Is Your Nonprofit Ready for a Capital Campaign?
The Essential Checklist Before You Even Begin
A capital campaign is one of a nonprofit's most ambitious fundraising efforts. However, your organization must be ready before you even consider conducting a feasibility study or assembling a campaign committee.
Too often, nonprofits launch capital campaigns before they have the organizational stability, donor base, or leadership capacity to sustain them. This can lead to stalled campaigns, donor fatigue, and long-term reputational damage.
At Passing Lane Consulting, we guide nonprofits through pre-campaign readiness assessments, ensuring they have the necessary foundation before investing time and resources into a campaign. If your organization is considering a capital campaign, here’s how to determine whether you’re ready.
1. A Strong, Well-Functioning Board
A capital campaign is only as strong as its board. A passive or disengaged board will struggle to drive campaign success, while a high-functioning, committed board can propel fundraising efforts forward.
What a Campaign-Ready Board Looks Like:
100% giving participation - every board member contributes financially, signaling a commitment to funders and major donors.
Active fundraising role - board members are comfortable asking, hosting events, and leveraging their networks.
Leadership and governance strength - the board has a clear strategic plan, financial oversight, and strong governance practices.
Capacity for a multi-year commitment - board members understand that capital campaigns last three to five years and are willing to support the effort long-term.
Red Flag: If your board members are reluctant fundraisers or haven’t fully engaged in past campaigns, a board development strategy should be implemented before considering a capital campaign.
2. A Proven Track Record of Programmatic Success
Major donors won’t invest in a nonprofit that can’t demonstrate impact and sustainability. Before launching a campaign, your nonprofit must have:
A history of program growth and measurable outcomes. Can you show tangible results from your existing initiatives?
Stable leadership with low turnover. Frequent executive transitions or staff instability can raise concerns for donors.
A strong financial position. Has your organization consistently met budget goals and maintained financial transparency?
A history of meeting past fundraising goals. If annual campaigns consistently underperform, a capital campaign may not be feasible.
Red Flag: If your nonprofit is still working to establish program impact or is struggling with financial stability, focus on strengthening operations before launching a capital campaign.
3. A Loyal Donor Base with Major Gift Potential
Capital campaigns depend heavily on major donors—typically, 80-90% of the funds come from just 10-20% of donors.
Questions to Ask About Your Donor Base:
Do you have a history of receiving large gifts? (At least $10,000+ annually from multiple donors?)
Is your donor base growing, stable, or shrinking? Campaigns are risky when donor engagement is in decline.
Do you have at least 20-50 committed major donors? These individuals will drive early campaign momentum.
Are your donors accustomed to multi-year pledges? Capital campaigns often involve three- to five-year commitments.
Red Flag: If your nonprofit relies heavily on small-dollar donations and has little experience with major gifts, consider building a major gifts program first before exploring a capital campaign.
4. A Strong Annual Fundraising Program
Capital campaigns don’t replace annual fundraising efforts - they build on them. Launching a capital campaign is premature if your nonprofit struggles to meet regular fundraising goals.
Signs Your Fundraising is Capital Campaign-Ready:
Annual fundraising revenue is stable or growing. (No significant revenue fluctuations or shortfalls.)
Your donor retention rate is substantial. (Are donors giving year after year?)
You have a mix of revenue sources. (Not solely reliant on grants or government funding.)
Your team has successfully executed fundraising events, major gift asks, or endowment drives.
Red Flag: If your nonprofit relies on one-time donations or doesn’t have a year-over-year fundraising strategy, strengthen annual revenue before pursuing a capital campaign.
5. Strong Internal Infrastructure and Development Team
Capital campaigns require a high level of coordination. Without the right infrastructure, even the most well-funded campaigns can fail.
Operational and Staff Readiness Checklist:
CRM and Donor Database Management - Can your team track significant gift pledges, donor touchpoints, and campaign progress?
Gift Processing and Pledge Management - Does your finance team have systems for tracking multi-year gifts?
Marketing and Communications Strategy-– Can your team handle donor stewardship, campaign branding, and public relations?
Experienced Fundraising Staff - Does your development team have experience securing large gifts and managing multi-year campaigns?
Red Flag: If your organization lacks full-time development staff or relies on outdated donor tracking methods, consider investing in fundraising infrastructure before moving forward.
6. A Community and Stakeholder Network Ready to Support the Effort
Beyond donors, successful capital campaigns require broad community support. This includes:
City and community leaders - do local officials and influencers support your organization’s mission?
Corporate and foundation partners - are businesses and grant-makers familiar with your work and willing to invest?
Volunteers and ambassadors - can you recruit well-connected supporters to advocate for your campaign?
Red Flag: If your nonprofit operates in relative isolation without strong community ties, focus on relationship-building before a capital campaign.
Final Verdict: Is Your Nonprofit Capital Campaign Ready?
You’re Ready If:
Your board is strong, engaged, and financially committed.
Your nonprofit has a history of program success and financial stability.
You have an active major donor base with multi-year giving experience.
Your annual fundraising program is consistent and growing.
You have the internal infrastructure, systems, and staff to manage a campaign.
Your nonprofit has strong community and stakeholder relationships.
You Should Wait If:
Your board is disengaged, hesitant to fundraise, or lacks financial commitment.
Your organization struggles with donor retention or major gift fundraising.
Your financials are unstable, or your fundraising team lacks experience.
Your community presence is weak and lacks strong partnerships.
If your organization isn’t quite ready, that’s okay - the best capital campaigns start with strategic preparation.
Next Steps: Strengthening Your Readiness
At Passing Lane Consulting, we specialize in capital campaign readiness assessments and nonprofit capacity-building. Whether you need to develop your board, strengthen your major gift program, or build internal infrastructure, we help nonprofits lay the groundwork for successful capital campaigns.
Are you thinking about a capital campaign but unsure if you’re ready? Contact us today for a pre-campaign assessment and expert guidance.
