Key Term

What is Capital Campaign?

Definition

A capital campaign is an intensive fundraising effort designed to raise a specified sum of money within a defined time period to fund major projects or initiatives. These campaigns typically support substantial undertakings such as building construction, facility renovations, equipment purchases, or the establishment of endowment funds. Capital campaigns are characterized by their specific monetary goals, predetermined timeframes, and focus on securing large gifts from major donors.

Significance

Capital campaigns are crucial to nonprofit organizations' long-term sustainability and growth as they provide the necessary funding for transformational projects that annual fundraising alone cannot support. These campaigns often represent watershed moments in an organization's history, helping to expand capacity, improve services, and create lasting impact. They also serve to strengthen donor relationships, build community engagement, and demonstrate organizational vision and leadership. Successfully executed capital campaigns can elevate an organization's profile, establish new levels of giving standards, and create momentum for future fundraising efforts.