The Hidden Benefits of a Feasibility Study

I was the President of the Board and after my term was up I did not heard a single word from the organization for years until you called. I love [the organization] but I feel like they forgot about me.
— Feasibility Study Interviewee

The goals of a feasibility study are fairly straightforward. Organizations often want to know first if they can conduct a capital campaign, if so how much they can raise, and then how long it will take them to raise the money. 

These are obviously important questions to answer but there are several more benefits of a feasibility study that can be overlooked as strategically beneficial. Let us explore a few of them below. 

Database Cleaning and Housekeeping

During a feasibility study an organization will want to compile a list of stakeholders, donors, and other entities. What you may find is that in the process of inviting individuals to participate in a feasibility study interview you may discover that the contact information you have for some of your closest supporters is no longer correct. Returned mail, landlines disconnected, and professional information no longer valid are common occurrence. 

In the quote at the beginning of this article the person had changed jobs, moved, and transitioned off the board all within a matter of months. They were suddenly completely lost to the organization. The feasibility study gave the organization an opportunity to reconnect with the individual, listen to their concerns, apologize and fix the situation, and ultimately bring a beloved supporter back into the fold. 

The concern over even a single example inspired the organization to run the entire 5,000 constituent database through a National Change of Address clearing house. The result was a recapturing of 8% of their previous donors. 

Stewardship

Donors and stakeholders want to help and welcome opportunities with little time or financial investment to make a difference. Frequently an e-survey is implemented as part of a feasibility study. A survey is a great way to focus on those who do not always receive the white glove experience. Your grassroots supporters and volunteers are sometimes the front line and their advice can be incredibly important but by closing the loop and making sure that they know their voice was heard they will feel even more entrenched in your mission. 

Volunteer Recruitment

If your organization relies on volunteers on a regular basis being involved in a feasibility study may prompt an individual to think about how they can get more involved. Involvement might include single events stuffing envelopes, mission-driven recurring volunteering, or even serving on your board. No matter how your stakeholders want to get involved a feasibility study can help you recruit volunteers and have your volunteers understand how important their contribution can be. 

Staff 

Every organization can benefit from developing a culture of philanthropy. Each employee of the organization can think about how they impact fundraising whether it is via storytelling, information gathering, or helping directly with donor cultivation. When the entire organization focuses on fundraising it is not simply a linear result because each person benefits from the inputs of another and the best ideas rise to the top with full buy-in. 

Focus on the Goal

Each of these secondary benefits has a direct impact on the original goal of the organization which is to elevate the mission through funding and capital resources. When all of these stepping stones are developed the final result is an even greater potential. 

First Time Warning Signs

So you are thinking about hiring a fundraising consultant but you are worried because you have heard horror stories? Here are a few red flags to look out for as you talk to firms and independent consultants. 

"I can guarantee that you will raise $10 million."

If any consultant guarantees this they should play the lottery! No one can know the full financial situation of every donor nor can they know how an organization might change during a fundraising effort. When this false hope is offered it is intended to get started and then extend contracts unnecessarily when you do not meet your goal. One way to resolve this issue is to have a clearer picture of what the potential is for a campaign by conducting a feasibility study. The study does not always correlate to the results of a campaign, but will absolutely inform your decision to go forward.  

"I used to work for a big organization in town and can bring those donors to you."

While there is definitely something to be said for understanding the philanthropic landscape of a region, a consultant who is willing to take a donor from another organization they worked with will be willing to take your donors when they leave. If you hear this line you may want to ask them if they are a member of the Association of Fundraising Professionals (AFP) and if they have read the Code of Ethical Standards recently. 

"I know your budget is small and you are worried about how much we can raise so I will just charge you a flat percent of contributions."

This is a double threat! The first threat is that they could potentially then convey fraudulent information to your donors or bully them in order to falsely increase the amount pledged. Point them back to the Code of Ethical Standards again. This will chase your donors away faster than anything and do long term damage to the reputation of your organization. But let's give them the benefit of the doubt and say they act responsibly. The second threat is that by taking a percentage they then become a stakeholder in your organization and by definition non-profits may not have financial stakeholders and that could threaten your tax-exempt status. Can you even imagine the implications of that?

So whether you are deciding that a consultant is right for you because you need the expertise or the manpower, make sure you find someone who is knowledgable and that you are securing your own interests. And if you have any questions about something a consultant has said to you feel free to ask Eden+ about it to give you a little peace of mind.