Raising Funds for capital expenditure
"CAPITAL FUND RAISING IS ABOUT NEED, NOT MONEY"
Raising substantial capital sums needs careful planning at the outset. The more planning done at the beginning, the greater the chance of success. So please do not hesitate to seek guidance. An appeal needs to be big enough to be appealing, but small enough to be achievable – perhaps by breaking it up into "bite size chunks". To be successful those being asked to provide moneys must satisfy themselves as to the need. If they do not, they are unlikely to provide the money.
In most cases the money should be raised before building commences. Apart from the obvious risk of running out of money if it is not all either paid or promised at the outset, many grants are often not available if applied for after work has commenced. At a very early stage the PCC will need to decide how much they are prepared to make available to fund the appeal – "priming money". Raising substantial sums cannot be done cheaply.
When an appeal is being considered a fund raising committee should be established.
Who should be on the appeal committee?
Membership need not be restricted to PCC members, but the committee should be under the ultimate control of the PCC if an appeal is on behalf of the Parochial Church Council. It is particularly important that members of the church are seen to be involved when raising funds for a church – otherwise the wrong message is given to potential donors.
Look for people with suitable experience – is there anybody in the congregation who has done this before? Are there people with good contacts who would be prepared to help?
Does the committee need the help of professional fund raisers? When looking to raise very substantial amounts it may be necessary to employ someone to run the appeal, who will have experience in this specialised field.
The first committee meeting
If not already decided an early decision should be taken as to who will chair the committee, and who will undertake roles such as Treasurer and Secretary – it is advisable to minute meetings.
- How is the need perceived in the area?
- Who do we expect to support it?
- What will they need to know to persuade them to contribute?
- What will happen if the capital is not raised?
- Where will the money come from?
Essentially there are five possible sources of finance
- Statutory Funds – e.g. from Local Authorities, EU moneys.
- Grant Making Trusts and the Lottery
- Companies – both national and local
- Other Organisations – e.g. Schools, Rotary, other churches and charities
- Private Individuals
The committee will need to look at each of these sources in turn, and consider who is the most likely to respond. They will need to consider how to approach them, and whether there are any sources that are "no go" areas (for instance some churches feel uncomfortable about applying for lottery money).
If you think that you may be eligible for a grant then your starting point should be GRANTnet, an online database search facility. This is a Diocesan resource which is available free of charge to parishes. For further information click here.
Having considered who is most likely to respond, the committee will then need to look at how to approach potential donors. Ideally at least 10% of the amount required should be collected right at the beginning, and this can often be achieved by carefully targeted face to face meetings with individual donors.
Thus when the appeal is formally launched it can be announced that £X has already been raised/promised (and possibly naming the generous donors, although this depends on individuals views and circumstances).
Many national companies now have community funding projects, and if approached early enough may be prepared to make funds available for church projects that will benefit the community, if that company is represented in the area. Donations from national or local companies will not always be in cash – they may be by way of supplying materials, or even seconding personnel for a really major project.
How much money do we need?
Only your committee can decide the answer to this question. You may need to seek professional help on costing a project. Do not forget to add costs such as Architects’ fees, VAT, Faculty and legal fees if appropriate, and site clearance.
When you get to the stage of appointing builders obtain several tenders, have a look at work completed by the builders on similar projects, and when you have selected your builder, if at all possible, obtain a fixed price building contract.
This is only a very brief summary of this vast subject. For help and guidance please contact Mary Makin, the Parish Finance Adviser, in Peninsular House. (023 9289 9655)
