Contributions from Developers to Fund Building Improvements

Posted in Marketing and Strategy Terms, Total Reads: 335
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Definition: Contributions from Developers to Fund Building Improvements

A developer contribution is getting money from developers in cash or otherwise to fund the additional infrastructure created by growth. The process of getting contributions from developers to fund building improvements is referred to as a capital campaign. A capital campaign is one of the many types of fundraising or development. Fundraising is collecting money in the form of voluntary contributions for a non-profit or these days, even a for-profit organisation. A capital campaign is when fundraising is conducted to raise large amounts of money for a building or endowment.


A capital campaign is an intensive effort to raise funds to meet different needs of an organization. Some of these activities in building assets would be construction of buildings, renovation or even expansion. The funds raised are generally kept separate from operating funds. Capital campaigns tap donors who do not contribute normally and those who contribute less normally to give more during this campaign. These campaigns start with a private phase first and then expand to have a public appeal.


There are different types of capital campaigns, one of which is the “brick and mortar” campaign which involves getting contributions for the construction of buildings. This was considered to be a once in a lifetime campaign earlier because of the amount of activity involved. Today, such campaigns are conducted every five to ten years by organisations.


The level of contributions from developers depends on the scale of the development and its impact on the local environment. Developer contributions through Section 106 agreements are usually negotiated by planning officers so that the proposal is acceptable and feasible in terms or planning. Developer contributions do not cover the entire expenditure of expanding infrastructure in growing cities and suburban areas. Therefore, developer contributions are usually kept only as one of the many sources of revenue.

 

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