The first phase of a Capital Campaign is Relationship-building and Training Phase.

During this initial phase, core leadership and the newly-formed Finance/Stewardship Team will be instructed on procedures to be used during the Capital Campaign. It is at this time that the leadership team will, hopefully, become motivated to complete the task set before them. This session is often held on a Saturday to avoid conflicts with team members’ individual schedules. This interactive training period is planned to produce a campaign theme, timeline, budget and, often, a plan to communicate the process to the constituency. Some team members will also be encouraged to carry out specific tasks related to the capital campaign kick-off event.

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Funding a church building project is never a matter of money; it is always a matter of obedience to God.

There are several considerations to observe prior to embarking on a capital stewardship campaign.

• Hire a professional company. The services of a good professional capital stewardship team will enable the church to raise more financial support than a single congregation can accomplish on their own.

• Make sure the team you hire shares your passion for ministry.

• In order to insure/maintain ownership of the mission the team must be driven by a well organized volunteer structure.

• Both the team and the program must be centered on Scriptural concepts of Christian stewardship.

• The campaign must be focused on prayer as well as finances.Hi

When considering the involvement of a “professional capital stewardship team,” the question, sure to be asked, is, “how much will it cost us?” Based on my experience with a number of campaigns, I can say with confidence, “It will usually cost you more if you do not have a professional guiding you.”

The fee for consulting services is usually based on the size of the project, which may take into account such factors as weekly attendance figures, number of members, the annual budget, the number of households on the mailing list, number of giving units, and other related factors. 

Never utilize the services of any firm that quotes the fee as a percentage of the amount raised. Though it may initially sound like a good way to pay for their services, it is considered unethical behavior for professional firms to quote their fee on that basis. 

The Professional Code of Ethics of the American Association of Fundraising Counsel (AAFRC) reads, 

“A flat, fixed fee is charged based on the level and extent of professional services provided. Fees are not based on the amount of charitable income raised or expected to be raised. Contracts providing for a contingent fee, a commission, or a fee based on percentage of funds raised are prohibited. Such contracts are harmful to the relationship between the donor and the institution and detrimental to the financial health of the client organization.” 

We trust this brief overview of capital stewardship campaigns to be of help as you consider the need for funding the extension of your ministry through building.

Lastly, remember that capital stewardship campaigns are a partnership between your church and the company providing the service. 

As you work together in unity to meet your financial goals, you can expect to see spiritual growth in the congregation as people find added purpose and meaning… a consequence of their financial involvement.

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Step Five - Deciding on the building method.

PLANNING, DESIGNING & BUILDING METHODS 

“Unless the Lord builds the house, its builders labor in vain.” Psalm 127:1

Now it is fair to ask ourselves, “Where do we go from here?” 

We will soon expose the details of a time-proven approach which will lead you to the success you desire while helping you avoid the pot-holes.  

But, before we do that, we need to consider other options which may be or have been suggested to you, so you will know what to avoid and why…

It does not start with an architect! Do not to engage an architect…not yet…and don’t worry about a civil engineer yet, either. All of this will be addressed, in detail, in Chapter 6.

I have recently been working with a church that made the tragic mistake of hiring an architect and civil engineer without, first, engaging a church-building consultant or a general contractor to represent their interests. 

What happened?   The same thing that happens in the vast majority of cases… their design was way out-of-budget!  They had actually spent 25% of their entire building budget on design…Wow! …What a mistake. The tragedy is that almost every church makes the same error. 

That’s not all!  The next thing this naïve, though well-intentioned, church did was to complete the site work… before the building plans were finalized!  Now, they have the site work finished but it is just deteriorating in the elements.  Tragically, it may never serve the final building-design intended for it.  

Having been involved with the construction of many churches over the years, one thing became obvious to me in nearly every situation. By-and-large, churches do not take advantage of the contractual arrangements which can be made available to them!  Rather, they accept whatever a general contractor or architect puts before them. The consequence is an excessive number of change-orders, with resulting cost over-runs.

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Step Four:  Financing

“Let no debt remain outstanding, except the continuing debt to love one another…” Romans 13:8

Over the years I have assisted many churches in securing the funds required to complete their building plans. Extended experience has convinced me that, when the question of financing methodology arises, congregations will hold tightly to either one or the other of two opposing viewpoints.

One viewpoint is that “money should not be borrowed, for any reason”. They argue that church-building and all other forms of expanded ministries, when truly blessed by God, will be paid from cash in hand, prior to implementation. 

Those holding the opposing viewpoint are known to say, “if we’re going to build, we need to secure financing.” 

We have assisted independent and denominational churches alike.  Some have built for cash and others have used outside financing. I can assure you that God has honored both positions. All have been able to expand their ministry regardless of the methodology they employed. 

In the next post we will look at the different financing options.

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Step Three:  Stewardship / Capital Campaign

The next question to ask when building a new church building is, “How are we going to pay for our new church construction project?”

The funding task demands the involvement of talented lay and staff people, found within the church body, acting as a task force to raise the funds. Should the church staff and laity do it “in-house?”  Or, should the church call in professional assistance from a firm that specializes in capital funds campaigns?

Jim Sheppard, in the March/April 2003 issue of Your Church Magazine, lists several common concerns shared by a church when considering a capital stewardship campaign. He writes…

“Even though you know that many churches have used the services of professional firms with great success, you are still reluctant. The issues of working with a fundraising firm are very real: (1) their fee involves a lot of money; (2) the church could save the money spent on the fee and use it for other purposes; (3) you are not sure you want to let a stranger into your church family; (4) you wonder whether you can trust him or her; (5) you don’t know if they will do what they say they will do; (6) some people will wonder why the church is spending money to raise money; and (7) this doesn’t seem terribly difficult—won’t the church be just as successful doing it on their own?”

Church finances are always a sensitive arena. Add to that the prospects of starting a Capital Stewardship Campaign and you have increased the level of explosiveness.

This is often the case when the church-at-large does not understand that, aside from generating the required capital, the effort to do so will enhance each individual’s appreciation for the spiritual aspects of giving. An effective capital campaign, therefore, is more about stewardship, the opportunity for the individual believer to participate in building God’s vision and mission for their church, than it is of financial sacrifice.

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You have now recognized your readiness to move forward. You’ve formulated your ‘vision’ and completed your Needs Analysis and Feasibility Study.

The next step?… It’s time to carry out your good intentions. 

Step Two:  Develop and form teams.

Remember that you are not alone!

The right team will guide you through all the necessary steps, from budgeting and scheduling, through actual brick and mortar. 

Two teams are essential to the successful completion of the project. 

The first team is composed of those church members who will comprise the Building Committee, or as some refer to it today, The Task Force or The Building Team. The Building Committee will engage “sub-committees” in supportive roles. For example: Vision Team, Master Planning Team, Finance Team, and Prayer Team. The second essential team is the Contracting Team. 

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A common myth today is many churches believe the first step to building a new church is getting architectural drawings, when in fact they need to start with defining their “ministry mission” then follow up with a Needs Analysis and Feasibility Study.

Now that we understand that our first need is to define our ministry mission, we must ask ourselves, “What tools will we need to meet our objectives?” This question will bring us to conclude that a formal Needs Analysis and Feasibility Study is required if we are to be faithful in our due diligence.

 Such an in-depth study will cover some of the following issues:

• Interviews and questionnaires with staff and lay leaders regarding readiness to build.

• Financial analysis to assist with project scope and to determine the need for a capital campaign.

• Site analysis to uncover possible issues such as impact fees, utility capacities and soil suitability.

• Church growth analysis to satisfy lenders should financing be required.

• Recommended building parameters consistent with concern for meeting both short and long term space requirements. 

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All tasks involving change face a host of unique obstacles.  For a local community of believers, “change” is sure to create a level of controversy uncommon to the secular community. The mere mention of the words “building” or “relocating” …even the thought of changing the paint color in the ladies restroom… and controversy, predictably, is sure to follow. “What is wrong with the Pastor?   Why does he think we need a bigger church?  Ours has worked just fine for years, just as it is.” “We certainly don’t need a church building consultant.”

Recently I’ve been connected with an established church in North Carolina that has met at the same location and in the same building for about twenty years. The church is now enjoying significant growth and needs a larger worship center.   Their existing campus provides more than ample space to build in front of their existing facility, thereby providing great curb appeal. The demographics, their Needs Analysis and Feasibility Study, and financial condition all support the Pastor’s desire to move ahead.

Predictably, his viewpoint does not enjoy universal support within his church family.  Example: one building committee member said “I think we should just keep our money in the bank, get the interest on it, and build in a few years.” Regardless of her motivation, it is clear that she is not well-informed and/or she “just doesn’t get it”. She is convinced that the interest will more than offset the future cost of building, a viewpoint soundly refuted by historical reality. Further, her statement affirms her belief that ‘safety’ must take precedence over the proper role of the church in ministry.

The fact is that many congregations miss out on opportunities to enhance the growth of God’s earthly kingdom simply because ‘it’s safer to wait.”  Unfortunately, there are too many churches being closed, weekly, having adopted this short-sighted viewpoint. It’s time for churches like these to secure the services of a church consultant and possibly even an owner’s rep to get them to the next level of ministry.

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There is a need for pastors and congregations to understand that there is a right way and a wrong way to structure a church building program. It is apparent that a great cloud of mystery has developed concerning the entire building process, extending from design to completion. This uncertainty has, too often, resulted in poor decisions which create attractive opportunities for unscrupulous architects and contractors to prey upon the trusting.

Many of these good people have prayed about their “new building” and sacrificially given to the cause for years. Sadly, in the absence of proper planning, their dream is likely doomed to frustration, if not actual failure. The resulting cost is measured in wasted time, squandered resources and the loss of congregational support,

The net effect of improper planning is a demoralized church body. Often it takes years and numerous pastoral changes to recover from the negative effect of such a fiasco.

Often, perhaps weekly, those of us in the business of helping churches through the nuances of consulting, church building design, financing and construction hear horror stories about hundreds of thousands dollars that have been wasted. Some heavy loses can occur even in the early stages of design.

Just a few years ago I conducted a seminar designed to assist church representatives who were considering building. There were twenty-two pastors or church representatives in attendance. We began the seminar by asking how many of them had seen old building plans sitting around the church office, plans which had never been implemented. These drawings would have represented the dreams of good but ill-informed believers…people who loved the Lord, but were never given proper direction. Are you ready for this? Nineteen of the twenty two raised their hands to testify affirmatively, suggesting that unfulfilled dreams, wasted resources, and most significantly, stagnated growth in ministry had dominated their building programs.

There is an answer, there is a better way! There is a proven process that represents the best possible stewardship of the monies and ministry entrusted to you. It does so while allowing you to maintain growth within your ministry.

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“With all humility and gentleness, with patience, showing forbearance to one another in love, being diligent to preserve the unity of the Spirit in the bond of peace.”
Ephesians 4:2-3

Strange, you might think, that a church building consultant would introduce a commentary on construction design with a reference to unity. Actually, it is really not so strange at all! In fact, unity of purpose is absolutely essential to a successfully completed building project. It honors God, enhances church growth and allows the church leadership to be seen as heroes when the program is completed.

Unity of purpose within the fellowship will help answer the question “What shall we build and who will build it?” It will propel a partnered building team through the critical issues: vision casting, master planning, concept drawings, financial considerations and much more. When these concerns come to the table, as they inevitably will, a common sense of unity will keep personal agendas at bay.

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