Feasibility Study for K-CART

KU Endowment April 2008

A Feasibility Study is used to predict how much of a total project budget can be obtained from donors. Although in fundraising no gift is certain until it has been received, the following steps represent the ideal process to craft a Feasibility Report.

1. Project Description: The project description provides the information needed to present a compelling case for the project to donors and answers anticipated questions.

2. Project Cost, University Funds Available and Proposed Philanthropic Goal: An estimate of the total project cost less the internal funds available toward the total budget leaves us with the philanthropic goal. The process of the Feasibility Study will indicate if this is a realistic goal or if the budget and/or funding sources will need to be adjusted.

3. Prospect Identification: Three volunteers in Kansas City have offered to provide lists of potential donors. We will meet with them to gather names, estimate giving potential and develop strategies for cultivation and solicitation.

4. Gift Table: A gift table can clarify the size and number of gifts required to reach a fundraising goal and is based on certain assumptions. At one time the 80/20 rule predominated. That is, 80% of the required funds would be received from 20% of your donors. Most people in constructing a gift table have now shifted to a formula of 90/10, while it is not uncommon for campaign giving to more closely approximate 95/5.

5. Donor Visits: The next step is to conduct a “market survey” by doing face-to-face interviews with a carefully selected pool of board members, major donors, alumni and friends. The persons interviewed are selected on the basis of their closeness to the KU unit, familiarity with the project, potential as donors, and their ability to influence others to give. The number of interviews depends on the dollar goal and number of gifts needed. Typically no more than 20 interviews are required.

Interviews are used to share information and gain some sense of the person’s interest in the project. Typically you begin by explaining the need for the project and what you hope to accomplish. The Gift Table is then shared with the potential donor to make it clear the kind of financial support that will be needed. You then must ask if the person would consider helping and where on the Gift Table they see their support.

6. Feasibility Report: The Feasibility Report will include all of the information gathered as well as a conclusion as to the amount of support that can be raised and an updated Gift Table including prospect names. The amount of interest expressed in the project should make it possible to project how others will most likely respond to solicitation and therefore both the size and number of gifts you will receive.

Sample Gift Table for a $10M Goal

Gift Type Gift Range Number of Number of Prospect Total Gifts Prospects Names Leadership $2,500,000 1 4 1) $2,500,000 2) Gifts 3) 4) $1,000,000 2 4 1) 2,000,000 (1 of 2 secured) (As 1 of 2 is 2) secured from the 3) Pyle Estate, 4 4) additional required.) 500,000 3 12 1) 1,500,000 2) 3) 4) 5) 6) to 12) 350,000 3 12 1) to 12) 1,050,000 250,000 4 16 1) to 16) 1,000,000 150,000 4 16 1) to 16) 600,000 100,000 5 20 1) to 20) 500,000 Special Gifts 50,000 6 18 1) to 18) 300,000 25,000 8 24 1) to 24) 200,000 10,000 20 60 1) to 60) 200,000 General Gifts Less than All others Many Many 150,000 10,000 Total $10,000,000

Leadership Gift Level Total = $9,150,000 Leadership Gift Level Prospects Required = 84 Special Gift Level Total = $700,000 Special Gift Level Prospects Required = 104

Please Note: The rule of thumb is that four potential donors are required for each Leadership Gift. Special Gifts require three donors per gift, as it is assumed that some of the Leadership level donors will actually give at lower levels.