THE FINANCIAL SOURCES NEEDED TO PAY FOR SPACE-RELATED COSTS
For most space-related initiatives, success hinges on the ability to assemble the funds needed to build and operate the facility. Nonprofits typically accomplish this through a combination of fundraising (i.e. a capital campaign) and other types of funding and financing.
A capital campaign is a fundraising effort targeted towards a specific project that takes place over a fixed period of time. It is distinct from fundraising for programs or general operating costs. Though funds can come from a variety of sources, nonprofits are typically advised not to go into long-term debt for their space-related initiatives; however, short–term and bridge financing can help manage cash flow during the process.
OBJECTIVE FOR THE EXPLORATION PHASE:
Determine your organization’s current capacity and interest for fundraising. Capital campaigns are complex, sometimes multi-phased, and often daunting undertakings. Instead of starting out by debating (and fretting over) how to launch a campaign, take it slow and begin with a broad and honest look at what skills and expertise you already have. Depending on the scale of your initiative, you may not need to embark on a formal capital campaign.
KEY QUESTIONS FOR EXPLORATION:
Does your organization have the capacity and interest to do a capital campaign?
TO DO:
Do an internal inventory of your organization’s existing experience and expertise by discussing with the Leadership Team:
Are the board and staff in alignment about the need and general direction of the project?
Which, if any, board members or staff members in leadership or development positions have capital campaign experience?
Do all board members currently donate to the organization? Which board members may be interested in making a major contribution to the campaign?
Do board members currently play the role of connecting your organization to other community leaders and potential donors?