The Future of Capital Funding

I have lost track of how much money I have helped churches raise in capital campaigns. In over twenty-five years, I have learned a few things. For years I have been asking, what is the future for raising the capital funding? The list below is some of the key issues churches will face as they attempt to fund future capital expenses.

• In the 21st century, capital campaigns are not dead, but they are different. Key thought: make sure your approach to raising funds resonates with present-day realities.
• Teams and programs don’t raise money; vision does! Key thought: focus on a vision that is compelling, and people will joyfully give.
• Time and money are the commodities of our day. Key thought: don’t waste members’ time with needless programs; they will reward you with their dollars!
• Simplicity and clarity are the new normal. Key thought: make your message clear and concise so people will be more prone to read and respond to it. Also, use your existing structures of the organization to communicate the vision.
• Technology is how 21st-century people process and respond to anything. Key thought: to connect your vision with your people, you need to be where they are, and technology is the highway to their minds and hearts and, thus, their dollars.

How will you respond? 2030 is on the horizon and now is the time to begin praying and planning.

How long will it take you to raise the amount you need? The answer to that question depends on how much you need to raise. Here is my Rule of Thumb:

• If your need is more than one times your annual operating budget, you need to consider a full-fledged capital campaign. Think two to three years.
• If your need is around half what your annual operating budget is, you “might” be able to hold a short capital campaign to raise that amount. Think 12 to 18 months.
• If your need is 10% to 30% of your annual operating budget, you can do that in a shorter time span. Think 3 to 6 months.
• If your need is around 10%, you can do that in a one-time offering. Think 1 to 3 months.

Determine what your need is and then begin planning immediately. The above is for immediate needs.

Build sustainability while you are building! Now is the time to prepare your facilities for the ‘30’s. At the same time, utilizing a Legacy Team concept can help you build the financial reserves to sustain those facilities as you raise up the next generation of donors. Do you have an estate plan in place to help build this reserve?