Fundraising

The capital campaign doesn’t reach its goal. Perhaps the goal was too ambitious, the lead gift wasn’t set high enough, or the true project cost wasn’t worked out at the beginning. For whatever reason, the goal is not reached, and there is no Plan B. Usually, the organization is forced to take out a loan and try to continue the campaign after the facility is built to pay off the mortgage. This is rarely successful.
The capital campaign goal was too low. Perhaps the campaign goal was set too early before the scope and cost of the project were fully understood, or the project changed in some expensive way. In these circumstances, the campaign goal is never reached, and the organization has to cut costs in the building design, programming or administration -- either during construction or after the opening. Each cut produces consequences that might prove costly.
The organization didn’t have the resources for a successful capital campaign. In these cases, their only alternative was to take out a loan -- which they couldn’t afford -- to fill the gap between what they were able to raise, and what they needed.
The full financial package needed for the project was only partially worked out. Knowing the true cost of the project is only the first step. Hroups must analyze the source and uses of funds, their timing, and their cost. This might involve a combination of a capital campaign, a construction loan, and a line of credit. The loans assist with cash flow needs, as the capital campaign money flows in over two or three years.