For many nonprofits, the question of launching a major giving initiative, whether a capital campaign, endowment-building effort, or transformative program, begins with a critical consideration: “Do we need a feasibility study?”
A feasibility study is not a necessary formality any more, but it is a tool to inform leadership whether a major initiative is realistic, strategically aligned, and likely to succeed. Conducting one early also supports capital campaign readiness by helping organizations understand both strengths and barriers before making a major public commitment.
The Hodge Group guides nonprofits through weighing the benefits and costs of conducting a study ensuring that the decision about whether to proceed is mission-driven, data-informed, and relationship-centered. From the perspective of our Hyperphilanthropy™ methodology, a feasibility should address all four pillars:
- Strategy: Provides clarity on potential outcomes, risks, and resource needs
- Culture: Demonstrates intentionality and transparency to donors and stakeholders
- Behavioral Economics: Illuminates donor motivations and giving potential
- Communication: Strengthens engagement through listening and responsiveness
In this sense, the study elevates feasibility study benefits far beyond simple validation—it becomes a lens for deeper long-term donor relationships.
What Is a Feasibility Study?
A feasibility study is a structured process used to assess whether your organization can realistically pursue a major giving initiative. It typically involves:
- Confidential interviews with major donors, board members, and other stakeholders
- Surveys or focus groups to gauge interest and capacity
- Review of financial, operational, and leadership readiness
- Analysis of potential risks, campaign goals, and timelines
The study produces clear insights that help organizations decide whether to move forward, adjust plans, or focus on preparatory work first. It also functions as a nonprofit risk assessment, ensuring organizations make decisions grounded in data rather than assumptions.
Making an Informed Decision:
A feasibility study is not mandatory for every major initiative but it is most valuable when:
- The goal requires significant investment or transformational gifts
- Leadership is committed to acting on the findings
- Donor engagement is feasible and essential to success
- Timing, resources, and readiness allow for meaningful study outcomes
If these conditions are not yet met, the organization may choose to focus on internal alignment, donor cultivation, or smaller-scale campaigns before investing in a full feasibility study.
Key Considerations About Whether to Conduct a Study:
1. Organizational Readiness
- Are leadership and the board aligned on pursuing a major initiative?
- Is staff capacity sufficient to implement the findings if the initiative moves forward?
- Do you have the governance and volunteer infrastructure to support a large-scale effort?
If resources are necessary, a study may reveal the gaps that are necessary to fill and help establish capital campaign readiness when timing is right.
2. Strategic Fit
A feasibility study is most valuable when it supports a strategic initiative.
- Does the initiative align with your mission and strategic plan?
- Are the timing and external conditions favorable for major fundraising?
- Could competing priorities dilute focus or donor attention?
The study helps you assess whether the initiative is feasible and timely or whether further preparation is needed.
3. Donor Engagement Potential
The success of a major giving initiative depends on donor readiness.
- Do you have access to major donors who are likely to provide candid feedback?
- Will interviews and surveys strengthen relationships, regardless of the outcome?
- Are you prepared to act on feedback even if it challenges assumptions about donor capacity or interest?
A feasibility study is both a diagnostic tool and an opportunity to deepen donor engagement. Tools such as a donor feasibility survey provide valuable perspectives directly from donors and can reveal motivations that influence major gift decisions.
4. Costs and Resource Investment
Feasibility studies require time, money, and staff involvement.
- Budget for consulting support and research costs
- Staff time for interviews, follow-up, and analysis
- Opportunity costs of delaying other initiatives
A study is an investment in clarity and confidence—ensuring the organization does not commit to a major initiative prematurely and surfaces feasibility study benefits that protect the organization from unnecessary risks.
5. Clarity of Objectives
Define what you hope to learn.
- Likely donor support and giving capacity
- Messaging resonance and campaign appeal
- Risks and barriers to success
- Readiness for leadership and volunteer involvement
Clear objectives maximize the study’s usefulness and ensure actionable results. A donor feasibility survey can add qualitative insight that helps refine campaign messaging and expectations.
Before committing to a major giving initiative, a feasibility study can answer the critical question: “Is this the right time, approach, and plan for success?” When aligned with organizational readiness, donor engagement, and strategic priorities, it reduces risk, strengthens relationships, and sets the stage for meaningful, sustainable impact.
A well-executed feasibility study is more than research—it is a decision-making and relationship-building tool that helps nonprofits approach major initiatives with confidence and completes a thoughtful nonprofit risk assessment before moving forward.