A recent story in the Birmingham (Ala.) Business Journal reported that so many local nonprofit organizations are competing for private capital to fund their building projects that there might not be enough money to go around. Among those projects is a new $25 million, 4.1-acre headquarters campus for the Salvation Army. Phase 1 of that construction—which includes a renovation of a former elementary school—is being funded by a campaign that raised more than $15 million, including $1 million pledged by Jim Gorrie, CEO of Brasfield & Gorrie, the GC on this project.
Birmingham is among the metros reaping the benefits of a spurt in nonprofit building. A recent article posted on the website of The NonProfit Times singles out several major capital campaigns to finance new construction of museums, hospitals, theaters, and other venues, at a time when contributions from local, state, and federal governments, while still essential to many organizations’ building strategies, aren’t as certain or steady as they once might have been.
Leading this charge has been The Smithsonian, which in October 2014 launched its first-ever fundraising campaign, with a goal of raising $1.5 billion, the largest ever for any cultural institution. (About $1 billion had been pledged even before the campaign officially got rolling.)
A portion of the $540 million 400,000-sf National Museum of African-American History and Culture, which opened in September, was financed by private donations. Most of the Smithsonian’s exhibits and programs are privately funded. And about 40% of the institution’s salaries and maintenance are defrayed by donors, compared to 30% prior to its initiating the fundraising campaign.
The NonProfitTimes also points to the American Museum of Natural History in New York, which has offset a decline in income from investments by contributions that rose to $160 million in 2015, from $78 million the previous year, mostly from a handful of major donations.
This museum is currently adding to its Rose Center for Earth and Space with a $325 million, six-story, 218,000-sf Richard Gilder Center for Science, Education, and Innovation, scheduled for completion in 2019. The 84-year-old financier and philanthropist Richard Gilder contributed $50 million to this project, the largest single donation in the museum’s history.
New York City kicked in $15 million for this addition. The city is also playing a financing role in other cultural construction projects, such as the 57,500-sf “Ocean Wonders: Sharks!” exhibit in Coney Island. The city made a “major gift” to the Harlem Children’s Zone, which in 2015—the first year of its capital campaign—raised $193 million, versus $78 million in 2014.
The Task Force for Global Health, a nonprofit health organization in Decatur, Ga., is working with DeKalb County to acquire a six-story government building that would triple the square footage of this organization’s existing headquarters. The Task Force will soon launch a $15 million capital campaign to pay for the $12 million purchase and renovating the building.
Related Stories
| Jul 18, 2014
Top Contractors [2014 Giants 300 Report]
Turner, Whiting-Turner, Skanska top Building Design+Construction's 2014 ranking of the largest contractors in the United States.
| Jul 18, 2014
Engineering firms look to bolster growth through new services, technology [2014 Giants 300 Report]
Following solid revenue growth in 2013, the majority of U.S.-based engineering and engineering/architecture firms expect more of the same this year, according to BD+C’s 2014 Giants 300 report.
| Jul 18, 2014
Top Engineering/Architecture Firms [2014 Giants 300 Report]
Jacobs, AECOM, Parsons Brinckerhoff top Building Design+Construction's 2014 ranking of the largest engineering/architecture firms in the United States.
| Jul 18, 2014
Top Engineering Firms [2014 Giants 300 Report]
Fluor, Arup, Day & Zimmermann top Building Design+Construction's 2014 ranking of the largest engineering firms in the United States.
| Jul 18, 2014
Top Architecture Firms [2014 Giants 300 Report]
Gensler, Perkins+Will, NBBJ top Building Design+Construction's 2014 ranking of the largest architecture firms in the United States.
| Jul 18, 2014
2014 Giants 300 Report
Building Design+Construction magazine's annual ranking the nation's largest architecture, engineering, and construction firms in the U.S.
| Jul 17, 2014
A new, vibrant waterfront for the capital
Plans to improve Washington D.C.'s Potomac River waterfront by Maine Ave. have been discussed for years. Finally, The Wharf has started its first phase of construction.
| Jul 17, 2014
A harmful trade-off many U.S. green buildings make
The Urban Green Council addresses a concern that many "green" buildings in the U.S. have: poor insulation.
| Jul 8, 2014
Frank Lloyd Wright's posthumous gas station opens in Buffalo
Eighty-seven years after Frank Lloyd Wright designed an ornamental gas station for the city of Buffalo, the structure has been built and opened to the public—inside an auto museum.
| Jul 8, 2014
Lost in the Museum: Bjarke Ingels' maze will make you look up and around
The maze, located in the National Building Museum, is a precursor to an exhibit showcasing some of BIG's projects. To navigate the maze, people must look up.
