Why Conduct a Feasibility Study?
The Cogeo team is often asked, “Why can’t we just start a capital campaign? Why do we need to do a feasibility study? We already know that we’re going to need to raise the funds to meet our strategic objectives.“
It’s unfortunate that these studies are so often called “Feasibility Study.” We like to call them Planning Studies because that’s really the deliverable. The study will tell the organization what steps it needs to take for a successful campaign.
Why does the organization need a study for that? To meet four critical elements of a successful fund-development campaign:
The right people in leadership roles
Major donors identified
A realistic goal
A good strategic campaign plan
Here are some excerpts by a board member who was explaining to his board why they needed to invest in a study: “Studies are excellent ways to involve and cultivate prospective donors and leaders for the campaign. Our community may well have some concerns, questions or suggestions that the board and Staff haven’t heard. If we assume a large donation from several people and it turns out that we don’t know their present situation, it’s better to know at the beginning than have surprises along the way. It is in our best interest to set a realistic campaign goal so that the campaign is successful.”
The board agreed to the study.
Leadership
A study will identify which individuals need to be involved for success and their willingness to get involved. Often this will be the first opportunity that community leaders hear about the campaign, and they feel privileged that the organization is coming to them for advice. It is a good recruiting tool for leadership.
Goals
Perhaps the organization can raise more than you thought. Perhaps it will need to scale down or phase its project. Best to know this before starting so that it will succeed at whatever goal is set. It’s a lot easier to build on a successful campaign than one that has had a shortfall. A gift chart that reflects the levels of giving that are seen in a study is essential.
Prospects
Before the organization begins a campaign, it will need to know if it has the potential funding resources to meet its goal. A study will reveal: who are the lead-and-major prospective donors? Are they likely to support the campaign components? At what levels are they likely to invest?
Campaign Plan
A timeline with specific tasks and benchmarks is essential for a successful campaign. The study will provide recommendations for staffing, budget, organization structure, monthly tasks, and job descriptions.
The study educates community leaders and friends about the organization’s mission and challenges to meet community needs. It also identifies the appeal of components of the project so that the organization can position its collateral and marketing materials to best resonate with its prospects.
The return on investment that the study provides prior to launching the campaign is the most significant thing the organization can do to prepare the organization for real success.