The Importance of the Feasibility Study
A successful capital campaign doesn’t start by simply announcing a goal and moving forward full steam ahead. Conducting a feasibility study is a smart and necessary first step offering more to an organization than just a risk assessment.
The feasibility study will seek to evaluate the following:
1. Key Donor Support – Measures campaign appeal and provides insight into how closely inline the case for giving is with the priorities of donors (critical for a successful campaign).
2. Campaign Commitment – Motivation for a campaign are brought into light, bringing about questions of commitment at all levels – volunteer to staff leaders. Staffing and infrastructure needs are better determined, ultimately determining if the organization is prepared for the campaign.
3. Cultivation Value – The feasibility study is a perfect excuse for speaking with potential donors. Interviewing prospects can plant the seed for a potential gift in the near future. Another benefit is revealing your organization to individuals who might not otherwise learn about the nonprofit.
4. Leadership Fundraising Capability – The study will assess the board’s ability to raise funds while ensuring everyone receives the appropriate training as the campaign initiates. Knowing how to approach and initiate solicitation while following up properly are keys to campaign success.
5. Goal Feasibility – A realistic look at how much many can be raised. The study can confirm to an organization that it has the right pool of candidates lined up to reach campaign goals. Studies show that as few as 5-percent of all campaign donors account for 90-percent of the dollars raised. The feasibility study will help you focus on the appropriate donor pool.