← Nonprofits Are Messy: Lessons in Leadership | Fundraising | Board Development | Communications
Nonprofits Are Messy: Lessons in Leadership | Fundraising | Board Development | Communications
Ep. 230: Think Big: How Capital Campaigns Fuel Long-Term Growth (with Amy Eisenstein)
00:49:19
What if a capital campaign could be your nonprofit’s ticket to long-term growth? Fundraising expert Amy Eisenstein joins the podcast to bust common myths and share practical insights from decades of experience.
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- [00:00]
Joan Gary
So here's how I think about my podcast. I try to anticipate the questions you have, and I consider the information that you might need to be the best leader and manager you can be. Because your communities, your cause, the folks you serve, they deserve the best from you. I start with these questions and then I bring you guests uniquely qualified to answer them. Sometimes that person is actually me, but in the case of today's episode, I have absolutely zero credibility because I have zero experience with with capital campaigns. So you sure don't want to hear from me. Who you want to hear from is my guest today. I asked her many of the questions I think you might have. We talked about what a successful capital campaign looks like. We're going to bust some myths. You know, like the one that says a board full of wealthy people is an absolute prerequisite. We'll define success more broadly than simply capital hitting the financial target. And my terrific guest, Amy Eisenstein will make the case that a capital campaign is not just a once in a lifespan of a nonprofit thing, but essential for nonprofits to thrive. And I'm not gonna lie, that was news to me.
- [01:17]
Welcome to Nonprofits Are Messy with Joan Gary and Experts. This podcast is your go to space for insights, advice and inspiration designed to help nonprofit leaders overcome challenges and drive impact. Whether you're navigating small beginnings or leading a larger organization, we're here to support you every step of the way. Together with Joan and a diverse group of expert guests, we tackle the big questions nonprofit leaders face and offer actionable advice to future fuel your leadership journey. A special thank you to donorperfect for sponsoring this episode and supporting nonprofits that we love. Now, let's jump in.
- [02:08]
Amy Eisenstein is CEO and co founder of Capital Campaign Pro. Capital Campaign Pro provides a modern approach to campaign consulting that empowers nonprofit staff and volunteers to to lead successful campaigns. Amy's published books include Major Gift Fundraising for small shops and 50 asks in 50 weeks. You're intrigued, aren't you? This woman is an AFP Distinguished Fellow, an AFP Master Trainer. She was the President of AFP New Jersey in 2014 and 2015 and currently serves on the board of the local community foundation, among other creds that you should check out in the longer bio in the show notes. So it seems to me that the state of New Jersey, where I hail from, is chock full of advocates for nonprofit success. Like me, Amy happens to be one of them. There's a stupid joke in New Jersey where we ask people where they're from by asking them what exit. So, Amy, you are about 10 exits south of me, and I am delighted to welcome a fellow nonprofit champion and resident of the Garden State to join me today. How you doing, Amy?
- [03:24]
Amy Eisenstein
Thanks so much for having me, Joan. I'm thrilled to be here.
- [03:28]
Joan Gary
So I love hearing about the path that leads people to where they are. I think everybody has a story. Did you actively choose a nonprofit fundraising career? Like, were you kind of at the Thanksgiving table when you were 10 and some annoying aunt said, what do you want to be when you grow up? And you said, oh, I want to ask people for money. Tell me a little bit about your journey.
- [03:54]
Amy Eisenstein
Yeah, well, I don't know that I wanted to ask people for money, per se, but I certainly knew that I wanted to help people. And from the time I was a child, I volunteered with my parents in college. I lived and worked in something called the Community Service House. And then I went to graduate school at NYU for Nonprofit management. So I certainly knew that I was headed for a career in nonprofits. What did come as a surprise, though, was that my falling in love with fundraising. Right. I knew in graduate school that I needed to know fundraising in order to lead a successful nonprofit. So I did take a first job in fundraising, and I thought of it as, like, part of a graduate school degree. Right. Learn fundraising and move on. And I worked at a domestic violence shelter in Bergen county in New Jersey, and I fell in love with fundraising there. I thought, oh, my gosh, this is what makes the wheels of any nonprofit turn, this fundraising stuff. Then I went on to Rutgers University, where I worked in my first big capital campaign. And. And I guess the rest is history.
- [05:07]
Joan Gary
The rest is history. So I know if this is being listened to by. Well, you got lots of board members who listen to my podcast. And I love. Fundraising is not a phrase that you often hear from people. I actually happen to really love it, too. And before I became a nonprofit executive director, I actually had no fundraising experience, so it was fairly new to me. Can you describe what you love about it?
- [05:33]
Amy Eisenstein
Well, I think that the knowledge that it really is what makes many nonprofits successful or able to implement the programs and services that are so important. It makes the mission more achievable. And I also love the idea of being a matchmaker between really important causes and people who are able to help make those causes a reality and get you closer to your mission and to your dream. And so as a fundraiser, I do think think of myself as a matchmaker. I'm looking for the Perfect organization and the perfect potential donor who both want to achieve the same thing. And when we find those people and those organizations, there's no arm twisting, there's no begging, there's no guilting. It's inspiration, it's gratitude, it's generosity. It's all the good things about fundraising.
- [06:30]
Joan Gary
I remember actually when I had that first nonprofit ed job where I had no fundraising experience and I was a little bit anxious, and my development director, who was with me the entire time I was at glaad, said to me, you know, Joan, it makes people feel really good to give to causes they care about.
- [06:51]
Amy Eisenstein
Yes.
- [06:52]
Joan Gary
And I never hesitate to say that to people because quite often, nonprofit leaders are, in fact, pleaser personalities. Right. And so if. If you actually connect those two things, it actually became something that really ignited me to be a bold fundraiser. Right. That if I could make that match as you described, if I could make that match and really learn about what makes people tick, and that's always really interesting to me and determine that there was this match to be made, I knew it would be good for everybody at the table.
- [07:26]
Amy Eisenstein
That's right. And one of the things that I say to board members is if fundraising feels bad, either to the donor or to the asker, doing it wrong. Yeah.
- [07:34]
Joan Gary
Right.
- [07:35]
Amy Eisenstein
Right. There's a. There's a better way. It should feel good both to the asker and to the donor. And if anybody goes home feeling yucky or like they wish they hadn't been part of that conversation, there's probably a better way to do it.
- [07:51]
Joan Gary
Right. Or there wasn't a match.
- [07:53]
Amy Eisenstein
Or there wasn't a match.
- [07:54]
Joan Gary
There wasn't a match, and you were trying to make a match happen that wasn't actually meant to be a match. So, anyway, I love the story and I like the intentionality of it. I mean, there was a path from a young age that this was going to be your path, and sometimes it's not quite so intentional. That's pretty awesome. So let's dig in a bit, Amy, and kind of level the playing field. And if you would define what you mean by the words capital campaign, what is it and what isn't it?
- [08:29]
Amy Eisenstein
A capital campaign is usually a multi year effort. It's to raise a huge amount of money, which is, of course, relative for any nonprofit for a special project that catapults an organization to the next level of service, and it gets them closer to fulfilling their mission.
- [08:50]
Joan Gary
Okay.
- [08:50]
Amy Eisenstein
Now, it doesn't need to be a building. Sometimes, or often I should say it includes a building. But not always. And really it's about a program or a service. And sometimes a building gets you to that program or service that leads to a huge leap in growth for an organization and builds their capacity. So let me tell you what a capital campaign isn't as a contrast, please. It's not for annual operating funds. So it's not for organizations where they need to pay the bills over and over. Let me give you one analogy for a house, using a house. So if an organization is like a house, your annual operating budget to run your house is the garbage bill, it's every month. Your grocery bill, it's every month. Your electric bill, it's every month. That's your annual operating fund. Now capital needs of course are for a water heater or a roof. Those are long term needs that are going to last for many years into the future. And it really protects the house. You need both of those things to make your organization run. Now I said that a capital campaign doesn't have to be for a building. So that's sort of where that house analogy falls apart a little bit. But it's for long term needs.
- [10:16]
Joan Gary
No, I think it doesn't fall apart at all. I actually think it really helps to explain it. I think there is a myth you've busted here, which is the bricks and mortar myth, right? Is that it can be for something that is not bricks and mortar. And I believe that most folks don't quite get that. Can you give me an example of a kind of capital campaign that is not bricks and mortar?
- [10:48]
Amy Eisenstein
Sure. So often we'll work maybe with a land trust, an environmental organization, they're not building a building, but they are building a capacity fund. Sometimes we even call it a pounce fund. When a piece of property comes up, they want to be able to preserve and protect property as it becomes available. And they need this long term fund that allows them to do their mission in a bigger way. So that's maybe one example. Another would be research, right? For healthcare or for other kinds of research. You might grow your fund for a specific project, an innovation fund, a technology fund. Certainly a good example is scholarship funds or teacher training funds. So there are all sorts of program expansion, long term thinking about kinds of funds that can be part of a capital campaign. And they build the capacity of the organization, they enable them to do more good long term.
- [11:55]
Joan Gary
Right. Okay, that makes sense. Right? So we have a person on our team who ran a capital campaign when an organization decided to close its doors, but the need for that organization still existed. And so another organization ran a capital campaign to then actually sort of launch that program and build it into the future within the existing organization. So there are lots of different ways to. It sounds like, and tell me if I'm onto something here, that this is about aspiration, it's about future, and it's about like, exciting growth.
- [12:39]
Amy Eisenstein
Yes, I love that. Exciting growth. It's about vision. So often capital campaigns are springboarded. I don't know. That's not the right way to say it. They come out of a strategic planning process. So what's an organization's vision for the next three, five, ten years? And what will it take to get there? And if they're thinking big and they have a big vision, often a capital campaign will grow from that. And sometimes it includes a building and sometimes it doesn't.
- [13:10]
Joan Gary
Before I dig into a lot of other questions, I just have one more about the idea of vision. What if it is just simply there's not enough room. Right. Maybe we can, as we go through this, maybe we can talk about that. But I've also heard we don't have enough space. Doesn't feel like that's not giving me goosebumps and making me want to write a check. Right. You have to sort of talk about what that expansion makes possible or potentially what the gap is that, that expansion. If you don't, what happens if you don't do the expansion? I don't know. I just was wondering what you're thinking about that, Amy.
- [13:53]
Amy Eisenstein
Yeah, I think that's exactly right. It's capital campaign donors don't get excited about buildings or rooms or parking lots. What they get excited about is what happens in that space. And I think running out of space is a good reason often to have a capital campaign because there are people on your waiting list who aren't being served.
- [14:13]
Joan Gary
Right.
- [14:14]
Amy Eisenstein
There are kids who are not able to join the after school program. There are people who, you know. Recently we worked with an organization that counsels kids who have been neglected and abused. And there weren't any private counseling rooms, so every counselor could hear everybody else's conversation. And these kids had no privacy. It was terrible.
- [14:34]
Joan Gary
Right.
- [14:35]
Amy Eisenstein
And that need, it was just a space thing that needed to address this real need in the community. And so space is real. It's a good reason to have a campaign. Sometimes it allows you to serve more clients, and sometimes it allows you to serve your clients more effectively. Sometimes organizations are just operating in a dangerous space, like a theater falling down. I mean.
- [15:01]
Joan Gary
Right, right, right. Absolutely, absolutely. But I learned very early on I Remember, that's when I learned that the power of storytelling in a nonprofit organization is when I first started at glaad, I got a tour of a community center in Los Angeles, and we'd stop at every different part of that community center, and the executive director would tell a story about what happened in that space. And it was so inspiring and goosebumpy. Right. And I went back to my office and said, I want a building. And then I thought to myself, we don't need a building. We just actually have to tell stories. Right. Buildings are actually all about what happens in them. And I think that's exactly the point you're making. So you actually believe that a capital campaign is an almost essential part of a fundraising strategy for nonprofits. Can you talk about that?
- [16:03]
Amy Eisenstein
Yeah. I think that every organization, in order to accomplish their mission, should think about every 10 years or so, what is the next leap that they're going to make, what is the next innovation? What is the next step in their organization? And it's one thing to raise annual fund year after year after year, year. But how do you want your organization to make significant, meaningful growth and change? And that, to me, is every 10 or 15 or 20 years, you should be thinking about a capital campaign as a way to really grow your organization.
- [16:46]
Joan Gary
So that was a bit of an aha for me when you and I first met. That said, it also exercises a really important muscle for your board, which is to, in fact, think in this very high altitude, generatively, aspirationally, in a way that very often we don't tap into our boards in that way. And it is, honestly, it's a problem for the sector because that kind of thinking really ignites people.
- [17:19]
Amy Eisenstein
Yeah, that's right. It does. It gets your donors excited. It gives them a reason to get excited. It gives you a reason to go out and talk to your donors in a meaningful and strategic way. I think it's just good for organizations to build their capacity. It builds the fundraising capacity of the organization in addition to programmatic capacity.
- [17:40]
Joan Gary
Right, Excellent. So let's talk about organizational readiness. And I would guess that if I was playing like Family Feud and capital campaigns were on the topic, which is about the most people would think I'd rather watch paint dry. Right. You would be looking for a donor pipeline, like a college or university or wealthy board members. Why don't we go through how you think of organizational readiness? And maybe what we say is, how do you define ready?
- [18:11]
Amy Eisenstein
Yeah, and that's a good question. And I think so many organizations struggle with knowing how and when and if they're ready for a capital campaign. So I'm glad we're talking about it. So first, an organization needs to start with a big exciting vision. So if that means some strategic planning or a blue sky thinking session where they really think out of the box and big and long term, what makes me sort of cringe inside and this happens all the time, unfortunately, is an organization will come to me and say, you know, we're celebrating our 50th anniversary, so we want to. So we want to raise $50 million.
- [18:48]
Joan Gary
Like anyone actually cares about your anniversary, right?
- [18:53]
Amy Eisenstein
That's right. So, you know, I say, all right, give me a better reason than that. What are you going to do for the next 25 years? And then we can talk about a capital campaign. So in terms of readiness, you need a big idea, you need a big vision, and hopefully your board and staff members are excited about it. Then obviously there are some other things that you want in terms of readiness. I mean, a well managed donor pipeline is lovely. That doesn't mean that you have to have a sophisticated major gift program. But having loyal donors is an important piece of the puzzle. A campaign is a wonderful opportunity to develop a major gift program. So you do want loyal annual supporters. You want some systems and infrastructure in place. You want to have a donor database, you want to be sending thank you letters and stewarding your donors. But there are a lot of readiness factors. And I would say we talk to organizations all day long to help them assess their readiness. Ideally, you have a development staff member or two.
- [20:06]
Joan Gary
What's interesting is some of the things that you're saying, you're saying with some certain amount of condition. Right. Ideally a development person. But so what that leaves the door is ajar here, right? The door is a door for some organization that might not actually have development staff. Right.
- [20:27]
Amy Eisenstein
It's true, we do work with organizations that don't have development staff. But I always say the goal is to hire your first development staff member. I mean, think about it. Campaigns are about capacity building. We're going to grow the whole capacity of your organization. Organization, and that includes fundraising. So I think that no organization is ever 100% ready. So if you're looking for perfect measures, most people are going to fall down. The question is, you know, can you identify a handful of donors that could give you potentially the lead gifts?
- [21:02]
Joan Gary
Right.
- [21:03]
Amy Eisenstein
And some organization have a better sense of that than others. But what I'll tell you one thing is that, that you don't need is a bunch of wealthy, well, Connected board members. And I think that's an important myth we want to bust here today. Right?
- [21:16]
Joan Gary
We don't really want to bust that myth. We totally do.
- [21:21]
Amy Eisenstein
Yeah. I think, you know, most organizations come and they say, well, we don't have a great board, you know, except for maybe Lincoln Center. Tell me an organization that thinks they have a perfect board. And do we want your board members excited about the project? Everybody being committed to the idea and willing to give? Absolutely. And, you know, a good campaign consultant will help talk you through recruiting some good campaign committee members to help you with your campaign. But you don't need a wealthy, well connected board to be successful. And actually, we just showed that in our second annual research project on capital campaigns. And if you want to see the results of that research, you can visit the Capital Campaign pro website@capitalcampaignpro.com research and you can download that and show your leadership team that you don't need a wealthy, well connected board to be successful.
- [22:24]
Joan Gary
That is worth taking a look at. So let's tackle the word feasibility for a moment. It's usually followed by the word study, and those two words come together, and they usually have a price tag associated. So can you talk about a feasibility study? Is it essential? Do I have to pay for it? Sort of. So I think I'm ready. I have a big idea. Maybe I have a development staff. My board is perfectly imperfect. Right. And I'm pretty sure I want to do this, but I think think I need some expertise to determine if it's actually feasible.
- [23:03]
Amy Eisenstein
Yes. Okay, so let me just say that I wish the term feasibility study had been named something else way back in the day.
- [23:12]
Joan Gary
Well, what would you call it?
- [23:14]
Amy Eisenstein
I would call it a campaign planning and readiness study. And then everybody would want to do it. Right. The reason that people don't want to do a feasibility study is because they don't want to be told that their project isn't feasible.
- [23:28]
Joan Gary
Right. They don't want to fail the test.
- [23:31]
Amy Eisenstein
They don't want to fail the test. So if I said we're going to do a readiness study, a planning study, then you'd say, okay, we want to plan this well and honestly, to me, that's what a good feasibility study is.
- [23:44]
Joan Gary
That's really smart, Amy, actually. And if you tell me I'm not ready. Right. If you tell me I'm not ready, presumably you're going to tell me what I need to do to be ready.
- [23:56]
Amy Eisenstein
That's exactly right. That is exactly right. So a good feasibility study, first of all. Yes. You Want to work with an experienced consultant on a feasibility study because there is a method to the madness. This isn't just sit down with your donors and ask them what they think. We're actually asking data driven questions and analyzing data that's collected from key people. It's not just talking to anybody in your community, but very specific people and asking very specific questions and analyzing the results. You are testing your case, your case for support and your specific dollar goal. And so it is an opportunity to assess how ready you are for a campaign. But a good feasibility study would never come back and say, you can't do this at all. They would say, this is how you can do it and this is what you need to do to get ready.
- [24:54]
Joan Gary
Right. It might also say, instead of, we think the feasibility study might come back and say, you can do it, but don't think you're going to raise 10, you're only going to raise 5, right?
- [25:05]
Amy Eisenstein
That's exactly right. So what we like to do is test the dream plan, right? Think big, dream big. And we test a big plan. And then we say, okay, philanthropy can cover X, Y, Z. So then we look at alternative choices. So we say, is there government funding available? Is financing an option? And then the third sort of the next stage is should we scale the project back to meet what you can actually raise? So that's not the first thing we do. We don't scale back the project initially. We look for alternative funding sources to meet the gap in philanthropy. And then you can say, okay, we planned our goal, you know, our gold project. But we do from the architect or from the planning, we do have sort of a B option and that's what we're going to go with.
- [26:00]
Joan Gary
I see. Okay. So that actually, because I think my next question was like, let's say you need renovations, you know, on your building, right. And you need to expand your services and you dream big and you dream Tesla. I don't dream about Teslas myself, but. So you could dream Tesla or you could dream Kia. Right, Because I was trying to grappling with this sort of the chicken and egg thing, right? How do you navigate that? How much you can do? How much can we do with how much can we raise? And I believe that's part of what you were just talking about there. But you don't. It's sounding like you don't decide. Well, maybe I should just let you talk because you're the expert and I'm the host. Sometimes I forget.
- [26:52]
Amy Eisenstein
Well, here's what happens frequently when organizations think small. They might come to us and say, listen, we need more classrooms in our music building. And we think we can raise the money for two more classrooms. And we say, well, in how many years do you think you're going to have outgrown the two more classrooms? Well, probably in two years.
- [27:18]
Joan Gary
So.
- [27:18]
Amy Eisenstein
Okay, that's not big enough. Right. You got to think bigger. Don't worry right now what you can raise. Think about what your programs and what you want to accomplish with your programs and services, and then we'll figure out, can you raise it. But donors get excited and dig deep when the project's exciting. If you bring them a mediocre project, they're going to respond with mediocrity.
- [27:46]
Joan Gary
Yes. I think that's such an important point here. And do you find that boards can be part of the tension there? The sort of risk aversion? Oh, we could never do a Tesla. So we should definitely only shoot for the. We should. Let's be safe and do the key.
- [28:12]
Amy Eisenstein
Oh, for sure. And I think that each board member has their own personal risk aversion, risk tolerance, as you say. And so you need to have some people on the board and hopefully on the staff that are willing to dream big and can push the thinking. Because if you plan small, that's what you're going to accomplish. Right. I mean, there's some of this, if you build it, they will come kind of mentality. I always know when I talk to an organization if they're going to do great things, because the energy and the mindset of people I'm talking to are aspirational versus the people that come and say, we're not sure if we can do it. We don't think we can. I'm like, you're not going to. Right. So how can you get in this mindset of we want to change our community? I mean, you may not be changing the whole world, but how can we make a real difference in our community? And what would it take to do that? And let's sort of think outside the box. You know, the one story that comes to my mind I'll never forget. You know, a donor invited a colleague to, you know, go out for the afternoon and have a conversation with them, but they invited them to their boat, basically. Right? And the, you know, my colleague thought, you know, we're going in a canoe, and it was a yacht because. Because my colleague couldn't think bigger than a canoe. Right. That was their mindset. A boat to them meant a little boat. And the donor thought a little boat meant a Yacht. And so how do you. How do you get out of your own way? How do you get outside your own wallet?
- [30:01]
Joan Gary
I bet she was really excited to be on that yacht.
- [30:05]
Amy Eisenstein
I think she was overwhelmed.
- [30:07]
Joan Gary
Yes. Right. When you're thinking canoe and you get yacht. Wow. But I also do think that this whole issue of energy and being a champion for it, and if I can actually convey that to a consultant. Right. I'm going to. If I can have you at hello, then I'm certainly going to have a prospective donor at hello as well. And so this. Actually, you know, we talked about the notion that you don't need a board full of wealthy people, but we do need something from our boards. Right. We need champions. We need. Right. Are we really asking them to ask people for money? Because that certainly has challenges for a lot of people who are listening. So I may not have deep pockets. What do you expect of me as a board member? Once we get excited about this, about the. Let's say the yacht instead of the canoe, I'll move away from my car metaphor.
- [31:08]
Amy Eisenstein
Yeah, I think that's right. The first thing we need for our board members to do is get excited, because if they're too concerned or too wary about the project or don't believe it's gonna work, that's. That's seriously problematic. So everybody needs to be rowing in the same direction. Everybody needs to be on board and understand what their roles and responsibilities are. And one is to be a good advocate and speak positively and excitedly about the project. We also need board members, everybody, to make a stretch gift, whatever that means, for their own personal pocket. Right. Or budget. And so every board member needs to give to the campaign, and every board member needs to play a role. It might be thanking donors, it might be bringing donors on a tour, it might be opening doors. Not every board member needs to ask, especially the ones that are too nervous or not good at it, not going to do a good job of it. I actually don't want those board members asking. I think the best example I can give. I was working for an organization, and this board member graciously introduced me to his friend. And when it came time, the board member wanted to ask his friend for $5,000, and I wanted to ask his friend for $25,000. And I asked the board member if he would stay home and not come to the ask with me. And he was so relieved and so happy. And I went. I mean, the friend knew that I was going to come by myself and. And I asked him for 25,000 and he gave it. And if the board member had come, we would have asked for five because that's what the board member felt comfortable with. But the board member played such a valuable role in teeing up the relationship, introducing the organization, being a good advocate. So I completely give him credit for the gift.
- [33:06]
Joan Gary
Oh, he did all the work. You just.
- [33:09]
Amy Eisenstein
He did all the work. He just didn't need to come to the ass.
- [33:12]
Joan Gary
Right? Isn't that interesting? That's a great story. So there are many different roles that need to be played in a capital campaign. And fitting, again, fitting the right board member with the right role feels really essential. So I love that. Transform the way you lead your nonprofit with expert advice and a vibrant community. At our nonprofit Leadership labor thousands of kindred spirits from all around the world find time saving resources, trainings from experts and a best in class team to help you. You get a good dose of me and a remarkable community. You will never feel alone with us. And we have the antidote to so many of the challenges you face. To learn more and request an invitation, head on over to nonprofitleadershiplab.com podcast. We're actually talking with Amy Eisenstein and we're talking about capital campaigns. She's the CEO and co founder of Capital Campaign Pro. And they provide a modern approach to campaign consulting that empowers nonprofit staff and volunteers to lead successful campaigns. I want to talk about capital campaigns DIY, right? 70% of nonprofits have budgets under a million dollars. And a lot of them get stuck because they don't think this, because they don't take these kinds of leaps. Right. They don't scale because they. For all the reasons we've been, some of the reasons we've been talking about today. So can you do this on your own? Tell me about how you might approach capital campaign diy. And I think you also have some resources to help people as well.
- [34:56]
Amy Eisenstein
We do. So listen, I have to say that small organizations really struggle to raise money, period, Full stop. Right. For annual fund for capital campaign, for whatever their needs are. And a capital campaign is a huge lift for any size organization. So frequently I will encourage small organizations to experiment with mini campaigns. So a million dollar organization might need a school bus for $200,000. So sort of think through that as a little capital campaign that they're doing. It is a big multi year and effort and it's significant for them. Now can they afford to, you know, hire a consultant? Probably not. Not for. Not for much support. So you alluded to our DIY support services. I have to say, organizations that really successfully DIY a campaign are often actually bigger organizations.
- [36:01]
Joan Gary
Oh, interesting.
- [36:03]
Amy Eisenstein
They have experienced, capable, competent development staff, and they don't want to reinvent the wheel. They don't want to go it completely alone, but they don't need the support of a consultant either. And so actually, that's who our DIY support system really is for. For organizations that have competent, capable staff, but like I said, don't want to Google their way to a campaign, want somebody to check in and bounce ideas off of, don't want to reinvent templates or dig around in files to look for something. So we do have a DIY support system for organizations that don't feel they need the support of a consultant.
- [36:49]
Joan Gary
Smart.
- [36:50]
Amy Eisenstein
And of course, we also have another level of service where we do help organizations that need more accountability, need more strategy, need more, more planning help, need more support and training. Sometimes it's the big organizations, sometimes it's the little organizations. And what I would say is that all organizations need some expertise. Generally they don't have people on staff or on their board who have been through multiple campaigns because campaigns only happen once every 10 or 20 years. So most nonprofit staff members, maybe they've been through a campaign, maybe they've been through the end of a campaign or the beginning of a campaign. But. But most organizations need support and guidance.
- [37:34]
Joan Gary
Yeah. So there's two takeaways, I think, from what I just heard you say. One is that there are just universal things regardless of the size of an organization. And the second one is maybe organizational readiness also assumes that you've got something in your pocket to pay for some level of expertise.
- [37:56]
Amy Eisenstein
I think that's right. And I'll give you sort of an easy way. We think about this and it's may feel overwhelming to smaller organizations, but whatever your campaign goal, and generally we work with organizations mostly that have a campaign goal of 3 million or more.
- [38:12]
Joan Gary
Okay.
- [38:14]
Amy Eisenstein
Okay. Smaller organizations, we generally say, should be working on their annual fund and shoring up that base for support. So by the time you're ready to launch a capital campaign, a big project generally is a $3 million multi year endeavor or up.
- [38:33]
Joan Gary
Got it.
- [38:33]
Amy Eisenstein
So, Joan, you mentioned how to think about how much to put away to invest for campaign expertise.
- [38:39]
Joan Gary
Yes.
- [38:40]
Amy Eisenstein
And we talk about thinking about your campaign budget as 10% of your campaign goal. So let's assume you want to raise $10 million over three years. Often campaigns are about three years. You would actually have an $11 million goal because you might have a million dollars worth of expenses. Now there's lots of things that get paid for that. It's campaign expertise. It is donor recognition. So think plaques and recognition. It's ribbon cutting ceremonies and lunches with donors. It's new systems and infrastructure in your development office. It might be hiring an administrative person to help with your campaign. So just think of 10% budget for your campaign goal and it will include costs of both feasibility study we were talking about earlier and campaign expertise for your campaign.
- [39:34]
Joan Gary
Let's bust one last myth before we close. Do capital campaigns cannibalize annual fundraising revenue?
- [39:45]
Amy Eisenstein
You know, Joan, I think that is the question I might get asked the most about capital campaigns is will it damage or hurt our annual fund? Because we need to keep operating while we raise money for this special project. And my response is, of course you do. And a good consultant will ensure that your annual fund is not harmed. In fact, it should stay the same and or grow during and after your capital campaign. And you need to pay attention to it. You can't ignore it. And the strategy is that you're going to tell every donor that you ask for your capital campaign that you want their annual gift first and whatever they give to the campaign is over and above their annual fund gift, that the capital campaign is a special one time gift that you're asking for, but you need their continued support for the annual campaign. And the good news is that that research project I referenced a few minutes ago actually shows demonstrates that campaigns, 80% of campaigns we surveyed maintain or increase their annual fund during and after a campaign. But you have to pay attention to it, but you should not neglect your annual fund and it should not go down during a campaign.
- [41:11]
Joan Gary
This reminds me of I had Tom Kissane from CCS on my podcast earlier this year who busted the myth that election years, that fundraising goes down in election years, when in fact it does not. They went, I think once in like 20 elections or something. So very, very interesting. You also said that depending on the size of the gift, the money comes out of different pots for different donors also, right?
- [41:36]
Amy Eisenstein
Yes, absolutely. Your annual fund, most people give to annual operating funds from checkbook giving or on their credit card, right? This is sort of cash flow giving.
- [41:49]
Joan Gary
Yeah.
- [41:49]
Amy Eisenstein
And annual fund gifts come from assets and so think of it as stock or retirement funds or property. So especially big donors will give from different pots of money. And so you can ask easily for two different gifts, but you should be talking to every single donor about thinking about these gifts differently, that your annual fund sustains your organization and your capital gift propels your organization and I believe.
- [42:20]
Joan Gary
You have to be really super intentional about that because people really need to. They need to be educated about that because they often think it's one pot. Right. And so it is really. It may be something, you know, really in your head, but you need to know that your audience often does not.
- [42:40]
Amy Eisenstein
Right.
- [42:40]
Joan Gary
So I have two last questions. I'm assuming that in the world of capital campaigns that things evolve and change Right. Over time. And I just, I wondered what trends or innovations you're seeing that listeners should be paying attention to or keeping an eye out for.
- [42:58]
Amy Eisenstein
Yeah, so I think the most obvious thing for me to say here is AI and technology. And I don't want to gloss over that because it's really important. The advances that we're seeing in artificial intelligence that can analyze your data and even draft your emails and make recommendations about which donors to target first is mind blowing. And so let me start with AI and tech support. But I also would be negligent if I didn't talk about how you can access campaign support. And I have to admit, I think at Capital Campaign Pro, we've been a real leader in that area. Traditionally, most organizations think that a capital campaign consultant needs to come sit at your conference room table, and it's simply not the case. And we've been doing virtual campaign consulting, really matching the best campaign expertise in the world with organizations, regardless of geography. And we didn't do that just because of COVID We did that way before COVID because we're leveraging technology to bring campaign expertise and tools and resources right into meeting rooms of nonprofits without actually making them pay for flights or any of that nonsense.
- [44:23]
Joan Gary
Interesting. Beth Kanter is a friend of mine, also has a robust online following, talks a lot about AI and its ability to do the kind of work, particularly in development and fundraising, that will enable development professionals to actually do the work that most often takes a back seat, which is the relationship, nurturing, cultivating, stewardship. And I think she is spot on, and I think in capital campaigns obviously as well. So all of your resources we can find atCapital Campaign Pro.com so please go visit, take a look around, and if you're so inclined and like what you heard, connect with them. And the research, the research itself actually seems like it's worth the price of a Google search there. So any last pieces of advice for folks who are maybe haven't even thought about having a capital campaign or they're just about to embark on one, it's one thing you think they should just be thinking about as we Close up for today.
- [45:44]
Amy Eisenstein
Yeah. So I would say you cannot start learning about capital campaigns early enough. And so to begin your learning journey, there are so many wonderful resources. So start listening to podcasts. We have a podcast all about capital campaigns. We have free resources and webinars on our website, capital campaignpro.com. but I would say, in line with that learning journey, I would say you should think about interviewing at least three campaign consultants to learn what they offer. And you will learn so much about what you need to do, what they recommend, what you haven't thought of. So don't worry about whether or not you're going to hire a capital campaign consultant.
- [46:32]
Joan Gary
Just.
- [46:32]
Amy Eisenstein
Just interview them, go to school. And I think my one huge piece of advice is don't create an rfp. You don't. Most good campaign consultants, most good consultants don't respond to RFPs. Busy consultants do not respond to RFPs, because you probably or may not know what you need. So don't tell a consultant what you need. Just say, we want to do a campaign. How would you help us? That's all you need to say. And then learn. Use it as a learning opportunity. So I think that's my one big piece of advice is learn about capital campaigns, the strategy, how they work, and what resources and support is available to help you and your organization.
- [47:18]
Joan Gary
I have not really thought about the whole RFP thing, so light bulb just went off over my head. I get RFPs for consulting, and I'm too busy to even. I'm too busy for an RFP from an organization I'm not familiar with, with folks that I don't know. I mean, yes, I get that. I'm quite fortunate in this regard, but I'm not alone in this regard either. So great advice from start to finish. And it seems to me if you listen to today's podcast, you're already on the learning journey that Amy has proposed. So, Amy, thank you so much for joining us.
- [47:58]
Amy Eisenstein
Thanks for having me, Joan. I appreciate it.
- [48:01]
Joan Gary
And for all of you who are listening, I hope you were able to take away some good insights. A couple of ahas, maybe we busted some myths, but I work really hard to make sure that we use the time wisely because time is a precious commodity in your world. So in the meantime, until I see you next time, please take good care. And thanks as always, for the work that you do.
- [48:27]
Thank you for spending time with us today. We hope this conversation provides valuable insights as you navigate the messy but meaningful world of nonprofits. A special thanks to donor. Perfect for sponsoring this episode and for their dedication to empowering nonprofits like yours to do more good. For more resources to support your work, visit joengary.com podcast. We think you'll find a lot of helpful things there. Most importantly, thank you for all you do to make the world a better place, one small or large step at a time. Talk to you all next time.