How does an Economic Development Organization (EDO) that has depended primarily on an annual fundraising event for years make the leap to launching a multi-year capital campaign? How do they secure buy-in and support from the regional business community? These were the primary concerns faced by the Grant County Economic Development Council in Washington as they embarked on their capital campaign.
The Situation:
For many nonprofit organizations, a good portion of operating revenue is often derived from a marquee annual event. The Grant County (WA) Economic Development Council was no different, depending on an annual golf tournament and gala to help meet the organization’s annual budget. While this event had traditionally been successful, there had been a steady downward trend in participation and investment. This led leadership of the Grant County Economic Development Council to begin questioning the future sustainability of one annual fundraiser… one which required a significant amount of staff time to execute successfully.
Furthermore, the organization’s leadership felt strongly that significant opportunity existed for the region. With access to an international airport, a foreign trade zone, low electric rates, inexpensive land, a high-speed fiber-optic network, and a highly trained workforce, Grant County was poised for further growth and success. With these factors in mind, the executive staff and board of the Grant County EDC decided that a more comprehensive—and forward-looking—approach was called for. As part of that, the decision to partner with Convergent was made.
Funding Goals:
Total goal of $1.7 million over five years; provide the organization with 60 months of cash flow to allow staff to focus on strategic planning and economic development activities, rather than fundraising
Increase the average amount per investment, versus focusing on the total volume of investors
The Challenges:
Educate a relatively small pool of investors about the need for increased investment to support a five-year strategic plan. As with many nonprofit organizations, there was some reservation to hire a professional outside fundraising consultant such as Convergent.
The Convergent Approach:
Convergent began a feasibility study to determine the scope and focus of a campaign. Beyond arriving at the $1.7 million figure over five years, the feasibility study determined several things.
While the regional business community appreciated the Grant County EDC, the majority did not fully understand the organization’s role and impact in improving the region’s economic conditions. As a relatively remote area, attracting retail business to the region would be key to ensuring sustained growth. The region’s business community was extremely pro-growth and would support such an expanded economic development effort, but it must be communicated and positioned properly.
The theme of the capital campaign was “Building Prosperity,” signaling the need to truly show the business community the potential return on their investment in this campaign. This, according to Grant County EDC Former Executive Director Jonathan Smith, was the most notable takeaway for him. “Many of our investors participated in our golf tournament and gala for years, investing the same amount each year,” said Jonathan. “However, after Convergent launched the campaign and explained the overall vision and the expected ROI to these businesses and individuals, many increased their investment significantly, in some cases doubling or tripling the previous amounts. It is clear to me that properly communicating our vision has been the key to our early success.”
The Results:
Total commitments of $1.9 million over the next five years, surpassing the goal of $1.7 million.
Total number of investors decreased, while average investment increased by 42 percent; very small investments were virtually eliminated and the goal was still exceeded, leading to a far more efficient investor communication and follow-up program for staff.
By replacing the golf tournament and gala with the five-year capital campaign, Grant County EDC staff has significantly more time to devote to bigger picture and longer-term economic development activities.
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Raised
$1,700,000
“Our previous approach often led to initiatives from our strategic plan being cut due to budget issues. Having an accurate, 60-month cash flow projection has fundamentally changed the way we do business as an organization. We are able to plan based on real budget numbers and are able to be proactive versus reactive.”
Jonathan Smith, Former Executive Director, Grant County EDC
Testimonials
Andrew Keenan
“The fact that Convergent could make the ask was huge. Working with our director and joining solicitations made me a better fundraiser – that was the right formula for us. Moving forward I feel much more confident in making asks and telling our story, and that is going to make us more sustainable in the long run.”
Andrew Keenan, Executive Director Callanwolde Fine Arts Center | Atlanta, GA
Lisa Zaken
“In the span of six short months, our Board went from being nervous about the initial campaign investment to being ecstatic with the attainment of our goal, and our subsequent stretch goal! Convergent can do it like no other. Their system is rigorous and extremely effective. We have nothing but great things to say about this organization!”
Lisa Zaken, President & CEO Leadership Gwinnett | Duluth, GA
Dion Davis
“The strategy and support offered by Convergent helped our Board expand its vision for the Foundation, which in turn helped to refocus and redefine our organization's impact in our community. The methodology behind their capital campaign process not only helps to raise more money in the immediate, but it also builds best practices for long-term investor relations and lays groundwork for the success of future funding initiatives.”
Dion Davis, Former Executive Director Jekyll Island Foundation | Jekyll Island, GA
Robin Mauck
“Working with Convergent has been a pleasure all the way around. Their approach is customized to your organization and their expertise is unmatched in the field. The Convergent team immersed themselves in our process, culture, and goals to provide exceptional value during our campaign. They truly walk alongside you every step of the way!”
Robin Mauck, Executive Director Obria Medical Clinics Gwinnett | Lawrenceville, GA
Aimee Hall
“I loved working with Convergent. I never could have done what Convergent did. If you want to run a successful campaign, you need to bring in that expertise. Thanks to their help, our capital campaign really took us to the next level within our community.”
Aimee Hall, Executive Director Safe Homes Domestic Violence Center | Augusta, GA
Phillip Aldridge
“I wanted to thank everyone from the Convergent team who assisted in our campaign. Of the varying ways the campaign’s success may be measured, I count it a blessing that we achieved what we did. Not just the funds committed but the contacts made, the level of exposure reached, and ultimately, what the funds and exposure mean in terms of how many more we now serve as a result. My thanks is in recognition and appreciation for Convergent serving as our fundraising counsel and for the patience and professionalism demonstrated throughout the campaign. You were a godsend for Valley Healthcare!”
Phillip Aldridge, Board Chair Valley Healthcare System | Colombus, GA
Jeff Taylor
“Early in our campaign feasibility study it became apparent that we lacked the Asking Rights necessary to conduct a capital campaign. As a result, Convergent’s knowledgeable consultants prepared an extensive plan of action that is a road map for growing our awareness and philanthropy. A successful capital campaign will be possible in the near future. Their entrepreneurial approach will definitely get you where you want to go.”
Jeff Taylor, CEO MedCura Health, formerly Oakhurst Medical Center | Stone Mountain, GA
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The Situation: 
Funding Goals: 
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The Convergent Approach: 
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