Often, when planning a church building project, more funds are needed than can be obtained from a lender. The most effective and common strategy churches use to bridge this financial gap is a capital stewardship campaign. These campaigns have been instrumental in helping churches move forward with facility construction, expansion, or renovation. But not every church that conducts one does so successfully. Here are some ways that lead to success in today’s economy.
A Brief Campaign Primer
A capital stewardship campaign is a structured fundraising effort designed to gather financial commitments from a church’s congregation, over a specific period, to support a building project. While campaigns vary, the process usually begins with planning and leadership development behind the scenes. Then, the campaign is launched to the full church community to gain support for the church design, culminating in a pledge day where members commit to giving. You can find a deeper explanation of campaign stages in our previous article here: Key Elements of a Church Building Capital Stewardship Campaign.
Why Work with a Professional Stewardship Consultant?
These campaigns can raise one to two times a church’s annual budget over a three-year period, if they are professionally managed. Churches that attempt a campaign without professional help, especially for the first time, often raise significantly less, as much as 50% less in some cases.
Professional stewardship consultants can be the difference between success and struggle. They bring proven strategies, organizational skills, and credibility to your efforts. Consultants also improve their methods with each campaign they conduct. One example is how today’s economic realities have shifted campaign timing. Instead of three-year terms, some consultants have had success using two-year, 18-month, or shorter campaigns to raise the funds needed. What works best has much to do with the individual church, and consultants understand how to make the determination.
At The McKnight Group, we’ve seen firsthand how much more effective campaigns are when guided by experts. It’s reasonable to expect a professional will help your church raise significantly more money than you would on your own. Given that, the consultant’s fee is not an added cost, it’s a wise investment.
Church leaders should do their own due diligence when hiring consultants, but to help get you started, the Capital Stewardship section on our website’s Resources page has a list of some firms we’ve seen succeeding time and time again.
How a Campaign Impacts Lending
Capital campaigns don’t just generate cash—they can also influence lending decisions. Financial institutions will often include the funds you’ve already raised as a basis for determining the size of a loan. Lenders are, however, usually reluctant to consider all pledged but unreceived amounts. Don’t expect these pledged amounts from a stewardship campaign to count dollar-for-dollar, but they can improve your loan terms and amounts, especially if your church has a history of successful campaigns.
Another reason to work with a professional consultant: Lenders are more likely to consider your pledges seriously if they are part of a professionally run campaign.
So, engaging a professional consultant not only boosts your pledge totals, but can also strengthen your case when negotiating with banks or financial institutions.
If you want to dive deeper into church design and church building information, we invite you to attend one of our i3 webinars. These online sessions offer valuable insights from our experienced team and feature key topics designed specifically for church leaders planning a project. Visit our website to register.