The success of your capital project requires your organization to have internal support as well as outside expertise from consultants, temporary staff or volunteers. Here, you will find guidance on how to get the right team in place to move your project forward.
STAFF & BOARD
Overview
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At this point, your board must make a conscious decision that your organization is ready before moving on to full project design and the launch of a capital campaign. From here on, project costs go up considerably, and the cost of not succeeding goes up even more. Proceed only when you can answer, “Yes!” to the following questions:
Do you have the leadership, both on staff and on the board, to see the project through to the end?
Is the project well defined with reliable cost estimates?
Do you fully understand the impact it will have on your annual budget – before, during and after construction?
Do you have the necessary project and campaign management systems in place?
Is your board 100% behind the project and the fundraising effort in front of you?
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To plan and execute a successful capital project, a Board of Directors must perform tasks and manage a process that is different from day-to-day operations. To be effective, the board must plan for the new project and possibly recruit new members with new skill sets. Two ad hoc committees that are commonly formed to take on a capital project are a Capital Campaign Committee and a Building Committee. This Ad Hoc Committees overview explains more about the duties of these committees.
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Once you begin construction, mistakes can carry big price tags. Because the stakes are so high during the construction phase, it is always wise to engage a full time Project Manager or Owner’s Representative. Hiring or contracting with someone that brings substantial construction management experience and expertise will ensure your project is completed on time and within budget.
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Your organization probably has a strategic plan for its programming, but does it have one that takes into account this pending capital project? The purpose of any strategic plan is to clearly define your organization’s long-term vision and the short-term objectives for getting there. Review your strategic plan to determine if this capital project fits into this vision. If not, you may want to consider developing a new strategic plan that spans a period of three to ten years.
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In smaller institutions, sometimes the executive director has to both run the organization and coordinate the capital campaign. In that case, the board must develop a strategy that assures that proper time is given to organizational programs and the capital campaign. Sometimes board members are brought in or extra support staff are hired on a temporary, even a voluntary basis.
Expert Tips
Karin Slater, Chief Financial Officer of CASA of the 7th Judicial District
The Village on San Juan in Montrose, CO is a 45-unit intergenerational supportive housing community for young adults ages 18-24 and seniors ages 62+ who are at imminent risk for homelessness. The project includes eight acres of land and a conservation easement for walking trails, outdoor activities and a 3,000 square foot community building.
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Capital projects require a lot of time and attention, above and beyond your organization’s regular operations. It’s important to be upfront with your staff, board and volunteers about the commitment it will require to bring the project to completion. That time commitment will increase with the complexity of your project, so be prepared to hire outside support from individuals or consultants who are readily available throughout the duration of the project. A volunteer with another full time job may not have this capacity.
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You will want people around you with diverse backgrounds and professional experience. For example, it can be incredibly helpful to have a board member with an accounting background who can help you determine a financial model for owning real estate.
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Foundations and other donors look at full board contributions as a sign of buy-in and commitment for the long-term.
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Consider contracting with someone who can handle the additional burden of administration duties, special events and donor relations. You can even consider hiring a project manager as a temporary employee.
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Provide updates at key milestones, and don't forget to share your successes along with your needs.
Guides
Downloadable resources to help you prepare your staff and board.
Links & Resources
Colorado Nonprofit Association's Knowledge Center: This members-only resource provides reliable information on board development.
Transformative Leadership for Change: TLC has a vision of strong, richly diverse, talented and passionate leaders that emerge, develop, continually grow and thrive, and, together build power with communities of color in Colorado.