The Hidden Costs of Going It Alone

When you’re considering a capital campaign, it’s natural to think, “We might be able to do this on our own.” But the truth is, leading a successful campaign is much more complex than it might seem.

Imagine attempting to sell your home without a real estate agent. While you might save on commission fees, the risks are significant—incorrect pricing, missing legal disclosures, or failing to market the property effectively could lead to a much larger financial loss. Similarly, managing a capital campaign without professional guidance can result in missed opportunities, donor fatigue, and financial shortfalls.

Some nonprofits have experienced development teams, but even they can be stretched thin when tasked with leading a capital campaign. Diverting your development staff from their primary responsibilities—securing annual funding—can lead to unintended consequences, including a shortfall in your operating budget. The cost of an internal campaign might end up being higher than you anticipate, both financially and in terms of staff morale.

So, what exactly should you expect from a consultant, and how do you evaluate their offerings?

Unpacking the Value: What to Expect from a Consultant

1. Dedicated Expertise – More Than Just Hours

   Just as you’d hire a real estate agent for their expertise in marketing your home and navigating legal requirements, when hiring a consultant, you’re not just buying their time; you’re investing in their concentrated expertise. The value extends far beyond just the hours logged—they bring specialized knowledge that is critical to navigating the complexities of your campaign.

   • Strategic Focus: A consultant’s time is strategically focused on the critical aspects of your campaign that require specialized attention. This includes high-level planning, identifying key fundraising milestones, and tailoring approaches to different donor segments. Their experience allows them to prioritize tasks that will have the most significant impact on your campaign’s success.

      

   • Efficiency and Precision: Experienced consultants, much like seasoned real estate agents, have honed their processes over years, allowing them to work more efficiently than your internal team might be able to, especially if your team is less familiar with the intricacies of a capital campaign. This efficiency can save your organization time and resources, ensuring that the campaign progresses smoothly and on schedule.

      

   • Accountability and Objective Perspective: Consultants also bring accountability and an objective perspective. You are paying for external and objective accountability of your organization’s leadership. External consultants also provide unbiased advice, identify blind spots, and suggest strategies that may not be immediately apparent to those who are deeply ingrained in the day-to-day operations.

      

2. Proven Success: Why Track Record Matters 

   Just as you wouldn’t choose a real estate agent without a strong track record of successful sales, a consultant’s track record is a vital indicator of their ability to deliver results. But what does a “proven track record” really entail, and how can you assess it when evaluating potential consultants?

   • Case Studies and Testimonials: When considering a consultant, ask for case studies of past campaigns they’ve led. These case studies should include specific metrics, such as the amount of capital raised, the timeline of the campaign, and any challenges that were overcome. Testimonials from past clients can also provide valuable insights into the consultant’s effectiveness and reliability.

      

   • Knowhow: A consultant with deep campaign experience across different types of organizations brings meaningful knowledge to your campaign. They will have encountered various situations and developed strategies to address different challenges. Diversity of experience can be particularly beneficial if your campaign has unique elements or if you’re navigating an uncertain fundraising environment.

      

   • Success Rate: While no consultant can guarantee success, a high success rate in similar campaigns is a strong indicator of a consultant’s ability to deliver results. It’s also helpful to understand what the consultant considers a success—whether it’s simply reaching a fundraising goal or includes factors like strengthening donor relationships or enhancing the nonprofit’s long-term fundraising capacity.

      

3. Expertise that Prevents Costly Mistakes 

    

   Expertise in capital campaigns goes beyond knowing how to raise money—it’s about understanding and navigating around potential pitfalls. Just as a real estate agent knows how to avoid legal pitfalls in a property sale, a consultant knows how to foresee and mitigate risks that could derail your campaign. You should expect your consultant to walk with you every step of the way and guide you around the pitfalls.

   • Anticipating Challenges: An experienced consultant will have a deep understanding of the common challenges that arise during capital campaigns, such as cannibalizing operating funds, campaign fatigue within the organization, or misalignment between campaign messaging and the nonprofit’s mission. The consultant considers these common challenges in the development of the campaign strategy and plan. This allows for added capacity to identify and proactively address the unknown and unique circumstances that arise in any given campaign.

      

   • Guiding Through Complexities: Capital campaigns often involve complex logistics, from appropriate messaging and effective timing to changes in the project plan and stakeholder expectations. A consultant’s expertise includes the ability to guide your organization through these complexities, ensuring that each component of the campaign is aligned and functioning smoothly.

      

   • Tailored Solutions: No two campaigns are identical, and a one-size-fits-all approach rarely works. A seasoned consultant will tailor their strategies to your organization’s specific needs, taking into account factors such as your donor base, organizational culture, and the external environment. This customization is essential for avoiding mistakes that can occur when applying generic solutions to unique situations.

      

4. The Tools for Success: Practical Implementation and Reporting

   The success of a capital campaign often hinges on having the right tools and transparent reporting systems in place. Just as you would expect a real estate agent to use the right tools to market your home effectively, consultants should provide more than just advice—they should equip your organization with the practical tools needed to execute the campaign effectively.

   • Detailed Reporting: Transparent, detailed reporting is crucial for keeping your board and stakeholders informed throughout the campaign. Consultants should provide regular updates that include metrics on donor engagement, funds raised, and the overall health of the campaign. These reports should be clear and actionable, allowing you to make informed decisions as the campaign progresses.

   • Resource Libraries: Consultants should provide drafts of all campaign-related correspondence and proposals, as well as templates, guides, and best practices for running a capital campaign. These resources will give your internal team the knowledge and tools needed to effectively support the campaign.

5. Building Lasting Strength: Capacity Building for the Future

   
   One of the most valuable, yet often overlooked, aspects of hiring a consultant is the opportunity for capacity building. A successful consulting engagement should leave your organization stronger and better equipped for future challenges—much like how a properly executed renovation leaves your home more functional and durable.

   • Knowledge Transfer: A key component of capacity building is the transfer of knowledge from the consultant to your organization. This includes training your board, leadership, and development staff on best practices for fundraising, donor engagement, and campaign management. By the end of the engagement, your team should have a deeper understanding of best practice fundraising, making them more effective in their roles.

      

   • Strengthening Leadership: Capital campaigns often place significant demands on an organization’s leadership. A good consultant will work closely with your leadership team, not just to guide them through the campaign but to help them develop the skills and confidence needed to lead future initiatives. This might involve coaching on donor cultivation and solicitation, board engagement, or strategic decision-making.

      

   • Building a Sustainable Fundraising Infrastructure: Beyond the immediate campaign, a consultant should help you build a sustainable fundraising infrastructure. This includes establishing processes and systems for your annual fundraising and future campaigns, as well as fostering a culture of philanthropy within your organization. The goal is to ensure your organization is not just successful in the current campaign but is also positioned for long-term success.