Capital Campaign: The Ultimate Guide You Need to Know

Why do you need a capital campaign? Well – because the money to change the world is out there if you can raise it. According to a study in Nature Journal, the nonprofit and charity market was worth $291 billion in 2022 and is expected to rise to $390 billion by 2026. A quick Google search reveals over 50 instances of universities in America raising $1 billion or more in donations in the past two years. 

The people wish to donate – and have been donating in record numbers. A capital campaign is how you ask the right questions to get the funds you need. 

Capital campaigns are far beyond your usual ‘Please donate $10” small asks. They are large-scale ventures that require years to plan, implement, and turn around. Here is everything you need to know about a capital campaign: how to set up one, who you need on the team, and how to market them effectively. Let’s begin. 

What is a capital campaign?

A capital campaign is a targeted fundraising effort to raise significant money within a specified timeframe. It is usually used for large-scale, long-term projects like building a new museum, purchasing heavy equipment, establishing grants, etc. 

Critically, capital campaigns are launched in phases after much strategizing and target truly major donors, other foundations, and corporations for enormous one-time donations. 

What is the difference between a capital campaign and regular fundraising?

The key differences are:

Read Also: A Quick Guide To Getting Started With Donor Prospect Research 

What are the objectives of a capital campaign?

The objectives typically include:

1. Funding a major project: Financing a specific initiative such as constructing or renovating a facility, purchasing equipment, or acquiring land. For example, Gladstone Institute’s $350 million capital campaign is to build 15 laboratories. 
2. Building an endowment: Establishing or growing an endowment to ensure long-term financial stability. For example, the Ecole Bilingue de Berkeley established an endowment in 2003 to fund their bilingual school in perpetuity.  
3. Increasing organizational capacity: Increasing the organization’s infrastructure or human resources to make it more efficient. For example, the Kenneth Rainin Foundation specifically gives grants to dance and theatre groups to build capacity. 

How much money does a capital campaign raise?

Capital campaigns can raise tens of thousands to hundreds of millions of dollars, depending on the organization’s size, scope of the project, and donor base. 

Small nonprofits may aim for a few hundred thousand dollars, while large institutions like universities or hospitals may set goals in the tens or hundreds of millions. The point is that there is no limit to how much (or how little) a capital campaign can raise. It is a matter of scale. 

Who should conduct a capital campaign?

While any organization can consider a capital campaign, it is best suited for those planning a large-scale project that exceeds their usual work. However, when considering a capital campaign, ensure your team has the following strengths: 

1. Good reputation: A solid donor base, financial stability, and a strong reputation in your community or sector.
2. Leadership support: Successful campaigns require committed leadership, including a supportive board and executive team.
3. Human resources: The ability to dedicate resources (staff, consultants, and volunteers) to planning and implementing the campaign.

Remember: Before launching a capital campaign, a feasibility study is essential to assess the organization’s readiness and the likelihood of achieving the fundraising goal.

Phases of a capital campaign: What is a good timeline to follow?

A capital campaign typically spans 2-3 years and is divided into strategic phases to ensure its success. Below is a step-by-step guide to each phase:

Pre-campaign planning (3–6 months)

This is the foundation for your campaign. During this phase, you set the stage for success.

Steps:

• Define the purpose and scope of the campaign.
• Conduct a needs assessment to clarify the goals and estimated costs.
• Engage your board and leadership team, ensuring their full support.
• Develop a preliminary case for support to articulate the vision and impact of the campaign.
• Build or strengthen your fundraising team, including staff, volunteers, and potential consultants.

Feasibility study (2–3 months)

The feasibility study determines whether the campaign goal is achievable and identifies key donors and challenges.

Steps:

• Hire a third-party consultant to interview stakeholders, including major donors, board members, and community leaders.
• Assess the organization’s readiness, including financial, donor, and operational capacity.
• Identify major donor prospects and potential corporate or foundation partners.
• Evaluate the likelihood of achieving the fundraising goal and refine your strategy based on feedback.
• Present findings to the board and finalize the campaign goal.

Campaign planning (3–6 months)

Detailed planning ensures a smooth execution.

Steps:

• Finalize the campaign goal, timeline, and budget based on the feasibility study.
• Refine the case for support with clear messaging and a compelling narrative.
• Create donor recognition plans (e.g., naming opportunities, plaques).
• Develop a gift range chart to outline required contributions by size (e.g., one lead gift of $1 million, ten gifts of $100,000, etc.)
• Train staff and volunteers on campaign procedures and donor cultivation strategies.
• Build a communications and marketing plan for campaign materials (e.g., brochures, websites, emails, social media videos, etc.)

Quiet phase (12–24 months)

This phase focuses on securing major gifts and laying the groundwork for public fundraising.

Steps:

• Approach major donors privately for significant contributions (60–80% of the goal should be raised here).
• Use personalized, high-touch cultivation strategies like one-on-one meetings, events, or tours.
• Refine and test messaging and materials based on donor feedback.
• Strengthen relationships with stakeholders, ensuring they feel invested in the campaign’s success.
• Engage the board to solicit peers and participate in donor stewardship.

Kick-off (1–2 months)

The kick-off marks the public launch of the campaign and builds excitement.

Steps:

• Announce the campaign publicly, showcasing the funds raised during the quiet phase.
• Host a high-visibility event to inspire community support and media attention.
• Share inspiring stories and visuals that demonstrate the campaign’s progress and impact.
• Leverage social media, press releases, and newsletters to spread the word.

Public phase (6–12 months)

This phase engages the broader donor base and community to close the funding gap.

Steps:

• Launch a broad-based fundraising appeal, such as email campaigns, social media drives, and community events.
• Continue to build momentum with progress updates and donor recognition.
• Focus on smaller and mid-sized gifts to encourage widespread participation.
• Ensure visibility and transparency to maintain trust and excitement.
• Celebrate milestones (for example, reaching 90% of the goal).

Post-campaign (3–6 months)

The post-campaign phase ensures long-term success and acknowledges contributors.

Steps:

• Celebrate the campaign’s success with donors, stakeholders, and the community.
• Send personalized ‘thank you’ notes to all contributors and host appreciation events.
• Implement donor recognition strategies.
• Provide an annual report on how funds were used and the impact achieved.
• Conduct a debrief to evaluate what worked and identify lessons for future campaigns.
• Transition relationships developed during the campaign into ongoing engagement efforts to maintain donor retention.

By following these steps, your organization can ensure that each phase builds momentum and maximizes donor engagement, ultimately achieving your capital campaign goal.

Everything you need for a successful capital campaign

A successful capital campaign requires careful planning, strategic execution, and the right tools. Below is a detailed list of steps and essential components to guide you.

Clear goal and long-term vision

A long-term vision inspires donors to see how their contributions will make a lasting impact.

• Define the project you are funding (e.g., building, endowment).
• Set a specific, measurable fundraising goal.
• Align the campaign with your strategic plan to demonstrate foresight and sustainability.

Feasibility study

A feasibility study helps determine if your goal is realistic and assesses your donor base’s capacity to contribute.

• Hire an experienced consultant to interview stakeholders.
• Use findings to adjust your goal, identify major donor prospects, and address potential challenges.

Support from board members

Board members must fully commit to the campaign’s financial success and act as ambassadors.

• Secure 100% board participation in the campaign (personal contributions).
• Assign board members specific roles, such as donor cultivation or peer-to-peer fundraising.

A clear timeline

A timeline creates urgency and accountability, helping the campaign move forward steadily.

• Break the campaign into phases, each with milestones.
• Include timeframes for donor cultivation, solicitations, public launch, and follow-up.

Prospect research

Identifying potential donors with the capacity and inclination to give increases efficiency and success rates – since you can plan your approach and outreach based on the personal tastes and likes of your potential donors.

• Use donor databases and wealth screening tools to identify major gift prospects.
• Analyze past giving patterns and engagement levels to prioritize prospects.

Budget for the capital campaign

A clear budget ensures the campaign is financially sustainable and avoids unplanned expenses.

• Account for marketing materials, events, consultant fees, and donor recognition costs.
• Allocate a contingency fund for unexpected expenses.

Good fundraising software

Reliable software streamlines donor management, communications, and reporting.

• Invest in a donor management system (e.g., Bloomerang, DonorPerfect).
• Ensure the software supports tasks like tracking pledges, generating reports, and segmenting donors.

Read More: Our Picks For The Top 5 Best Donor Software for Nonprofits

By following these steps and ensuring these elements are in place, your capital campaign will have the structure, resources, and momentum to achieve its goals.

How to build your capital campaign team

A strong capital campaign team is critical for success. The team should include staff, board members, volunteers, and consultants who bring expertise, enthusiasm, and connections to the effort.  

Below is a breakdown of who you need, how to hire or recruit them, and the qualities to look for in each role.

Campaign chair(s)

• Provides overall leadership and strategic direction.
• Inspires confidence among donors and supporters.
• Oversees campaign progress and addresses challenges.

Staff leadership

Key members of your organization’s leadership team, including the Executive Director and Development Director. They…

• Provide overall campaign oversight and ensure alignment with organizational goals.
• Coordinate between staff, volunteers, and consultants.
• Lead the cultivation and solicitation of major gifts.
• Fundraising experience, especially with major gifts.

Campaign manager (or Coordinator)

A dedicated staff member or consultant who handles the day-to-day logistics of the campaign.

• Tracks progress, manages timelines, and oversees campaign materials.
• Coordinates donor outreach and recognition efforts.
• Ensures effective communication among team members.

Major gift officers

Staff or consultants with expertise in cultivating and soliciting large donations. They…

• Build relationships with high-capacity donors.
• Develop personalized solicitation strategies.
• Steward relationships after gifts are made.
• Are familiar with wealth screening and donor cultivation strategies.

Read Also: Donor Pipeline: How to Ensure You Get Long-Term, Committed Donors 

Campaign consultants

This is an external professional with experience managing capital campaigns. They…

• Provide expert advice and guidance throughout the campaign.
• Conduct the feasibility study.
• Train staff and volunteers on donor cultivation and solicitation.

Marketing and communications specialist

A staff member, consultant, or volunteer who develops the campaign’s messaging and materials. They should…

• Create compelling brochures, texts, emails, MMS, videos, and social media content.
• Manage public relations and media outreach.
• Maintain consistent messaging across all platforms.

Read More: The Data Behind Your Nonprofit’s Communication Strategy

By assembling a team of dedicated individuals with the right mix of skills, experience, and passion, your capital campaign will have the foundation needed to achieve its ambitious goals.

How to market your capital campaign using key channels

Marketing your capital campaign requires a strategic approach that engages donors through multiple touchpoints. 

Here’s how to effectively use phone calls, peer-to-peer (P2P) fundraising, email, social media, and Google tools to spread the word and maximize impact.

Phone calls

Calls build a direct and personal connection with donors, making them feel valued and motivated to give. You should personalize each call with details about the donor’s past support or potential impact. 

You should…

• Contact major donors to discuss the campaign’s goals and their potential contributions.
• Mobilize board members, staff, and volunteers to call smaller donors and thank them for their support.
• Use calls to thank donors personally, update them on progress, and encourage further involvement.

Read more: How to Ask for Donations Over Phone: A Guide for Your Nonprofit

Peer-to-Peer (P2P) texting

Peer-to-peer texting leverages your supporters’ networks, amplifying your campaign’s reach and credibility.

You can mobilize passionate volunteers to make personal fundraising pitches to their peer groups, but ensure you provide them with templates, key messaging, and graphics to facilitate outreach.

Remember: As this study from 2014 discovered, “the odds of users donating increases dramatically with every friend who has donated to the same cause.”

Listen to our podcast: What makes people give? The pyschocology of donations

Email marketing

Email is cost-effective and allows you to communicate detailed information to your audience. 

You can announce the campaign with a compelling story, goal, and clear call to action. Then, regular emails with progress updates, donor spotlights, and impact stories will be sent.

Don’t forget: 

• Segment your audience for targeted messaging (e.g., major donors, past contributors, new prospects).
• Keep subject lines engaging and concise to boost open rates.
• Use visuals like photos, infographics, and videos to enhance storytelling.
• Include links to donate, sign up as a volunteer, or share the campaign.

Social media

Social media helps you reach a broad audience quickly and encourages sharing to expand your reach. Share stories, photos, and videos highlighting the campaign’s purpose and impact.

Beyond posts on campaign milestones, donor contributions, and events, you can also host live sessions, such as a Q&A or behind-the-scenes tours, to engage followers.

Use hashtags to create a cohesive campaign identity (e.g., #SavePenguinsNow).

Important tips: 

• Tailor content to the platform (e.g., visuals for Instagram, stories for Facebook, professional updates for LinkedIn).
• Run paid ads to target specific demographics and geographic areas.
• Engage with comments and messages to foster a sense of community.
• Create a content calendar to maintain a consistent posting schedule.

Google Tools

Google offers tools to increase visibility, target audiences, and track campaign performance. The tools include sets like: 

• Google Workspace: Offers Gmail, Docs, Calendar, Drive, and Google Meet for planning and coordination.  
• Google Ad Grant program (if eligible): This lets you run free or low-cost ads highlighting your campaign and recruiting volunteers. 
• YouTube Nonprofit Program: Along with posting video updates of your campaign, you can use YouTube Giving to fundraise. 

To make the most of it, you must optimize your campaign webpage with keywords to rank higher in search results, track the effectiveness of your campaign’s website traffic, and refine your strategy using Google Analytics. 

Integrated strategy for maximum impact

1. Combine channels: Email is used to drive traffic to social media, calls are used to follow up with key prospects, and P2P is used to multiply reach.
2. Consistent messaging: Ensure all channels share the same campaign story and goals for a unified approach.
3. Storytelling: Highlight emotional stories that connect donors to your mission across all platforms.
4. Measure and adapt: Use analytics from email, social media, and Google tools to evaluate performance and adjust your strategy.

By strategically using calls, P2P outreach, email, social media, and Google tools, you can effectively market your capital campaign, engage supporters, and achieve your fundraising goals.

Capital Campaign Fundraising Ideas

A successful capital campaign relies on diverse fundraising strategies to achieve its ambitious goals. Below are practical ideas to incorporate into your campaign:

Ask for corporate donations

Research local businesses and align your proposal with their values or community goals. Don’t forget to highlight the benefits of sponsorship, such as increased visibility and goodwill.

• Offer recognition opportunities (e.g., naming rights for buildings, rooms, or events) in exchange for large contributions.
• Encourage employees to donate and leverage their company’s matching gift program.
• Request non-cash contributions such as materials, equipment, or professional services.

Seek grants and major donors

Conduct donor prospect research to identify high-net-worth individuals with a history of philanthropy and foundations with nonprofit grants. And make sure you start applying early, as the process to get the funds can be lengthy.

Ensure compliance with reporting and accountability requirements to build trust with funders – this may become a major factor in future grants.

• Develop a compelling grant proposal outlining your campaign’s purpose, timeline, and impact.
• Apply for capital-specific grants often targeted toward construction, expansion, or significant infrastructure projects.
• Create a personalized donor cultivation plan, including meetings, tours, and exclusive campaign previews.
• Focus heavily on relationship-building and follow-up.
• Work with your board members to gain introductions to potential major donors.

Read more: Nonprofit Grant Writing Essentials And What Major Foundations Look For

Reach existing donors and leverage peer-to-peer networks

Your existing donor base is already invested in your mission and more likely to support your capital campaign. And we have already discussed how peer-to-peer recommendations have a lot of weight in the community. 

Don’t forget to recognize long-time donors with special acknowledgments or naming opportunities to encourage them.

• Categorize donors by giving capacity and history to tailor your outreach.
• Host small gatherings or one-on-one meetings to invite contributions from loyal donors personally.
• Encourage donors to pledge smaller, recurring gifts over the duration of the campaign.
• Use relational organizing to leverage the personal networks of volunteers, staff, and board members to increase donations.

Host capital campaign events

Launch your campaign with a high-energy event to engage donors and share your vision. Invite key donors to see the project site or meet with beneficiaries.

Read More: How To Ensure Successful Fundraising Event Planning- Template Included!

For further fundraising opportunities, host dinners, galas, or auctions with a campaign tie-in. You should also use events to highlight milestones and showcase progress – while asking for donations at each stage.

The money raised depends on how well you build a relationship with your prospects and whether you have won their trust to invest in your cause. So, as long as your events check the above boxes, you can be assured that they will raise enough money.

And if you feel you are running out of event ideas, here are 15 unique ideas for fundraising events, that can get you out of your rut. 

Crowdfunding

Online crowdfunding can attract small gifts from a large number of people, including those outside your typical donor base. 

Campaigns on sites like GoFundMe, DoubleTheDonation, and Fundrazr are very useful and easy to set up. 

• Create a compelling campaign page with visuals, stories, and a clear call to action.
• Set a specific, attainable goal to encourage participation.
• Use social media and email to promote the crowdfunding campaign widely.
• Keep donors engaged with updates on progress and impact.
• Recognize contributors publicly to build momentum.

Read more: Top 16 Online Donation Tools for Nonprofits (2024 Update)

By diversifying your fundraising strategies, you can maximize the success of your capital campaign and ensure long-term support for your organization’s goals.

3 great examples of a successful capital campaign

These capital campaigns showcase creativity, strategic planning, and effective donor engagement, inspiring organizations to undertake their own campaigns.

What these campaigns have in common:

• Visionary goals: Each campaign tied its funding needs to a transformative vision that resonated with donors.
• Diverse fundraising strategies: They employed multiple approaches to reach a broad audience, from major gifts to grassroots efforts.
• Strong leadership: Effective leadership, including board members and high-profile ambassadors, played a critical role in their success.
• Engaging storytelling: All campaigns effectively communicated the impact of their mission, inspiring donors to contribute generously.

Here are the examples. 

Smithsonian Institution: National Museum of African American History and Culture Campaign

Goal: Raise $270 million to fund the museum construction, exhibits, and educational programs.

Outcome: The campaign surpassed its goal, raising $315 million.

Key Strategies:

• Public-Private partnership: Half the funds were raised from federal appropriations, with the remaining half coming from private donors.
• Major donor engagement: Secured significant gifts from high-profile individuals and corporations, including Oprah Winfrey ($21 million) and the Bill & Melinda Gates Foundation ($10 million).

University of Southern California (USC): The campaign for USC

Goal: Raise $6 billion for academic initiatives, scholarships, research, and infrastructure improvements.

Outcome: The campaign exceeded its goal, raising $7 billion, making it one of the largest fundraising campaigns in higher education history.

Key Strategies:

• Comprehensive approach: Included funding for both academic and physical infrastructure needs.
• Donor-centric outreach: Personalized donor cultivation strategies focused on building long-term relationships.
• Broad participation: Engaged alumni, parents, corporate partners, and foundations to contribute at all levels.

Boston Children’s Hospital: The ‘Dream. Dare. Deliver.’ campaign

Goal: Raise $1 billion to advance pediatric cancer research and improve patient care facilities. It was the largest children’s hospital fundraising campaign in the country. 

Outcome: The campaign successfully met its $1 billion goal ahead of schedule.

Key Strategies:

• Bold vision: Positioned the campaign as a transformative effort to advance cures for childhood diseases.
• Integrated marketing: Used a combination of direct mail, digital outreach, and major gift solicitation to reach donors.
• Donor recognition: Established named giving opportunities, including building dedications and endowments.

These examples highlight the importance of clear goals, strong donor engagement, and strategic planning in achieving capital campaign success.

Ready to launch your capital campaign?

In closing, it would be pertinent to point out that this is just the tip of the iceberg. Every point mentioned here, from the hiring to the surveys to grant writing to marketing, can be further explored to get a holistic view of how to succeed at a capital campaign. 

We have shared some more literature from CallHub below so you can explore the next steps. And you should. After all, a billion dollars are out there waiting for you to raise and change the world! 

Read more: 

• Psychology Of Giving Hacks To Hit The Fundraising Jackpot
• Fundraising Websites 101: A Guide To Get You Started Now
• Nonprofit Fundraising: The Most Comprehensive Guide

Feature image: Image by Borko Manigoda from Pixabay

Vinayak Hegde

Vinayak Hegde is a content marketer who has been covering non-profits, changemakers, and advocacies for over six years. His experience includes all forms of digital content creation, including text, audio, and video.