It takes money to raise money. Sometimes this basic concept eludes our thinking. We imagine that virtually no costs will be incurred in the massive effort required to raise a significant amount of new money. This assumption can easily ensure the failure of a campaign.
Many studies and surveys have shown that the average cost to conduct a campaign is 8% – 12% of the goal. Therefore, if the goal is $4 million, then the cost will fall between $320,000 to $480,000.
Two methods exist to finance the costs to wage a campaign. The first method is to allocate the funds from reserves or from a pre-existent building fund. The second method is to “pay as you go” by financing the campaign from the very money that is raised. This may necessitate revising the campaign goal to include these costs. Therefore, a $4 million campaign could have a revised goal of $4.4 million.
What are the line items that might compose a capital campaign budget?
- Position analysis*
- Strategic planning process*
- Fundraising feasibility study
- Technology support
- Prospect research
- Fundraising literature
- Fundraising video
- Professional counsel
- Travel
- Phone
- Mailings and postage
- Portion of priest’s time
- Portion of secretary’s time
- Gifts and recognition opportunities
- Launching event
- Celebratory event
- Bishop’s visitation for consecration and/or blessing of facilities
* These items are not normally considered within the capital campaign budget but may be required before a capital campaign can be undertaken.
The costs may seem high, but one must consider the many blessings of a successful capital campaign and the unfortunate consequences of a failed campaign. On the one hand, a parish or church organization enhances its ability to provide service to its community. The parish or church organization looks to the future with confidence and faith. On the other hand, a failed campaign may demoralize a community resulting in fear of the future, uncertainty and a commensurate loss of confidence in the leadership.
It is often said, “Show me any other investment where I can put $400,000 into a venture and receive $4.4 million a few years later.”
