The holidays are here, and excitement is buzzing as we set-up decorations, visit our loved ones, find the perfect gift, and snap the family holiday card. But all this holiday cheer is also coupled with sheer exhaustion.
In the season of giving, are we asking donors to support too many initiatives, particularly if we’re in the middle of a campaign? And how do we make sure our capital campaign doesn’t cannibalize annual giving—the lifeblood of most organizations?
Below, we explore the symbiotic relationship between annual giving and campaign giving. You’ll see how to grow your capital campaign by embracing the annual fund—and vice versa. We highlight approaches to identify and cultivate donors, elevate mid-level annual donors into major campaign donors, and ensure annual giving continues to grow after the campaign ends. These two initiatives can work together as seamlessly as your favorite holiday traditions.
The Power and Purpose of Your Annual Fund
The annual fund is the driving force behind any organization, providing unrestricted funding to support its mission. It is also a powerful tool that’s often overlooked by fundraisers who see it as too pedestrian. They fail to grasp its power as a tool to develop a donor’s journey from new to major giver.
Annual fund appeals reach your broadest audience because the wider the net you cast, the greater the potential for gifts. The annual fund keeps you at the top of a donor’s mind. It’s the gateway—a way a donor can test the waters of supporting your school, nonprofit, or organization while contributing to a meaningful cause. And because annual giving becomes a familiar, low-barrier way to stay connected, it naturally builds trust and loyalty over time. So amid the holly-jolly frenzy, it’s always important to encourage your donors to make a year-end gift.
During a capital campaign, however, annual giving can slip into the background. Teams often develop unintentional silos, treating annual giving as separate from the campaign rather than seeing it as a reliable partner. When that happens, organizations miss out on the annual fund’s ability to identify, nurture, and elevate donors who will ultimately strengthen the campaign.
How Your Annual Fund Can Build Your Campaign Pipeline
A well-run annual fund does more than support your operating budget. It is one of the clearest indicators of donor engagement and future potential. Donors who consistently give to annual initiatives are more likely to deepen their commitment during a campaign—especially when cultivated intentionally. These donors often behave like major gift prospects at a smaller scale: they engage with communications, attend events, and already view your mission as part of their philanthropic identity.
Organizations that actively integrate annual giving into their campaign strategy often see stronger results in both areas. One effective approach is to build a structured mid-level giving program—something the Winkler Group often helps clients develop. Mid-level donors are ideal candidates for major gifts: they are engaged, consistent, and already demonstrating strong interest in your mission.
When you analyze mid-level donors for indicators of major gift potential and invest in targeted stewardship, your campaign pipeline becomes stronger and more robust. These strategies must be tiered, scalable, and personal enough to move donors forward without overwhelming your team.
Done well, this approach uncovers leadership-level prospects who might not emerge through traditional campaign cultivation alone.
The Long-Term Benefits: Annual Giving After a Campaign
Organizations that steward donors intentionally throughout a campaign often see a surge in annual giving after the campaign concludes. Campaigns raise visibility, strengthen donor relationships, and build momentum. When treated well, new donors stick around.
Large institutions have demonstrated this pattern for years. Public campaigns often lead to increased annual revenue because donors continue to give long after fulfilling their pledges. They maintain support not because they feel obligated, but because the campaign deepened their connection to the mission.
A well-documented example comes from Harvard University’s record-setting Campaign for the Third Century. During its four-year public phase, Harvard raised more than $7 billion. As reported in The Harvard Crimson, “The campaign has substantively increased Harvard’s annual revenue from gifts. From 2010 to 2012, before the public launch of the campaign, the University’s average revenue from gifts was roughly $628 million. Harvard soon started to haul in far more every year, raising a record-high $1.19 billion in fiscal year 2016.”
Donors and friends of Harvard gather under a glowing tent for a celebration tied to the record-breaking Campaign for the Third Century. The multibillion-dollar effort ultimately helped more than double the university’s annual giving.
The lesson holds true across the nonprofit sector: campaigns, when done well, create lasting lift. The donors you attract during a campaign—especially those who enter through the annual fund—often become long-term supporters who continue giving after their pledges are fulfilled.
How to Unite Your Annual Fund and Capital Campaign
In our team’s combined 300 years of fundraising experience, we have seen that successful capital campaigns create a powerful bandwagon effect that impacts giving long after the campaign ends.
Below are some tips to unite your annual fund and capital campaign so both profit:
- Forge an understanding within your development or advancement team so they see the annual fund and capital campaign as interdependent. Help them recognize opportunities that enhance both goals.
- Recognize that the annual fund is your organization’s top indicator of a donor’s propensity to give to the campaign.
- Make the case to your donors for giving to both the annual fund and capital campaigns.
- Pair your campaign ask with an annual fund request when appropriate. Sophisticated donors understand the need for both. Newer donors benefit from the explanation.
- Fundraising is circular, not linear. Once you close a gift—annual and/or campaign—immediately begin the stewardship process. This will help ensure your donors (especially the new ones) continue to give even after their campaign pledge is fulfilled.
- Send a thank you within 48 hours. Timing is important, especially if the acknowledgment serves as cultivation for a future, larger gift.
- Emphasize vision during the campaign. Donors give because they want to be part of something meaningful. Make sure new donors feel welcomed and existing donors feel their impact.
- Use the heightened visibility of a capital campaign—media coverage, major gift announcements, groundbreakings—to support strategic asks and new donor cultivation.
A Strong Partnership Leads to Stronger Giving
When organizations and institutions embrace the mutual benefit between annual giving and capital campaigns, they strengthen their donor pipeline, improve retention, and increase overall fundraising performance. With clear coordination and intentional strategy, these two efforts reinforce one another rather than compete.
As you plan your year-end fundraising efforts, consider how both initiatives can work in tandem. When they do, your organization benefits long past the holiday season. Take advantage of year-end generosity now and see both your annual fund and capital campaign grow.
Warm wishes for a joyful holiday season from the Winkler Group.
About the Winkler Group
Strong communities depend on strong nonprofits. When those organizations thrive, the people they serve do too. We help make that impact possible.
For over two decades, the Winkler Group has specialized in guiding organizations from vision to action through strategic planning, capital campaigns, and fundraising counsel that delivers results.
A national firm headquartered in Charleston, South Carolina, with offices across the country, the Winkler Group proudly walks alongside organizations committed to education, community impact, and serving the greater good.
