Fundraising feasibility study: Purpose, Process and Strategic Value

A fundraising feasibility study (often ahead of a capital campaign) is a critical first step for organisations planning significant fundraising growth. It helps assess donor capacity, organisational readiness and campaign potential before major investment.

What is a fundraising feasibility study?

The understanding of this term varies but at Philanthropy Company, we consider a feasibility study to be an objective, external assessment to scope and test your fundraising goals.

Each organisation will want the focus of the report to be slightly different, for example on the campaign narrative, the competitive landscape or on the giving potential of the donor pool.  However typically, a fundraising feasibility study typically explores several key areas, including:

• Benchmarking
• Donor capacity assessment
• Case for support feedback and refinement
• Organisational readiness review
• Clear recommendations on the fundraising strategy and steps needed to achieve goals

When do you need a feasibility study?

For over two decades, Philanthropy Company has been contributing to the realisation of major capital and revenue campaigns and transformational fundraising programmes through thoughtful, evidence-based feasibility reports.  From once-in-a-generation capital projects in arts, heritage and academic institutions to brand new philanthropic initiatives for charities, social enterprises and corporates, our assessments and recommendations have qualified ambition, reviewed campaign readiness and provided a strategic way forward.

A fundraising feasibility study is most valuable during the early planning and business case stages, helping organisations to test assumptions and shape direction with confidence. It is typically undertaken:

• Before launching a capital campaign

• When testing or refining a fundraising strategy

• When assessing donor capacity and pipeline potential

• When planning to scale income or increase fundraising ambition

Why is a feasibility study important?

Sometimes a feasibility study supports assumptions, in other cases it challenges and alters an organisation’s fundraising direction completely.  Done well, we believe the process should deliver the following key benefits and insight:

1. An understanding of the external landscape in which you are planning to launch or ramp up your fundraising.  What are comparator organisations doing?  What trends are we seeing amongst funders?  What social, political and economic factors might impact your likelihood of success? What are your campaign goals?
2. A realistic assessment of the capacity of your current donor pool and pipeline. Where is there headroom for extending current relationships, and what volume of new prospects needs to be identified?
3. Engagement with key donors and stakeholders.  We often recommend interviewing a selection of warm, lapsed and potential donors or sector influencers to offer a balanced mix of views on the proposition, whilst also deepening donor engagement and stewardship and seeding their future Involvement in the project.
4. A sounding board for the narrative around the project.  Which key messages are most compelling, and which need refinement?
5. A sense of your organisational readiness to proceed. Is there internal alignment between the Board and Executive?  Is there sufficient resource across departments to support a step change in fundraising activity?  Do you have the operational and data infrastructure to make it all a reality?

What are the outcomes of a fundraising feasibility study?

Our feasibility studies are characterised by a collegiate approach and pragmatic recommendations.  We help our clients to move forward with confidence, the benefit of an external view and, above all, a clear understanding of the steps it will take to succeed.

Our practice is rooted in years of experience gleaned from hundreds of organisational scenarios.  If you are interested in hearing more about how our expert team can help you shape and test your future fundraising plans, please get in touch.