility? 7Benefits of a Well-Crafted Study 8Case for Support 9Gift Table 9Quality Control 10Educational Organizations 12Healthcare Organizations 12Areas of Inquiry 13Objectives and Deliverables 14Process 14Timing 15When to Do a Study 16Summary 17CHAPTER 3 Standing at the Threshold—It Takes More Than a Feasibility Study to Get Ready for a Capital Campaign 19Betty Ann Copley Harris, FA HPIntroduction 19Are You Ready to Undertake a Capital Campaign? 20Why Conduct a Study? 21Two Years before Starting a Campaign 21One Year before the Campaign 21Six Months before the Campaign 22Form a Precampaign Planning Committee 22You Know You’re Ready When . . . 23What You Want from Your Feasibility Study 23Elements of Campaign Success 24Benefits of a Feasibility Study 25Gaining Internal Consensus 25Board Members Begin Thinking of Their Own Commitments 26The Urgency of the Case for Support Is Validated 26Top 10 Prospects Are Qualified 26Cultivation Value 27Donors Are Asked for Advice 27The Fundraising Acumen of Leaders and Staff Is Tested 27Development Off ice Readiness Is Assessed 27Your Image in the Community Is Confirmed 28The “Feasibility” of Your Campaign Goal Is Tested 28The Best Sources for Campaign Leadership Are Confirmed 29Timing for Your Campaign Is Indicated 29Other Important Discoveries 30Benefits Beyond the Dollars Raised 30When a Feasibility Study Is Unnecessary 31CHAPTER 4 Development Assessment—Ready! Aim! Fire! 33Anne Peyton, CF RE, CF PRocket Science and Magic Bullets 35“We Want to Start a Campaign . . . ” 36Speak Truth in Love to Power 37What’s in a Development Assessment? 37Audit or Assessment ? 38Methodology 38Recommendations 39“You Can Start the Process”—Resources to Help You 40“What’s in It for Me? So What?” 42A Governance Assessment? 43Development Assessment and/or Precampaign Planning Study? 45“Whew, That’s a Lot to Think About” 46CHAPTER 5 Ensuring Successful Outcomes—Assignment of the Tasks 49Linda Lysakowski, A CF REThe Consultant 49The Steering Committee 51Chief Development Officer 54Chief Executive Officer 56Administrative Support Staff 57The Board 58The Interviewees 59A Word about the Report 61Summary 62CHAPTER 6 Listening to the People—Selection of Interviewees 65J .A . Tony Myers, CF REIntroduction 65Choosing the Right Categories of People: Giving Voice to Constituents 66Whom Do We Choose? (Concerns about Stacking the Deck) 67Listening Deeply 69Ensuring Those Who Can Make a Difference Are Heard 70Access to Wealth: How Money Is Created and Distributed in Our Culture 70Movers and Shakers and the Reputation of Your Organization 71Making Sure That Potential and Current Volunteer Leaders AreGiven an Inside Seat 73Creating an Atmosphere and an Opportunity for Leading Contributors to Help in the Development of Potential Campaign Momentum 73Finding Room for Critics and Gadflies 74Gadflies 75Fitting the Design of the Study to the Ethos and Culture of the Organization! 76Authentic Leadership 77The Attractiveness of Developing Greater Distinctiveness 77Summary and Conclusions 78CHAPTER 7 Coming from Donors—Conduct of the Interviews 79Betty Ann Copley Harris, FA HPIntroduction 79Capturing the Interest of Donors to Participate in Your Study 79Letter of Invitation to Participate 79Scheduling the Interviews 80Anticipating Questions and Objections from Invitees 80Preparing for the Interview 81Conducting the Interview 81CHAPTER 8 Telling Our Story—Use of the Case for Giving 85William L. Carlton, A CF REThe Statement of Need 85Outgrowth of Strategic Plan 85Consensus of the “Family” 86Distinctiveness of the Document 86A Common Guide Outline 87Anticipating Concerns 88A First and Lasting Impression 89CHAPTER 9 Sifting and Sorting—Compiling of the Data 91S. Sanae Tokumura, A PR, A CF REGarbage In, Garbage Out 92The Next Step 92Interpretation 93Affinity 94Respect 95Case for Support 95Confidence 96Philanthropic Readiness 96Issues 96CHAPTER 10 Tell Me What I Say—Findings, Conclusions, and Recommendations 99Eugene Scanlan, CF RE, PhDAn End and a Beginning 99The Quality Report 99The Report Process—It’s More Than Paper 102The Report and Variations on a Theme 103Element 1: The Executive Summary 104Element 2: The Consulting Process 106Element 3: Findings 107Element 4: Analyses (or Conclusions) 109Element 5: Recommendations 111Element 6: Attachments 114Other Considerations 115Conclusions 116CHAPTER 11 What Strengthens Our Institution—Integrating Results 117Linda Lysakowski, A CF RESuccess Factors 117Typical Study Process Issues 119Public Relations 119Staffing 120Donors and Volunteers 120Overcoming the Obstacles 121The Campaign Plan 122Campaign Timeline 123Campaign Budget 124Scale of Gifts and Numbers of Prospects 124Organizational Chart and Position Descriptions for Campaign Cabinet 125Study Report Results 126Following Up on Recommendations 126Validity of the Study 127Extenuating Circumstances 127CHAPTER 12 Seeking Help—The Benefits and Burdens of Working with a Consultant 129Simone P. Joyaux , A CF REWhat Is a Consultant? 129Who Decides That Your Organization Needs a Consultant? 130When Does Your Organization Need a Consultant? 131Your Organization Needs an Expert 131Your Organization Needs Additional Resources 132Your Organization Needs Objective Outside Evaluation 132But Maybe Your Organization Does Not Need a Consultant! 133Is Your Organization Ready for a Consultant? 134The Benefits of Working with a Consultant 135The Burdens You Face When Working with a Consultant 136The Consultant as Change Agent 137What Expertise Should You Expect in Your Consultant? 138What Kind of Consultant Do You Want? Here’s What I Want 139Use the Interview to Help You Pick the Right Consultant for Your Organization 141Check References! 142Summary 143CHAPTER 13 Taking It Home—Applying What You Learned 145Martin L. Novom, CF REIntroduction 145Further Exploration—When There Is Little Pressure to Pursue a Study 145Why Look Beyond This Book? 146Considerations for Consultants 147Applying the Subject Matter—When a Study Seems Likely 149Green Light, Red Light 150The Most Positive Situation 150The Most Negative Situation 150A Solo Inquiry or One with an Institutional Authority 151Utilizing the Information in This Book 151Determining Readiness for an Expenditure of Organizational Resources 152Moving Slowly or Moving Rapidly 152Moving Slowly 152Moving Quickly 153Who Decides? 153Networking with Other Organizations 154Summary 154My Final Thoughts—We Can Make It Much More Than a Diagnostic Tool 155APPENDICES 157APPENDIX A Planning Study Action Plan 158APPENDIX B Letter Requesting Names of Interviewees 159APPENDIX C Potential Participants Form 160APPENDIX D Planning Study Interview Schedule 162APPENDIX E Letter Requesting an Interview 164APPENDIX F Telephone Script 165APPENDIX G Letter Confirming Interview Appointment 167APPENDIX H Planning Study Appointment Schedule 168APPENDIX I Appointment and Personal Data Form 170APPENDIX J Interviewer Questionnaire 172APPENDIX K Letter Thanking Participant(s) 176APPENDIX L Mountain View Waldorf School Feasibility Study Report 177APPENDIX M Jersey University of Pennsylvania Planning Study Report 221APPENDIX N AFP Code of Ethical Principles and Standards of Professional Practice 273APPENDIX O AFP Donor Bill of Rights 274BIBLIOGRAPHY 275INDEX 281