You might be considering whether or not to launch a capital campaign. In the world of capital campaigns myths often shroud the truth, creating unnecessary misconceptions.

In spite of the turbulent start to the early 2020’s, our experience shows that not only are capital campaigns still thriving, but that unfounded fears and self-doubts may be the most significant obstacles to launching a successful capital campaign, as opposed to societal and economic headwinds.

So, let’s uncover the reality behind successful capital campaigns.

Truth or Myth – Only large churches or nonprofit organizations can do a capital campaign.

MYTH. One of the persistent myths about capital campaigns is that they are only for large, sophisticated churches or organizations with vast resources. Whenever a project exceeds one times your annual offerings as a church, or your yearly donor receipts, you are a candidate for a capital campaign. Organizations with annual budgets under $500,000 have the same success rate for capital campaigns as the rest of the field.

Truth or Myth – The Annual Fund suffers during and after a capital campaign. 

MYTH. In fact, a capital campaign complements the annual fund. We have found that annual funds typically increase by 3% – 5% during and following a capital campaign. Making a clear distinction between a donor’s “regular” annual giving and a special campaign gift towards a specific purpose (with a clear case for support) is the key to protecting your annual fund and engaging major donors with the opportunity to participate in the capital campaign.

Stay tuned to our next Generosity Gem for more Truth’s or Myths!

     John V. Clark, President/Partner
The James Company
(815) 353-8997

Email: jclark@jamescompany.com