Balancing Capital Campaigns and Annual Funds: How to Succeed at Both
It might be tempting to focus solely on your capital campaign. After all, you’re making a huge investment of time, energy and resources in hopes of securing transformational gifts.
But don’t underestimate the power of your annual fund—even when you’re deep in a campaign.
The truth: you can – and should – do both.
(Quick aside: In this post, we’re talking specifically about capital campaigns, where you’re raising for isolated needs. A comprehensive campaign is broader in scope and annual fund gifts and pledges are included in your overall goal.)
“A capital campaign should be considered an extension of an annual campaign,” says Emmy Torruellas, a senior consultant with the Heller Fundraising Group. “The values and mission that drive your donors to participate in the annual fund should align with the values and mission of your capital campaign. The annual fund support ensures the ‘now’ so there can be a future through the capital campaign.”
As we’re heading into the year-end fundraising season, it’s essential to keep in mind that annual fundraising is critical. It often includes the smaller, unrestricted gifts that underpin your operations and keep your donor base engaged. Skip year-end appeals and you risk losing momentum with your core supporters and creating a gap in funding for day-to-day programs.
Finding the right balance
Donor fatigue is real. Ask too often, and supporters will tune out.
“You need tight coordination between the fundraising team and leadership to segment your audiences and tailor your messaging clearly,” says Megan Hodges, a senior consultant with the Heller Group. “You have to help donors understand the difference between supporting the campaign and giving to the annual fund.”
Here are a few other recommendations from Megan on how to achieve that balance:
Identify who is most likely to give to the capital campaign vs. who responds to annual appeals, and customize your outreach accordingly. Use your CRM to track giving patterns and preferences so communications are relevant and timely.
Develop distinct messaging and branding for each effort so donors immediately recognize the purpose and feel confident about their gift’s impact.
Consider a dual ask that combines your annual fund and campaign solicitation, educating donors on both your ongoing operational needs and the singular vision for your campaign.
When a dual ask isn’t appropriate, stagger your asks thoughtfully—especially around year-end—so supporters aren’t bombarded, but instead feel invited to participate in both.
Leverage leadership and volunteer networks strategically by assigning roles—some focused on the capital campaign, others on year-end—to maintain energy and accountability.
Create a compelling case for each ask, making sure to highlight how the annual fund sustains daily programs while the capital campaign secures the organization’s future.
Set specific and measurable goals for your annual fundraising and review your progress monthly to make sure you’re staying on target.
Communicate, communicate, communicate
Keeping your campaign on track while meeting your year-end goals ultimately comes down to clear, thoughtful, and strategic communication—both among your team and with your donors. Just take a look at this success story from one of our clients.
The D.C.-area synagogue was in the middle of a major capital campaign when a number of congregants lost their federal workforce jobs at the beginning of 2025. Naturally, they were concerned about their members, but also about how they’d meet their annual fund needs and maintain the campaign’s momentum.
But instead of doubling down on solicitations, they slowed down. They slowed the pace of capital campaign solicitations and used the extra time to cultivate significant prospects, resulting in even deeper ties between the donors and the synagogue. They also approached those affected by job losses not to ask about giving to the annual fund, but to make sure they felt supported. Our clients then approached those who were less affected by the crisis about giving more to the annual fund to offset the lost contributions.
In the end, the annual fund did better than ever before and they received a six-figure campaign pledge from a donor who had never previously given at that level.
We call that a win-win.
Want a campaign strategy that strengthens—not sidelines—your annual fund? Let’s talk.