Is your organization ready for a capital campaign? Learn more in our Q&A
Why should a church have a
capital campaign?
When should a
church have a capital campaign?
How much can a
church raise for a new project?
How long does
it take to successfully conduct a campaign
Why should we
retain a consultant?
What services
should a church expect from the consultant?
Can’t we
conduct our own campaign?
By conducting our own program, won’t the
church save money?
What are the pitfalls of conducting a
“do-it-yourself” campaign?
Why are professionally-led campaigns more
effective?
Why should a church have a capital campaign?
- To make it possible for the church to maintain its momentum of growth. A growing church will have a succession of building needs which cannot be funded from the operating budget. Capital campaigns, through over and above giving, make it possible for churches to build when needed to expand its ministry and to continue reaching people.
- To maximize the potential for building expansion. For churches that need more facilities than they can afford to build, funds from a capital campaign, combined with prudent borrowing, can accelerate the development of facilities.
- To promote spiritual growth within the congregation. The true success of a capital stewardship campaign should be measured by the transformation it brings to a congregation.
When should a church have a capital campaign?
A church should have a capital campaign only when the leadership has a clear vision of what is needed to support and expand the ministries of the church. The leadership must be able to build an objective case for the project in relationship to meeting people needs. There must be a clear, compelling case for the project and a sense of urgency that it is critical (not optional) to meeting the ministry objectives.
How much can a church raise for a new project?
Within a healthy church environment, a church should be able to raise at least twice their annual operating budget for a building campaign. Many factors will cause this number to be higher or lower – type of project, frequency of campaigns, community demographics, congregational support. Churches that raise more than three times their annual budget generally find that there are large gifts that significantly influence the total.
How long does it take to successfully conduct a campaign
- Depending on the project and the size of the church, a campaign might take well over a year or it might be as brief as four months in a compressed situation. Most campaigns take five to seven months to execute properly.
- Pledges are usually fulfilled over a three-year period. Through experience, we have learned that thirty-six months is the best length of time to maximize dollars pledged. Churches that grow normally find themselves in a position to undertake another building project after three years!
Why should we retain a consultant?
A professional firm brings the following to the church:
- Expertise. While the local church pastor has expertise in a number of different areas, he has rarely received in-depth training in the area of stewardship development. Most ministers and pastors and laity can do a good job of stewardship development for operating budget needs. Because a capital campaign involves giving over and above the operating budget, ministers and pastors and laity find themselves overwhelmed. A stewardship consultant provides specialized expertise in much the same way a cardiologist does in the field of medicine. Professional firms use proven methods and approaches.
- Time. Ministers and pastors and lay persons usually do not have the large block of time it takes to plan and execute a major campaign for capital funds. Assuming the staff or lay persons have the ability to conduct a campaign well, availability of time to lead the campaign well is a major issue. The stewardship consultant serves as an "adjunct staff member" for a specific period and provides the time needed. Hiring a consultant frees the church to concentrate on its regular ministry programs and activities while still reaching its financial goals.
- Focus. Even if a pastor or lay person has the expertise and the time to lead a campaign, it is difficult for them to focus on it because of their other roles and responsibilities. The consultant has no other role or responsibility in the church and provides the focus the campaign needs.
- Experience. Every campaign will have its challenges. Some are minor challenges, some are major. Every challenge is a potential threat to the campaign and must be handled from the perspective of experience. The stewardship consultant has a wealth of experience that can be particularly useful when challenges arise in the campaign. Additionally, the consultant will know how to position the campaign so it is at the forefront of the church's attention without interrupting the ongoing ministries of the church.
- Accountability. A key part of the professional consultant's role is to hold lay and staff persons accountable for doing their work on time with excellent quality. The timing and execution of events are important in creating a successful capital campaign experience.
What services should a church expect from the consultant?
The companies and professional consultants in this field can provide a wide variety of services. As a minimum, the consultant will:
- Prepare the church staff and the campaign volunteers for the campaign process
- Master plan all aspects of the campaign
- Assist in the identification and enlistment of leadership for the campaign
- Guide in the development of giving charts and projections to show how a church might reach a specific financial goal
- Provide comprehensive manuals and training materials that will be in harmony with the personality and needs of the church
- Train and supervise all persons who become involved in the campaign
- Guide and oversee all areas of communication – print, audio-visual, web site and any other medium the church uses
- Supervise the solicitation of major gifts, advance commitments and gifts of kind
- Guide the campaign to a scheduled completion date.
- Provide follow-up consultation during the pledge fulfillment period to minimize attrition.
Can’t we conduct our own campaign?
This reasonable question deserves the attention of any church considering the services of a stewardship consultant. Conducting one’s own in-house capital campaign is tempting. With that basic premise in mind, let’s consider the wisdom of a church conducting its own capital stewardship emphasis.
By conducting our own program, won’t the church save money?
- This is the primary, and sometimes the only, reason a church will decide to conduct its own program. But does the church save money, really? To be sure, the church “saves” the consulting fee, which can be considerable. All other expenses associated with stewardship campaigns will be incurred with an in-house program if it is to achieve any measure of success.
- To accurately calculate how much is “saved” one must compare the investment against the results. Historical evidence suggests that professionally led campaigns raise two to six times more than the typical in-house program. If the church “saves” thousands of dollars in consulting fees, but raises hundreds of thousands of dollars less with its in-house program, has it saved? The most expensive aspect of any in-house program is the money that could have been raised but wasn’t.
What are the pitfalls of conducting a “do-it-yourself” campaign?
Churches that manage campaigns themselves often commit one or more of the five basic errors of church fundraising:
- Poor calendar planning. A good capital stewardship campaign is well planned. Events, activities, and communications must be arranged for the maximum potential effect. The professional who does this regularly is trained to sort through all of the potential church, school, community, and other conflicts to properly design a calendar for the capital campaign.
- Inadequate or poor communication. Even the most committed Christians require clear, concise information to make a decision about a capital campaign. Well-produced, excellent-looking communication materials are a must. And the information must be disseminated multiple times in different ways to reach the maximum number of people in the congregation.
- Short time frame. A farmer would not plant seed this week and expect to harvest a crop next week. In the same way, a capital campaign requires several months to grow the congregation in its commitment. Prayer emphasis, information, inspiration, encouragement, and people involvement are important aspects of the process.
- Not enough people involvement. It is important for the lay people of the church to take ownership of their campaign. The single best way to accomplish ownership is through involvement in the campaign. A well-executed capital campaign generally involves 50 percent or more of the laity of the church.
- Inadequate major gifts emphasis. Money is not raised mathematically, it is raised proportionally. Some people in every congregation are blessed with unusual financial ability. It will take their participation to achieve significant financial success. It is a rare capital campaign that achieves commitments of three or more times the annual budget of the church without a proper major gifts emphasis. Those who have been blessed with much should be challenged to do much.
It is not always easy to know which people have this kind of ability. In fact, the premise of Tom Stanley's best seller, The Millionaire Next Door, is that the people who really have it are probably not the ones you suspect! And you generally will not find them by looking at their past participation in giving to the annual budget. People with major gift potential are motivated by the big vision of forward-looking capital projects.
Why are professionally-led campaigns more effective?
Primarily because of the expertise and experience of a trained professional. Not only does the professional consultant help the church to raise more money, he/she can also provide the expertise and supervision to avoid potential problems.