Healthcare organizations hold a unique place in philanthropy. Donors give because care changed their lives or the lives of people they love, and that personal connection drives some of the most meaningful gifts in the sector. Capital campaigns offer tremendous opportunity, but the stakes are high. Here are the five mistakes we see most often, and how to avoid them.
1. Letting Construction set the goal, not donor capacity
A successful campaign is the campaign that raises the most money possible at that point in time. The campaign goal should not be whatever is left after bonds and reserves cover part of the project cost. Healthcare philanthropy averages a return on investment of more than $4 for every dollar spent. It pays to plan.
Avoid it: Start with a feasibility study. When donor capacity informs the goal, about one-third of the time our clients learn they could raise more than they thought. Rushing the planning phase risks leaving money on the table.
The avoidance of debt financing is often the primary motivator for a capital campaign. But a capital campaign only raises money for a specific physical project like a building or major equipment. A comprehensive campaign bundles capital needs together with endowment, program, and annual fund goals into a single, larger fundraising effort. The feasibility study is critical to testing whether a comprehensive campaign – and a more ambitious goal – will have the support of your community.
2. Leaving Patients on the Sidelines
Square footage, equipment specs, and renderings don’t inspire transformational gifts. People care about improving access, outcomes and – ultimately – survival rates. Too often our clients talk about the facility when they should be talking about what will be possible because of the new facility.
Avoid it: Lead with the human story. “No one should have to drive six hours for lifesaving treatment” moves donors in a way that “a new infusion center” never will. Invite people to support the part of the campaign tied to a program or service they’ve experienced firsthand. It’s a focused way to reach the donors most likely to respond.
3. Failing to Secure Board Commitment
Hospital boards are often recruited for governance expertise, not philanthropy. If your institution is new to philanthropy, take time to bring the board members along. We encourage campaigns to work top down, inside out. This means the quiet phase starts with the nearest and dearest: board and executive leadership. We often pair this phase with our “Campaign 101” training curriculum, so everyone is prepared to play their roles.
Avoid it: Give your board opportunities to learn about philanthropy and the investment that is required to run a successful campaign. Forecasting exercises such as financial scenario planning and campaign modeling provide the information trustees need to make informed choices. Board members need to believe in the role of philanthropy in furthering their institution before they commit to a plan of action.
4. Engaging the Foundation Too Late
When resources are tight, capital priorities can shift because of factors that seem entirely unrelated. It might be tempting to “default” to fundraising when other sources of revenue fall through. But when the foundation learns about a project very late in the process, the team is at a disadvantage to test the case and secure early donor commitments. It also puts volunteer leadership at a disadvantage to activate their personal networks. Anticipation builds excitement and commitment.
Avoid it: Engage foundation leadership in early-stage strategic planning, where capital decisions are made, and agree on how the system and foundation will communicate and work together. Philanthropy is a garden, not a faucet. You can’t turn it on when you need it, but the relationships you cultivate today will yield the harvest you count on tomorrow.
5. Chasing the Construction Timeline
Our clients have the most leverage before they have a builder under contract. Once groundbreaking starts, the clock ticks and you won’t control the schedule. Major gifts take time, and donors deliberate at their own pace. Urgent requests rarely produce delighted donors or significant gifts.
Avoid it: Begin campaign planning well before the construction timeline is set. Multimillion-dollar campaigns unfold over several years, and transformational gifts need time to take shape, so give your top prospects that runway. When philanthropy is positioned as a strategic priority rather than an afterthought, donors tend to think bigger, too.
The Bottom Line
Each of these mistakes is preventable with the right planning. A campaign grounded in real donor capacity, a compelling patient-centered case, and a team that is ready to execute is more likely to succeed.
Rose City Philanthropy advises on transformational giving for a healthcare world that can’t wait. If your hospital or healthcare system is considering a campaign, we would welcome a conversation.
