Pre-Development

Planning new facilities, expanding existing ones, or renovating requires specialized guidance and resources.

Phase 3 – Proceed to Development

Moving forward you will continue to develop and refine the comprehensive building design while concurrently engaging in an active capital campaign.

In the third phase, the organization develops a case statement, prepares a capital campaign plan, acquires funding, and procures the services of a project manager and architectural and engineering services. The project continues to move towards construction.


Phase 3 – Steps

Step 1 — Develop a Case Statement

The case is an internal written document that once vetted by the campaign cabinet and board of directors becomes the basis for every message and every written and verbal explanation of the campaign. Your case should tell a compelling story that captures both the emotion and intellect of the campaign. Your statement should be clear and easily understood by your audience. The length of a case statement varies depending on the depth of the project and the amount of money requested. The goal is not brevity as much as answering the questions about why your organization is critical to solving a problem or serving a need in your community. It should also discuss why donors care about the project, and what difference it would make to your constituents. Drafting your case statement is an excellent way to encourage engagement with your key stakeholders.

At its core, a case statement answers five critical questions: Why you? Why now? Why them? What difference will the project make? And what are the opportunities to participate?

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Step 2 — Prepare a Capital Campaign

A capital campaign is an intensive effort to raise a specified sum of money within a designated period of time from charitable sources (corporate, foundation, individuals). The capital campaign phases include planning, donor cultivation, solicitation/quiet phase, solicitation/major gifts, solicitation/community, and pledge of gift fulfillment, recognition, and stewardship. The charitable funds component is a complement to the other revenue outlined in your plan of finance.

We strongly advise that the team comes together at least a year before any funds are secured and that no requests are made until you are certain of the total fundraising goal. For example, remember that the goal should include not just the cost of the exterior aspects of the building but also the interior furnishings that allow the mission to begin at the ribbon-cutting. The budget will also cover fundraising costs, including staffing and communication materials, and any donor recognition strategies. A campaign professional, as well as your project manager/architect, can help you understand the full costs of your project. From that number, the campaign total can be determined. Note that the first place we determine this number is in the plan of finance where you will also clarify other sources of funds from bonds, loans, or equity.

The opportunity and challenge of a capital campaign is that it has clear starting and ending dates. It is what happens between those dates that the organization must clarify to successfully secure new relationships, raise funds, maintain existing donor relationships, and not exhaust the board, staff, and volunteers. There are clear rules of the road in this effort and every group should do their homework to get the science, skills, and understanding before embarking on this phase of the work.

One consideration to note is that capital campaign fundraising happens concurrently with fundraising for operating support or any of your regularly scheduled mission activities. You must be prepared to do it all.

The decision to engage in a capital campaign starts with the board after a thorough review and acceptance of the plan of finance. You will begin by establishing a capital campaign committee (often called a cabinet) strategically composed of a board liaison or two, a campaign chair, and the rest of the team, which includes interested volunteers, staff, and key project partners who are all interested in focusing on the relationships and fund development activities from start to finish. This committee is different from an annual fund development committee and different from the whole board. When needed, it is common to hire external consultants who have the experience, skills, and track record to support the campaign team.

Preparing for a campaign is also an opportunity to articulate key messages for donors and campaign stakeholders about the impact of your mission and the capital project. It is a chance to tell a compelling story about how, by participating in the campaign, donors can be a part of something greater than anything they could do themselves.

There are many aspects to this particular phase of the work. We encourage you to connect with Foraker to learn more. You may want to schedule a time for your board and volunteer team to engage in our facilitation Are you Ready for a Capital Campaign? Many groups do this early in the process and again as the time for activating the cabinet gets closer.

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Step 3 — Acquire Funding

Now is the time to generate the funding from all the sources you have identified. Generally speaking, at least 90% of all funds should be pledged or secured before any construction begins. Charitable donors do not like to underwrite debt and want to be part of the whole journey, even if their money comes in at the end. For some organizations, this phase will take one to three years depending on the source and the timing of those sources. Have a plan and follow it.

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Step 4 — Procure Project Manager/Architect and Engineer Services

The project’s conceptual design ideas will need to be refined and formed into a comprehensive building design. This will require additional comments and coordination between the architect and engineers covering all project systems including structural, plumbing, mechanical, heating, and ventilation systems, energy analysis, and any other indicated system unique to your project. A project manager will help coordinate and track these steps as well as advise on project delivery methods.

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After Pre-D, the next phase is “Start Development”

It is time to build. Congratulations. Now the next phase of work begins. Know that this phase can take anywhere from six months to two years depending on the capacity of the organization and the scope of the project.