As the new year begins, are you thinking about the possibility of a significant project that would require a capital campaign? If so, you are likely pondering how much you might right raise in a capital campaign. Here are some considerations.
For congregations, the most reliable gauge of what might be raised is to take a look at the annual stewardship giving. In a 3-year capital campaign, congregations typically raise two to three times their annual giving. For example, a congregation with annual stewardship giving of $750,000 has the potential to raise $1.5 to 2.25 million over a three-year campaign. The outcome is greatly impacted by the number and size of larger leadership gifts in the $20,000 to six-figure range.
For non-profit organizations, closer attention needs to be paid to your potential gift leaders. Again, gift leaders are those who give $20,000 to six-figures. Past campaigns have taught us the following:
- That the top donor will typically represent 15% – 20% or more of the overall campaign result.
- That the top 10 – 15 donors will likely represent 50% or more of the overall campaign result.
- That 10 – 20% of the donors typically represent 80 – 90% of the overall campaign result.
To assess the potential for a capital campaign, a non-profit needs to begin identifying their gift leader prospects, and create a gift chart like the one below.
Gift Levels | $1 million Outcome | $2 million Outcome | $3 million Outcome |
$250,000 | 2 | 4 | |
$100,000 | 1 | 3 | 5 |
$50,000 | 2 | 4 | 6 |
$30,000 | 3 | 9 | 15 |
$20,000 | 8 | 9 | 10 |
$10,000 | 20 | 20 | 20 |
$5,000 | 30 | 30 | 30 |
$2,500 | 43 | 43 | 43 |
$1,000 | 93 | 93 | 93 |
It is important to remember that the success of any capital campaign depends on pre-campaign planning and preparation. A feasibility study is often part of this preparation phase, helping you get a better grasp of how much may be raised in a capital campaign. Need help? Give us a call!
Fred Stoltz, Sr. Program Director
The James Company
(414) 690-3426
Email: fstoltz@jamescompany.com
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