Why major gift campaigns fail (and how to make sure you succeed!)

A recent Board of Directors associated with a nonprofit charitable organization shut down the idea of a major gift campaign. Their explanations: ‘Our Board is not that strong in influence and giving capacity’; Our donor base is not strong enough to handle a multi-million-dollar campaign’ and ‘The timing does not feel right…let’s table this imitative’.

Due to this dynamic, the nonprofit’s Executive Director packed his bags and left. There was no Feasibility Study to confirm (or not confirm) relative next steps surrounding a major gift campaign. The facility – an older storefront building which opened as a nonprofit in 1973 - still needs major improvement/investment in infrastructure, operations and deferred maintenance.

While it’s true more than 50% of all first-time capital campaigns fail, most fail for the same reason: a lack of planning.

Key factors: inadequate donor identification and cultivation, poor relationship building, insufficient leadership commitment, not understanding the donor's motivations, rushing the ask, and not respecting the necessary campaign tools. Incredibly-designed professional tools must be delivered to communicate the value proposition to high-net-worth individuals who can be major donors.

Bonus Observation: A failed major gift campaign can have other undesirable consequences. It can cause distrust between the organization and its donor base (general unrestricted gifts may become ‘at risk’). It can also have a negative impact on staff morale. Some leaders may see a ‘no go’ campaign decision by the Board or a failed campaign as a natural “ending” of path-forward progress and an opportunity to look for the next chapter of their employment.

Let’s break down reasons why major gift campaigns fail:

1) Inadequate donor identification and cultivation, poor relationship building

It is essential to have the correct quantity and quality of donors to support a major gift campaign. We know a large majority of major gift campaigns leverage their existing donor base to support the major gift asks of a campaign; we also know it’s rare for a donor’s first gift be a major gift. We must understand that a) an organization should have a terrific history of successfully communicating its mission and impact; b) an organization should have a deep connection (and gift pattern) with their donors); c) stretch gifts, multi-year pledges and/or legacy gifts will be paramount for success.

2) Insufficient leadership commitment

Board, Staff leaders will likely collaborate with an outside consultant to build a gift pyramid, gift table and understand how many leadership gifts will be necessary to successfully hit milestones within a major gift campaign. Top donors, Board Members, and key stakeholders must all be committed to their campaign role. This can include financial contribution, influence, home hosting (house parties), board service and committee leadership. 3) Ineffective communication

If the community (including the important donor ecosystem) don’t appreciate the need for the respective project or program (campaign), you’re facing a major uphill battle. Use a Market Readiness exercise or Feasibility Study to ensure your narrative is well received and the community will buy-in to your vision. Charting a path forward without consulting key stakeholders can result in donors feeling like you are out of touch with what the community perceives to be your greatest needs. They may disagree with the language you have chosen to describe your campaign, or they may outright reject the entire plan. The old fundraising adage is still true today: if you want someone’s money, ask them for their opinion.

4) Rushing the ask

It’s a major mistake to come out swinging too early. Major gift campaigns are full of energy, optimism and momentum, but the timing (sequence) of strategic steps is paramount to a campaign’s success. This includes who is chosen as Campaign Chair and when the name is communicated to the donor base and the community. It involves if and how naming opportunities are aligned with campaign gifts. It involves when and how a public relations plan is rolled out to staff, volunteers, media and the public at large.

5) Not prepared with correct materials, collateral

It is crazy important to choose an expert nonprofit consultant who can help with designing, developing professional materials, collateral as well as coach Board Members, staff and volunteers on how to use them. Professionally-designed, succinct and meaningful collateral is now expected by corporations, philanthropists and foundations.

Clemons-Associates believes this is a key dynamic. It is why 40+ Clemons-Associates clients have collectively raised more than $720M in major gifts.

Download this development recap delivered to a recent Clemons-Associates client:

Great consultants start with pre-campaign activities to include a Message Audit, Brand Audit before transitioning to designing a customized Case for Support for the specific campaign.

While organizations must have a strong history, positive reputation, and a solid donor base…they will benefit by using outside counsel for market-ready campaign elements proven to connect with donors and land major gifts.

Clemons-Associates suggests you consider the following tools/resources/applications when developing a major gift campaign:

a) Brand Audit

b) Messaging Audit

c) Case for Support

d) CRM/DMS (Donor Management System); Digital Assets including website, blog, SM

e) House Gatherings

f) One-on-One Donor Solicitations

g) On-on-Many Donor Solicitations

h) Board of Directors training, coaching

i) Campaign Committee training, coaching

j) Volunteers, Ambassadors training, coaching

k) Staff Members training, coaching

Bottom line:

There are many activities nonprofits can execute to not fail at a major gift campaign. Remember to gather your staff, Board, top donors, and key stakeholders to set forth a plan; take strategic steps to not experience inadequate donor identification and cultivation, under-developed relationships, insufficient leadership, poorly sequenced elements, and less-than-awesome professional campaign tools. Clemons-Associates works closely with each client on developing these mission critical elements (we have developed and/or collected quite a tool chest over the last 25 years). Contact one of our team members and we can share case studies, templates and best practices tools.

Craig Clemons with Friend, Philanthropist and President/Founder/Board Chairman of Express Employment Professionals, Bob Funk, Sr.

Seeking expert assistance from seasoned professionals?

Contact Craig Clemons at craig@clemons-associates.com or one of our rock star associates for more details. Clemons & Associates is on standby to help you with brand identity, strategic messaging, campaigns, digital assets, programs/projects and/or development endeavors.