Are the Glory Days of Capital Campaigns Over?
Are the glory days of capital campaigns over? Since the 1960s, when there was a huge explosion of church expansion and building capital campaigns, billions of dollars have been raised for churches. Those days may be over. Studies are showing that the average capital campaign is now raising about…
1 time. As in one times your annual operating budget. So, if your annual budget is $500K, you will probably raise that range of dollars in a capital campaign. That is the new normal regarding how much you can expect to raise in a capital stewardship campaign. Don’t let anyone tell you any differently. While a few churches raise significantly more, it is always driven by multiple five-, six-, and even seven-figure type donations. I always joke, “Does Bill Gates go to your church?”
Here are the trends and issues impacting capital campaigns, causing them to be less successful…
Economic Uncertainty – Americans’ view of financial stability eroded with the crisis of The Great Recession. Then came Covid. It showed us how fragile our economy could be. Donors have become much more cautious about what they would pledge to give.
The demographic shift in the generational church landscape – Countless studies have shown that as our church’s donors age and our median age increases, they have a more limited ability to give. The Church is struggling to keep or attract the newer generations. When you struggle to get younger generations to give to anything, you can almost count on them to give a pass to your campaign.
The high cost of Senior Care – Baby Boomers are now becoming parents to their parents. The cost of providing for their parents is staggeringly high. Social Security and Medicare are not enough. Children have to step up to provide financially for their parents, or at least they see how their parents are struggling. Knowing how costly senior care is and, at the same time, planning for the eventuality of their future financial needs makes Baby Boomers more cautious when it comes to making campaign pledges. This is because they have done…
Social Security Math—A recent Wall Street Journal article pointed out that the ratio of retiree-aged adults to those of working age continues to rise. Fewer workers are paying Social Security tax to help fund retirees’ retirement plans. This will add to the already stressed program that is gearing up to accommodate the Baby Boomer generation.
Baby Boomers are doing the math now about when they can retire and at what level of comfort. Talk to any Baby Boomer, and many will tell you they fear Social Security will be bankrupt when they want to retire. This means that, like their parents, Baby Boomers are faced with…
The fear of outliving their money. I once put a gifting chart in front of a recently retired Baby Boomer. He replied, “I know where I want to be on this chart. Yet I don’t want to drain my account and put my children at risk of being able to provide for me.” I hear this all the time. This means donors will pledge far less than fifteen or twenty years ago.
The 10K a day impact. Every day, 10,000 Baby Boomers, the Church’s largest donor group, turn 65. This key donor group is moving into retirement; thus, their ability to give is less than when they were at their peak earning days.
When it comes to capital campaigns, people give out of assets like stocks, CDs, boats, land, etc., or by taking more of their income to increase giving. People with less income will be unwilling to give up their assets. This is because they have…
A protectionist mindset – The lack of confidence in our financial futures causes donors to be protective of what they have. The result is that capital campaigns have seen and will continue to see lower pledge results.
Perhaps the glory days of capital campaigns have passed. I like to say that capital campaigns are not dead. They are simply different. One difference might be in the total dollar amounts raised. While that total might be lower than in the past, churches can and will still raise capital dollars if they have a compelling vision and a good action plan.
Keep reading, and that is what I will give you!