The Importance of Feasibility Studies in Capital Campaigns
One of the most frequent questions we encounter from nonprofit organizations is: "What is a feasibility study, and is it absolutely necessary before launching a capital campaign?"
What is a Feasibility Study?
A feasibility study is an in-depth research process, typically spanning several weeks or months. It involves conducting numerous interviews (we usually aim for around 30) with key stakeholders, including:
Community members: To gauge local support and gather valuable input.
Board members: To understand their commitment and assess their potential for leadership.
Current and past supporters: To determine their interest in the proposed project and identify potential major donors.
These interviews explore various aspects of the proposed project:
Project scope and budget: Gathering feedback on the project's goals, budget, and proposed uses of funds.
Community support: Assessing the level of community interest and identifying potential concerns or alternative approaches.
Donor capacity and interest: Determining the potential for significant financial support from key individuals and foundations.
Why Conduct a Feasibility Study?
A feasibility study provides crucial insights:
Qualitative feedback: Uncovers valuable insights into community preferences and concerns, allowing for necessary adjustments to the project plan.
Quantitative data: Helps identify potential major donors and assess their level of interest and capacity for giving.
Strategic planning: Provides valuable data for developing realistic fundraising goals, timelines, and donor cultivation strategies.
Risk mitigation: Helps identify and address potential challenges before they derail the campaign.
Can You Launch a Campaign Without a Feasibility Study?
While a feasibility study is highly recommended, there are limited circumstances where it may not be strictly necessary:
Strong existing donor base: If your organization has a deeply committed group of major donors who are already fully cultivated and eager to support the project, a formal feasibility study may be less critical.
"Fudging the rules": In some cases, strategic discussions with key donors can be conducted at the outset of the campaign, serving as a substitute for a full-fledged feasibility study.
Key Takeaway:
Conducting a thorough feasibility study before launching a capital campaign significantly increases the likelihood of success. It provides invaluable insights, mitigates risks, and ensures that your fundraising efforts are aligned with the needs and priorities of your community and your potential supporters.
Disclaimer: This blog post provides general information and should not be considered financial or legal advice.
