Several of our clients are in the midst of raising funds for large capital projects. In all cases the ideal fundraising outcome is to raise 100% of necessary funds in cash. Seems pretty straightforward.
In reality, the needs and preferences of donors must be factored into the equation.
It gets complicated.
One way to address these fundraising realities is to develop, in advance, a Funding Plan, or a road map that takes into account a series of assumptions and contingencies that fit the organization’s needs as well as its tolerances for risk.
Elements of a Funding Plan include:
Each of these points requires creating a set of assumptions and making judgments about what will likely happen in the future. Well conceived plans can allow organizations to create flexible funding strategies that can be adjusted as circumstances unfold, but may provide the opportunity to move ahead with construction while fundraising is still underway.
In today’s economy waiting till all the cash is in the bank, may not be the most cost effective way to fund a new building.
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