For nonprofit organizations aiming to fund transformative projects—such as constructing a new facility, launching a major initiative, or creating an endowment—a capital campaign can be the key to unlocking large-scale fundraising success. But while capital campaigns can bring in significant resources, they require strategic planning, strong leadership, and long-term commitment to succeed. 

In this blog, we’ll explore what capital campaigns are, how they differ from annual fundraising, and the essential steps nonprofit leaders should take to plan, execute, and complete a successful campaign. 

What Is a Capital Campaign? 

A capital campaign is an intensive fundraising effort focused on raising a substantial amount of money within a defined period to meet a specific need. These campaigns often fund long-term projects such as: 

• New buildings or facility expansions 

• Major renovations 

• Endowment funds 

• Strategic initiatives or technology upgrades 

Unlike general fundraising, which supports ongoing operations, capital campaigns are targeted and time-bound, often spanning two to five years and requiring exceptional donor engagement. 

The Phases of a Capital Campaign 

A successful capital campaign typically unfolds in several key phases: 

1. Pre-Campaign Planning (Feasibility Study) 

Before launching a campaign, nonprofits should conduct a feasibility study to assess readiness and determine the likelihood of success. This involves interviewing major donors, board members, and stakeholders to gauge interest, test campaign goals, and identify potential challenges. 

A strong feasibility study helps you: 

• Understand donor capacity and willingness to give 

• Identify campaign leaders and major gift prospects 

• Fine-tune your case for support 

2. Quiet Phase 

In the quiet (or silent) phase, nonprofits secure lead and major gifts before going public with the campaign. This phase can raise 50–70% of the total goal and is crucial for building momentum and credibility. Organizations often reach out to board members, long-time donors, and foundation partners during this stage. 

3. Public Phase 

Once a solid foundation of support is secured, the campaign moves into the public phase, where the broader community is invited to contribute. This phase often includes media outreach, community events, and social media campaigns to create excitement and encourage widespread participation. 

4. Post-Campaign Stewardship 

After reaching your goal (or concluding the effort), recognize donors, report on results, and celebrate your success. Stewardship helps build lasting relationships, laying the groundwork for future fundraising initiatives and maintaining donor trust. 

Key Elements of a Successful Capital Campaign 

1. A Compelling Case for Support 

Your case should answer the question: “Why now?” Explain the need, urgency, and impact of the project clearly and persuasively. Use stories, visuals, and data to bring the project to life and show how donor contributions will make a difference. 

2. Strong Leadership and Governance 

Successful campaigns need committed leadership—both from staff and volunteer campaign chairs or committees. These individuals will serve as advocates, open doors to donors, and lead by example with their own contributions. 

3. Gift Range Chart 

A gift range chart outlines how many gifts are needed at each giving level to reach your goal. For example, a $2 million campaign might rely on: 

• 1 gift of $500,000 

• 2–3 gifts of $250,000 

• 5–10 gifts of $50,000+
  This visual guide helps focus donor outreach and prioritize efforts. 

4. Major Gift Strategy 

Capital campaigns rely heavily on major donors, who often contribute 80–90% of the total goal. Build a strategy to cultivate, solicit, and steward these individuals through personalized outreach and relationship-building. 

5. Clear Timeline and Budget 

Outline the full campaign timeline, including phases, milestones, and marketing efforts. Also prepare a campaign-specific budget that covers: 

• Consultant or staff support 

• Marketing and design 

• Events and donor recognition 

• Contingency reserves 

6. Marketing and Communications Plan 

Promote the campaign with consistent, mission-driven messaging across platforms—print, email, social media, your website, and community outreach. As you move through the public phase, storytelling and regular updates keep momentum high. 

Common Capital Campaign Challenges—and How to Overcome Them 

• Donor Fatigue: Avoid overlapping with annual campaigns or other major asks. Space out appeals and coordinate messaging carefully. 

• Leadership Turnover: Ensure continuity by involving a wide base of stakeholders and documenting all processes. 

• Unrealistic Goals: Base your campaign goal on data from your feasibility study and prior donor giving behavior—not just the organization’s needs. 

• Economic Uncertainty: While external conditions may affect giving, clear communication and a flexible approach can help maintain donor trust and support. 

How Brady Martz Can Help 

A capital campaign can be a game-changer—but it requires smart planning, sound financial oversight, and strategic execution. At Brady Martz, we partner with nonprofits to help them prepare for every stage of a successful campaign. From developing budgets and tracking donor commitments to providing financial reporting and governance support, we’re here to make sure your campaign is built for long-term success. 

Nonprofit organizations play a critical role in supporting communities, advancing social causes, and providing vital services. While nonprofits are generally exempt from federal income tax, that exemption doesn’t eliminate the need for careful tax planning and regulatory compliance. In 2025, the IRS continues to refine its oversight of tax-exempt entities, making it more important than ever for nonprofit leaders to stay informed and proactive. 

From maintaining 501(c)(3) status to navigating unrelated business income and timely filing of required forms, understanding the latest IRS requirements is essential. In this blog, we’ll break down the key tax considerations nonprofits should be aware of in 2025 and how you can ensure ongoing compliance. 

1. Maintaining Your Tax-Exempt Status

Your organization’s tax-exempt status is the foundation of your financial strategy. To retain this status, nonprofits must ensure that their operations align with their stated mission and comply with IRS rules. This includes: 

• Operating exclusively for exempt purposes under section 501(c)(3) (such as charitable, religious, educational, or scientific purposes) 

• Avoiding private benefit or inurement of net earnings to insiders 

• Limiting political activity and strictly prohibiting partisan campaigning 

• Maintaining proper documentation and governance policies 

Failing to adhere to these principles can jeopardize your exemption and lead to significant tax liabilities. 

 

2. Unrelated Business Income (UBI) and Form 990-T

Not all income earned by a nonprofit is tax-exempt. If your organization regularly generates revenue from activities that are not substantially related to your core mission, it may be considered unrelated business income (UBI). 

Examples include: 

• Operating a gift shop or cafe 

• Renting out space for events 

• Selling advertising in publications 

If your organization earns $1,000 or more in UBI during the year, you must file Form 990-T and may owe Unrelated Business Income Tax (UBIT). In 2025, the IRS continues to enforce UBIT rules with added scrutiny, so it’s crucial to evaluate all income streams and determine whether they trigger tax obligations. 

3. Timely Filing of Form 990

Nonprofits are required to file an annual return with the IRS—typically Form 990, 990-EZ, or 990-N, depending on gross receipts and total assets. Missing filing deadlines or filing incomplete forms can result in financial penalties and, after three consecutive years of non-filing, automatic revocation of tax-exempt status. 

Key tips for 2025: 

• Due Date: The return is generally due on the 15th day of the 5th month after the end of your fiscal year. 

• Electronic Filing: The IRS now mandates e-filing for most nonprofits. 

• Schedule B Privacy Rules: Public charities can omit donor names but must include contribution amounts. 

If you need additional time, be sure to submit Form 8868 for an automatic 6-month extension. 

4. Form W-9 and Independent Contractors

If your nonprofit pays independent contractors or service providers $600 or more during the year, you are required to collect a Form W-9 and issue Form 1099-NEC by January 31, 2026. Proper classification between employees and contractors is essential, as misclassification can lead to IRS penalties. 

Best practices include: 

• Keeping detailed service agreements 

• Verifying tax ID numbers and business status 

• Maintaining accurate records of all payments 

5. Charitable Contribution Acknowledgments

To ensure donors can claim tax deductions, nonprofits must provide written acknowledgments for contributions of $250 or more. These acknowledgments must include: 

• The amount or a description of the donation 

• A statement of whether goods or services were provided in exchange 

• A good-faith estimate of the value of any goods or services provided 

In 2025, the IRS continues to emphasize substantiation and recordkeeping, especially in audit scenarios. 

6. Fundraising Compliance and State Filings

While the IRS oversees federal tax exemption, nonprofits must also comply with state-level charitable solicitation laws. This includes: 

• Registering with state charity offices 

• Renewing registrations annually 

• Filing state tax or sales tax exemption forms 

Some states have adopted the Unified Registration Statement (URS) to streamline the process, but requirements vary widely by state. For organizations operating in multiple states—or fundraising online—this compliance is even more critical in 2025. 

7. Recent IRS Updates Nonprofits Should Know

The IRS has made several updates in recent years that may affect nonprofits in 2025: 

• Increased scrutiny of donor-advised funds (DAFs) and how nonprofits receive contributions from them 

• Digitization of IRS communications, with more notices and follow-ups handled electronically 

• Greater focus on governance practices, including conflict-of-interest policies and board oversight 

It’s important to work with a trusted advisor to monitor these developments and adjust your policies accordingly. 

How Brady Martz Can Help 

Tax compliance doesn’t have to be overwhelming. At Brady Martz, our team of nonprofit specialists is here to help your organization stay on track, mitigate risks, and plan confidently for the future. From preparing Form 990 to advising on unrelated business income and navigating federal and state requirements, we’re your partner in proactive compliance and strategic growth. Let us help you focus on what matters most—advancing your mission. 

Securing government grants is a powerful way for nonprofit organizations to fund programs and expand their impact. However, navigating the complex landscape of public funding can be daunting. With thousands of grant opportunities available at the federal, state, and local levels, understanding the application process and crafting a compelling proposal can make the difference between securing the funds and missing out on a valuable resource. 

In this blog, we’ll discuss strategies that nonprofits can use to enhance their chances of securing government grants, streamline the application process, and maximize their impact with public funding. 

Understanding the Government Grants Landscape 

Government grants are funds provided by government agencies to support specific projects, initiatives, or operational needs within the nonprofit sector. These grants can cover a wide range of needs, from funding community programs to supporting research and development efforts, infrastructure projects, or services that address social issues. 

The U.S. government alone offers thousands of grant programs across various agencies, such as the Department of Health and Human Services (HHS), the Department of Education, and the National Endowment for the Arts (NEA). Additionally, state and local governments often have their own grant opportunities. Finding the right grants for your nonprofit requires understanding the different types of funding available and identifying which are best suited for your organization’s mission and goals. 

Key Strategies for Securing Government Grants 

1. Identify the Right Funding Opportunities 

The first step in securing government funding is to identify the right grant programs that align with your nonprofit’s mission and initiatives. This process involves thoroughly researching various government grant databases such as Grants.gov, SAM.gov, and other federal, state, and local government websites. 

Start by narrowing your search to grants that fit your nonprofit’s focus area, whether that’s healthcare, education, community development, or environmental conservation. Be sure to pay attention to the eligibility requirements and any restrictions that might apply to each grant. 

1. Build a Strong Grant Proposal 

A compelling and well-structured grant proposal is key to securing government funding. The proposal should clearly explain your nonprofit’s mission, the purpose of the grant, the intended impact of the project, and how the funds will be used. 

Some tips for building a strong proposal include: 

• Align with the grant’s goals: Ensure your proposal addresses the specific objectives outlined in the grant announcement. This shows that you understand the priorities of the funding agency and can meet its expectations. 

• Be clear and concise: Government agencies often have limited time to review applications, so it’s essential that your proposal is straightforward, well-organized, and free of jargon. Focus on presenting your case in a way that is easy to understand and demonstrates the potential for positive outcomes. 

• Provide detailed budgets: Transparency is crucial when applying for government grants. Include a detailed budget that shows how the grant funds will be allocated, including staff, program costs, and any other associated expenses. 

1. Ensure Compliance with Government Requirements 

Government grants come with strict compliance and reporting requirements. To avoid complications, ensure your nonprofit adheres to all legal, financial, and administrative guidelines set by the granting agency. This can include maintaining accurate financial records, following specific accounting procedures, and submitting timely progress reports. 

Nonprofits should also be aware of any federal, state, or local regulations related to grant funding, such as the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Non-compliance can lead to delays, penalties, or the rejection of future funding opportunities. 

1. Establish Strong Relationships with Granting Agencies 

Building relationships with the agencies offering grants can be incredibly beneficial. Attending pre-application workshops, informational webinars, and networking events hosted by the grant-making agencies can help you better understand the expectations and priorities of the agency. 

Additionally, reaching out to program officers or representatives from the funding agencies can provide valuable insights into the application process and strengthen your case for funding. These individuals can often offer guidance on how to tailor your proposal to meet specific goals and help ensure your application is complete and compliant. 

1. Collaborate with Other Organizations 

Partnerships and collaborations can enhance the impact of your grant application. When nonprofits join forces, they can pool resources, share expertise, and increase their ability to execute projects successfully. Many government grants encourage or even require partnerships with other organizations to promote collaboration and leverage resources. 

Collaborating with other nonprofits or businesses can also demonstrate a broader community impact, which is often a factor that government agencies take into consideration when awarding funds. 

1. Prepare for Reporting and Accountability 

Once you’ve successfully secured a government grant, you’ll need to demonstrate accountability for how the funds are used. Government grant agencies require regular reporting on the progress of funded projects and may request detailed financial statements and performance evaluations. 

Nonprofits should develop robust systems for tracking project outcomes and expenditures to ensure compliance and provide transparency. Proper documentation and reporting help maintain trust with the grantor and can increase your chances of securing future funding. 

The Role of Technology in Grant Management 

Using technology to streamline the grant application and management process is becoming increasingly common among nonprofits. Specialized software can help you track deadlines, manage compliance requirements, and automate progress reporting. Platforms such as Fluxx, Foundant, and GrantHub are designed to help organizations manage grant applications, collaborate on proposals, and monitor their performance against grant goals. 

These tools allow nonprofits to maintain organization, save time, and stay on top of deadlines, ultimately improving their chances of success in securing and managing government grants. 

How Brady Martz Can Help 

At Brady Martz, we understand the complexities involved in securing government grants and the importance of managing these funds efficiently. We are committed to supporting your nonprofit’s mission and helping you secure the funding you need to thrive. 

In the nonprofit sector, collaboration is key to achieving meaningful and sustainable change. As organizations work toward fulfilling their missions, forming strategic partnerships can amplify their impact, extend their reach, and leverage resources more efficiently. By coming together with like-minded partners, nonprofits can achieve goals that might be difficult or impossible to accomplish on their own. 

In this blog, we’ll explore the benefits of nonprofit partnerships, the different types of collaborations, and strategies for building successful partnerships that drive greater impact. 

The Power of Partnerships in the Nonprofit Sector 

The nonprofit sector thrives on collaboration. Whether it’s with other nonprofit organizations, government agencies, businesses, or even individuals, partnerships help extend the capacity of nonprofits to reach new audiences, secure additional funding, and improve programmatic outcomes. 

As organizations seek to solve increasingly complex social issues, partnerships offer an opportunity to combine expertise, resources, and networks. These collaborations can provide access to new technologies, broaden the scope of services offered, and allow nonprofits to take on larger projects or address challenges from a more holistic perspective. 

Types of Nonprofit Partnerships 

There are several types of nonprofit partnerships, each offering different advantages depending on the goals and needs of the involved organizations. Below are a few common types of partnerships found in the nonprofit sector: 

1. Strategic Partnerships 

Strategic partnerships are long-term, mutually beneficial collaborations between organizations with shared values and missions. These partnerships are often designed to help both parties achieve common objectives and are usually formed with a focus on organizational growth and sustainability. For example, two nonprofits working on similar social causes might collaborate to combine resources, reduce overhead costs, and enhance their collective impact. 

2. Programmatic Partnerships 

These partnerships focus on specific programs or projects. By collaborating, nonprofits can pool their resources to execute larger initiatives or enhance the services offered to their target populations. For example, a nonprofit that provides food assistance might partner with a health organization to offer nutrition education alongside food distribution programs. 

3. Resource Partnerships 

Sometimes nonprofits collaborate simply to share resources. This could include anything from office space and equipment to staff and technology. By sharing resources, nonprofits can reduce costs and improve efficiency, allowing them to focus more on their mission-driven activities. 

4. Corporate Partnerships 

Corporate partnerships have become increasingly common in the nonprofit world, as businesses recognize the benefits of giving back to their communities. These partnerships often involve sponsorships, employee volunteering, or financial donations. In return, nonprofits can leverage the corporate partner’s brand, network, and resources, while companies gain positive exposure and demonstrate their corporate social responsibility. 

5. Government Partnerships 

Nonprofits often work closely with government agencies to address societal issues and access funding opportunities. Government grants, contracts, and public-private partnerships can help nonprofits scale their programs and enhance their ability to deliver services. By working together, nonprofits and governments can better address public needs and create systemic change. 

The Benefits of Nonprofit Partnerships 

Partnerships can provide a variety of benefits to nonprofits, including: 

1. Expanded Reach and Impact 

By teaming up with another organization, a nonprofit can significantly expand its reach. Whether it’s reaching new geographic areas or engaging different demographics, partnerships can help extend the scope of an organization’s work. Collaborations also allow nonprofits to pool their expertise and deliver more comprehensive services to their communities. 

2. Access to New Resources 

When organizations partner, they can combine their resources—whether financial, human, or material—creating a more powerful collective force. Nonprofits can share knowledge, staff, technology, and other assets that enable them to achieve more than they could alone. 

3. Increased Sustainability 

Partnerships help nonprofits diversify their sources of funding and support. By collaborating with businesses, government entities, or other nonprofits, organizations can access new funding opportunities or in-kind donations that strengthen their sustainability over the long term. 

4. Improved Innovation 

Working with diverse partners often brings new perspectives, leading to innovation. Nonprofits can collaborate with businesses, universities, or other research institutions to create new solutions or refine existing ones. Innovation often results from the cross-pollination of ideas from different sectors, which can lead to more effective strategies for addressing community challenges. 

5. Stronger Advocacy and Policy Influence 

When nonprofits join forces, they can become a more powerful voice for the issues they care about. Collaborations can help increase visibility and influence in policy discussions, potentially leading to greater advocacy success and stronger relationships with legislators or other policymakers. 

Building Successful Nonprofit Partnerships 

While the benefits of nonprofit partnerships are clear, creating successful collaborations requires careful planning, clear communication, and a shared commitment to the mission. Here are some strategies to help nonprofits build strong, productive partnerships: 

1. Define Clear Goals and Expectations 

Before entering into any partnership, both organizations should clearly define their goals, roles, and expectations. What do each of you hope to achieve through the partnership? What resources will be required, and how will responsibilities be divided? Clearly outlining these elements will help prevent misunderstandings down the road. 

2. Ensure Mutual Benefit 

A successful partnership should benefit all parties involved. Nonprofits should ensure that they are not only helping the other organization but also gaining value in return. The best partnerships are those that are truly reciprocal, where each partner’s strengths complement the other. 

3. Foster Open Communication 

Strong partnerships are built on open and honest communication. Both organizations should be transparent about their needs, challenges, and expectations. Regular check-ins and updates can help ensure that both parties stay aligned throughout the collaboration. 

4. Align on Values and Mission 

The best nonprofit partnerships are those where organizations share common values, mission objectives, and an understanding of the community’s needs. Alignment on these foundational aspects helps ensure that the partnership remains focused on achieving shared goals. 

5. Measure Impact 

As with any initiative, it’s essential to track the results of a partnership. By measuring the impact, nonprofits can assess the effectiveness of the collaboration and make adjustments as needed. Successful partnerships will create measurable outcomes, whether it’s increased services delivered, new communities served, or enhanced advocacy efforts. 

How Brady Martz Can Help 

At Brady Martz, we are proud to support nonprofit organizations in achieving their mission with confidence. Our experienced professionals provide insight and guidance across a wide range of financial and operational areas, helping you navigate opportunities, strengthen accountability, and plan for sustainable growth. Whether you’re exploring new initiatives or refining existing efforts, we’re here to support your success every step of the way.