Aligning Incoming Donations to Finance Projects Now

Success Story: Houston Baptist

Athletic Facility Upgrade

 

School:
Houston Baptist University

Program:
Donation Alignment

Project:
Athletic Facility Upgrade

Financing:
Operating Lease

Additional Resources:
+ Houston Baptist Story PDF
+ Athletic Facility Upgrade Projects
+ Houston Baptist University Website

 


Challenge:

One issue many schools face is looking for ways to convert multi-year donations into available funding for critical campus projects such as athletic fields and stadiums, new academic majors and programs and campus renovations.

A rapidly expanding liberal arts university in the southwest experienced this same obstacle as it rolled out its new football program. As part of its strategic campus master plan, a feasibility study was launched as they considered adding the sport of football to drive growth in enrollment. The school concluded that there was a business model to support the addition and it was able to secure financing for phase one of the project. However, when it came to additional expenditures, such as the stadium and bleachers, it needed to raise the additional funds. The school launched a capital campaign and successfully secured the committed pledges needed for construction. However, the pledges would be received over a period of 5 to 7 years. With the football season already scheduled to start in the fall, the school was presented with a challenge. They could not defer the project and had to find a way to pay for the stadium seating now.

 

"First American worked with us to create a flexible lease document so that we could schedule
payments tied to when those pledge payments were scheduled to be received."

Sandy Mooney
V.P. Financial Operations

[Integrity + Smarts]

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