Episode
Will Your Capital Campaign Cannibalize Your Annual Fund? What Really Happens
- Published
- Feb 24, 2026
- Duration seconds
- 1493
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Summary
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 bui…