Capital Campaigns: Giving to a Building Wisely

Sooner or later your church or a ministry you love will announce a capital campaign. A new building, a renovation, a youth center, paying off a mortgage. There will be a brochure, a pledge card, and maybe a video.

Capital campaigns can be wonderful. A building is a tool for ministry, and good tools matter. But a campaign asks for a bigger, longer commitment than ordinary giving, so it deserves a little more thought.

It also tends to come with strong emotion. There is the excitement of a vision, the pull of friends pledging around you, and sometimes an unspoken sense that a big gift proves real faith. None of that should rush you.

Count the Cost First

Jesus used a building project to teach about planning ahead. His point was about discipleship, but the picture is practical, and it fits both the church and the giver.

A healthy campaign has counted its cost. A wise giver asks to see how.

Counting the cost also applies to you. Before you pledge, look at your own next three years. Are there tuition bills, a job change, or a new baby on the horizon? A realistic pledge you can keep is better than a generous one you will regret.

Questions Worth Asking

Leaders expect questions. Asking them kindly is part of taking the campaign seriously.

• What ministry will this building make possible that is not possible now?
• What is the total cost, and how much has already been given or pledged?
• Will the project take on debt, and if so, how much and for how long?
• What will it cost each year to operate and maintain once it is built?
• What happens if the campaign falls short of its goal?
• Will regular giving to the general budget and missions be protected during the campaign?

That fourth question is the one most often missed. A new building can raise the utility bill, the insurance, and the maintenance budget for decades. A good plan accounts for it.

How Campaign Gifts Usually Work

Most campaigns ask for a pledge over two or three years, on top of regular giving. A gift given to a campaign is generally a restricted gift, meaning the church must use it for the project. Ask what happens to those funds if plans change.

Many pledges are statements of intent, not legal contracts, but some are written to be binding. Read the card. If it matters to you, ask the church how it treats a pledge you cannot complete because life changes.

It is also worth deciding whether your campaign gift will come on top of your regular giving or partly in place of it. Churches generally hope for the first, and it is fine to be honest with yourself and your leaders about what is possible.

Ways to Give a Larger Gift

Campaign gifts are often larger than ordinary giving, so it is worth knowing your options. Your CPA can help you choose.

1. 1

   Cash Over Time

   Spread the pledge across the campaign's years, the way most people give.

2. 2

   Appreciated Stock

   Stock held more than a year may be given directly if the church can receive it.

3. 3

   Through a Donor-Advised Fund

   Grants from your fund can support the project, with a few pledge rules to know first.

If You Give Through a DAF

Grants from a donor-advised fund can go to a church's building fund. The details around pledges are where people get surprised.

• Most sponsors will not let a grant pay a personal pledge, especially one that is legally binding. Ask yours before you sign the card.
• Some donors share a non-binding statement of intent instead of signing a pledge card. Ask your sponsor how it treats that, since the sponsor makes the final call on every grant.
• The grant cannot give you more than an incidental benefit. Most naming recognition is fine, but ask your sponsor if a naming arrangement is involved.
• The sponsor reviews every grant and makes the final call.

One honest reminder: giving always costs you more than it saves. A deduction lowers your tax by a fraction of the gift, never the whole gift. Give because you want the money to do good, and let the tax rules make that generosity go further.

Give Joyfully, Not Anxiously

A campaign should never feel like a test of your faith or a way to earn favor. It is an invitation. If you can give generously, do it gladly. If you can only give a little, that gift is honored too.

And if you have questions the leaders cannot answer, it is okay to wait. A building that is truly needed will still be needed when the plan is clear.