Go Big or Go Home: What is a Capital Campaign?

Synopsis
One million dollars is not as much money as it used to be. Still, many people believe raising a million dollars is a monumental task. When you have a strong relationship with donors, a clear vision for the future, a well-articulated plan and a healthy ministry, the minimum goal for a capital campaign shouldn’t be less than $1 million. Not that you shouldn’t raise less than that if you need less; it’s just a different approach. 

Insights from Tim Kurth, Vice President, Ministry Solutions at LCEF.
In my work across all types of organizations within our Synod and looking back on a lifetime working in and around churches, I’ve come to discover what I call a “poverty mindset.” By that, I mean having a fixation on scarcity rather than abundance. One way this manifests is in the belief that one million dollars is a lot of money. I’ve known for years we’re in the midst of the largest transfer of wealth in human history. In the U.S. alone, experts estimate more than $33 trillion will be handed down to younger generations over the next 25 years or so. There is more money in this world than we can begin to comprehend. 

Not only that, but there’s also so much money available for ministry that we cannot even begin to imagine how much. I tested this assertion at a donor relations workshop I conducted. There were about 20 people in the room. I asked them to confidentially list their personal net worth. This was a room of Lutherans representing young, middle aged and older folks. A true cross-section of our denomination. I collected their responses and tallied the amount. At the end of the session, I revealed the total net worth of the room… $42 million! 

I share these things because they highlight two things for me. First, when it comes to money, I needed to confront my own personal “poverty mindset.” Second, I’ve come to believe that a certain mindset is keeping us from casting big visions and trusting that God can do far more than we can ever think or imagine. It has also brought me to avoid ever offering capital campaign guidance for a goal amount less than $1 million. Yes, part of this is because it’s really not worth the expense to have Lutheran Church Extension Fund (LCEF) lead your capital campaign for less than $1 million. More importantly, a project for less than a million can usually be accomplished with what I call a funding initiative.  

A funding initiative is different from a capital campaign in a couple of important ways. A clearly defined need, a well-articulated case and a specific amount needed is where you start. From there, you identify those donors in your donor base who are capable of covering the amount you need. Sometimes this can be a single individual. I’m reminded of a school headmaster looking to raise $1 million for a project. It occurred to him there was a single donor capable of such a gift. Instead of asking five or six donors to cover the total, he called on that single donor and challenged him to cover the total. And he did! For some ministries, you might need to ask 10 or 15 people to raise half a million dollars. That is still not a capital campaign. Find those 15 donors, meet with them, make your case and raise the funds you need. 

Then, when it is time for a capital campaign, you go big. You invite your entire donor community to step up. You engage LCEF to guide your campaign and go for all the bells and whistles. Such as logo, theme, video, printed materials and all the goodies that come with a campaign. Your largest donors are still going to provide 60% to 70% of your total campaign. Everyone else will top it off. If you’re wrestling with whether a capital campaign or a funding initiative is the right course for you, contact me at tim.kurth@lcef.org, and let’s talk about it.