Imagine you’re launching a capital campaign to fund a new building for your organization. You work with your team to determine your goals and create a dedicated fundraising plan.
The campaign seems destined for success, but when the time comes, you can’t quite reach your fundraising target. What could you have done differently to ensure your campaign was successful?
A fundraising feasibility study, also known as a planning and feasibility study, helps prevent this disconnect between your fundraising plan and givers’ willingness and ability to contribute. In this guide, we’ll review what a fundraising feasibility study is, how it works, and signs that your nonprofit needs to conduct one.
According to Averill Fundraising Solutions, a fundraising feasibility study “helps your nonprofit determine if a capital campaign or other large project is feasible, and if so, how best to execute it.” At the end of your fundraising feasibility study, you should be able to kick off your campaign or identify the additional steps you need to take before you get started.
It’s best to work with a fundraising consultant who’s an expert at conducting feasibility studies. This individual can interview your stakeholders and determine whether they’d support your proposed project or capital campaign.
When you conduct a fundraising feasibility study, you’ll not only figure out whether you’re ready to launch your campaign, but you’ll also be able to create an effective fundraising strategy that aligns with stakeholder interests and preferences.
Now that you understand a little more about fundraising feasibility studies, let’s dive into the steps that make up the process.
While you can technically conduct your feasibility study in-house, hiring an expert is best. Relying on a fundraising consultant allows you to access their insider tips that come from years of working with nonprofits on similar projects. Plus, your consultant can be more objective throughout the process since they're an external party.
A nonprofit consultant firm can help your fundraising team by:
When you hire the right consultant, you’ll have a dedicated partner guiding you through every step of the fundraising feasibility process to ensure your campaign is successful.
Work with your consultant to determine your organization’s fundraising strengths and weaknesses. That way, they’ll have a foundational understanding of how likely your campaign is to succeed based on your past efforts.
Together, you’ll compile relevant information from your CRM, website, and other resources, such as:
With all of this data in one place, you can create a central document that summarizes your organization’s fundraising past to project the attainability of your future campaign.
Next, your fundraising consultant will identify and interview potential campaign stakeholders. These interviewees should have a connection to your cause and demonstrate a willingness to support your organization.
Common interview candidates include:
After narrowing down the list of stakeholders, your consultant will ask each candidate a series of questions to assess their willingness and ability to contribute to the proposed project. These questions may include:
Asking open-ended questions allows interviewees to openly share their thoughts and enables your team to gather as much data as possible.
Look over stakeholder feedback and your consultant’s recommendations. Double the Donation’s fundraising feasibility study guide explains that there are three potential outcomes of your study:
While it may be disappointing to find that your campaign proposal isn’t in tip-top shape, it’s better to feel a little discouraged now than after launching a project that didn’t live up to your expectations. No matter the results of your study, make sure to share them with your board members so you can take the necessary next steps.
Once you receive your study results, you may be able to immediately move forward with your fundraising plan and launch your campaign. However, if your consultant recommends adjusting your plan, your next actions may include looking for additional giving prospects, lowering your fundraising target, or lengthening your campaign timeline.
It’s also possible that your consultant suggests pivoting your strategy in a more significant way. In this case, your next steps may look like:
Whether you’re launching your campaign or going back to the drawing board, thank your consultant for their time and dedication to helping you make an informed decision about your campaign’s future.
Still trying to determine whether your organization could benefit from a fundraising feasibility study? Here are some signs that you should start looking for a fundraising consultant and embark on a study of your own:
No matter what your campaign concerns are, it’s always useful to get an outside expert’s opinion about your proposed project to incorporate an unbiased perspective into your planning process.
A capital campaign is a large undertaking that requires a lot of time and resources. Don’t let all that effort go to waste on an unviable campaign. By conducting a fundraising feasibility study, you can be confident that your campaign is set up for success, allowing you to focus on fundraising as opposed to worrying about the outcome of your project.
Written by Bob Happy
Bob Happy brings nearly 35 years of experience providing expert leadership and direction to clients across the not-for-profit sector to his current role as President of Averill Solutions. Before forming Averill Solutions, Bob served as the Executive Vice President and Chief Operating Officer of the nation’s largest fundraising firm. He has mentored hundreds of professional fundraising practitioners and many have joined him at Averill Fundraising Solutions.
