Embarking on a Capital Stewardship Campaign
As published in Worship Facilities, Apr/May 2005
In the life of every organization, there comes a time when the ability to grow is inhibited by available resources. In order to move beyond this barrier, the organization will be faced with raising funds to move forward, or risk stagnation and decline.
Many churches will use a capital stewardship campaign, often spanning a three to four year period, to generate the needed funds for church growth. Funds raised in these campaigns are usually used to purchase land, build facilities or retire debt from prior capital decisions.
George Barna, the directing leader of the Barna Group, LTD, located in Ventura, California states "the number-one motivation for sacrificial giving is a compelling vision." According to Ken Friar, a consultant for INJOY Stewardship Services (ISS) located in Atlanta, Georgia, "the mission of a campaign is to communicate the vision of the church in such a compelling way that all of the people share that vision and feel honored to support it." He further states, "Campaigns are 'vision-driven' and are led by leaders of such vision." For a campaign to be successful it needs to do more than raise funds – it needs to change lives. John Maxwell, founder of ISS, established ISS because as a pastor he felt a strong need for an organization that approached capital funding as a ministry challenge, not a business opportunity. Resource Services, Inc. (RSI), a capital stewardship firm located in Dallas, Texas believes a capital campaign is a journey which focuses not only on financial needs, but also on spiritual blessings that come from Christian stewardship. It is a journey built on unity and participation. The emphasis is on stewardship, not fundraising. The focus is not on money, but on the One who provides it. Jim Sheppard, in an article titled Successful Fundraising in the March/April 2003 issue of Your Church notes that "capital stewardship campaigns succeed when people turn their hearts toward God for guidance ... the true beneficiary is the giver."
What exactly is a capital stewardship campaign, and how does a church determine whether they should embark on it alone or hire a consulting firm to guide them in the process of conducting a campaign? Although the emphasis is not on money, the initial motivator for any organization to undergo a capital campaign is to raise funds. Early on a decision will be made concerning whether or not to hire a consulting firm or to utilize staff and volunteers within the church. When choosing an outside firm, leaders in the church should establish a team whose primary task is to research consulting firms. A pool of firms is selected, and interviews with the various companies are scheduled. It is important to interview not just the sales people, but the consultants who will be a part of the team supporting the campaign. It is also important to talk with other churches the firm has partnered with – especially those churches which are most similar to your church. Capital Quest, a professional fund raising consulting firm, feels that their experience indicates no one company is right for every project. Although many companies hint that they can do it all, logic dictates otherwise. In the end, they believe hiring a consultant is qualitative and instinctive.
Once a decision is reached and the campaign proceeds forward, there should be three distinct phases. The first phase is preparation. Teams should be created to participate in building the foundation for which the campaign will be launched. According to RSI, the objective is to "turn the committed few into the committed many. Half or more of your adult households should be motivated to become campaign volunteers, feeling personal 'ownership' of the project." This phase in the project can significantly impact the response of the congregation. Inadequate or poor communication will influence the decisions individuals will make concerning their participation in the campaign. Communication needs to be clear. It needs to be concise. Any materials used need to be well-produced and of high-caliber workmanship. The temptation to save money and or time in this area could impact the overall results of the campaign.
The next phase of the campaign begins when all members of the congregation are invited to participate in the process. The timeline of events during this phase varies depending on the firm you have chosen to partner with. Some of the activities likely to be included in this phase are sermon messages teaching on biblical stewardship, small group studies to dig deeper into this truth, various prayer opportunities, celebration events, and an opportunity to make a commitment for the duration of the campaign. While it is important in all phases for the leadership team to be able to articulate the vision in such a way that the congregation will embrace it, the stakes are higher in this phase. Here you will need to engage members of your congregation who for one reason or another have not become part of the core. Your vision needs to compel them to move in that direction.
The final phase can be equally challenging for church leadership. It spans a three-year window of time. Initially, the vision remains fresh in the hearts of the people, and the commitment to give is strong. However, as time passes effort needs to be exerted to keep the vision alive. Failure to do this can produce end results much lower than expected.
How does a church decide whether or not to use a consulting firm? In an effort to save money, many churches will consider managing the campaign using staff and volunteers. While there may be individuals in your church who have been through campaigns in the past or have professional skills which could be utilized in this process, the amount of time and effort necessary for a campaign to be successful can be staggering and overwhelming. In addition, finding a large block of time to focus on the campaign may be difficult given the other ministry focuses of each individual. Most consulting firms will charge a flat fee for the services rendered. Often the fee is a factor of the size of the church (members) and its annual budget. Be wary of any company requiring a fee and then a percentage of the campaign results. Although at first glance the fees may seem high, in the end it may be the wisest use of resources (both time and money). According to Sheppard, "to save $30K-$40K in consulting fees, a church conducts a campaign that receives several hundred thousand dollars less in commitments. It is the most expensive mistake a church can make."
Statistics vary as to how the campaign results will change if a church uses a consulting firm. "Statistics show churches are able to raise only about one-third as much capital on their own as they are with the help of an organization, and that most don't believe they can raise as much money as they end up raising," according to Bill Wilson, co-founder of RSI. Sheppard, however, suggests the number is closer to fifty percent for those that conduct their own campaigns. Although Capital Quest does not indicate a specific percentage difference, they believe "campaigns managed by counsel [consultants] usually raise more money than campaigns run without counsel. For the most part, counsel-driven campaigns take less time, use leaders more effectively and the total cost (expenses plus fees) is usually less than three to four percent of the funds pledged."
Whether a church decides to do it on their own or to hire a consultant, the essence of any campaign is to engage God's people on a spiritual journey. "It's about discovering where God is already at work ... and linking in with what He is already doing" says Friar. "It's the process of leading people to discover their ability to give in a true partnership with God."
QUICK-LINKS
Capital Quest Inc.
Product:Professional Fund Raising Consultants
Phone: (800) 263-1976 or (865) 379-1234
URL: www.capitalcampaigns.com
INJOY Stewardship Services (ISS)
Product:Consulting Services
Phone: (800) 333-6509
URL: www.injoystewardship.com
Resource Services, Inc.
Product:Consulting Services
Phone: (800) 527-6824 or (214) 866-7500
URL: www.rsi.viscern.com
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