1. What is a Fundraising Feasibility Study and Is It Worth It?
08-30-2001
It used to be that only major, well-established nonprofit
institutions such as theatres, homes for runaway kids, and
national endowments for purchasing their own buildings or
establishing endowment funds.
But more and more small and mid-sized nonprofits are
thinking long-term and realizing that a capital campaign-that
is, a fundraising campaign for a building, major equipment or
an endowment-might be a good idea.
2. What is a Fundraising Feasibility Study and Is It Worth It?
When nonprofit boards consider a special, major fundraising campaign-such as
purchasing a building or start an endowment-they often ask: Should we or shouldn't we?
Can we really raise this much money? Do we have the right people on the board?
Nationally, is our organization liked? Respected? By whom?
The lack of answers can bring organizational plans to a grinding halt. One possible
solution for board quandaries is a feasibility study.
A feasibility study is an objective survey of the community that assesses the likelihood of
success for a fundraising project, and identifies strategies and specific individual givers
for the campaign. A feasibility study can also be useful if you are contemplating
launching a new program, merging with another nonprofit, or taking a hard look at the
effectiveness of the ways you do fundraising.
If you as a board member were to ask others whether they would support a campaign,
your friends might feel they need to be positive, so an independent consultant usually
conducts the study. Survey include community leaders, prospective foundations and
individual donors, and key friends (and enemies!) of your nonprofit. What you can learn
by talking to people with history with the organization, and people with expertise in your
field, may astound you.
3. In addition to assessing fundraising, a feasibility study may also reveal problems with the
program. For example, one study for a nonprofit deciding whether to build a building for a new
program concluded, "If you build it, they will not come." That was important to know before
breaking ground!
Another study looked at whether or not a well-respected nonprofit should open a "branch
office" in a neighboring town. The study found that the organization could raise the money to
do so, but because they were new to the type of fundraising that would be required, it would
take more time and investment than had been planned.
They chose not to open the office, but to begin to experiment with new types of fundraising
(giving clubs, events) with the hope of opening the new office after a few years.
Community’s Perception of the Importance of
the Identified Need
Feelings about the Organization
Donor Base
Campaign Leadership
External Factors
Internal Resources and Preparedness
What Should A Feasibility Study Plan Include?
4. Interview at least two consultants and check their references before engaging one. Anyone can
say he or she does feasibility studies, but be sure to choose someone with a demonstrated
track record who is discreet and honors confidentiality, is objective, and whose values and
style are ones with which you feel comfortable.
Be sure that you have identified the questions to which you want answers, and that the study is
designed to get those answers.
Double check on prices: good feasibility studies run from a few thousand dollars to tens of
thousands.
Work with the consultant to choose the right interviewees-lapsed donors, current and former
board members, key staff, community leaders, major donors to the organization and major
community donors who have NOT given to your organization, competing organizations,
prospective foundations, corporations, and individual donors.
Use the information from the study not just for deciding on the fundraising campaign, but as
valuable research about the community and its perceptions of your organization.
Some tips on feasibility studies:
5. A well-designed feasibility study should reveal:
Size and make-up of the constituency to be surveyed.
Complexity of the study subject matter.
Study timeline.
Adequacy of resources to perform the study.
Budgetary considerations
The board's real and perceived strengths and weaknesses in fundraising
Perceptions of the organization in the community
Who would be effective leaders for the fundraising campaign?
Names of potential major donors / funders, and how would they be the most responsive to
giving?
When should the fundraising campaign be launched (next year? at the annual gala?)
What other major fundraising campaigns are launching that might compete for the same
donors?
What are the possible alternatives for raising the funds or completing the project?
Who your allies are and who might oppose the project or the campaign?
6. Can You Assess Campaign Feasibility Yourself?
In-house feasibility assessments can often be just the ticket. Many organizations are well
positioned to determine for themselves the feasibility of a campaign. These organizations know
which of their donors can give and how much money. They have a well-developed case for
support of the organization based on its mission statement and core values.
Is your organization one that should undertake its own in-house feasibility assessment? The
answer may be yes if you have the following key elements in place:
•A dedicated, committed, board of trustees; ready, and willing to lead,
give money, ask for major gifts, and help provide access to persons
of affluence or influence.
•A compelling Case For Support of the project to be funded,
emanating from a clearly defined, fully understood, and completely
acceptable organizational mission statement and compatible with the
long-range strategic plan.
•Rated and evaluated prospects sufficiently to provide enough gifts
in the needed amounts to raise the most money from the fewest
sources in the least amount of time.
7. Timing that assures the new endowment or capital campaign is
spaced so that any major givers who are still making pledge
payments from an earlier campaign need not be solicited.
A written campaign plan that includes leadership, volunteer, and staff job descriptions.
A realistic and compressed campaign timeline.
An unvarnished view of the organization’s fund-raising track record and the community’s history of providing
support to it.
The necessary staff and clerical resources to fully serve the campaign’s needs, including generating lists,
letters, proposals,
meetings, progress reports, and posting and acknowledging gifts.
Assurance that the new fund-raising campaign will in no way defer, deter, or interfere with any other fund-
raising activity, especially the annual fund.
Knowledge of other organizations’ current and planned major capital and endowment campaigns and what
timing conflicts might arise, especially those involving availability of top leadership and other volunteers.
A budget for the proposed project the campaign will support showing as accurately as possible all line-item
expenses, including direct fund-raising expense.
The budget must be realistic and defensible.
8. Most organizations possessing these capabilities, resources, and knowledge will find
internally developed campaign feasibility assessments sufficient. They will be just
about as ready as possible to enter directly into a fund-raising mode.
Focus groups, mail surveys, and telephone surveys can be useful, but I believe the best way to
gather information is to conduct one-on-one interviews with individuals of affluence or
influence. For these interviews to be of optimum value they need to be candid and frank.
That means interviewees need to be guaranteed confidentiality. In order to do that the
interviewer must be someone who is neither a staff member nor a volunteer leader of the
organization.
Whether comprehensive one-on-one interviews, or a mix of other information gathering
methods is used, feasibility study planning must take into account:
THE FEASIBLITY of your organizations FUNDRASING abilities
10. Article of letters $35.00 per letter
Script writing
Sponsor and vendor proposals
Sponsor and vendor agreements
Solicitation donation letters
Fiscal sponsorship letter
Referral program letter
Consultant $35.00 per hour
Credit processing
Insurance
HSA Accounts
Credit counseling
Fundraising Feasibility study
Fundraising story broad brain stormy national
or local
NATIONAL OR LOCAL…
Campaign for marketing program
Campaign for Advertising program
Campaign for public marketing
Social media marketing
Booker/Distribution $35.00 per sale
Local fundraising products
Scratch cards
Discount cards
Spinners
Chocolate bars
Lollipops
Cotton candy
Hi chews
Aunties Anne’s pretzels
Cookies
Flip flops
Candle fundraisers
Ripple Textile Recycling
Training fee $100-$2,000.00
per session
1 Hour watch and walk ($100)
3 Hours on/off site session includes script
($300)
8 Hours training on/off site includes script and
training outline ($1,000)
For 3 days training 3 hours on/off site with
training packet ($2,000)
(Training packet includes script, training outline
and motivational speaking)
By laws and mission statements for non
profits starting $750.00 dollars
Online National Fundraising Campaign
$500.00 per campaign Plus 5% service
fees (Not including product involvement)
CHIC CEO
The Wilcox agency
Kickstarter
Indi GoGo
Pledgie
Sellaband
Microadventures
Net work for the good
Sponsor and Vendor Programs
$250 dollars a year for 6 chosen Accounts
from ABC’s referral program for
marketing and advertising campaigns
Membership Program for non-profit
network workshop $100.00 for one year
Fundraising Feasibility study $5,000
One Year Marketing, Advertising, and
Fundraising Campaign for Public
Relations $1000.00 Includes
1 Script
2 Sponsor proposals
2 vendor proposals
2 Sponsor agreements
2 vendor agreements
1 Solicitation donation letters
1 Fiscal sponsorship letter
1 fundraising campaign National or local level
(not including fundraising product)
1 Hour watch and walk training session
3 Hour on/off site training session includes
script
10 hours of consulting
Mission Statement
By laws (if applicable)
CALL (619) 565-0607
