- Capital Campaigns
Posted by Martha  on 2/12/2009, 7:06 am
Here's an interesting question that I got - and don't know where to start looking. Perhaps one of you has encountered this before. I would imagine it isn't an uncommon problem. When a capital campaign fails in terms of not being able to reach the stated goal (in this case the purchase of a new bldg) not because of finances but because of legalities what happens to the $$$ that were raised.
Thanks
Martha
|
Post a Response
|
- Re: Capital Campaigns
Posted by Judi Margolin on 2/12/2009, 12:51 pm, in reply to "Capital Campaigns"
Interesting question Martha. I posed it of our own Vice President for Development. She does not pretend to be an expert on this topic, but has many years of fundraising experience. Here is her reply:
Are you saying that they will not be able to purchase any building, as promised to their donors, or will they look for another building to purchase?
If the latter, it's less serious - they can communicate apologetically with the donors that the plans have been delayed, but will move forward, "we expect", within 2 years. (I would be more self-conscious about a delay longer than 2 years) and of course their grant will be invested (in CDs) for that specific purpose.
It the plan to purchase a building is off the table, then they must write or call to explain why, and ask each individual donor if they would allow the organization to apply the funds for another purpose. But their auditors and the IRS would absolutely require that the donor must confirm this willingness IN WRITING. Otherwise the money must be returned, and soon.
Martha, we have a number of books here in the Catalog of Nonprofit Literature on starting and running Capital Campaigns, including this newer one:
Title: CAPITAL CAMPAIGNS & MAJOR GIFTS 101 (2007 ed)
Publisher Name: Sinclair, Townes & Company
Place of Publication: Atlanta, GA
Year of Publication: 2007
Pagination: iv, 80 p
Call Number: 713 SIN CAP
Record Type: Monograph
I looked through several of the books here at our headquarters library using the indexes, but couldn't find treatment of this specific issue.
I hope this helps.
|
Post a Response
|
- Re: Capital Campaigns
Posted by Martha on 2/12/2009, 1:53 pm, in reply to "Re: Capital Campaigns"
Well here is the tale of woe... A friends of the library group raised money to renovate a historic building in town which was donated to create a branch library. The town/library would take possession of the building once the renovations were done. If the town for some reason didn't take possession it reverts to the original owner. I'm not sure why (I have a ? in to the requestor) the town decided to say no - I suspect because they do not have the extra money to maintain it. The Friends don't want to loose the building or the $600k they have raised to renovate it. I told them to call the AG's office and also as you suggested think of other locations, buildings. I also suggested that they find out why the town said no and see if they can allieviate that issue - perhaps by raising more money.
Thanks for the info
Martha
|
Post a Response
|
[ CCTalk ]
|
|
|
