Will Your Capital Campaign Cannibalize Your Annual Fund? What Really Happens

Описание: Will a capital campaign drain your annual fund or strengthen it in ways you never expected?


In this episode of All About Capital Campaigns, Andrea Kihlstedt talks with Hilary Jansen, Director of Philanthropic Engagement at Community MusicWorks in Providence, Rhode Island, about what actually happens to annual fundraising during and after a major capital campaign. Community MusicWorks recently completed a $15 million building campaign and has now lived through the results. If you worry that campaign gifts will replace annual gifts, this conversation offers real-world clarity.


Community MusicWorks is a classical music performance, education, and social justice nonprofit with a powerful community presence. Before launching its campaign, the organization operated on an annual budget of $1.2 million. After opening its new 24,000 square foot home, that budget grew to $2.3 million. With 40 percent of revenue coming from individual giving and no tuition income, the stakes were high. Leadership had a legitimate concern: Would asking donors for larger, multi year capital gifts weaken annual support?


Instead, the opposite occurred.


Hilary shares how the campaign became a catalyst for annual giving. Annual fund goals increased. Donors continued to give. Many increased their annual contributions even after making significant campaign commitments. The campaign did not erode trust. It strengthened it.


Why did this happen?


First, seasoned philanthropists understand the difference between capital and annual support. They recognize that both are essential. Second, Community MusicWorks had invested for years in deep, authentic relationships. Donors trusted the leadership and believed in the mission. When the organization expressed a need, supporters understood it as genuine.


The new building itself also transformed fundraising. The campaign was about bricks and mortar on paper, but in reality it was about mission growth. The building created a visible, tangible home for programs that were once harder to picture. Concertgoers now see lessons in action. Families gather in shared spaces. Community members walk in off the street and discover the work. The physical space provides context for larger annual asks and attracts new supporters who experience the mission firsthand.


Andrea and Hilary also discuss the post campaign moment. After a successful $15 million effort, Community MusicWorks faced a higher operating budget and expanded programming. Would donors feel fatigued? Would they say enough? In practice, very few pushed back. Most understood that a larger organization requires greater annual investment. The building was not the end goal. It was the platform for expanded impact.


Hilary reflects on lessons learned after stepping into development without prior fundraising experience. She emphasizes that fundraising is relationship work at its core. The success of the campaign rested on years of trust, stewardship, and shared belief. She also shares a critical insight for campaign leaders: You are not raising money for a building. You are raising money for what that building makes possible.


This episode is essential listening for nonprofit leaders, development directors, board members, and executive directors who fear that launching a campaign will jeopardize annual revenue. Hear a candid account of what actually happens when relationships, mission clarity, and thoughtful planning come together.


If your organization depends heavily on annual giving and you are considering a capital campaign, this conversation will reshape how you think about donor behavior, growth, and long term sustainability.


To see what the research truly says about the impact of capital campaigns on the annual fund, download the State of Capital Campaigns Benchmark Report (https://capitalcampaignpro.com/resear...) .