Does Your Nonprofit Need A Feasibility/Planning Study Before Your Capital Campaign?

By Kyle Halmrast, Founder & CEO

The answer is absolutely.

Capital campaigns are among the most ambitious and transformative efforts a nonprofit can undertake. They can ensure your organization’s future. Done well, they raise significant funds for major projects like building renovations, expansions, or launching new programs. But before diving in, it’s crucial to ask: Are we ready? 

That’s where a feasibility/planning study comes in.

What Is a Feasibility Study?

A feasibility study is a structured assessment conducted before launching a capital campaign. It gauges the operational and cultural readiness of your organization for the work ahead and can identify the likelihood of campaign success by gathering honest feedback and potential philanthropic support from key stakeholders — board members, major donors, community leaders, and other influencers. It tests the case for support and identifies areas of weakness that need shoring up before investing the considerable time and resources necessary to take the leap.

How Does a Feasibility Study Differ from a Planning Study?

Feasibility studies are designed to provide organizational leadership with the data they need to make an informed decision as to whether to conduct a campaign or not…a “go/no-go decision” so to speak. The activities of a planning study are nearly identical to those of a feasibility study, however, if a decision has already been made to move forward with a capital project (due to a lease ending, for example) then the study isn’t really determining if the organization should move forward (or if it’s feasible to conduct a campaign), instead it’s more a matter of community engagement, education, and building the plan.

Why a Feasibility/Planning Study Is Essential

Here are a few reasons why conducting a feasibility study isn’t just helpful—it’s essential:

1. Uncovers Donor Sentiment: A feasibility/planning study helps you understand how potential major donors perceive your organization and proposed campaign. Do they see your vision as urgent and compelling? Are they willing to support it financially, and at what level? 

2. Tests the Campaign Goal: You may have a fundraising goal in mind, but is it realistic? Feasibility studies help test your target amount against donor capacity and interest, reducing the risk of overpromising and underdelivering.

3. Identifies Organizational Gaps: Readiness isn’t just about fundraising. It’s about leadership, staffing, communication, and infrastructure. A feasibility study may reveal weaknesses that need to be addressed before moving forward.

4. Builds Internal and External Buy-In: Engaging stakeholders in a feasibility/planning study creates a sense of shared ownership. It allows donors and leaders to shape the vision, which can increase their commitment when the campaign begins.

5. Reduces Risk: Launching a capital campaign without clear insight into your donor base, organizational readiness, and public perception can lead to costly missteps. A feasibility study is your due diligence—it minimizes risk and sets a stronger foundation.

So, when Should You Conduct a Feasibility Study?

Timing is critical. You should consider a feasibility study if:

• You’re considering a capital campaign of $1 million or more 

• Your organization hasn’t run a major campaign in the past 5–10 years

•  There are questions about donor capacity or campaign urgency

•  You’re proposing a transformative change (new building, endowment, etc.)

•  You need to engage a broader base of leadership and major donors

  
  

In short: before any major campaign planning begins, a feasibility study should be your first step.

Final Thoughts:

A successful capital campaign doesn’t begin with asking for gifts - it begins with listening. A feasibility/planning study allows your organization to pause, assess, and engage wisely. It’s not a sign of uncertainty, it’s a mark of strategic leadership.

Before you build, grow, or launch your next big idea, take the time to ask the right questions. Your future campaign, and the community you serve, deserve it.

Ostara has worked with dozens of organizations as they have ventured into this work. We’d love to work with you too! Contact us today.