Why Do Capital Campaigns Cost So Much?

Capital campaigns may cost from $30,000 to more than $120,000. That’s a lot of money from a church’s resources, money that could be used in the church’s ministry. So why do capital campaigns have to cost so much?

First, churches are paying for the expertise of a capital campaign company. These companies use experienced consultants who usually have an established track record. Churches should expect to pay a reasonable amount of money for such expertise and experience in order to conduct a successful campaign.

Second, churches are paying for proprietary information. Most capital campaign companies have developed unique approaches to fundraising or exclusive systems that have proven to be effective. So churches should expect to pay a reasonable amount of money for unique approaches that employ effective fundraising systems.

Third, churches are paying for consultants. Most campaigns involve one consultant, though many larger campaigns may employ two or more consultants. Consultants spend time on site, often making 4 to 8 trips during a campaign. The time and travel for these consultants can add up in a hurry.

At Gateway Capital Stewardship, we believe capital campaigns do not have to cost so much. We have developed a unique coaching model that reduces capital campaign costs. Here’s how we reduce costs.

We blend our expertise with a unique system for conducting a capital campaign. Plus, we utilize technology in order to reduce the number of trips we make during the campaign.

Churches should expect to pay a reasonable amount of money for our coaching program, but churches should not have to pay the high costs of traditional capital campaign companies. Let us help you use more of your church’s money for your church’s ministry.

A Shortcut is the Quickest Way to Failure

Historically, the main reason that people get lost in the woods is because they have tried to use a shortcut to get somewhere faster. Shortcuts often appeal to an organization or person interested in expediency or reducing the amount of work required to get results. Unfortunately, when it comes to capital campaigns and churches, shortcutting the process of raising capital is usually met with the same poor results. Churches get sidetracked or lost.

Failure in capital campaigns comes at a very high cost to a ministry. If a church gets disappointing results from its capital campaign it can usually be traced to one or more of these attempts at shortcuts: 1) Shortcutting the process due to lack of knowledge, 2) not following a structured process, or 3) not involving enough volunteers to support the process.

Low results or failure with a capital campaign initiative can slow or even kill a ministry initiative. If a church fails with a capital campaign by taking shortcuts, their ministry’s vision cannot be fulfilled and they must wait three or more years to attempt another capital campaign to support the ministry growth. This often leads to deaths of vision and ministry.

Capital campaigns have been conducted since the Old Testament (example) There is a definite process that must be employed to achieve successful results when it comes to raising money. The temptation to cut corners to save time and money produces results no one wants to experience. Shortcuts are the fastest way to failure when it comes to capital campaigns.

Capital Campaigns and Recessions

The US economy is officially in a recession according to our government. For many people this is not the first recession that their church has gone through, but for many churches today they are questioning the wisdom of conducting a Capital Campaign in a down economy. Unfortunately, ministry needs in growing churches do not recognize recessions, in fact, more people tend to go to church in difficult financial times. What is a church to do about financing ministry; wait until the recession is over, or move forward trusting God to provide the resources for your growing ministry needs

History has proven that giving during a recession does not necessarily go down. According to a recent study by NACBA, entitled, 2009 Economic Survey, 63% of churches have not felt the economic impact of the current recession in terms of giving. Previous recessions have experienced less severe impacts with average reductions in giving around 15%.

Preparing to meet ministry needs requires a clear vision and long lead times. It typically takes three to five years to cast a vision, raise capital, and then see a building completed. Churches that are hoping to build new ministry spaces must plan several years in advance. Raising capital using an effective capital campaign makes just as much sense today as next year. Churches that have a forward reaching vision for ministry and strategic planning are not deterred by economic swings. However, churches that are ruled by fear instead of faith may be waiting for a long time to begin a capital campaign