Contemplating a Capital Campaign

What, how, and when to consider one

While the statistics for mainline churches in America can be read as discouraging, many congregations are in renewed seasons of growth. Denominations like The Episcopal Church and the United Methodist Church, both newsworthy in recent years for division and schism, are now showing resilience as new people are drawn to their way of following Jesus and expanding God's kingdom on earth. With that growth comes a pressing question: how do congregations manage their physical properties? Episcopalians in Texas who lost their buildings are creating new ones. United Methodists with older buildings are adapting and repurposing them for a new generation of vibrant use. Many mainline congregations are beginning to consider capital campaigns to meet both the need of the moment and the future they envision.

Knowing when and how to embark on a capital campaign isn't a topic taught in seminary, and many clergy may not have the working knowledge to manage such an undertaking. It is important first to define what a capital campaign is and how it differs from annual stewardship drives or project fundraising.

A capital campaign is typically a three to five year funding initiative focused on significant building or physical infrastructure projects. Unlike a single ask or annual drive, campaigns are structured around pledges, commitments made by donors that are fulfilled over the duration of the campaign. Lead gifts from key donors are often secured in a quiet phase before the campaign goes public, with the broader congregation then invited to make their own pledges in support of the shared vision.

Many churches use the term "capital campaign" when the only campaign outcome is to address deferred maintenance not covered in the annual budget. At Pinnacle, we see a capital campaign as an initiative to raise funds toward building and campus needs that are catalytic and sustainable for the future growth and impact of a congregation. While such a campaign may include retiring old building debt or addressing deferred maintenance, it should also inspire the congregation toward a brighter future, one marked by creativity and vitality. Campaigns whose only outcome is to reach equilibrium may not fully tap into a rare moment when a congregation has the capacity to do something once in a generation.

A Maryland church expands with a new sanctuary building.

How do I know we need a campaign?

Campaigns in mainline churches are often born out of reaction rather than vision. While many congregations launch a campaign for a new building driven by exponential growth, gauging the timing of a campaign for extensive renovations to existing buildings is more difficult. Clergy I have spoken with recently who are contemplating renovation campaigns have named things like increasing ADA accessibility, growing worship capacity, activating underused space, deepening community engagement, and addressing deferred maintenance as the driving conversations. The critical question leaders must answer is this: do we need a project-based fundraiser, or a larger campaign that addresses multiple projects and initiatives?

One congregation I have been in conversation with recently is selling a portion of their campus to a private developer, which has opened the door to rebuilding approximately 80% of their buildings, including a new, better-sized sanctuary and welcome spaces. While the land sale will provide significant income for the project, they have not yet determined what additional funds may be needed for the project. Waiting for final project costs is understandable, but in the interim they may be missing valuable time to discern their congregation's giving capacity. And here is an important caution: limiting a campaign goal to only what the project costs may result in a campaign that falls short of what the congregation is truly capable of giving. By contrast, another congregation in the same region preparing for an expansion project has already conducted a quiet phase, approaching key members about potential lead gifts. With that number in hand and a general sense of what a well-run campaign can yield, they are moving confidently into the design phase and will launch a public campaign when plans are finalized.

A campaign may be birthed by a need,

but it should include a dream.

While campaigns often begin by addressing a challenge, those that invite a congregation to dream about something new and exciting, something made possible by their investment, will find the greatest success. Several factors undergird a successful campaign: strong pastoral leadership, sound financial management and transparency, positive community relationships, realistic goals tied to actual capacity, strong lay leadership, and broad congregational engagement. At Pinnacle, we use our Foundation360 assessment alongside a feasibility study to help determine readiness, but most pastors can gauge their congregation's readiness themselves with honest reflection. And always remember that talking about a campaign does not commit you to one. Some capital campaigns are discussed for years before they are launched, and that exploration time is not wasted. It is critical groundwork for success.

What steps do I take?

I would always recommend speaking with a consultant when you feel ready to begin thinking seriously about a campaign, and every consultant may offer a different list of steps. Here are the ones we would suggest taking, with or without our involvement:

1. Talk to a trusted consultant or judicatory representative. They will save you precious time and resources throughout the process.

2. Understand your current financial picture. A well-run campaign should generate pledges of approximately three times your congregation's annual unrestricted giving.

3. For existing buildings, obtain an official facilities condition assessment to identify deferred and upcoming property costs. This ensures you are working in the right sequence of needs.

4. Make a list of must-dos and would-like-to-dos for campaign funds. Dream bigger than you think you should.

5. Conduct a feasibility study with a third party. Constituents will give you their most honest feedback when they are speaking with someone outside the congregation.

Once you have worked through those steps, you will have a much clearer picture of what is possible. A word of caution before you engage contractors or architects: do your homework first. Those professionals charge fees that will need to be covered from your campaign income, so build your financial picture before committing to services you may not yet be able to afford, unless your annual operating budget can absorb those costs. You can also save money and increase creativity by hosting a design charrette with local architects, contractors, and landscape planners.

A charrette is a common practice in the design world where a potential client invites several firms to a structured event to brainstorm and present creative options for a project. For your congregation, this "try before you buy" approach lets you engage multiple firms before making any financial commitment, see who truly understands your vision and your community, and begin building the working relationship you will need for what may be a three to five year process.

From scarcity to abundance

Capital campaigns can seem like a daunting undertaking, especially in a congregation accustomed to underwriting capital needs through bake sales and spaghetti suppers. But when we move from a posture of scarcity to one of abundance, fueled by our commitment to faith and the Gospel, we allow the full resources of God's generosity to flow freely. The money our congregations need is out there. With good guidance and wisdom, we can find it.

At Pinnacle we believe that congregations can be successful in their campaign efforts, and we also believe that having the right partner in that work leads to greater success. We are prepared to walk with you through as much or as little of the process as you need, from initial discernment and feasibility through campaign strategy and structure, design charrette facilitation, and pledge Sunday celebration. We want to see your congregation's needs and dreams come to pass. Reach out to us to learn how we can partner with you.

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