Presbyterian Church of the Cross

BUILDING EXPANSION EXPLORATION COMMITTEE

Revised Minutes -- March 27, 2006 -- 7:30 pm

Staff present: June Fettig

Committee members present: David Moore (moderator), Mary Ann Pederson (clerk), Paula Allen, Amy Boesen, Jean Brady, Larry Keating, MacMcCartney, Lloyd Meyer, John Morey

John Fettig, a congregation member who works as a development consultant for non-profits at the firm of Paul J. Strawhecker, Inc., was invited to attend and explain how his profession operates. He expressed reservations about participating in our process, but agreed to explain definitions, guidelines, and customary procedures used in similar non-profit expansion projects. His opening points:

· Know your goal and plan accordingly (a $5 million project can’t be funded by bake sales)

· People don’t give for reasons you want them to give, but for their own reasons

Further, he defined:

• A capital campaign is a process that seeks to
• Raise a relatively large amount of funds (churches’ campaign results may vary widely)
• Over a relatively short period of time
• From relatively few donors
• For an urgent and well-understood need
• A philanthropic feasibility (planning) study:
• Is an objective study of an organization and its plans
• Utilizing interviews with key constituents (about 40 individuals/couples who are identified as having greatest ability to influence the project, either fiscally or through perceptions of leadership)
• To measure readiness and receptivity to an anticipated capital campaign.
• A study may pave the way to a capital campaign, or it may show lack of readiness for a campaign.
• Is a means to identify issues, campaign leaders, prospective donors, realistic goals and to determine “next steps”.

The interviews in the study are conducted confidentially by the consultants and assessed to determine Three essential ingredients of a successful capital campaign:

• a compelling case
• good estimate of costs and fund raising goals
• well-defined benefits that are important to the individuals
• understood contingencies
• qualified prospects (people who are capable of giving larger gifts)
• effective volunteer leadership – this is more important than the other two ingredients, because the actual fund raising must be done by members who are
• highly respected
• passionate to pursue the project
• leading with large gifts (relative to their means)
• (Gift Range Chart is attached, showing what the gifts to a $3m. campaign might look like.)

For a feasibility/planning study, professional fund raising consultants are hired under contract to:

• help church leaders do their job more effectively, but not do it for them

• prepare a Preliminary Case Statement (brochure, etc.)
• create an interview questionnaire
• conduct confidential interviews (no names attached to responses)
• assess results of interviews and other input
• report their findings, conclusions and recommendations to appropriate group(s)

Fees for such a study

• Average $12-15,000, with ½ paid up front, ½ after conclusion
• Are determined by time involved and number of interviews

For an actual capital campaign:

• Fees average $10 -12,000 per month

• it may last 6 – 12 or more months
• fees usually amount to 5 -15% of amount raised (likely on low end for a church), but should never be contracted on a percentage basis (that is unethical)

Important points to remember:

• Committed, respected leaders are essential, to tell their story personally and to ask others to give as much as they can
• Large gifts set the pace of the entire campaign
• Senior staff, Session, Deacons all need to be “on board” and give first
• Never make assumptions about individuals’ abilities or motivations to give – they must be asked directly by someone they respect
• “challenge” gifts are effective if they are sincere, authentic incentives
• Most people want to do their fair share (within their means), but also want to know that others are doing their shares according to their means
• Donor recognition needs to be planned – every donor should have an option for their name to be published or displayed with their gift
• People will give based on what they perceive will improve their church lives
• We need to articulate why each idea is important – “What will an elevator do for me and/or others?”

Next meeting Tuesday, April 4 7:00 pm