Receive Free Monthly TeachingQuestion:
Raising Funds for New Facilities
“I am considering entering into a capital campaign for a building project. What are the best ways to raise funds for new facilities? What are the pros and cons of capital campaigns? Is this something we should do in-house, or should we look for an outside company/service to assist us? Everything that we have done until now has been taken care of from the general budget in terms of construction and purchasing land, but our next project is going to be much larger. Thanks for any advice along these lines.
Responses:
Pastor Dave Williams – Lansing, MI
Okay, I’ve had 30 years of experience on this matter. Maybe my thoughts will be helpful.
First, make sure the building project is (a) needed, and (b) God-directed. I’ve found that considering these two things is the first step. I always ask, “Is there another way?” For example, can I go to two or three Sunday services (if we are talking about the worship center). That which is born of the Spirit is Spirit and that which is born of the flesh is flesh. In other words, you want an “Isaac” building program, not an “Ishmael” project.
Second, I use the pattern David used when preparing to have Solomon build the Temple. David gave FIRST, and then told his leaders what he did. The leaders in turn made their contributions (Read I Chronicles 29:1-9). Next, when the people saw the generosity of the leaders, they made their contributions with enthusiasm.
Third, take pledges (or faith promises) for three years after you have built the excitement, printed brochures, shown video renditions, etc. People are motivated when they SEE the future, as presented by the pastor, and when they know the pastor and his team are committed. People need to see an end in sight. Never keep an open-ended pledge period. In other words, people are likely to make a three-year capital campaign pledge, but not an indefinite pledge.
Fourth, honor the donors. When we built Phase 2 (children’s and youth action centers) we made a “Book of Remembrance” with every donors name displayed in a glass box. Each day a different page is open and we pray over the book every time we walk by it in the hall (it’s enclosed in glass, but the pages are changed daily.)
Fifth, give regular updates on the project, and the amount of money that has been raised. Be creative. Use thermometers on the wall, etc.
Sixth, never change the capital campaign mid-stream. Plan it well and don’t change it along the way. People need consistency.
Seventh, only once did I use an outside source for a capital campaign. I found that I always did better myself. People trust the pastor. He doesn’t need a professional fundraiser (that is my opinion based on my experience) and when people know that God is your source, they are seeing an example of how they are to live also. You can go online or to a bookseller and get all kinds of information on non-profit fundraising. But, pastor … you have to do it. You can’t hire someone or appoint someone to do it for you (You can have delegates to gather information, schedule meetings, find testimonies, etc., but the pastor is the one who, under God’s anointing, will make it happen).
Eighth, be prepared to face some opposition in any capital campaign. Don’t get discouraged. One pastor told me that he hates building programs because of the “obligatory lawsuits” that come every time. I might add, some members will leave, saying they are no longer being fed, when in reality, they are afraid you want in their pocket.
Ninth, celebrate big when complete.
Pastor Gary Hoffman – Rocky Mount, VA
"practice the payments." I was going to need to borrow a million dollars, so for one year I paid my savings account a monthly payment of $8500. I was saving some money and I also "proved" that I could afford a million dollar loan. Also, remember that no building project is every done in budget, I would allow for an extra 20%. I know that it sounds like a lot, but better safe than sorry.
Pastor Mike Cameneti – Canton, OH
We just completed the largest building campaign we have ever done at Faith Family Church in Canton, OH. I will share some thoughts on what we felt the Lord directed us to do.
We worked in a capital campaign with INJOY Stewardship Services (John Maxwell’s company at that time). We researched many companies and just felt that INJOY fit what we needed. What a blessing and pleasure it was to work with them! I would recommend anyone to check them out.
When doing a capital campaign, you have to go into it knowing that there will be a lot of work and meetings required of you as the pastor, but now I can look back at the first one we did and say it was worth it all!
At the time of our first campaign, we had not yet purchased a new building or even a piece of land; we just had to cast a precise vision to our congregation of what we saw for the future our church.
The gentleman we worked with from INJOY gave me this advice: You must answer the who, what, where, and when, when casting your vision. Our congregation responded wonderfully to the vision and made some great commitments! We had four times our general budget pledged to the campaign.
After that first campaign was over, we did two more in-house organized campaigns. They were both as successful; considering that in most cases, second and third campaigns are known for not raising the same percentages.
Looking back, I would give these words of advice:
- Keep the vision in front of your congregation weekly. We did this by showing weekly progress charts on our projector screens during service so people could see their money being used to pay for certain areas of the building each week.
- Rejoice at big and small amounts coming in. People will stay connected if they know you are excited!
- Show results (pictures or videos) of the building being constructed and completed. Our congregation would get so excited about this.
- If possible, use a point man from your church to oversee the project. We did this so my wife and I did not have to carry the load of the project.
Each church is unique in its calling and direction of what God has called them to do. We did our best to follow the leadings of the Lord in every area. As we look back now that we are in our new building, we are satisfied and blessed by what the Lord did!
Pastor John Nuzzo - Cranberry Township, PA
We have done 4 capital projects in the last 16+ years totaling over 17 million dollars, and we are currently in the middle of a 13 million dollar expansion. I would suggest that when you don't have experience in a given arena to add the value of others in the body of Christ.
In the beginning we didn't use an outside company to assist us in our fundraising, and it worked out just fine. However, we soon reached a point when not adding the value of others cost us dearly. We tried to use our past knowledge for a future purpose. We found ourselves lacking and it showed up very clearly in our efforts. In our last two projects we used a company to assist us in our fundraising, and now looking back, it was a very wise investment. Now that we have learned what they taught us, we will do our own fundraising in the future, but still seek help in areas where we are not strong internally. Some of the things they taught us were somewhat uncomfortable to me, but I listened and saw that their information was biblical and ethical. I have learned that before I stretch my church, I must stretch myself.
One of the concerns that we had was the cost of using an outside company. I would suggest seeing an outside consultant as a temporary employee and not as money you could have saved. Based upon this type of reasoning, you could see each employee's salary of your ministry as expendable and you know how devastating this would be to your church and its vision. A good friend of mine made a statement that I think applies to this issue. Years ago, he attended a John Maxwell conference and had purchased hundreds of dollars of material. He had struggled in pastoral ministry for years and was contemplating giving up. A group of his friends began to joke with him and told him that he was foolish for spending his money and that was exactly what Maxwell wanted him to do. His statement to his friends has stuck with me through the years. He said, "Guys, if you think education is expensive, try ignorance." That small investment proved to be the source of what propelled him to gaining the skills and understanding to help fulfill the call upon his life. He has gone from pastoring a church of 200+ people to over 2,000 people. The impact he is making in his community is overwhelming.
Pastor Sam Smucker – Lancaster, PA
We have done 3 capital campaigns through the years for our building projects. Each time we used a different organization. Each time they were most helpful in helping us cast the vision to the congregation in an organized way. They have an expertise that we felt we did not have which was very helpful to us. The question we dealt with each time was – do we do it ourselves or do we engage an organization that has experience in this area. Each time we came to the conclusion we would benefit from outside help, and we did. The most recent one we did, the congregation pledged 1½ times our annual income over a 3 year period which is reasonably good – sometimes campaigns do 2 or 3 or even 4 times their annual income over a 3 year period. This giving of course is over and above your normal giving. Some might ask, “Does this effect your normal giving?” Our experience has been that our normal giving stayed steady and even increased.
Pastor Gerald Brooks - Plano, TX
In any field, relying on people who have developed expertise in specific fields of ministry is wise. Pastors are “general practitioners,” so occasionally a specialist is needed. Usually, fund-raising organizations charge $50,000 for the services. Unfortunately, their model does not fit Word of Faith or independent churches; their design is for board and committee driven churches. David Swann and I wrote a program for our style of churches that requires five meetings to organize with the expense being $18,000, plus it works better with the DNA match fitting, without the rejection. It is vision driven and helps the pastors reach their economic goals. Our churches are unique organizationally – not board driven – but Holy Spirit driven, leadership driven, and pastor driven. These “uniquenesses” are typically not considered by mainline fundraisers.
Pastor Rob Wynne – Linden, AL
My main focus has always been, “does this add up with the "spirit of faith" which we preach?” I personally feel that hiring someone to do it for you sends a message that I would not want to send to my people. First, that I am not confident in my relationship with the Lord and with them. Second, that I am not sure about my ability to lead my people. I teach my people to believe people when they tell them who they are by their actions.
I am not against promoting a building project, but I would do it in-house. It would not be bad to use a company under the radar to produce materials to use. But you must take the lead and they must be a "ghost writer". I would be very careful with my method not to present a faithless campaign.
