Why Feasibility Studies Matter for Nonprofits
In the world of nonprofit advancement, a feasibility study for nonprofits is one of the most consequential steps in preparing for a successful capital campaign. When approached with discipline, transparency, and professionalism, the study provides an indispensable roadmap—gauging donor capacity and interest, testing campaign goals, and refining institutional readiness. More than anything, a feasibility study is a listening exercise.
Organizations that listen well during this phase build stronger campaigns, raise awareness among constituents and community members, elevate their brand, deepen donor relationships, and sharpen the credibility of their message.
A Strategic Undertaking, Not a Formality
A planning and feasibility study should never be treated as a mere formality. It is a strategic undertaking that evaluates an organization’s internal and external environment and determines the realistic potential of securing philanthropic support for a defined set of capital priorities. This is also sometimes referred to as “testing the waters” for what is being proposed.
The Role of Professional Counsel
Conducting a study begins with the engagement of professional counsel. Independent consultants bring objectivity, confidentiality, and credibility to the process. Their external perspective allows stakeholders to speak candidly, and their expertise ensures the study is executed with the necessary rigor.
The most effective studies operate on a clear timetable, often taking two to five months—within which essential tasks are completed. These include:
- Preparing the core case statement
- Identifying and scheduling interviewees
- Conducting both interviews and surveys
- Analyzing collected data
- Producing a final report with findings and recommendations for action
While a small advisory committee may be formed to assist with identifying potential interviewees, the scope of this committee should be limited, and its role strictly confidential.
Crafting the Case Statement
One of the most important components of the study—and often the most underestimated—is the crafting of the executive summary or case statement. This document does far more than outline project goals or financial needs. It must communicate the organization’s story, brand, mission, articulate the challenges with clarity, and express the vision in a way that resonates deeply with stakeholders.
The “Executive Summary” lays the intellectual and emotional groundwork for the study itself. It allows interviewees to prepare thoughtfully and provides the context they need to respond meaningfully to questions about the proposed project and campaign. Done properly, it frames the rationale, the urgency, and the opportunity in terms that invite ownership and response.
Time invested in writing, refining, and testing this document is never wasted. In fact, it sets the tone for every conversation that follows.
A Moment of Reflection and Recommitment
Planning and feasibility studies should be embraced as an opportunity to reflect, refine, and recommit. For nonprofits, community-based institutions, and foundations, they are not merely a step toward a campaign—they are an act of stewardship, ensuring that mission, resources, and vision align with the hopes and support of the people they serve.
In listening to its people, an organization discovers not only its capacity to build, but its calling to become.
Selecting the Right Interviewees
Equally critical—and sometimes even more time-consuming—is the careful selection of interviewees. This is not a numbers game. A successful study depends on speaking with the right number of the right people.
These individuals are most often:
- Current and past donors
- Long-standing volunteers
- Board members
- Community leaders
They are people with not only the capacity to give significantly, but also the credibility to lead and the influence to inspire others. They are the natural spokespersons for the case if it advances to campaign.
Their participation in the study must be secured with care and intention, not only because their opinions are valuable, but because their involvement can mark the beginning of the campaign’s core leadership nucleus.
Interview Quality Over Quantity
A well-constructed study typically requires between 25 and 75 individual interviews. The exact number is determined by the size and geographic reach of the organization. A neighborhood-based nonprofit or community service agency might accomplish its study through 30 face-to-face conversations over two to three weeks, while a regional institution or foundation with donors and stakeholders in multiple cities may need to supplement in-person meetings with virtual or telephone interviews.
What matters most is not volume, but quality. Interviewing the right individuals, those who are willing to lead, give, and speak publicly about the needs is paramount. One interview with a prospective lead donor or chair is worth far more than ten general conversations with constituents unlikely to take on a campaign role.
At times too, it can be helpful for public relations purposes to select a few “courtesy interviews.” This could include someone like the respected founder of an organization—perhaps no longer active or able to give significantly, but whose insights remain valuable to the study.
Or perhaps it’s the exceptional volunteer or past board member who knows the organization’s history and mission inside and out, but is not in a financial position to contribute. Their thoughts and institutional knowledge still hold great value and can help round out the study’s findings.
Conducting Thoughtful Interviews
The structure of the interview is critical. Whether in person or by virtual means, the environment should be conducive to candid, uninterrupted conversation. The process is confidential, non-solicitous, and designed to elicit honest feedback.
A consistent set of questions is used to explore:
- Awareness of the need
- Reactions to the proposed solution
- Perceived timing and readiness
- Willingness to support the campaign
- Capacity for leadership or giving
All responses are treated with respect and confidentiality, but are analyzed thematically to shape the findings and conclusions of the final report.
The Three Primary Objectives
The primary purpose of the study is threefold: to get a reaction to the proposed case and campaign concept, to find the money, and to find the leaders. These three objectives are interwoven. The reaction to the case reveals whether the rationale and vision are compelling enough to garner support.
Finding the money means identifying individuals who not only can give at significant levels, but who indicate a willingness to do so. And finding the leaders involves locating those with credibility, energy, and stature to serve as chairs, co-chairs, and visible champions of the campaign. In short, the study surfaces the human resources necessary for a campaign to succeed—not merely in dollars raised, but in building broad-based confidence and momentum.
Reporting and Recommendations
Upon completion of interviews and survey analysis, the final study report is prepared. A well-written executive summary of the study should explain who commissioned the study, what goals were tested, and the methodology used. It should summarize key findings related to donor capacity, leadership availability, awareness levels, the organization’s image, and the receptivity of stakeholders.
It should offer clear recommendations concerning:
- Campaign timing
- Attainable financial goals
- Readiness
- Next steps
The best studies also identify areas for improvement—such as strengthening the case for support, improving communications, or building out volunteer leadership.
Laying the Groundwork for Campaign Success
A successful planning and feasibility study reveals more than just whether a campaign should move forward. It uncovers the depth of donor commitment, surfaces potential leaders, and identifies the kind of messaging that resonates. It also shines a light on roadblocks—whether they are organizational, financial, or reputational.
The most successful campaigns begin long before the first pledge card is printed. They begin here, with honest dialogue, professional counsel, and thoughtful preparation.
From decades of experience, several truths have emerged. Transparency and clarity during the study phase are critical to building trust. Strong leadership—executive, volunteer, and community-based—is a cornerstone of success. Organizations that rush this process or treat it as secondary to the campaign itself often find themselves underprepared. When a feasibility study for nonprofits is done well, it lays the foundation not just for a campaign, but for a deeper, more engaged, and better-informed community.
A well-executed feasibility study for nonprofits does more than inform a campaign—it strengthens relationships, builds momentum, and lays the foundation for long-term impact. Contact us today for a free consultation and learn how our team can support your next steps.
