You've got a vision. Maybe it's weatherizing your historic theater to extend programming year-round. Perhaps it's renovating gallery spaces to better serve your community. Or maybe you're looking to build an endowment that secures your organization's future.

Whatever your project, you're thinking: "We need a capital campaign."

Here's the question that stops most executive directors and development directors in their tracks: Are we actually ready?

If you're leading an arts or culture organization—whether it's a theater, museum, performing arts center, library, or botanical garden—this question matters more than you might think. Because launching a capital campaign before you're ready doesn't just waste time and resources. It can test the limits of your donor relationships and the opportunity for bigger impact.

What Does "Ready" Really Mean?

Let's start with what readiness isn't. It's not just enthusiasm about your project. It's not just having a building that needs repairs. And it's definitely not just wanting to raise money.

True capital campaign readiness means you have:

Alignment with leadership and your board. Everyone needs to be on the same page—not just about the project itself, but about what a capital campaign actually is. Annual giving campaigns and capital campaigns are very different. Anda capital campaign is more than just a fundraising effort to cover expenses associated with a building project..

A well-engaged major donor base. Notice we didn't just say "a donor base." If you have high-capacity leads who haven't been meaningfully engaged with your organization—and you’re depending on them for lead gifts, then you're not ready. Capital campaigns succeed or fail based on major gift relationships that already exist.

Understanding of what a capital campaign actually involves. This includes knowing how campaigns differ from annual fundraising, understanding that you'll need separate budgeting and accounting systems, and grasping the timeline and intensity required.

Capital Projects vs. Capital Campaigns: What's the Difference?

A capital campaign is a focused fundraising effort that goes beyond the scope of an organization’s annual giving. It’s designed to support a larger vision that drives the organization’s mission forward. While a capital campaign can fund a physical capital project, like building renovations or a new facility, it can also support other long-term priorities, such as creating or growing an endowment, expanding programs, or investing in strategic initiatives. (Sometimes these efforts are called comprehensive campaigns, or endowment campaigns, but the common denominator is that they are fundraising that is managed in addition to regular annual fundraising efforts for a one-time project).

The key to a successful capital campaign isn’t just describing what you’ll do with the funds—like replacing a roof or adding a rehearsal space—but telling a compelling story about the impact that investment will have. For example, instead of simply funding construction, you might highlight how the project will enable year-round performances, deepen community engagement, or provide access to arts education for more people. In other words, it’s about inspiring donors with the mission-focused transformation their support will make possible.

What Organizations Overlook When They Think They're Ready

When small to medium-sized arts and culture organizations reach out about launching a capital campaign, they typically have gaps in a few key areas:

They don't have a concrete goal. Some organizations haven't even thought about a specific number. Others have a wide range—"somewhere between $3 million and $8 million"—without the analysis to back it up. You need a hypothesis about your campaign goal that's based on actual assessment of your project costs and donor capacity.

They haven't defined their vision beyond the project list. If all you have is a list of improvements, you haven't articulated why these improvements matter. What changes for your organization once this work is complete? How does your capacity to serve your mission expand?

They lack a warm pipeline of major donor prospects. Some organizations are hopeful that consultant surface new major donors for them. While their may be grant opportunities that are specific to capital projects, your prospect list of individual donors should be drawn from your own relationships with people who have the capacity and inclination to give at major gift levels. If you don't have that pipeline, spend some time identifying and cultivating those relationships before you launch a campaign.

They haven't engaged with project details. If you're building or renovating, donors need to see you're serious. That means having architectural renderings, a realistic construction budget, and a clear understanding of the timeline. Donors invest in organizations that have done their homework.

They need money right now. Many organizations jump into campaign mode because they're facing an immediate cash crunch. But campaigns take time to build momentum and they require resources. You need to understand your cash flow needs, when money will need to be deployed, and how pledge payments will come in over time. If you need cash immediately, a capital campaign may not be your solution.

Should You Do a Feasibility Study First?

Do we need a feasibility study, or can we just launch the campaign?

It depends on the stakes and the uncertainty.

If you’re planning a $20 million campaign to build a new facility, and your typical annual fundraising is $3 million, a feasibility study isn’t optional—it’s essential. The risk is too high. Imagine starting construction only to discover halfway through that you can’t raise the funds. That could seriously jeopardize your organization.

On the other hand, if you’re raising $5 million for an endowment campaign, the stakes are lower. Falling short would mean a smaller endowment than planned. It’s not ideal, but it’s not catastrophic.

Feasibility studies do several critical things:

Gauge donor readiness: Understand capacity, interest, and perceptions of your leadership and programs.
Signal significance: Show major donors that something big is on the horizon.
Build board confidence: Help leadership make high-stakes decisions with clarity.
Refine your goal: Adjust the campaign target if the ideal number is uncertain.
Strengthen relationships: Deepen connections with key stakeholders through interviews.

Yes, feasibility studies take time and money—but consider the alternative: launching a campaign that fails, damages credibility, or puts your organization at financial risk. In that context, a feasibility study is an investment in certainty, confidence, and long-term success.

The Donorly Framework: Core Pillars of Campaign Readiness

When we assess whether an organization is ready for a capital campaign, we look at six core pillars:

Organizational Readiness - Is your leadership aligned? Does your board understand what a campaign entails? Do you have the internal capacity to manage it?
Case for Support - Have you articulated not just what you're building, but why it matters? Can you connect your capital project to your mission and impact?
Financial and Fundraising Capacity - Do you have realistic budget projections? Have you analyzed your donor pipeline and giving capacity?
Donor and Stakeholder Engagement - Do you have warm relationships with major gift prospects? Have you been stewarding these donors consistently?
Governance and Compliance - Does your board have the expertise and commitment to lead a campaign? Do you have the systems in place to manage restricted gifts properly?
Timeline and Execution Plan - Have you mapped out when you need cash to flow? Do you understand how long this campaign will realistically take?

These pillars apply whether you're a theater, museum, performing arts center, or any other cultural institution.

Readiness Isn't a Barrier—It's Your Foundation

Here's what we want you to understand: Assessing readiness isn't about creating barriers.. It's about setting you up for success.

The work you do to prepare for a campaign—strengthening your donor relationships, clarifying your vision, aligning your board, analyzing your financial capacity—this work has value no matter what you decide to do next.

Even if you discover you're not quite ready for a campaign yet, you've identified exactly where you need to focus. Maybe you need to deepen your major donor pipeline. Maybe you need to refine your messaging. Maybe you need to get your board more engaged with fundraising.

Every one of these improvements will strengthen your organization, whether you launch a campaign next year or five years from now.

And here's another benefit: The process of assessing readiness—even conducting a feasibility study—deepens relationships with your stakeholders. When you engage major donors in conversations about your vision, when you invite them to give input on your plans, you're not just gathering data. You're making them feel invested in your success.

One Small Step You Can Take Right Now

If you're reading this and thinking, "We need to figure out where we stand," here's what to do next:

Start by taking an honest inventory of your current position across those six core pillars. Where are your strengths? Where are the gaps?

You don't need to have everything perfect before you start this assessment. In fact, identifying your weaknesses is exactly the point. Once you know where you need to grow, you can create a plan to get there.

Ready to Find Out Where You Stand?

Whether you're just starting to think about a capital campaign or you're convinced you're ready to launch, the first step is understanding exactly where your organization is today.

We've created two free resources to help:

Download our Capital Campaign Readiness Checklist - A checklist that walks you through Donorly’s pillars of campaign readiness, from board alignment to donor capacity to project planning.

Take our Capital Campaign Quiz - A quick assessment that helps you identify your organization's strengths and gaps, with personalized insights based on your responses.

Both resources are designed specifically for arts and culture leaders like you—executive directors and development directors who want to launch successful campaigns that transform their organizations' capacity to serve their communities.

Remember: Every successful capital campaign starts with an honest assessment. The organizations that take time to ensure they're truly ready are the ones that hit their goals, strengthen their donor relationships, and come out stronger on the other side.

Is Your Arts & Culture Organization Ready for a Capital Campaign? Here's What You Need to Know