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| What is a Fundraising Feasibility Study and Is It Worth It? | |
| 08-31-2001 | |
It used to be that only major, well-established nonprofit institutions
such as theatres and homes for runaway kids thought about purchasing
their own buildings or establishing endowment funds. But more and more
small and mid-sized nonprofits are thinking long-term and realizing
that a capital campaign-that is, a fundraising campaign for a building,
major equipment or an endowment-might be a good idea. This month's
Board Cafe includes an article on how to consider a capital campaign by
Northern California consultant Burke Keegan. -Jan Masaoka DIRECTORY OF SOUTHEAST ASIAN ASSOCIATIONSThe flexibility of the nonprofit framework to meet community needs has been demonstrated dramatically in the last several years by the emergence of hundreds of "mutual assistance associations" (MAA) in immigrant Southeast Asian communities. MAAs such as Vietnamese Minnesotans and Lao Family Association are self-help nonprofits building community among the 1.5 million Southeast Asian Americans. If your organization is an MAA, or if you want to connect with these community leaders, a directory is now available for $15 + $2.50 shipping from Southeast Asia Resource Action Center, 1628 16th St., NW, Washington, D.C. 20009; 202-667-4690 or www.searac.org.) PLANET 501c3: THE BOOKFinalizing the strategic plan? Evaluating the executive director? Take some time out for something serious! "They Came from Planet 501c3," a collection of 23 cartoons about life in the nonprofit sector, is now available for $3.95 from the CompassPoint bookstore at: www.compasspoint.org/bookstore and click on "Books." Take a look at some cartoons online at http://www.planet501c3.org. FAQS FROM NCNBThe website of the National Center for Nonprofit Boards (co-publisher of the Board Cafe) offers a series of Frequently Asked Questions (FAQs) on important governance topics such as, "Can a nonprofit make a profit?", "How can we promote diversity while avoiding tokenism?" and "Founder-itis." Free at www.ncnb.org. BOARD MEMBERS WHO ARE ACTIVE BUT NEVER COME TO MEETINGS (OR VICE VERSA)Here's a suggestion from the Barbara Ann Karmanos Cancer Institute in southeast Michigan (where board members are Board Café readers): If someone doesn't attend, use a buddy system. At the end of the meeting go around and quickly say who will call each absentee. This is a lot better than having people complain about who doesn't come, helps keep the absent board members involved, and reminds the ones who DO attend that some of the non-attenders are doing other valuable board work. This month's "Main Course" article: What is a Fundraising Feasibility Study and Is It Worth It?by P. Burke Keegan When nonprofit boards consider a special, major fundraising campaign-such as one to purchase a building or start an endowment-they often ask: Should we or shouldn't we? Can we really raise this much money? Do we have the right people on the board? Out there in the world, is our organization liked? Respected? By whom? The lack of answers can bring organizational plans to a grinding halt. One possible solution for board quandaries is a feasibility study. A feasibility study is an objective survey of the community that assesses the likelihood of success for a fundraising project, and identifies strategies and specific individual givers for the campaign. A feasibility study can also be useful if you are contemplating launching a new program, merging with another nonprofit, or taking a hard look at the effectiveness of the ways you do fundraising. If you as a board member were to ask others whether they would support a campaign, your friends might feel they need to be positive, so an independent consultant usually conducts the study. Survey community leaders, prospective foundations and individual donors, and key friends (and enemies!) of your nonprofit. What you can learn by talking to people with history with the organization, and people with expertise in your field, may astound you. A well-designed feasibility study should reveal:
In addition to assessing fundraising, a feasibility study may also reveal problems with the program. For example, one study for a nonprofit deciding whether to build a building for a new program concluded, "If you build it, they will not come." That was important to know before breaking ground! Another study looked at whether or not a well-respected nonprofit should open a "branch office" in a neighboring town. The study found that the organization could raise the money to do so, but because they were new to the type of fundraising that would be required, it would take more time and investment than had been planned. They chose not to open the office, but to begin to experiment with new types of fundraising (giving clubs, events) with the hope of opening the new office after a few years. Some tips on feasibility studies: 1. Interview at least two consultants and check their references before engaging one. Anyone can say he or she does feasibility studies, but be sure to choose someone with a demonstrated track record who is discreet and honors confidentiality, is objective, and whose values and style are ones with which you feel comfortable. 2. Be sure that you have identified the questions to which you want answers, and that the study is designed to get those answers. 3. Double check on prices: good feasibility studies run from a few thousand dollars to tens of thousands. 4. Work with the consultant to choose the right interviewees-lapsed donors, current and former board members, key staff, community leaders, major donors to the organization and major community donors who have NOT given to your organization, competing organizations, prospective foundations, corporations, and individual donors. 5. Use the information from the study not just for deciding on the fundraising campaign, but as valuable research about the community and its perceptions of your organization. Burke Keegan is an independent fundraising consultant in Marin, California. She can be reached at: 607.589.6664 or email: burkekeegan@frontiernet.net Next month: What Board Cafe readers said about using the Internet (and NOT using the Internet) for their boards...some great ideas! You
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| Author/Contact: | Jan Masaoka |
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