In this third and final post describing the 10 Steps In The Capital Campaign Process, we introduce Phase 3 (Steps 6 – 10). To read about Phase 1 Click Here & Phase 2 Click Here.

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 jclark@jamescompany.com

John V. Clark, President/Partner
The James Company