How much should I bid on a Capital Campaign?

What your friend said is about right.

Do they expect production price to be included? If so, you need to include printing prices and a markup for your management of this phase. Before I got into design, I did a lot of heavy development work, including capital campaigns for a university and five other large NPOs. If you're going to be the designer on this, presumably you'll be working closely with the Development Director, or whatever their equivalant is; perhaps a consultant. You should include meeting time for collaboration with this person, or team of people. One thing I'm not wild about is they appear to be doing a "shotgun proposal," with a few variables tailored to specific foundations, corporations or individual donors. This type of proposal tends to be fairly easy to spot and will often be rejected. It's possible the development person knows this and is being forced by a clueless Executive Director, so be careful, but I'd like to suggest that you try selling them on the value of producing a completely unique proposal for each targeted funding resource, and have them put you on retainer for the period of the capital campaign to produce these documents on demand. You'd make more money that way, and the organization stands a better chance of meeting its campaign goals, which of course would accrue to your benefit, because you could point to an outcome with measureable success. With the shotgun approach, you'll never really know what worked and what didn't. Just a thought. I'm happy, by the way, that you aren't considering any kind of "percentage of what we raise" type of deal. The National Society of Fund-Raising Executives, of which I used to be an active member, frowns on that as being unprofessional. Good luck!