Timing a Church Capital Campaign

Many churches in the past year have postponed building programs due to economic uncertainty. Even though building may be 1, 2 or even 3 years away, the wise church will be preparing now for a future building program. One of the keys to becoming financially prepared to build is to execute a capital campaign well in advance of building, or even before talking to lenders about borrowing (for more on this subject see my post, The Year of the Church Capital Campaign).

As we enter into the fall, now is the time we are helping equip churches to execute a capital campaign in the 1st quarter of 2010. Now is the time to begin to implement a campaign timeline and strategy, recruit capital campaign committee members, and integrate your campaign into the church's calendar. There are a number of things the church can do to prepare the way; to prepare the fields and sow some seed that will increase the spiritual and financial effectiveness of your capital campaign next spring.

Last year, you may recall that the bottom fell out of the economy.

According to a survey conducted by Brian Kluth of over 1,000 churches, 29% of the responding churches reported giving was down in 2008, and 53% of churches reported giving was behind budget for the first quarter of 2009. The amazing finding was in the face of these statistics, only 14% of churches made cuts to their 2009 budget. At face value, this would seem to indicate that at at least 15% of churches are going to be faced with severe budget shortfalls this year.

However, if the 53% of churches who were behind budget early in the year don't architect a financial turn around, many of them could be seriously behind budget for the year. This could put a number of churches in the position of needing to take some drastic and painful steps later this year or early 2009. One thing is certain, no pastor or board wants to fire staff or reduce important programs and ministries. One might consider this situation to be "the rock."

Churches that are having a hard time meeting budget, are struggling to pay mortgages, or can't afford to hire needed staff have only three options: reduce expenses, increase giving, or a combination of both. Two of the three solutions depend,

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A Wise Quote, Still True Over 100 Years Later

I love this quote. It is appropriate in so many circumstances, not the least of which is in church design and construction.

“There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper, and the people who consider price only are this man's lawful prey.” - John Ruskin

For more sage words, see these John Ruskin Quotes.

The Most Asked Question in Church Construction

"How much will it cost to build the church?" is by far the most asked question we receive.

This is a very important question, and one worthy of an accurate response.  Everyone wants to know how much it costs per square foot to build a church.  The REAL answer is this: All I or anyone else, including your local builder, can do is guess (we professionals call this "estimating") - until there is a real set of church plans. Anything else is just a guess, and not one you can hold someone to, at that. 

Can an experienced church builder look at a concept drawing of a church plan and get pretty close on cost?  

Time is Running Out for a Fall Church Capital Campaign

A church capital campaign is not unlike the Christmas play - you begin to prepare months in advance to have the best and least stressful outcome.

The right time to be in front of your congregation for a fall capital campaign is after school is back in session and before the holidays. This provides a smaller window of opportunity for that 6-7 week time of preaching, teaching, and support building than a spring campaign.

If you plan to be raise money this fall, you should begin to organize and prepare your capital campaign team starting before the end of June. This will enable your church to achieve the best results with the lowest stress. Every week that your church delays from this point forward increases the effort and stress of a capital campaign.

For more information on capital campaign timelines, download the PowerPoint presentation on www.OurCapitalCampaign.com.

Church Financing - Still a Tough Market

Churches continue to have difficulty getting the financing they need for buildling or relocation. We have seen any number of churches that should be able to get financed turned down by lender after lender. Many churches that are getting turned down for financing today could have been financed a year ago with exactly the same financial statements. The biggest impediment to financing is inadequate cash flow - not enough money left after expenses to service a mortgage. Unlike previous years, lenders are not willing to wager that the church will reduce discretionary expenses to service a mortgage or increase income because of growth. Today, lenders want to see

"What man would build a tower without first counting the cost?? - Jesus

Millions of dollars every year are wasted on church building plans that churches cannot afford to build. Many churches let the church building project define the budget, instead of letting the budget drive the design of the church. This simple transposition of steps in the process takes a toll on churches in terms of cost, time, effort, enthusiasm, and support for the project.

Design is part of the building process. Counting the cost does not mean sending your plans to the builder for an estimate. Counting the cost means understanding what you can afford before you begin.  There are a great number of church building plans available, and any number of church architects that will create more, but knowing what you can afford is a necessary step before you concern yourself with design.

In my book, Preparing to Build, I discuss this in great length, but below is a basic formula that any church can use to get an first approximation of their budget for a building program.

There are 4 basic variables in determining your budget.  Those 4 variables are added together to determine the preliminary budget.  Often, early in the process, the church will have to

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Raising Money From Outside the Church

A reader asked about how a church capital campaign can reach outside the church to get money from the community. This is a good question, and I will try to give a clear answer.

The quick answer is that a church capital campaign is not the best tool for obtaining financial support from the community. The reason being that the campaign is strongly based on a Kingdom need and God's provision to meet that need through His people; an approach that will find little traction with most folks outside your church and faith.

Getting support from the community takes a somewhat different approach, and is much more like a grant writing effort than a capital campaign. The similarity to a campaign  is you will be creating a case for support. This case for support, however, will focus on the ministry of the church and its measurable impact in the community. It will also be much more extensive, objectively detailing what you do and giving a qualitative analysis of how you have impacted the lives of those you have ministered to, and the impact the community

Essentially, you need to tell the story of what you do and how those programs and ministries are improving or serving the community as a whole. You need to make the case and explain what effect the donation you are seeking will make in the community.

It will also be helpful to research your community, find which businesses give to local charity and religious organizations. Also, you can research if there are any local donors or foundations that support programs in the community. These two sources would be the best place to begin looking for financial support for your church, outside it's four walls.

Announcing The Complete Church Capital Campaign in a Box

AMI today announces the Abundant Giving Capital Campaign, a complete Church Capital Campaign in Box.  

Abundant Giving distinguishes itself from other church capital campaigns by its flexible and cost effective delivery method. Whether you are a small church looking for a DIY capital campaign you can run in-house, a full blown capital campaign consulting engagement, or something in-between; the Abundant Giving program has a offering that is right for your church.  

This comprehensive church capital campaign provides detailed documentation including:

• A week-by-week schedule 
  
• Detailed task lisk
  
• Stewardship sermons & studies
  
• Evaluation copies of Sunday school/small group lessons
  
• Examples of materials from other campaigns
  
• Two complete seminars on giving & stewardship with workbooks
  
• Forms and letters
  
• Electronic copies of the books Pastor Driven Stewardardship and Preparing to Build.
  
• ...and much more

Also included in this offering:

• Professional layout of your communication materials, using your choice of any of the 250 capital campaign themes.
  
• Digital, print-ready artwork - ready for your printer, or ours.
• Your choice of three levels of support and training to insure your church has a spiritually and financially successful capital campain.
  

Comprehensive enough for large campaigns, cost-effective enough for even the smallest churches, all of this, and more, is offered at a refreshingly low price that makes it affordable for churches of any size.  More information is available at www.OurCapitalCampaign.com.

Capital Campaign Feedback

I had a status call today with a church capital campaign client this morning, and the chairperson had a most insightful and encouraging comment.  The church is two weeks away from their Committment Sunday when everyone will bring their initial offerings and ongoing peldge commitments for the 3-year giving period.  

His comment to me was the leadership team felt that they already had a successful campaign and that if they were to call it quits today and not take up the collection and pledges, that their campaign was worth it in terms of spiritual growth, team building, unity, and involvment of such a large part of the body.  Praise the Lord, that's the way it should be; like I say, it is not about the money.