Funding a building project requires two kinds of thinking" big and small. "Churches need to think big for master planning, and think small (i.e. conservatively) for financial planning," says Jim Sheppard, CEO of Generis, a company that helps churches implement strategic financial stewardship. "People usually reverse this and become too aggressive in how they think they'll be able to fund building projects and that's where they get into trouble."

Here are some tips on how to strike the right balance between thinking big and small when it comes to knowing whether it's the right time to initiate a building project at your church:

1. Let growth determine when space gets built. "If you've been tracking at 8 to 10 percent growth in attendance, and you need 15 to 20 percent growth to fund your building project, you better have a good reason for your hope," Sheppard cautions.
2. Plan for balanced space, not just the space in worship attendance. Industry experts recommend building three to four times more space per person to accommodate support space. As sanctuaries and auditoriums are enlarged and children's ministry wings are expanded, additional space must also be added to accommodate more cars in the parking lot, more bodies in the foyer and hallways, and perhaps more office space for the additional administrative support that may be required to manage a larger congregation.
3. Factor in the economy. "There's a myth that you can't raise money right now because of the down economy we're in. The reality is you can raise money for the right kind of project." Sheppard tempers this encouragement with a reality check: You might still be able to raise money for a building campaign, but it will probably be 10 to 30 percent less than a year ago. "If you thought you needed $5 million a year ago, you're probably going to raise $500,000 to $1.5 million less than that today," he says. "But even if you raise 10 to 30 percent less, the good news is your construction dollar goes much further today (construction companies/architect firms are begging to bid on jobs). You may not be any worse off today—net/net—than 2008 when the economy was better."

How money is raised
Although churches may raise less money today than in years gone by, there are still effective ways to develop donors.

"Church building projects get paid not so much by the masses, but with the core and high-capacity members," Sheppard says. "The best feasibility study a church can do is pitch their building project to the high-capacity donors in the church and see what their response is. They are the most successful and probably the most savvy people in your congregation. If you can convince them, then you've probably got a compelling call for the rest of your church."

Some church leaders are afraid they would be showing favoritism by asking the wealthier members of the church to give. "High-capacity churchgoers are typically the most ignored group. Our tendency is to assume they have it all together because of their financial success. Spiritually, they can be some of the most desperate people in your church. When it comes time to raise money, assuming you have built that relationship over time by pastoring these people well, you have earned the right to ask—so ask!"

Although commitments from high-capacity donors are important, churches will still garner a significant portion of their building campaign dollars from the rest of the congregation. "Some of the most sacrificial gifts I've seen contributed to building funds are in the lowest pay zones," says Sheppard.

4 Keys to a Successful Building Campaign
Sheppard says there are four keys to a successful building campaign:

1. Clarity—Stunning clarity is so powerful it draws people to it. You need to be crystal clear about why you're doing this project right now.
2. Urgent—There must be a 'now' factor. If you have constricted growth in your church because of capacity overload, you are stunting capacity of the church.
3. Compelling—What's your 'wow' factor? "You are in competition with our culture," Sheppard says. "Your ministry needs to be so compelling that kids are waking up their parents to go to church."
4. Aligned—"Church people know when things don't line up," Sheppard says. "You can't have never said the word "recreation" in your church, and then propose an $8 million rec center at your church. In today's environment, people are going to be very discriminating with where they spend their money. You're in competition with other ministries who are soliciting funds. Whoever makes the best case wins donor dollars."