Why Conduct a Feasibility Study?
Feasibility studies are a critical step in the capital campaign process, evaluating the strength of your leadership, case, prospects, and plan.
The benefits of a feasibility study include:
- Assessing the image and reputation of the organization
- Evaluating the level of financial support available for the project
- Determining the availability of volunteer leaders who demonstrate commitment, interest, and enthusiasm
- Identifying the level of priority constituents assign to the proposed project
- Evaluating the amount of support expected from various segments of the organization, including board members, key individuals with ties to the organization, foundations, and prospective donors
Understanding these factors before launching a campaign is essential to ensure its success.
While a feasibility study reveals the amount of support available and a recommended dollar goal, there are other important reasons to conduct one:
- Cultivate and educate key leaders, getting their input and deepening their engagement in the project
- Identify major gift prospects and potential campaign leaders and determine connections with them
- Gather information needed to create a comprehensive campaign plan, case statement, and marketing strategy
- Assess internal readiness
- Identify pre-campaign activities that will be necessary to strengthen the organization’s fundraising position
DBD Group's Approach to Feasibility Studies
At DBD Group, we believe a feasibility study should do more than assess campaign readiness, it should strengthen relationships and build momentum for the future. That is why we approach feasibility studies as a collaborative process completed with organizations, not simply for them. Unlike many consulting firms, we include organizational leadership directly in the interview process because we believe the most important donor relationships should remain with your organization, not your consultants.
By participating in donor conversations firsthand, nonprofit leaders gain valuable insight into what resonates most with supporters, where questions exist, and how the organization and project are perceived within the community. This transparency creates stronger alignment between leadership and donors while helping organizations better understand the opportunities and challenges that may shape a future campaign. Our feasibility studies are designed not only to gather information, but also to deepen engagement, strengthen donor relationships, and position organizations for long-term campaign success.
Our process is tailored to your organization and your community, ensuring that we gather the most relevant information to guide your campaign.
Our Experienced Team
When you work with DBD Group, you'll have a team assigned to your project: two experienced development professionals, a communications expert, a data expert, and a finance professional. This team will work closely with your executive and volunteer leadership to customize the approach to your organization, community, and case for support.
Leadership Engagement
Our process includes conducting face-to-face interviews with 25-30 key leaders in your community to gather their feedback and input. The transparency of having your CEO or Executive Director present during interviews provides valuable insight and ensures that the donor relationship is with your organization, not us.
Tailored Materials
Our communications expert will refine how you present your projects to potential donors, using unique tools that facilitate an interactive conversation. We are not selling a project, we are asking for advice - drawing your donor closer to your mission.
Financial Model
Our process includes a financial model that shows the implications of capital expansion, in addition to the information we gather during the interviews.
Wealth Screen/Donor Research
We offer a Wealth Screen to identify potential prospects for interviews that will uncover not only your donors'/prospects' capacity to give, but also their propensity to give. This information is invaluable for not only this study, but for your philanthropy plan year-round.
Recommendations and Follow-Up
At the end of the Feasibility By Design interview process, your organization will receive recommendations, next steps, and tools critical to your future success. We provide a "Report to the Community" that helps your leadership return to those interviewed to report back on the study and begin potential cultivation.
Moving Forward Together
Our promise to you is that we only recommend moving forward with a campaign when we know you are ready. If you're not ready, we provide specific next steps essential to your preparation. At DBD Group, we do not conduct a feasibility study for you, but with you. And that makes all the difference.
Preparing for a Feasibility Study in 5 Steps
Before beginning a feasibility study, it's important to take time to prepare and ensure that you're set up for success. Here are some key steps to take:
- Define your goals and objectives: It's essential to have a clear understanding of what you want to achieve through the feasibility study. What do you hope to learn? What decisions will you be making based on the study's results? Clarifying your goals and objectives will help you stay focused and make the most of the study.
- Assemble your team: Identify the key stakeholders who will be involved in the study, such as board members, staff, and volunteers. Consider what skills and expertise you'll need on your team and recruit individuals accordingly. Be sure to set expectations for roles and responsibilities, and communicate clearly with everyone involved.
- Prepare your materials: You'll need to have a solid case for support that outlines your organization's mission, values, and goals, as well as specific details about the project or campaign you're considering. This should include information about the need for the project, the impact it will have, and the budget and timeline.
- Develop a list of potential donors and supporters: Start thinking about who you want to interview as part of the feasibility study. Identify key donors, community leaders, and other stakeholders who have a vested interest in your organization and its success.
- Determine your budget: Feasibility studies can vary widely in cost, depending on the size of your organization and the scope of the project or campaign. Consider what resources you have available and what you're willing to invest in the study.
While preparing for a feasibility study on your own can be a significant undertaking, working with a consultant like DBD Group can help make the process smoother and more effective.
DBD Group's experienced team can provide guidance on everything from defining your goals to identifying potential donors and developing your case for support. By partnering with DBD Group, you can be confident that you're setting yourself up for success and making the most of your investment in a feasibility study.
Using the Results of the Feasibility Study
A feasibility study provides valuable insights into an organization's ability to raise funds for a specific project or campaign. Once the study is completed, it's time to leverage the information gathered and put it to use.
Here are some of the key ways you can use the study's results:
- Identify major gift prospects and potential campaign leaders.
- Determine connections with those individuals.
- Create a comprehensive campaign plan, case statement, and marketing strategy.
- Assess internal readiness.
The study may also reveal that certain pre-campaign activities are necessary to strengthen the organization's fundraising position. This might include building a stronger base of support, cultivating relationships with potential donors, or securing leadership gifts. You should prioritize any of those activities and implement them in advance of the campaign.
Additionally, the results of the feasibility study should be used to guide the development and implementation of the campaign plan. The insights gained from the stud can allow you to focus your efforts on the most effective strategies and tactics, thereby increasing your chances of success.
While these steps can be taken without the assistance of a consultant, working with a partner like DBD Group can help streamline the process and provide additional expertise in leveraging the results of the feasibility study, maximizing your fundraising potential.
Learn More From our Nonprofit Fundraising Consultants
A successful capital campaign starts with a well-planned and executed feasibility study. Our team of experienced consultants will guide you through the entire process and help you gather the information you need to make informed decisions about your campaign. Whether you are just starting to consider a feasibility study or are ready to begin the process, we are here to help. Contact us today to learn more about our process or request a proposal.
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Are you considering a feasibility study ahead of your next campaign? Contact us to learn more about our process or request a proposal.
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