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Finishing a Capital Campaign
The
hardest part of a capital campaign is always the last $500,000. All of
the local and
Since 1989, the banking industry has contributed over $2.5 billion in grants to build and renovate low income housing. By definition low income housing is housing where a person pays no more than 30% of their income toward rent. Most homeless shelters, youth homes, recovery programs, and domestic violence shelters fit this definition. Many nursing homes do so as well. Most ministries do not think of themselves in these terms, but in banking terms they are supplying highly subsidized, affordable rental housing.
The lead granting agency in the banking industry is a series of 12 privately-owned banking institutions known as the Federal Home Loan Banks, which by the way are not part of the Federal Government. The Federal Home Loan Banks are a government sponsored enterprise (GSE) which means they are a private organization that serves a public need. The Federal Home Loan Banks were created by Congress in 1932 to keep residential mortgage rates down. In lieu of paying federal taxes, the Federal Home Loan Banks are required by law to donate 10% of their net profits to create affordable housing. They do this through a competitive application process known as the Affordable Housing Program (AHP).
AHP funds are a great source of additional monies for ministries that are expanding or renovating housing operations. Ministries do well against the competition in this process. The criteria used by the Federal Home Loan Banks gives significant advantages to organizations that are doing more to resolve homelessness than just building affordable housing. It recognizes the need to empower people and supply supportive services for resolving life-controlling issues. All the things that ministries do such as disciple clients in life skills, help clients obtain GEDs, baby sit children, and provide vocational training give ministries a distinct advantage.
AHP funds
are a great way to finish a project. They do not detract from local
monies, bring up to a third of a project’s funding from just one source,
and do not restrict a ministries’ evangelical efforts. They include a
minimal amount of administrative work including a 15 year retention and
annual reporting. Kevin Foster is the Principal of Foster & Associates, an affordable housing consulting business. Foster & Associates has worked with 42 ministries to obtain $19.9 million in AHP funds. Kevin can be contacted at 616-786-9926 or kevin@ahpgrants.com
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big sources have been exhausted, now it is hard work as you
have to pursue numerous small gifts. But what if you could obtain the
last 25% of your project from one source and better yet, the source was
not a local source so that you would not have to worry about cannibalizing
other donations. Of course the funds must not place limits on the
evangelical message of your ministry. Fortunately, just such a source
exists.