Are the glory days of capital campaigns over? Since the 1960’s when there was a huge explosion of church expansion and building capital campaigns have raised billions of dollars for churches. Those days may be over. Studies are showing that the average capital campaign is now raising about…
1 times. As in one times your annual operating budget. So, if your annual budget is $500K you will probably raise in that range of dollars in a capital campaign. That is the new normal when it comes to how much you can expect to raise in a capital stewardship campaign. Don’t let anyone tell you any differently. While a few churches raise significantly more it is always driven by multiple five, six and even seven figure type donations. As I always joke, “Does Bill Gates go to your church?”
Here are the trends and issues impacting capital campaigns causing them to be less successful…
The Great Recession – Americans view of financial stability eroded with the crisis of The Great Recession. It showed us how fragile our economy could be. Donors become much more cautious about what they would pledge to give over two or three years. Ever since The Great Recession campaigns have seen pledge to budget ratios plunge. Again, there are exceptions but they are just that, exceptions.
Demographic shift in the generational church landscape – Countless studies have shown that as our churches donors age, and our median age is getting higher, they have a more limited ability to give. The Church is struggling to keep or attract the newer generations. When you struggle to get younger generations to give to anything you can almost count they will give a pass to your capital campaign.
The high cost of Senior Care – Baby Boomers are now becoming parents to their parents. The cost of providing for their parents is staggeringly high. Social Security and Medicare are not enough. Children are having to step up to financially provide for their parents or at least they see how their parents are struggling. Knowing how costly senior care is and at the same time planning for the eventuality of their future financial needs makes Baby Boomers more cautious when it comes to making campaign pledges. This is because they have done…
Social Security Math – A recent Wall Street Journal article pointed out that the ratio of retiree-aged adults to those of working age is continuing to edge upward. What this means is that there are fewer workers paying Social Security tax to help fund the retirement plans of retirees. This will add to the already stressed program that is gearing up to accommodate the Baby Boomer generation.
Baby Boomers are doing the math now about when they can retire and at what level of comfort. Talk to any Baby Boomer and many will tell you they fear Social Security will be bankrupt by the time they want to retire. This means that like their parents Baby Boomers are faced with…
The fear of outliving their money. I once put a gifting chart in front of a recently retired Baby Boomer. He replied to me, “I know where I want to be on this chart. Yet I don’t want to drain my account and put my children at risk of being able to provide for me.” I hear this all the time. It means donors are going to pledge far less than fifteen or twenty years ago.
The 10K a day impact. Every day 10,000 Baby Boomers, the Churches largest donor group, are turning 65. This key donor group is moving into retirement. Thus their ability to give is less than when they were at their peak earning days.
When it comes to capital campaigns people give out of assets like stocks, CD’s, boats, land etc. or by taking more of their incomes to increase giving. People will have less incomes to give from and be unwilling to give up their assets. This is because they have…
A protectionist mindset – The lack of confidence in our financial futures causes donors to be protective of what they have. The result is capital campaigns have and will continue to see lower pledge results.
If capital campaigns are dying why are stewardship firms still pushing them? I can’t speak for all of them but I do know that many are simply ignoring the trends around them. Privately presidents of firms admit to me that their companies might only have five years of viability left.
So, here is a thought. Let’s not keep doing what we have always done because we will not get what we always got! Why does the Church always seem to double down on programs that are clearly not performing well? Raising capital dollars for growing churches will always be a need. Here is what you need to know…
There is a new and better way to raise capital needs for your church!
If you are interested reach out to me and I will gladly share with you what hundreds of churches are discovering, a better way.
Mark Brooks – The Stewardship Coach