Growing Your Annual Fund While Running a Capital Campaign
By Sandra Davis and Kel Haney
“Once our capital campaign gets underway, won’t our annual fund suffer?”
We hear this fear from so many nonprofit leaders. All. The. Time.
We’ve got news for you - it doesn’t have to be this way.
Not only can you successfully fundraise for both, you can actually strengthen your annual fund in the process.
Let’s dig in.
Reframing the Binary
The “annual vs. campaign” mindset is false. Donors are smart. They can hold two ideas at once—especially if you:
Clarify pathways: Annual fund = operations. Campaign = expansion.
Be candid: “We’d love for you to renew your annual support, while also considering an additional gift to support our capital campaign
Be direct about your organization’s priorities: If (and only if), the donor continues to approach the conversation from an either/or mindset, feel free to add, “ if we have to choose, we ask that you prioritize annual support.”
Respect choice: Ultimately, you want to meet donors where they are. Work with them to make a meaningful gift that honors their wishes. On occasion that means choosing capital over annual (but in our experience, this happens very infrequently).
Clarity reduces decision fatigue and builds trust. Donors value honesty over spin.
Growing the Annual Fund During the Campaign
One of the most exciting dynamics we’ve seen is that a campaign can actually grow your annual fund in real time, not just protect it.
We think of the Quiet Phase as the time when we ask for support from our leadership donors, but we should also be setting the table in preparation for donors at all levels.
By also using the planning and quiet phase to steward current donors, reconnect with lapsed donors and engage new donors, you build annual giving momentum while also setting up campaign conversations: securing increased annual support builds readiness for considering a campaign gift later in the public phase.
And this success continues to play out after campaign pledges are paid off. We find that donors who commit to a campaign pledge paid out over several years get more comfortable with giving at that level and they are more inclined to continue at or near that level after their campaign pledge payment is complete. In other words, the very act of asking holistically creates growth: your base of annual supporters deepens and expands even before the campaign concludes.
Create Unique Journeys for Your Donor Groups
Journey A — Existing Donors
Your job is to expand, not replace. Strategies include:
Sequential asks: Renew their annual first, then invite a campaign pledge.
Consolidated asks: Suggest one larger donation and break it into annual + campaign pledge payments.
Anchored framing: “Your $1,000 annual gift supports our mission. Would you consider a gift of $2,000/year over five years that would support both our annual operations and our capital project: $1,000 annual + $1,000 campaign?”
And if they tell you they are comfortable with $1,500/year total, recommend that the donor keeps their $1,000 annual going and route $500/year to campaign. This recommendation will preserve your annual fund, grows the campaign, and centers the donor’s realistic capacity.
Using this methodology leverages anchoring and gives donors a roadmap instead of an ultimatum.
Journey B — Lapsed Donors
The Planning or Quiet Phases are your moment to reconnect with donors who’ve drifted away.
Lead with warmth: “We’ve missed you” is far better than, “Hey, we have a campaign.”
Listen deeply: Understand why they lapsed and what might make giving feel right again.
Reestablish the annual gift: Focus on bringing them back into the fold with operating support first.
Circle back to them: later, during the Public Phase.
Behavior lens: you’re reducing the “ick” factor and avoiding the perception that you only reach out when you need extra money.
Journey C — New Donors
Campaigns create excitement that attracts fresh supporters.
Offer an annual first step: Solidify their annual commitment.
Layer in a campaign add-on: Position it as a light “just so you are ‘in the know’ “ after they’ve given annually.
Tag the curious: New donors who ask about the campaign early are great candidates for future deeper engagement once you’re closer to completing the public phase of your campaign.
This taps into commitment & consistency: once they’ve made one gift, a second feels natural.
Why the Phone Wins
Campaigns are nuanced. Emails get skimmed and are easy to ignore. A quick call:
Creates connection and momentum.
Helps you learn about what motivates the donors you don’t know well.
Explains buckets (annual vs. campaign).
Allows flexible structuring (multi-year, quarterly).
Think of phone calls as both an opportunity for deep connection and collaboration (in the span of a quick, 5-minute phone call). You’re helping donors make confident decisions.
Anchors and Tangibility
Your donors will respond to tangible anchors. Naming opportunities (seats, rooms, donor walls) make numbers real.
We often think of naming opportunities only for leadership gifts, but using them for mid-level and early major donors can be a delightful option for donors who’ve never done this before. It’s great fun to name a seat, a sidewalk brick, or to add your name to a donor wall.
Offer friendly breakdowns: “$10,000 over 5 years = $2,000/year or $500/quarter.”
This taps mental accounting and “get it done dopamine”: smaller increments feel doable, but also exciting and gratifying.
Marketing and PR Supports Momentum
Campaigns are branding moments. Budget for visibility:
Create a clear and unique campaign identity separate from your organization’s brand.
Invest in paid boosts and PR placements - use this opportunity to loudly and publicly tell the story of the future the campaign is funding.
Make a deep investment in storytelling that signals momentum and supports the vision, invest in content of all kinds, and ask your community to pitch in and help by telling their story - why is your organization important to your donors and community members?
Donors will take a second look when they see campaign-specific brand identity, press, and content.
Your full community will re-think how they felt about your organization when the profile of our organization feels on the rise.
Momentum is contagious: let’s get that “Bandwagon effect going”!
Operational Backbone
Your generosity on the front end depends on operational readiness:
Create flexible systems to support blended pledges.
Keep clear documentation (future staff need clarity on old pledges).
Make sure you have a CRM that tracks allocations, schedules, and naming.
Behavioral bonus: reducing friction costs makes giving feel seamless.
Ten Practical Tactics
Lead with clarity.
Sequence annual first.
Consolidate when helpful.
Pick up the Phone (don’t just email).
Use tangible anchors.
Offer 3–5 year (or quarterly) plans.
Use the planning and quiet phase to warm up public phase donors.
Invest in brand/PR.
Respect boundaries.
Document everything.
After the Campaign Ends
Here’s the kicker: when cultivated during their pledge, donors often maintain higher annual levels once the campaign ends. Stretch gifts become the new normal. That’s status quo bias in action.
Final Word
Running a campaign while growing your annual fund isn’t just possible—it’s strategic. Think abundance, not scarcity. Don’t pre-disqualify donors. Be transparent, be bold, and invite everyone into the dream.
It’s not annual or campaign. It’s annual and campaign. And done well, it’s the strongest possible future for your organization.
Ready to grow your annual fund while running a successful campaign?
Sandra Davis is Founder and CEO of Donorly, which guides nonprofits through this exact challenge—strengthening annual giving while fueling bold capital campaign goals. Schedule a free 30-minute discovery call - let’s explore how Donorly can support your team.
Kel Haney is President and Founder of Kel Haney Consulting. She guides nonprofits to grow their mid-level donor relationships through quick, authentic, & successful 5-Minute phone conversations. To book a call with Kel, visit: https://www.kelhaney.com/contact
