Conduct the Capital Campaign (Step 6)
Assuming your capital campaign is for building/renovations, the goal of the campaign is to secure initial cash gifts and three-year financial commitments.
First Vote (Step 7)
The appropriate governing body votes on a budget for the building/renovation program, working drawings are developed, and construction bids are received.
Second Vote (Step 8)
The governing body votes to:
- Accept construction bids
- Begin construction
- Borrow funds, if needed
Begin Construction/Renovations (Step 9)
A construction loan is secured and the work begins! If a mortgage is needed, it is finalized after construction is completed.
Pay the Mortgage (Step 10)
The most common sources for meeting the mortgage payments after the initial three-year Capital Campaign is to conduct a three-year Debt Reduction Campaign.
The best practice is to conduct Debt Reduction Campaigns immediately following the initial campaign. Why?
- Donors are used to contributing to the capital project. If there are years between campaigns, donors will find other things to do with their money.
- The construction/renovations are completed and there is motivation to pay off the mortgage. If there is too long of a gap between campaigns people will forget there is a mortgage and what it was originally for.
- The Debt Reduction Campaign is a chance to bring on new donors.
If you have questions and would like to talk further about the Capital Campaign Process, don’t hesitate to contact me at email@example.com.
John V. Clark, President/Partner
The James Company