The Importance of Undertaking a Capital Campaign Validation Study to Ensure Your Fundraising Success
OKC is currently advising organisations across the healthcare, education and arts & cultural sectors on their Capital Development projects. There are a number of key stages to delivering a successful Capital Campaign and in this month’s OKC Insights we are focusing on Stage 1 - Testing your Campaign Goals through undertaking a Feasibility Study, or as we prefer to term it, a Validation Study.
Laying the Groundwork: The Vital Role of Validation Studies in Capital Campaigns
Embarking on a Capital Campaign is a significant step for any organisation. It's an opportunity to secure substantial funding for transformative projects, whether that involves constructing new buildings, renovating existing facilities, purchasing new equipment, acquiring land, investing in people or increasing endowments. However, as Capital Development projects are normally large-scale and long-term, the road to delivering a successful fundraising campaign must be paved with careful planning and strategic decision-making. One of the most crucial first steps in this process is conducting a Validation study.
What is a Validation Study?
A Validation Study is a comprehensive assessment that helps an organisation determine the likelihood of success for a proposed Capital Campaign. At the end of a Validation Study you will know: to what extent your case resonates with potential philanthropic partners, the size and pool of donor prospects, who are the leaders that can help drive success, and what resources are needed to effectively implement your campaign plan.
This study is typically conducted by external consultants, with experience in managing philanthropy campaigns and engaging high-level donors, to ensure objectivity and thoroughness. OKC has had the privilege of working on many Capital Validation Studies; with schools, healthcare organisations, heritage and cultural institutions, universities and broader community initiatives.
Why Conduct a Validation Study?
Gauge Donor Perceptions and Support: Understanding your donor base is critical. A Validation Study involves interviews with key internal and external stakeholders and potential high-impact donors, who have the capacity to make significant investments or leadership gifts. These conversations reveal their perceptions about the project, their level of interest, and willingness to engage with and support the campaign. This insight is invaluable in shaping your campaign narrative, goals and strategies.
Assess Internal Readiness: A Capital Campaign demands significant resources and effort from your organisation. For most organisations, balancing a capital fundraising project with ongoing programme and service needs takes careful planning - ensuring that they complement rather than compete with each other. The study examines your internal capacity, including staff, systems and structures, to handle the Capital Campaign in addition to existing operations. It helps identify any gaps that need to be addressed to ensure your team is well prepared.
Evaluate Financial Goals: Setting a realistic financial goal is essential for the success of your campaign. The Validation Study analyses the potential giving capacity within your donor base and broader community. This ensures your campaign goal is ambitious yet achievable, preventing overreach or underestimation.
Identify Potential Challenges: Every campaign faces challenges, be it economic conditions, competition for funds from other projects, or internal issues. The Validation Study identifies these potential hurdles early on, allowing you to develop strategies to mitigate them.
Build Campaign Momentum: Engaging stakeholders in the Validation Study process helps build early momentum for your campaign. It creates a sense of ownership and enthusiasm among your key supporters, laying strong foundations for the strategic and public phases of the campaign.
Identify Campaign Champions: The most successful Capital Campaigns are led not only by senior staff members but also by volunteer leadership - the Campaign Ambassadors who can advocate to their peers - these individuals, often established as members of a Campaign Board or Committee, are identified during the Validation Study. In many cases, they will also be the first donors to the campaign.
”By ensuring that your Capital Campaign is grounded in data and insights from across your organisation, a validation study can make the difference between success and setbacks or even failure. It provides the clarity and confidence needed to embark on this transformative journey, paving the way for your organisation's future impact.” - Natalie Collin, OKC Senior Consultant: Philanthropy and Campaigns
Moving Forward
A Validation Study is not just a preliminary step; it's a strategic investment in the success of your Capital Campaign. By providing a clear, evidence-based assessment of your fundraising potential and readiness, it empowers your organisation to move forward with confidence.
At OKC, we ask organisations a number of initial questions to help to focus your campaign from the beginning. These include:
What difference will this capital development make to your organisation and its future success and impact - what are the benefits over the features?
Who are the main beneficiaries of the campaign?
Who are your key donor audiences for the campaign?
Are the project budgets realistic?
How strong are current supporter relationships and how can relationships with those less engaged be reignited through the campaign?
How is your organisation perceived publicly – at a local,, national and international level?
What ways can you involve and acknowledge donors as part of this Capital Development?
With whom, if anyone, are you competing for capital funding?
How committed are the staff, management and Board to achieving this success?
At OKC, we specialise in conducting thorough and insightful Validation Studies tailored to your unique needs. Our experienced team works closely with you to ensure your Capital Campaign is built on a solid foundation, setting the stage for lasting impact.
“St. Columba's College engaged the consultancy services of OKC to aid the College in the setting up of our Development Office, creating a Development Board and thereafter to aid us with the strategic management of a major Capital Campaign. I would be very happy to recommend the consultancy services of Mary O’Kennedy and her company. We have found OKC to be hugely experienced and knowledgeable in all areas of philanthropy and an invaluable source of expertise from which to base our current campaign.” - Rosie Johnson, former Chairperson of Development Board and member of the College Board of Fellows
OKC’s Capital Campaigns team is made up of Mary O’Kennedy (OKC Director) Oonagh O’Donovan (Head of Development and Operations), and Natalie Collin (Senior Consultant: Philanthropy and Campaigns) - get to know the team here. If you’re ready to discuss taking the first step toward your successful Capital Campaign, contact us today to learn more about our Validation Study and Capital Campaign services and how we can support you to achieve your fundraising goals.