Creating a Capital Campaign Budget: Costs & Considerations
Launching a capital campaign is one of the most exciting endeavors your nonprofit can embark on, but it can feel overwhelming if you don’t know where to start. This is especially true when it comes to planning out your finances—you’re trying to raise more money than you ever have before, so it’s hard to imagine what your budget might look like.
Fortunately, you’re not the first nonprofit to face this challenge. Our consultants have seen it all, and we’re here to help you craft a capital campaign budget that supports your goals. In this guide, we’ll go over:
Budgeting for a capital campaign is very different from budgeting for your annual fundraising plan, but it doesn’t have to be a hassle. Let’s start with some key considerations.
Considerations for Your Capital Campaign Budget
Your fundraising goals are the first consideration for your campaign expense budget. You’ve likely calculated estimated project costs and set a topline revenue goal that covers those costs and more (remember to include a healthy buffer!). This goal should be your budget’s guiding star.
As you start budgeting, revisit that topline goal and any other fundraising objectives you set. If you need help getting organized, use this quick template from our capital campaign planning guide:
With your goal in mind, plan to budget about 10% of your capital campaign revenue goal for fundraising expenses. This way, you’ll have a healthy budget from the start that you can adjust if you discover your costs are less than 10%.
Next, consider your campaign’s timeline and how your expenses will likely be spread out. You’ll have different costs to consider throughout the campaign, such as:
Planning and quiet phase expenses: Consulting fees, donor research, a feasibility study (if applicable), hiring additional staff
Mid-campaign costs: Major donor cultivation, marketing materials, events and event promotion, kick-off
Late and post-campaign costs: Donor appreciation and recognition, campaign celebrations, other follow-up
Keep in mind that depending on the length of your capital campaign, these expenses may be spread across multiple years. Consider how these costs might impact your other fundraising efforts throughout those years and plan accordingly.
Core Capital Campaign Costs
Your capital campaign budget should account for plenty of direct and indirect costs. Use this list as a starting point.
Staff
Many nonprofits discover a need for additional staff during capital campaigns since they’re such enormous efforts. Evaluate the staff and volunteers you currently have, then determine if you should budget for:
Hiring a major gifts officer
Moving part-time staff to full-time for the duration of the campaign
Hiring a campaign manager or other development staff
If you don’t want to spend time and money on hiring, remember that some capital campaign consultants (like those at Donorly) can step in to temporarily fill those roles.
Consulting Fees
If this is your first capital campaign, we highly recommend working with a consultant. These professionals are invaluable resources for planning, researching, and propelling your campaign forward while providing ongoing support.
To make the most of this part of your capital campaign budget, choose a consultant who can truly make a difference for your campaign. Look for standout qualities like:
Good communication and management skills
Experience working with similar nonprofits on capital campaigns
Trustworthy and aligned with your organization’s values
Access to the best research tools and resources
Determined to empower your team to thrive long-term
Depending on who you work with, your consultant might charge a fixed, per-project fee or a subscription-style fee for ongoing services. You’ll discuss these numbers with your consultant in initial conversations to ensure you can budget appropriately.
Donor Research
Even if you believe you know who all your major donors are, you may want to budget time and money for prospect research. A consultant could take the lead on researching potential major donors and interviewing key stakeholders, or you could take the DIY approach. If you do, make sure to budget for costs like a subscription to a prospect research or wealth screening database.
Technology
If you don’t have adequate technology to support such a large fundraising effort, consider what tools you may need to invest in. This could include a new CRM, donor research tools, design updates to your website, communication platforms, and more.
For large implementations, you may also need to budget for an implementation specialist or technology consultant to support the move.
Campaign Materials and Marketing
Running a successful capital campaign involves extensive marketing. Your budget should take into account the costs of designing and distributing marketing collateral like:
A microsite for your capital campaign
Campaign style guide
Social media collateral
Capital campaign brochure
Digital advertisements
Project renderings
Press releases
Other internal and external documentation
Consider what channels you’ll use to distribute these materials and if they come with associated costs, such as printing and postage for direct mail. Additionally, determine whether you want to hire professional help from a design or marketing agency and include that expense.
Events
Your capital campaign should include more than just the kick-off event—hosting regular, low-commitment community events throughout the campaign can help you build momentum and increase your support base long-term. Include associated costs in your capital campaign budget, such as venue rentals, online event software, catering, etc.
Donor Recognition
Thanking and recognizing donors is a vital part of your campaign. Your budget should account for specific types of appreciation, such as:
Donor recognition plaques, walls, or other displays
Direct mail thank-you letters (printing and postage)
Donor recognition events
Remember that donor recognition isn’t a one-and-done endeavor, either. Even if you don’t include ongoing stewardship costs in your capital campaign budget, make sure to plan for long-term stewardship, especially for major donors.
Questions to Ask While Building a Capital Campaign Budget
Not all of the above costs will be relevant for your particular campaign. To determine which ones are essential and which you can exclude from your budget, ask yourself and your leadership team the following questions:
Do we need to hire a major gifts officer or other additional staff?
Should we hire a consultant?
Do we already have prospect research tools or subscriptions?
Should we invest in a more scalable CRM or other technology?
Do we need to budget for the services of a web designer or marketing consultant?
What type of events will we host? How many?
How do we plan to recognize and retain major donors?
If you need additional guidance on what to include or exclude from your capital campaign budget, don’t hesitate to seek support from a professional consultant. As part of their services, they can help you clarify and adjust your budget to support your goals.
Fast-Track Your Capital Campaign with Donorly
Budgeting is only the beginning of planning and launching your capital campaign. There are plenty of moving parts, and we can help you manage them confidently. Not only that—we’ll also provide the support to fast-track your campaign so you can see results sooner.
At Donorly, we take a unique approach to capital campaigns that involves accelerating your campaign and tapping into the power of your community. In just six months, we’ll help you raise 75% of your total goal.
Our service includes guiding conversations with stakeholders, creating a lead donor strategy, engaging your board, and much more. By the end of the first six months, you’ll have made significant fundraising progress and set the stage for securing impactful, long-term support.
Putting Your Capital Campaign Budget Into Action
With an expense budget at the ready, you can move on to other essential aspects of the planning phase, like interviewing stakeholders and securing board support. Your budget is bound to change as your campaign gets underway, and that’s normal. Revisit it throughout your capital campaign, and don’t be afraid to make changes to better align with your goals.
For more insight into all things capital campaigns, check out these additional resources:
Capital Campaigns: A Success Guide for Small Nonprofits. Learn more about the basics of launching a capital campaign and how smaller organizations can succeed.
Creating a Capital Campaign Plan: Complete Guide & Template. Haven’t fleshed out the rest of your campaign plan yet? Use this template to guide you through the planning process.
Free Annual Fundraising Plan Template for Nonprofits + Steps. Remember that you still need to set and reach annual fundraising goals while you run your capital campaign. Explore our planning guide and download the free template to cover your bases.
