5 Common Mistakes Nonprofits Make During Feasibility Studies
- Nonprofit Learning Lab
- 3 days ago
- 5 min read
This is a guest blog.
A feasibility study is a critical first step before launching a major fundraising campaign. A well-executed study provides the insights needed to set your strategic framework, complete with achievable goals and a plan to secure funder buy-in. However, even experienced nonprofit professionals might make critical mistakes that can undermine the success of their feasibility studies.
In this guide, we’ll cover the top mistakes nonprofits make during feasibility studies that undermine their capital campaigns before they even begin. Additionally, we’ll explain how to avoid these pitfalls so you can start your major fundraising initiative with confidence.
Mistake #1: Skipping the Feasibility Study
Although feasibility studies aren’t required for capital campaigns, they’re strongly recommended for internal and strategic alignment. Many organizations might bypass this step, assuming they already know their funders and have a compelling case for support. This oversight can lead to unrealistic goals, unclear messaging, or a target that is misaligned with funders’ capacity and interest.
However, if you’re trying to determine if you need a feasibility study, Convergent recommends asking yourself the following questions:
Do we have a clearly defined project or goal?
Can we articulate a compelling case for support?
Is our organization’s leadership aligned and supportive?
Do we have an existing base of major funders?
Do we have strong community or funder relationships we can leverage?
Are we familiar with the types of fundraising we will do?
Do we have a single top priority we’re trying to fund?
Would failure have little to no impact on our credibility or reputation?
If you answered mostly no to these questions, then you should conduct a feasibility study for your capital campaign. But even if you answered yes to all these questions, you can still benefit from a feasibility study.
A feasibility study offers a valuable opportunity to engage key stakeholders, gather their candid feedback, and build momentum for your fundraising initiatives. Forgoing it means you miss the chance to learn about potential obstacles and strengthen relationships before making formal asks.
Mistake #2: Interviewing the Wrong People
The bulk of your feasibility study consists of conducting interviews with key stakeholders. However, some nonprofits make the mistake of interviewing only their most loyal, long-time supporters. While their feedback is important, it won’t provide a complete picture of your nonprofit’s circumstances.
For a holistic view of how people perceive your nonprofit, your study should include interviews with a mix of the following stakeholders:
Donors, including major, mid-level, and minor supporters
Board members
Longtime volunteers
Community leaders and stakeholders
Local business owners
Staff members
This diversity ensures you understand potential objections and opportunities from multiple perspectives, leading to a more comprehensive and realistic campaign strategy.
You may even seek out prospective major donors and include them in your feasibility study, taking DonorSearch’s advice to conduct thorough prospect research by scanning your donor database for wealth and philanthropy indicators. That way, you can kill two birds with one stone—get more insights into how your nonprofit is perceived while connecting with potential new major donors.
Mistake #3: Asking Vague or Leading Questions
Aside from interviewing the wrong people, another mistake that nonprofits make during feasibility studies is asking the wrong questions. Many nonprofits ask questions that are too general or that lead interviewees toward a desired answer. Effective questions are specific and open-ended, designed to uncover a stakeholder's true perceptions of your organization's reputation, leadership, and proposed campaign urgency.
For example, instead of asking an interviewee, “Do you support our capital campaign project?”, ask them, “What aspects of the plan are most interesting to you? What potential challenges do you foresee?”
Additionally, adjust your questions according to the type of stakeholder you’re speaking to. For instance, if you’re interviewing a staff member, you can ask how they feel about your donor acquisition strategies or fundraising process. On the other hand, if you’re interviewing a volunteer, you might ask if they’ll support your capital campaign or what you could do to earn a monetary donation from them.
Collaborate with your team members to develop suitable feasibility study questions. Or, consider working with a fundraising consultant that offers feasibility study services.
Mistake #4: Not Assessing Internal Readiness
Although the bulk of the focus is on external stakeholders and community interest, a feasibility study also presents a valuable opportunity to look inward. A successful campaign requires the internal capacity to execute a well-strategized, compelling case for support. To determine internal readiness, evaluate your nonprofit’s organizational limits.
During your feasibility study, make sure to consider your:
Staff workload to ensure that your staff members have sufficient time to take on the additional responsibilities required for a capital campaign.
Internal culture for adaptability and cross-department collaboration, which is essential during intense campaign phases.
Historical campaign performance to identify past roadblocks or successes you can learn from.
Facilities or infrastructure, especially if capital improvements are part of your case for support.
Internal alignment on the campaign’s purpose, scope, and timeline across leadership, staff, and board members.
Marketing capacity to promote the campaign and communicate effectively with all types of stakeholders and supporters across various channels.
Tech stack, including your donor management system and fundraising platform, to ensure they support campaign segmentation, tracking, and outreach.
This is also the time to gauge your financial readiness. Involve your accountants or CFO to review your nonprofit’s financial health and ensure that you have the infrastructure to support and manage a significant influx of funds.
Mistake #5: Conducting the Study In-House
While it’s the more cost-effective option, relying solely on internal staff and board members to conduct your feasibility study isn’t always the best solution. Since team members are deeply invested in your project’s success, it can be difficult for them to assess challenges objectively or receive critical feedback. They may also overlook solutions to challenges because they’re accustomed to the way you’ve historically handled certain processes.
Therefore, it’s beneficial to obtain an independent, third-party perspective for your feasibility study. A dedicated consultant can gather unbiased data during your feasibility study, ensuring neutral interviews and impartial analysis. This objectivity provides a true picture of your fundraising potential. Additionally, if your staff members are unfamiliar with the feasibility study process, an expert can greatly assist in streamlining and simplifying it. After the feasibility study, you may even enlist the consultant’s help for your capital campaign itself.
Discuss with your board members and leadership team if it’s in your nonprofit’s best interest to hire a capital campaign and feasibility study consultant for your latest initiatives. Once you’ve secured their buy-in, you can start requesting proposals from consultants who are familiar with your cause area and knowledgeable about working with nonprofits like yours.
A feasibility study is a foundational investment in your nonprofit's future growth. By avoiding these common mistakes, you increase your chances of success. Your feasibility study will help you build a strategic campaign plan based on objective data, strengthen key funder relationships, and confirm your organization is ready for this new project. It is a critical step that, when done correctly, paves the way for a transformative fundraising outcome.
