Charles H. Bentz Associates, Inc.,
 FAQ Sheet

At Charles H. Bentz Associates, Inc., we speak to dozens of not-for-profit professionals each week who are exploring the possibility of a fundraising campaign. Here are some of the most frequently asked questions.

How do we know we are ready for a capital and/or endowment campaign?

Campaign readiness is determined by measuring your institution against six prerequisites for a successful campaign. These prerequisites are:

• Board and Staff Commitment
• Detailed Financial Needs
• Compelling Case Statement
• Identified Pacesetter Giving Potential
• Identified Campaign Leadership Potential
• Identified Campaign Volunteer Potential.

Bentz Associates uses several analytical tools to determine campaign readiness. Most Bentz clients embark on a Leadership Planning Study. This process takes an average of 12-16 weeks and determines whether the prerequisites for a campaign are in place. Recommendations are made for any areas that need improvement. Sometimes recommendations are simple to carry out. Sometimes they require a concentrated effort over a period of time. If the latter is the case, Bentz Associates often recommends a period of pre-campaign planning.

Other tools that help determine campaign readiness are the Development Audit, which measures the effectiveness of the client’s overall fundraising program, and the Board Retreat, which helps your governing body to identify needs, solve problems, and develop a cohesive institutional vision.

What roles do the board and staff play in the campaign?

A committed, energetic staff and board are essential to the success of any campaign. Every campaign increases staff workloads, even if the campaign is being managed by outside fund counsel. All staff must be able to articulate the institution’s vision and campaign goals.

Administrative and fundraising staff must coordinate their efforts with those of the campaign director. Annual fund solicitations, for example, should enhance the campaign message, not compete with it. Board members are the institution’s link with the community. They too must be able to speak knowledgeably about the campaign. Board members must also be prepared to volunteer for the campaign and to support the campaign financially.

Remember, tools such as the Board Retreat and Development Audit can be very helpful in rallying support from within and identifying possible issues before they become problems.

What is the time line for a typical campaign?

The work required to achieve a successful campaign begins long before the first dollar is raised and ends only when the last dollar is counted and the last donor is thanked. It is common for a campaign to take five years or more from beginning to end. However, full campaign mode, the process of kicking off a campaign and raising approximately 70% of the campaign goal, generally takes 12-16 months.

Should we cease our annual giving and membership drives during a campaign?

Absolutely not! Institutions continue to operate as usual during a campaign. Your organization will still need annual operating funds. There are few good reasons to suspend any annual development or membership practices while a parallel campaign is underway. Positioned correctly, a capital and/or endowment campaign will enhance annual fund and membership efforts by attracting new donors who can be turned into annual fund givers and by raising awareness of your institution.

It is true that annual fund gifts sometimes decrease while a donor is paying his/her campaign pledge, but this is not the case for every donor. Most donors readily understand that their donations go into two separate “pockets” and that campaigns require special gifts over and above their annual fund donation. Membership drives usually do well during campaigns because of the excitement generated by expansion. The availability of better services encourages people to buy into an organization.

How do we determine whether we can manage a campaign in-house or whether we need to hire fund counsel?

It is tempting to use in-house staff to manage a campaign. However, it is not always advisable. Ask yourself these questions:

• Is your staff large enough to handle what may be double the workload?
• Is your staff experienced in organizing and managing a substantial campaign?
• Do you have the resources in-house to produce campaign collateral materials, grant proposals, special campaign events, and a campaign newsletter without interrupting the flow of day-to-day business?
• Can your staff be objective enough and does it have the authority to identify and solve problems, particularly internal problems, that can negatively impact a campaign?

Most institutions would have to answer “no” to at least one of these questions.

Campaigns require a tremendous amount of concentration and finesse. Many organizations find it impossible to give the campaign the time that it needs without hiring additional people. Hiring campaign fund counsel often proves more cost-effective than incurring the long-term cost of adding staff. Hiring counsel gives the client access to a number of experienced individuals who can offer solutions to a myriad of institutional challenges. Counsel is inherently objective, an important quality when difficulties arise and troubleshooting is needed.

Can we adjust the campaign goal once our effort is started?

It is possible to adjust the campaign goal after the campaign begins. Of course, it is easier to adjust it down than up! Campaign goals are adjusted for a number of reasons, and positioning those reasons is vitally important. It is imperative that it does not appear that your goal has changed because of poor planning.

Often a campaign’s success determines that the goal should be adjusted. “Windfall” gifts that push the campaign close to the top are a good reason to adjust the goal upwards. A recent Bentz client, for example, readjusted its campaign goal because a donor who had pledged about $600,000 to the campaign actually donated $2 million.

Part of the benefit to a capital and/or endowment campaign is to inform and attract a larger segment of the community to your institution. Closing a campaign too quickly means bypassing opportunities to spread your message. Campaign goals can also be adjusted if a need becomes apparent while the campaign is in progress. Be sure your board is supportive of raising the goal and be prepared with logical, straightforward answers to the inevitable question: “Why didn’t you think of that before the goal was set?”