How to Conduct a Capital
Campaign Feasibility Study
Learning how to conduct a capital campaign feasibility study starts with understanding its core purpose. A capital campaign feasibility study is a structured assessment that determines if your nonprofit is prepared to launch a large fundraising campaign for a capital project.
It evaluates key factors such as stakeholder support from the board, major donors, and community leaders. Additionally, it reviews organizational strengths and gaps, including staff capacity, systems, and past giving history.
The study also examines realistic fundraising potential and appropriate timing for the campaign. By conducting this analysis, your nonprofit will avoid overcommitting resources or misjudging donor interest. Ultimately, it ensures your campaign goals align with supporter expectations and your organization’s capabilities.
Step 1: Define Objectives, Scope & Preliminary Case for Support
Step 1 in conducting a capital campaign feasibility study is to clearly define your objectives, outline the study’s scope, and develop a preliminary case for support.
Before initiating interviews or surveys, your team must:
- Clarify why you need this campaign. What project or infrastructure is driving it? What mission outcomes result?
- Estimate a preliminary fundraising goal and a rough budget for the project.
- Build a draft case for support. The core narrative should include the need, why your organization is uniquely positioned, and the impact gifts produce. This case will become a testable document during the study.
- Research relevant grant opportunities (once it’s time to apply for grants, refer to Kindsight’s step-by-step guide on how to write a grant proposal).
Setting objectives and a scope ensures you ask the right questions and interpret feedback with confidence.
Step 2: Identify Key Stakeholders to Interview & Survey
Stakeholder feedback is the heart of your study. Select individuals who will provide diverse and honest perspectives, such as:
- Major donors and longtime supporters
- Board members and staff with fundraising roles
- Community or civic leaders, and external partners
- Beneficiaries of your work, where appropriate
Aim for both depth and breadth: one‑on‑one interviews, focus groups, and broader surveys. The goal is to uncover perceptions, concerns, and motivations that influence support for your campaign.
Expert Tip: Transparency about your organization encourages major stakeholders to donate and commit long-term. A Walden University study highlights that nonprofit leaders improve stakeholder buy-in by demonstrating accountability and openness, which helps achieve better organizational outcomes. Being transparent about your organization’s goals and asking for feedback from stakeholders builds trust, strengthens relationships, and increases the likelihood of long-term donor engagement.
Step 3: Collect Quantitative & Qualitative Data
Step 3 focuses on collecting both quantitative and qualitative data to assess your nonprofit’s true readiness for a capital campaign.
Use mixed methods to gain a 360-degree view of your fundraising potential and stakeholder sentiment:
- Qualitative: interviews, focus groups, open‑ended survey responses to hear perceptions about your organization, project, leadership, and your case for support.
- Quantitative: structured survey questions asking about likely gift sizes, major donor capacity, prospective donor behavior, previous giving trends, and financial benchmarks.
Include external environmental data: comparative data from similar nonprofits, economic and philanthropic trends, and community sentiment. Combine internal data (donor history, database quality, and staff capacity) with external context.
Step 4: Assess Internal Readiness & Operational Capacity
Step 4 focuses on evaluating whether your nonprofit has the internal foundation needed to execute a successful capital campaign.
Even with strong donor interest, your campaign will stall without the right systems, staffing, and infrastructure in place. Assess the following areas to ensure you’re equipped to deliver on your fundraising goals:
- Fundraising infrastructure: database/CRM software, donor tracking, reporting tools
- Staff and volunteer leadership: existence of trained staff, capacity to engage major donors, and leadership commitment
- Budget for campaign costs: marketing/materials, staffing, and overhead
- Systems for managing gifts, stewardship, and communication
This is the moment to identify gaps in staffing, training, technology, or organizational structure. Resolve or plan to resolve those before or during your campaign launch.
Step 5: Analyze Data & Interpret Findings
Step 5 is where your data becomes actionable insight—translating feedback into a clear picture of your campaign’s potential and risks.
After collecting surveys, interviews, and performance benchmarks, your team or consultant should begin analyzing the results to uncover:
- Patterns of support: Are donors excited? What level of major gifts appears feasible?
- Barriers: Any concerns raised repeatedly (e.g., costs, timing, competition, trust, clarity of project)
- Variances in stakeholder feedback: Where leadership sees something differently from community donors
- Donor capacity trends: Identifying shifts in giving potential or changes in donor priorities
- Communication effectiveness: How well your case for support resonates with different audiences
- External factors: Economic or philanthropic trends that could impact campaign timing or goals
- Opportunities for engagement: Untapped donor segments or partnerships that could be leveraged for greater impact
Step 6: Report Findings & Build Leadership Consensus
Step 6 is where your study turns into a strategy, clearly communicating findings to unify leadership and guide next steps.
Write a transparent, well-organized report that includes:
- Summary of stakeholder feedback
- Key findings: strengths, risks, donor capacity
- Recommendations: adjust goal upward or downward; refine case for support; address operational gaps
- Suggested timeline, gift chart, and campaign cost projections
Use that report to ensure alignment among leadership. Consensus is essential. Without unified leadership, fundraising suffers.
Step 7: Develop the Final Campaign Plan
Step 7 transforms insight into action, using everything you’ve learned to finalize a strategic, achievable capital campaign plan.
- Finalize campaign goal (amount, timeline) based on data
- Build your leadership and volunteer structure: campaign chair, major gifts team, stewards
- Finalize messaging and case for support, incorporating feedback
- Plan donor cultivation and solicitation strategy: who to ask, in what order, what asks might look like
Avoid Common Missteps
While conducting the study, be mindful of pitfalls:
- Assuming all stakeholders will be supportive; be ready for honest criticism.
- Overestimating major donor commitments; model conservatively.
- Under‑estimating internal resource demands such as staff time, communications, and donor stewardship.
- Neglecting external factors: economic climate, donor priorities, competition for philanthropic dollars.
Address these proactively in your planning and data gathering stages.
Outcomes You Should Expect
After completing a well‑executed feasibility study, your nonprofit will have:
1. A clear understanding of donor capacity and interest
2. A refined case for support that resonates with key audiences
3. A realistic campaign goal and timeline based on data
4. Identification of internal gaps to fill before mass solicitation begins
5. Leadership (board, staff, volunteers) aligned with strategy
These outcomes reduce risk, build internal confidence, and set your campaign up for success.
Timeline & Practical Tips
Creating a realistic timeline and following practical tips are crucial for keeping your capital campaign on track and running smoothly.
- Allow 8‑12 weeks (or more for very large campaigns) for the feasibility study process: stakeholder interviews, surveys, data analysis, and reporting.
- Begin this study ideally 3‑4 months ahead of campaign launch.
- Budget appropriately for consultants (if used), tools, staff time, and printing or materials for case drafts.
- Maintain transparency with stakeholders. Share what you learn and adapt your campaign plan based on feedback.
Building the Foundation for a Successful Campaign
A well-executed feasibility study is the foundation of a successful capital campaign. It helps your team clarify goals, engage key stakeholders, assess internal capacity, and gather meaningful data to guide decisions.
This process gives leadership the confidence to move forward with a clear strategy. It also ensures that your message aligns with what donors value and expect. When done well, the study creates a strong foundation for a campaign that reflects your mission and meets real community needs.
A feasibility study is not just a box to check. It is the groundwork for long-term success. Prepare carefully, stay focused, and move forward with purpose.
