Help me understand the difference between an annual fund and a capital campaign. Why should I give to one when I’m giving to the other?

Let’s start with some definitions. An annual fund is money for the school’s current year operating expenses. Annual gifts make up the difference between what tax dollars cover and the actual cost of running the school. It is like a checking account that helps the school accomplish its daily work. Capital giving, on the other hand, buys brick and mortar building projects — new facilities and major renovations — and sometimes endowment as well. In our case, it’s especially important because as a charter school ACS cannot seek bond funding like other public schools. Because capital project gifts are often larger, you have the option of paying your pledge over two to three years.

The school asks for an annual gift even while you’re making a capital campaign donation for the same reason you have to pay your mortgage while you’re putting an addition on your house. The school must continue to meet its operating costs even as it’s making major improvements.


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