Spoiler alert- grants that pay for land, construction of a new facility, and furnishing the new facility do not exist.
And yet I see this question asked in grant groups and forums a few times each month.
Grants can be a large part of a capital campaign, but they work in conjunction with other types of funding.
A few years ago, I was the “grant part” of a large capital campaign, and here is how it worked…
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At the time, my client was a five-year-old organization with a $1.5M annual budget and they had been renting their space. They were quickly outgrowing their space and wanted to become a more permanent fixture within the community.
Their first step, before fundraising, was to submit a proposal to the city to use a 1-acre parcel of land owned by the city. After a lengthy application process and several presentations, the city agreed to a 100-year lease for $1/year.
This was a huge win. Only now did they plan and launch a two-year capital campaign.
Securing the land before launching the capital campaign accomplished a few things:
- We could leverage the value of the land to show we had already raised significant funds.
- When the city gifted the land, they showed tremendous confidence in our organization, which quickly spread to others.
- It showed that we were serious about this project and already made a commitment to the city.
The definition of “capital campaign” is the request for significant contribution to a worthy renovation or expansion project that will further the mission of the organization. Worthy renovation or expansion and furthering the mission are the two key components. Every element of your capital campaign should reaffirm that your project is deemed worthy by the community and will further the mission.
Here is where the grants come in…
A capital campaign typically includes fundraising events, donor fundraising, naming gifts, and grants.
There are many types of grants that can help boost a capital campaign. In the capital campaign I was part of, I applied for and won grants for the following:
- Donor matching– Many large donors will require that their donation be matched. I secured three grants that served as “matching funds.” Grant funders like this arrangement because it means that their grant dollar goes twice as far. If they grant a $100,000 capital grant, they know, in this case, that it will mean $200,000 for the organization because of the match.
- Restricted Use– Since capital campaigns take years, restricted funds work well. The first grant I secured for this project was a $100,000 grant from a family foundation. It was restricted for construction, so the funds sat for 2+ years, but I leveraged them to win additional grants.
- Capacity Building– Once the new facility is built, you have to make good use of it. This means serving more people, which means recruiting more volunteers and hiring additional staff. Many organizations make the mistake of throwing all of their funding into the facility, and then they run out of money.
- Furnishing/Interior Design– What do you plan to put inside once the building is constructed? For two years, I applied for and won several grants from furniture companies and other funders who provide grants for painting murals, purchasing furniture, and creating a space conducive to the mission.
- In-Kind Grants– Nothing is better than cash, but in-kind donations are critical during a capital campaign. Grants are available for furniture, lighting fixtures, gardens, landscaping, etc. Make a list of what you need and start searching for in-kind grants.
Many large financial institutions offer capital grants, but the organization must show that 60%-70% of the funds have been raised.
Grants can be a big part of constructing a new facility, but they are only a part.
Until next time,
Write Epic Grants