PRINT
EMAIL
PRINTABLE
WEB SITE
AUDIO
VIDEO
Strategic Planning in the Arts: A Practical Guide
Special Campaigns
From time to time arts organizations will need to initiate special fundraising campaigns for physical expansion projects, organization stabilization (e.g., endowment, reducing accumulated deficit), or the launch of a new program. Knowing exactly how much money is needed to complete the special campaign and integrating the special campaign with the organization’s annual fundraising campaign are essential for special campaign success.
 previous |
next |
Virtually every mature arts organization reaches a point in time when its strategic plan recommends a project that cannot be supported by the annual fund-raising drive. Physical expansion, stabilization (reducing the accumulated deficit or establishing or augmenting a working capital reserve or endowment fund), or the pursuit of a major new program will frequently demand more resources than the annual campaign can produce. An arts organization must then contemplate mounting a special campaign.
Before one can even begin to plan for a special campaign, it is essential to develop an absolutely explicit and comprehensive description of the need. Too many organizations conceive of and initiate a special campaign only to discover midway through the effort that major "hidden costs" were omitted and that the campaign target must be increased. When a physical expansion is planned, for example, organizations frequently omit or underestimate costs of closing during construction, the increased costs of operating the new facility, the cost of running the campaign or the costs of financing the expansion until pledge payments are received in full. Organizations that do a poor job of cost estimation will be evaluated poorly by major donors, at best, and can be financially crippled by a "successful" (but inadequate) campaign, at worst.
When an organization has decided that it needs to mount a campaign, it should consider the range of projects that should be included. Many organizations planning physical expansions, for example, also include operating endowments in the campaign goal. Arts organizations cannot mount special campaigns very frequently. After any successful campaign, the participants want to believe that they are "finished."
Frequently an ambitious effort will leave staff, Board and donors feeling spent. It is difficult enough to fight this post-campaign depression and to get everyone focused on the annual funding needs. If the campaign was inadequately specified, and substantially more money is required, the sense of frustration can be crippling. This is particularly true of organizations that erect new facilities only to find themselves in severe financial straits owing to poor campaign planning.
For this reason, all the special needs for the following five or more years should be considered. Broadening the scope of a campaign may also interest donors who are not engaged by the original limited purpose of the campaign.
Without a clear picture of the full cost of the project, it is also impossible to determine the feasibility of the fund-raising effort. Conducting a feasibility study lowers the chances of initiating an unsuccessful campaign. In addition to wasting time and money, unsuccessful campaigns create doubt in the minds of major donors and Board members about the management of an arts organization, thereby hampering future major projects. For this reason, it is essential to devote some resources to studying the organization's potential for a successful effort.
Feasibility studies can be completed by the organization itself or by a consultant. While internally-managed studies are undoubtedly less expensive, an outside consultant may be more objective and can frequently learn more from potential donors. Prospects may be less willing to reveal their true views and the level at which they might give in a meeting with a staff or Board member than in a confidential appointment with an independent consultant.
| previous |
next |
