The Role of the CEO in a Fundraising Enterprise
John A. Martin, CFRE
A capital campaign represents one of the most significant challenges that a Chief Executive Officer (CEO) of a nonprofit organization will face. While standard job descriptions for this role often overlook fundraising as a primary responsibility, it is undeniable that fundraising becomes the foremost priority during a campaign. The success of the campaign hinges on the CEO’s extraordinary ability to articulate the institution’s mission and vision, particularly in terms of the enhanced and expanded impact it will have on the community.
As the decision to initiate a capital campaign solidifies—whether for a new building, program enhancements, or the establishment of an endowment—countless processes fall into place, including pre-campaign planning, feasibility studies, the quiet phase, cornerstone gifts, and the public phase. However, amidst this structured timeline, one critical aspect remains unclear: What is the role of the CEO in a fundraising enterprise? How can you effectively leverage their involvement? How much time should you request, and is their active participation essential for the campaign’s success?
Before the campaign begins—whether it involves major gifts, capital, or endowment efforts—campaign staff and leaders must engage in meaningful discussions with the CEO to clarify how to optimize their role. It’s important to recognize that the specific responsibilities of the CEO may vary depending on the sophistication of the organization’s development office, which can range from a single staff member to a fully integrated operation. Therefore, establishing clear expectations is crucial for a successful campaign. To facilitate this critical dialogue, here are ten essential responsibilities that a CEO should embrace during a capital campaign:
1. Articulate the Vision and Mission
The CEO must communicate the organization’s compelling vision and mission with enthusiasm, as this sets the stage for a positive fundraising atmosphere. The success of a capital campaign is intrinsically linked to its vision; it reflects how the organization intends to evolve and elevate its impact. Should the CEO waver in their conviction about this vision or struggle to deliver it persuasively, no amount of organizational excellence or well-crafted materials can compensate. It is vital to continually connect campaign milestones to the overarching vision and provide regular opportunities for the CEO to update stakeholders on progress. The CEO’s passionate commitment will serve as the intangible force that propels the campaign forward. Constituencies are perceptive; they will quickly identify any lack of sincerity or enthusiasm.
2. Lead Strategic Planning
A fundraising campaign should be viewed as a natural extension of the organization’s strategic planning process. The CEO plays a critical role in articulating the need for a capital campaign and crafting a compelling case statement that resonates with stakeholders. This involves cultivating consensus around the campaign’s priorities and ensuring alignment on the proposed solutions outlined in the case statement. By clearly presenting the rationale for the campaign, the CEO helps establish a strong foundation for enlistment and dedication among board members, donors, and the broader community.
3. Allocate Time Wisely
The CEO’s involvement in a capital campaign is indispensable, and their time must be allocated strategically. It is essential to reserve the CEO’s hours for the most significant calls, decisions, public speeches, and donor cultivation events. Ideally, the CEO should aim to dedicate at least one-third of their time to development and external relations, with the possibility of increasing that commitment during critical phases of the campaign. Time is the most valuable resource the CEO can offer. Campaign responsibilities range from major gift solicitations to making thank-you calls, cultivating relationships with donors, speaking engagements within the community, and serving as a steward for early supporters. In smaller organizations, the CEO’s involvement in day-to-day operations is often more hands-on, making it even more critical for them to carve out dedicated time for these fundraising activities. It is important to remember that while engaging in the campaign, the CEO must also maintain oversight of the organization’s overall operations.
4. Develop and Engage Trustees
An essential leadership responsibility of the CEO in the initial planning stages of a campaign is to collaborate with the board’s nominating committee to identify, recruit, and enlist the strongest possible leadership. Many organizations form a separate group of volunteers—often referred to as a campaign cabinet—to spearhead the campaign efforts. When this approach is taken, the CEO’s responsibility expands to build and nurture this leadership bench. They must consistently inspire both the board, in its governance role, and the campaign cabinet, in its fundraising capacity. Activating and involving trustees in the development process is crucial; after discussing roles with the CEO, the senior development officer should assign specific tasks, accompany them on key visits, and provide training in the solicitation process. A thoughtful approach to matching donors with corresponding trustees will enhance the effectiveness of these relationships. The CEO must ensure this matching process occurs while also providing encouragement and expressing gratitude to trustees for their significant contributions to this vital endeavor.
5. Budget Support
The adage “it costs money to raise money” is especially relevant in capital campaigns. At the outset of the planning process, it is crucial for staff to engage the CEO in discussions regarding the financial requirements necessary to support the campaign or development program effectively. This encompasses establishing a budget for additional staffing, campaign consulting services, feasibility studies, donor cultivation activities, and the overall costs associated with executing the campaign. It is essential for the CEO to understand the rationale behind investing in these additional resources and the associated expenses involved in donor cultivation and stewardship. Comprehensive financial planning will not only streamline the campaign process but also increase the likelihood of achieving fundraising goals successfully.
6. Establish Regular Communication
Effective communication is vital throughout the duration of a capital campaign. The CEO must maintain a strong line of communication with both the campaign office and the development team about important achievements or decisions. Similarly, the development office should keep the CEO informed on campaign progress and relay critical updates to the community. Campaigns often experience significant emotional fluctuations; organizations can move from feelings of elation to despair in an instant, whether due to a donor backing out of a pledge, a rejection from a foundation that seemed promising, or a campaign leader resigning under unexpected circumstances. Meanwhile, the CEO is also tasked with managing the ongoing operations of the organization. It’s crucial to keep the CEO connected to the campaign’s core activities, as their accountability for the campaign’s success reinforces the importance of consistent communication across all levels.
7. Build and Steward Donor Relationships
The CEO should actively engage in community relations to identify and cultivate relationships with major prospects. The goal is to guide these prospects along a continuum of commitment: from identification and introduction to cultivation, involvement, solicitation, appreciation, and eventual ownership of the campaign narrative. Relationship-building is not solely confined to the campaign period; a successful CEO continually interacts with all stakeholder groups and the broader community, ensuring that meaningful connections are established before the campaign launch. For instance, in a campaign aimed at restoring a beloved church in an economically disadvantaged neighborhood, the CEO—a Catholic priest—made a substantial impact by proactively stewarding early donors. Each day, he received a list of donors to call, where he shared updates on the progress of the building program while expressing sincere gratitude for their contributions. When unforeseen costs arose due to previously undetected seismic damage, many of these early supporters stepped forward to make additional donations. Throughout any campaign, the CEO’s genuine appreciation of donors is indispensable to fostering loyalty and ongoing engagement.
8. Gain Confidence with the Asking Process
I have seen CEOs grow from shy and reluctant to outgoing and eager—with commensurate results. What did it take? Practice. Asking for a campaign gift does not come naturally; it is a learned skill. Inexperienced CEOs need coaching in the asking process. Teaming with experienced board or staff members, and starting with a few relatively easy solicitations, may be helpful learning tools. Sometimes development officers are understandably reluctant to criticize the CEO during coaching or after actual meetings. If you have a campaign consultant, use him or her for this kind of feedback. The level of authority is respected, and the development officer avoids a potentially difficult situation.
9. Be Open to Bad News and Act on It
A common pitfall among many Presidents/CEOs is their reluctance to acknowledge that a campaign may be struggling. Warning signs and cautionary discussions can often be dismissed as the overreactions of alarmist development staff or consultants. However, it is crucial for the CEO to not only accept bad news but to address it proactively. When challenges arise, such as a donor retracting a pledge or an unsuccessful grant proposal, these issues should be accompanied by a plan for resolution. This plan should outline specific actions that the CEO can take, such as visiting the foundation with the development officer to restore a withdrawn commitment or engaging the donor and their family in a conversation about potential phased giving solutions. By actively confronting and managing setbacks, the CEO reinforces their commitment to the campaign and helps steer it back on course.
10. Be a Partner as Well as a Leader
A truly engaged CEO fosters a collaborative atmosphere where prospects and ideas flow seamlessly from the administrative office to the campaign team. Given their broader community presence and connections, Presidents/CEOs can access networks that development officers or campaign directors may not reach. This increased engagement not only enlarges the prospect pool but also enhances the likelihood of campaign success. By embodying both leadership and partnership, the CEO plays a pivotal role in the campaign’s momentum and effectiveness. Implementing a successful capital campaign is no small feat; it requires a compelling case, a well-identified and engaged prospect list, and strong leadership. An involved CEO is a critical ingredient in achieving that success.
In summary, the CEO’s role in a capital campaign is one of dynamic leadership, focused on driving the organization’s vision. The principle of “practice what you preach” is especially relevant in the nonprofit sector, particularly during the leadership phase of a capital campaign. The CEO should also encourage the management team to make stretch gifts and aim for full employee participation as the campaign progresses. By leading by example, the CEO not only demonstrates commitment to fundraising but also inspires broader engagement within the organization. Their involvement can create a cascading effect, motivating others to support the campaign.
For over thirty years, MGI Fundraising Consulting, Inc. has had the pleasure of partnering with a wide range of nonprofit organizations. Our mission has always been to empower our clients to achieve what may seem like impossible goals, harnessing the collective strength of their community and supporters.
If you’re interested in exploring our services—such as campaign feasibility studies, capital campaign consultancy, and development audits—don’t hesitate to contact us! Contact John at (612) 801-5149 or at martinmgi@cs.com. We encourage you to include MGI on your RFP list to explore how we can support your fundraising efforts. For more details, please visit our website at http://www.mgifundraising.com. Toll Free: 800.387.9840
Published by: MGI Fundraising Consulting, Inc.
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