You have a vision and master plan for a building project. Now, how do you pay for it? Here are options you need to explore to answer this pressing question.
Assets. Existing land and buildings, savings, endowment funds can be used to pay for a building project or used as collateral for loans.
- Capital Campaign: An initial capital campaign can be conducted for cash and multi-year financial commitments.
- In-kind Gifts: Donated construction materials and services can be solicited from members and the community.
- Furnishings & Equipment: Members are receptive to funding specific items that need to be acquired for the new spaces. This option can be employed after a capital campaign and a few months before the space is completed.
- Debt Reduction Campaign: Ongoing campaigns can be conducted on a 3-year cycle, as long as the congregation/nonprofit is kept fully informed of the needs.
Financing. Loans can be obtained from church or commercial lending institutions or even from members.
- Phased Building: A portion of the building project can be completed in a first phase, with plans laid for future campaigns and building phases.
- Unfinished Space: A portion of the building can be left unfinished until future funding permits its completion.
- Delayed Construction: The start of construction can be delayed until a subsequent campaign has been conducted.
All of these suggestions are options. That said, the ones that make most sense for you depends on a number of your local circumstances. The James Company has over 35 years of experience with weighing these options. Let us know if we can help you think these options through based on your particular situation.
John V. Clark, President/Partner
The James Company
Phone: (815) 353-8997