A capital campaign is a fundraising effort to meet a specific goal for a project, such as a new building or endowment. These campaigns are major undertakings and can take years to complete. The average capital campaign runs for about five years with multi-million dollar goals.
Don’t worry if your goal is more modest; the key is having a solid strategy. In this article, we explain how nonprofit fundraisers can prepare and start a successful capital campaign. We cover everything from organizing your data to making the ask, and we will share in detail how to structure a capital campaign.
Clean up your donor database: Before launching a campaign, ensure your donor records are up-to-date and organized. A disorganized database can cause missed opportunities for connection. Create an SOP to ensure that your team clearly marks fields, notes, and other details so they can approach the donor properly.
Evaluate and conduct a feasibility check: Are your staff prepared to undertake a large fundraising campaign? Do they have the tools, systems, and processes to ensure its success? Before conducting a feasibility study, make sure to ask your team and donors to assess your starting point. Some organizations may even hire a capital campaign consultant when starting this process.
Get leadership Involved: Secure the support of your executive team and board. You’ll need their engagement to approve campaign plans, connect with their networks, and help build out the capital campaign strategy.
If your team lacks experience with capital campaigns, consider hiring a fundraising consultant. You can also ask experienced volunteers for help. Ensuring everyone is on the same page early will make the campaign launch much smoother.
Form a campaign team and leadership committee: Successful campaigns aren’t solo endeavors. Identify key players who will help you and the fundraising team be successful. Influential board members, major donors, community leaders, and volunteers are great prospects for this.
Ensure that your team and supporters working on the campaign receive proper training. Providing proper training can make or break the effectiveness of your team.
Identify your potential lead donors: When launching a capital campaign, it is crucial to understand your key relationships. Understanding their ability to give and how engaged they are is important in determining who is most likely to give at that level.
Often, capital campaigns rely on a small number of major donors to secure large gifts. Did you know that 70% of a capital campaign's funds come from the top 20% of donors? That means that cultivating, planning, and executing on an engagement plan for these donors is crucial.
Focus on reaching out to donors by engagement and capacity. Review your donor portfolios. Break down your fundraising goals into categories.
Determine how many gifts you need at each level to achieve your goal: For example, if you have a $1 million goal, how many gifts in the $50k, $25k, $10k ranges will you require? Create a pyramid breakdown to determine the number of gifts you need, then match your donors in your portfolio to the level of contribution you anticipate.
Typically, fundraising teams focus on securing the largest gifts first and then fill in the rest as the campaign progresses. Creating a personalized donor engagement strategy for reach of the different layers will be an essential part of any capital campaign strategy.
Craft your campaign’s story and case statement: A support case is the cornerstone for the messaging in your capital campaign. It will clearly state what you need the money for and why it matters. Typically, this will come with the current impact reports and projections.
This document outlines the mission of your project, the total funding required, and the estimated impact. A strong case for support will help you market, communicate, and launch this capital campaign with clarity. Make sure it's inspiring but also grounded in real facts and figures.
Build strong assurance collateral: Capital campaigns depend on large donations from wealthy individuals. Supporters want to know they are making a smart investment.
Include a campaign plan and provide a detailed breakdown of how you will use the money; the more specific, the better. For example, if you’re building a facility, have architectural drawings or a detailed breakdown of costs. If it’s an endowment, explain how the funds will be managed. The case should answer key questions: Why is this project needed now? What will it cost? What outcomes will it achieve? By addressing these, you put donors at ease that you’ve done your homework.
In addition to the case statement and assurance collateral, be prepared with documents that major donors or grantmakers might request. This could include your organization’s strategic plan, recent financial statements, the campaign budget, and lists of naming opportunities. It may also include any feasibility study report. Transparency builds trust. When donors see that you have everything in order (and are willing to share information), it reassures them and removes barriers to saying “yes.” Essentially, you want to show that your nonprofit is capable of handling large gifts responsibly and delivering on the campaign’s promises.
Start outreach early to build relationships: Don’t wait until you need money to talk to donors! In a capital campaign, there is often a quiet phase where you approach key donors privately and over time. Most organizations begin planning capital campaign strategies years in advance and involve their major donors in those early conversations.
Use this time to cultivate relationships and build trust. Segment your donor portfolio so you can personalize your approach as much as possible. Invite top prospects to private meetings or tours of the project site. Inform mid-level donors through small group events or special updates. The goal is to make donors feel like they are an important part of the planning and feel involved along the way.
Use outbound cultivation strategies: Plan a series of connection activities to warm up your prospective donors and keep them engaged. This might include phone calls, personal letters, coffee chats, or hosting a briefing event about the campaign. Every interaction with this list should be purposeful and not just a simple ask for money. Get to know these donors, make friends, speak to their ideal selves, and cultivate with meaning.
Most organizations will even create touchpoints over a specific cadence. For example, making sure that over the course of 6 months, each of the donors receives a call, an invitation for lunch, and an invitation to tour the facility or speak with the architect executing the project. You can get as specific as you need to to ensure the team is following through on the touchpoints, but also personalizing them for each donor. Customized donor plans are essential at this stage.
Focus on donor stewardship and trust: Capital campaigns can’t succeed if donors feel like ATM machines and you only have transactional relationships with them. You need to show sincere appreciation and keep donors informed.
In practice, this means thanking donors frequently (and specifically for what their support will achieve) and keeping them updated on progress. When donors feel valued and see the impact of their involvement, they remain enthusiastic and are more likely to increase their support. Effective cultivation reduces the fear factor when the time comes to make the big ask.
Prepare and practice your solicitations: Asking for large sums can be intimidating, but with preparation, it gets easier. Decide who is the best person to make the ask for each donor. This will often be a peer, board member, or someone the donor respects who can join the fundraiser in making the ask. Role-play the conversation with your team or an AI software beforehand so you can confidently articulate the need and the impact of the gift.
Have a specific dollar (or range) in mind based on your gift chart and the donor’s capacity. By suggesting a number, you give the donor a concrete idea to consider.
Align the ask with the donor’s passion: approaching each solicitation as an invitation to make a difference, rather than a demand for cash, can help you achieve your capital campaign goals. Frame your ask around how the gift helps fund an area of your project that they truly value. For example, “Your love of education can live on through this new science wing, and we’d like to discuss a leadership gift to make it happen.”
Keep the conversation rooted in impact, not just the transaction. If you’ve done the cultivation work, you should know what aspect of the project excites each donor the most. If the donor has given before, help them remember the impact of their last gifts, and help them see the potential with this gift for this project.
Be bold but gracious in the ask: It’s okay (and often necessary) to ask for what feels like a bold amount. Capital campaigns are about big leaps. Don’t apologize for the big ask; you’re offering the donor a chance to be a hero for a project they believe in and to become their ideal selves through this gift.
However, also be ready to listen during the solicitation. Give the person space to consider and respond. They may have questions or even a counter-proposal (such as a smaller amount or a multi-year pledge).
Stay flexible and positive. No matter the outcome, thank them for discussing it and continue the relationship. Often, a “no” now might turn into a “yes” later or a smaller gift. Every ask, even if scary, is an opportunity to deepen your connection with that supporter.
Thank donors promptly and sincerely: Whether a donor gives a 7-figure gift or $500, prompt thanks are a non-negotiable. Thank your donors genuinely and with personalization. Ask them if they would like to be thanked publicly or stay anonymous.
The key is to make donors feel like the heroes of your story. Donors are the lifeblood of any organization, and engagement drives contributions. Make your donors feel valuable and connected to something bigger than themselves.
Keep donors informed: With any large investment, people want to know what's going on with it. It is essential to keep your donors informed about new developments with the project. Share important milestones, let them know you have broken ground on the building or project, let them know that you have reached your goals. Keep them in the loop.
For longer projects, periodic reports with photos or stories that outline the impact are excellent touchpoints. This communication reassures donors that their investment is making a difference as promised. It’s also an opportunity to keep the excitement going. Don’t let a donor’s only campaign communication be the ask and a thank you; bring them along for the ride.
Build lasting relationships: The end of a capital campaign is the beginning of the next chapter with your donors. Proper stewardship during and after the campaign ensures that these supporters will remain loyal to your organization. Invite major campaign donors to stay involved through advisory roles, site visits, or special celebrations when the project is completed.
By continuing to engage and “love” your donors, you set the stage for future engagement. Many donors will give again (and even increase their giving) if they feel connected and see the impact of their contributions. Capital campaigns can strengthen your donor community in the long run, as long as you follow through on stewardship.
Creating a capital campaign strategy might feel daunting, but with a clear plan, the right team, and resources, you can set yourself up for success. Create a compelling case, loop in the right donors at the right time, bring in additional stakeholders, and make the ask!
A capital campaign is as much about people as it is about dollars, and by focusing on organization and outreach, you’ll not only reach your fundraising goal but also deepen your supporters’ commitment to your mission. With a bit of fun and planning, you can turn what seems like a fundraising mountain into a series of achievable and rewarding steps. Good luck with your campaign – you’ve got this!
To learn more about how Instil can help you set up your capital campaigns for success, check out our use case page.