What are the funding options available?
Summaries below give common funding efforts and associated costs for each. (For additional information see pg. 52 in The MasterBuild Process.) 3-Year Capital Campaign Church or a consulting firm conducts a 4 to-13 week effort to secure commitments from members. Costs include 2 ½ -5% total for consultant; travel and other out-of-pocket expenses for consultant; printing promotion materials; postage; banquet; and follow-up activities. Bank or Private Loan Normally starts as a construction loan and then converts to a 15-year financial arrangement. Costs include application preparation, appraisal/NAI, title insurance, and closing costs, as well as any promotion and banquet costs. Bond Program Church engages firm to prepare prospectus and sell 15-year bonds to members and/or other investors. Costs include 3-6 ½ % of total bond issue for compensation to outside firm; appraisals, filing fee, title insurance, and attorney’s legal debit letter; and any promotion and banquet costs.
