Before embarking on a capital campaign, you should feel confident in your organization’s campaign plan. Knowing that your campaign goal is achievable and that you have the support of leading donors and other key stakeholders will set the tone for a successful campaign. 

That’s where a feasibility study comes into play. A feasibility study tests your preliminary goals and plans for an upcoming campaign through discussions with your organization’s stakeholders. This process gives you the chance to get their thoughts on how realistic your campaign goals are and seek their feedback on elements like your case for support.  

Traditionally, external fundraising consultants handle feasibility studies. 

But a newer approach is quickly emerging as a better way to test campaign plans: the guided feasibility study. With this approach, your team gets the hands-on opportunity to lead the process, which ultimately helps you connect with stakeholders and grow your skillset. 

In this guide, we’ll explore the new model and some guidance for leading your own guided feasibility study. 

The Traditional Feasibility Study 

To understand guided feasibility studies, you should first understand the traditional feasibility study approach. 

In a traditional feasibility study, the nonprofit hires an external fundraising consultant (typically to assist with the entire campaign). The consultant designs the feasibility study, conducts confidential interviews with donors and other stakeholders, and then collates their findings into a report that they present to your board. 

There are two main downsides to this approach: 

  • You miss an opportunity to connect with your donors ahead of the campaign. A common argument made for the traditional feasibility study is that major donors and other stakeholders are more likely to be honest with a third-party consultant rather than a member of your nonprofit’s team. However, your stakeholders may very well feel more at ease speaking with someone they know—a member of your team. Plus, feasibility study interviews are actually valuable touchpoints that can promote strengthened relationships and trust between you and your donors. 
  • The consultant’s report may result in significant gaps in information. Due to the confidential nature of their interviews, consultants may end up leaving out useful information when they write up their reports. This can confuse your team and result in recommendations from the consultant that lack transparency. 

The Guided Feasibility Study 

According to Capital Campaign Pro, which pioneered the approach, a guided feasibility study “allows your team to speak directly with donors while also having the hands-on guidance of an experienced campaign advisor.” 

In other words, this approach gives you more control over the process of testing your campaign plan. Plus, it gives you the chance to:

  • Gain a fuller understanding of what your donors think of your campaign, your organization as a whole, and the challenges you may face on your way to campaign success  
  • Ask donors to make a personal commitment to giving at a specific level or taking on a leadership role
  • Gain firsthand experience in a critical area of capital campaign preparation 
  • Collect insights that will allow you to make careful adjustments to your campaign plan  

What The Research Says 

According to a recent benchmark report on the state of capital campaigns, feasibility studies are essential for preparing for a capital campaign. 

Here are some eye-opening findings that emphasize the importance of this process: 

  • 61% of organizations conduct feasibility studies ahead of capital campaigns. 
  • 33% of organizations that conducted a feasibility study increased their campaign goal based on their findings. 
  • Organizations that complete feasibility studies are twice as likely to report that their capital campaign increased their development staff’s effectiveness, improved their fundraising strategies, and led to stronger donor relationships.  

The report also found that more and more organizations are embracing the opportunity to involve staff and board members in their feasibility studies—66% of surveyed organizations took this hands-on approach. 

This means that nonprofits increasingly recognize the value of being active players in connecting with key stakeholders ahead of their campaigns and want to be involved in laying a strong foundation for campaign success. 

How to Have Productive Interviews with Your Stakeholders 

If you decide—after conducting careful research, meeting with a few campaign consultants, and considering your organization’s needs—that you want to conduct your next feasibility study on your own, you’ll want to thoroughly prepare for the interviews you’ll hold with your stakeholders. 

Here are a few tips to help you handle those conversations masterfully: 

  • Practice active listening. Active listening involves not just listening to what someone is saying but tuning into their thoughts and feelings as well. According to Harvard Business Review, this technique “turns a conversation into an active, non-competitive two-way interaction.”  
  • Ask open-ended questions. You don’t want to come out of stakeholder interviews with an indecipherable laundry list of yeses and nos. Set your interviewees up to give you useful and honest insights by asking open-ended questions that encourage reflection and thinking aloud. 
  • Be receptive to all types of feedback. You’re passionate about your cause and your need for this capital campaign. But in order to have a realistic view of the campaign’s viability, you need to be open to hearing a variety of opinions about your current campaign plan. Stay curious and optimistic, and avoid getting defensive even when stakeholders tell you things that are tough to hear. 

You should also know the basics of what ground to cover in these interviews. Make sure to tackle these topics: 

  • Your organization’s strengths and weaknesses
  • Perceptions of your leaders and board members
  • Your case for support 
  • The feasibility of your campaign
  • Whether the stakeholder will commit to helping with the campaign and donating (and at what level or in what capacity)  

Leading a capital campaign requires courageous leadership, and for your organization, that may also involve taking on tasks traditionally handled by a third-party consultant, like your feasibility study. Use the guidance above to weigh this option for your organization, and good luck with your upcoming campaign! 

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