Define: Capital Campaign

Capital Campaign
Capital Campaign
Full Definition Of Capital Campaign

A capital campaign is a fundraising effort by a non-profit organisation or institution to raise a large sum of money for a specific project or initiative, such as building construction, renovation, or expansion. The campaign typically involves soliciting donations from major donors, corporations, and foundations, and may also include public fundraising events and appeals for smaller individual contributions. The legal aspects of a capital campaign may include compliance with fundraising regulations, tax implications for donors, and the establishment of a formal agreement or contract with major donors outlining the terms and conditions of their contributions. Additionally, the organisation must ensure that the funds raised are used in accordance with the intended purpose and are properly accounted for in accordance with applicable laws and regulations.

Capital Campaign FAQ'S

A capital campaign is a fundraising effort undertaken by a nonprofit organisation to raise funds for a specific project or initiative, such as constructing a new building, purchasing equipment, or expanding programs.

The duration of a capital campaign can vary depending on the size and complexity of the project. It can range from several months to several years.

Yes, individuals can contribute to a capital campaign. Donations can be made by individuals, corporations, foundations, or other entities interested in supporting the organisation’s project.

In most cases, donations made to a capital campaign are tax-deductible. However, it is important to consult with a tax professional or refer to the relevant tax laws to determine the specific tax implications.

No, a capital campaign is typically focused on raising funds for a specific project or initiative and is not intended to cover ongoing operating expenses of the organisation.

Funds raised during a capital campaign are used to support the specific project or initiative outlined in the campaign. This can include construction costs, equipment purchases, program expansion, or other related expenses.

If a capital campaign does not reach its fundraising goal, the organisation may need to reassess its plans and consider alternative funding sources or scaling back the project. It is important to communicate with donors and stakeholders about any changes or adjustments to the campaign.

Yes, many capital campaigns utilize online fundraising platforms and social media to reach a wider audience and facilitate donations. Online campaigns can make it easier for individuals to contribute and track the progress of the campaign.

If you are interested in getting involved in a capital campaign, you can reach out to the nonprofit organisation leading the campaign to inquire about volunteer opportunities, fundraising events, or other ways to support the project.

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This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 4th April 2024.

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