Cailin McGough

Staff at the Tampa-based nonprofit Champions for Children share ideas for a new facility as part of a Feasibility Analysis.

Introduction

A feasibility analysis may be the most important step you take when planning a capital project.

By considering space needs, site conditions and other factors, this work frames potential project costs, funding and timing – while surfacing red flags and areas for further investigation.

Typically performed early in a capital project, a feasibility analysis is a “stage-gate” investment, confirming that a project is likely to succeed or identifying major barriers that could derail a project.

This analysis can give an organization and its board confidence in advancing capital project planning. It can also demonstrate to funders and other stakeholders that an organization is asking the right questions before getting too far into a project.

Real estate development is inherently risky.  But early assessment and investigations can help to reduce that risk.

So, what is a feasibility assessment, or feasibility study? It depends who you ask.

Architects may focus on physical space needs, utility availability, or zoning regulations to understand if a concept will work on a particular site. A capital campaign feasibility study led by a fundraising consultant may focus on an organization’s fundraising capacity and the likelihood that a concept will resonate with major donors. A contractor may develop early hard cost projections to test feasibility. An environmental consultant may research a site’s prior uses to understand liabilities or potential cleanup costs.

At the end of the day, all of these perspectives are part of the puzzle.

A Roadmap to Explore Critical Questions

At Cap Ex, our feasibility analysis incorporates all of the above. We take a hard look at the site to understand constraints and risks. If not yet selected, we’ll recommend factors to prioritize when identifying a property.

Sometimes an organization already has a site or early drawings in hand when a feasibility study is completed. If a client has a clear picture of their needs, we can take the next step by assessing potential costs and advising on appropriate contingencies. We also work with a client to model operations after the paint has dried: Will the project require ongoing subsidy? Will it produce revenue that could support programs or the project itself? What about the project might change to help it operate more efficiently long-term?

If the envisioned project is less clear, we may begin by understanding the organization’s long-term goals and exploring opportunities. If a youth athletics program is outgrowing its leased space, what would it require in a new or expanded facility? If a church seeks to turn underutilized space into affordable housing, what is possible on the site?

Feasibility analysis may point to other important questions: What team members are needed? How to obtain site control? Should an organization lease or buy? Proceed in phases? Engage an owner’s rep or seek a developer partner? Explore tax credits or other subsidies?

The goal of a feasibility analysis is not to answer every single question. It is to create a roadmap for exploring critical questions early in a project – before there is significant investment.

It provides a snapshot of an early-stage project, outlining an estimated budget and schedule that will evolve as the project moves forward. For organizations just starting a capital project, a feasibility assessment is a short-term engagement with high impact.

Real World Case Study: Planning to Increase Impact

Champions for Children’s mission is to build stronger families with thriving children throughout Tampa Bay through child abuse prevention and family education programs. When the nonprofit sought to transition its programs and administrative services to a new, centralized location, CFC engaged Cap Ex to lead a comprehensive feasibility study.

The process began with organic input as the organization’s executives and board members shared ideas with staff. Cap Ex built on this input with preliminary site and zoning analysis, space programming diagram scenarios, and financial modeling to identify space and financing needs. This analysis laid the groundwork for CFC to pursue acquisition of a new facility – one that best serves CFC’s mission while meeting its operational requirements.

Staff at the Tampa-based nonprofit Champions for Children share ideas for a new facility as part of a Feasibility Analysis.

Conclusion: An Important Early Investment

Starting a capital project is exciting — but it can also be overwhelming. A thoughtful feasibility study offers a smart way to reduce risk, clarify your vision, and align your team before diving into major investments. Whether you’re confirming a project’s viability or identifying roadblocks, this early-stage work can set you up for success down the road. At Cap Ex, we believe in asking the right questions early so organizations can move forward with clarity, confidence, and purpose.

Key Takeaways:

  • A feasibility study is an essential early step in capital project planning that helps assess site, cost, financial sources, timing, and potential risks.
  • It combines input from multiple perspectives — including space planning, site assessment, cost estimating, and fundraising.
  • The goal isn’t to have all the answers but to create a roadmap for informed decision-making.
  • Even a short-term feasibility engagement can yield valuable insights and prevent costly missteps later.
  • Whether you have a site in mind or are still exploring options, a feasibility assessment can help align your vision with what is possible.
  • Ultimately, this process builds confidence for leadership, funders, and stakeholders as your project takes shape.

Ready to take the next step? We’d love to chat with you!

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