So many times, as fundraisers, we tend to get caught up on technical fundraising lingo and jargon, and its easy to lose sight of the point.
A feasibility study is a fancy term that the nonprofit industry borrowed from our counterparts in business. In a nutshell, a feasibility study is simply an assessment of the practicality of a proposed project or plan.
Read below to understand the role that the feasibility study plays in the nonproift industry, and whether or not your organization needs one.
What is a feasibility study?
A feasibility study, or sometimes called a 'campaign planning study' is an important step in any fundraising campaign. It allows you to assess your organization's readiness for a capital campaign and gauge potential donor support. A feasibility study can also provide valuable insights into your nonprofit's strengths, weaknesses, and areas for improvement.
Why should you conduct a feasibility study?
There are many reasons to conduct a feasibility study. Perhaps your nonprofit is considering embarking on a capital campaign but isn't sure if it's the right time. Or maybe you're not sure if you have the capacity to successfully raise the necessary funds. A feasibility study can help answer these questions and more.
Some of the other benefits of conducting a feasibility study include:
Identifying potential donor pools
Determining giving trends among potential donors
Assessing your organization's ability to raise funds
Gauging community support for your nonprofit and its mission
Developing a better understanding of your donors' motivations and interests
Creating a roadmap for your capital campaign
How to conduct a feasibility study
To create a valuable feasibility study, you will need to compile a strong list of interviewees- typically between 30- 50 individuals. You are looking for key individuals, donors, and stakeholders associated with your organization. When it comes to conducting interviews, remember that quality trumps quantity. So, focus on inviting participants who know your organization well enough to provide rich, insightful responses. You are looking for both positive and critical feedback in your feasibility study. You want your interviewees to be candid in their feedback so that you can understand fully how the strengths and weaknesses of your organization are perceived by the community.
If your nonprofit is considering embarking on a capital campaign, conducting a feasibility study is an important first step. A feasibility study can help you assess your organization's readiness for a capital campaign, gauge potential donor support, and identify areas for improvement. By taking the time to conduct a feasibility study, you can set your nonprofit up for success as you embark on this important fundraising endeavor.
A feasibility study can also help you develop a roadmap for your capital campaign and identify areas for improvement. For many organizations, a capital campaign is a major fundraising initiative that only comes once every 10 years or more! By taking the time to hire a consultant, you can set your nonprofit up for success as you embark on this important fundraising endeavor.
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