Does a Capital Project Mean a Capital Campaign?

March 3, 2014

The landscape of capital projects is changing. In the past, a church would have to go through a capital campaign to fund a capital project whether it be a new building or renovation. But keep in mind there may be other ways to accomplish the goal.

I recently had lunch with a pastor who is seeking options as his church wants to move from a rented school facility into a permanent facility. Through the calculations we found that by redirecting the lease payment (which has just ballooned), and with a small increase in regular giving, the church would be able to easily afford a mortgage that they might acquire.

Of course the option is there to do a capital campaign and pay off a big chunk of the new facility, but the timing isn’t always right.

What if we took a closer look at the generosity culture and made some changes to grow everyday giving? What if we did a smaller campaign for everyday giving to grow to the level we need? Or what if we did a one fund campaign to grow everyday giving and potentially pay off a chunk of capital as well? Depending on your balance sheet and cash flow, any one of these might be an option.

I will soon be diving deeper into this church to assess what the best option might be, but suffice to say that in this day and age a capital campaign is no longer a one size fits all solution.

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