Raising money difficult in faltering economy

On Monday, city officials and civic leaders will gather near the World of Coca-Cola museum in downtown Atlanta to announce where the proposed Center for Civil and Human Rights will be built.

It’s a landmark moment in the effort to build what backers believe will be a showpiece attraction for a city long considered the cradle of the Civil Rights movement.

But the project has a long way to go before ground is broken. Material for exhibits must be acquired, a design finalized and architects hired.

Foremost on the list: raising money. Lots of it — about $20 million in the near term and up to $45 million more before the facility opens.

On top of that, $11 million remains to be raised to pay off a $35 million loan the city of Atlanta used to buy a collection of the Rev. Martin Luther King Jr.’s papers. The papers are set to be the civil rights center’s star attraction.

The money will have to be raised at a time when the economy has soured, making it tougher for corporations, foundations and private donors to open their checkbooks. A review by the Atlanta Journal-Constitution of a sampling of capital campaigns shows that more than $3.5 billion is being sought. Some of it has been raised, but at least $2.5 billion is left to go.

And competition for donations is fierce. A number of other institutions and big-budget projects also have their hands out, including a proposed national health museum, the Atlanta Beltline and Zoo Atlanta. The United Way also recently cranked up its annual fund-rasing drive.

In addition, Grady Memorial Hospital is about to ask for $100 million, and Emory University and Georgia Tech are each quietly launching $1 billion campaigns.

It remains to be seen if the community’s pockets are deep enough to support all of the causes.

“The pipeline is probably as big as ever,” said Raymond King, senior vice president of community and government affairs for SunTrust Banks, a leading supporter of philanthropy in Atlanta.

The civil rights center’s executive director, Doug Shipman, said he’s confident that fund-raising targets will be met in time to break ground next year and open in 2011.

Almost half of the project’s $125 million price tag has been raised, Shipman said, including a recent $40 million expected infusion from city-issued bonds and $10 million in private donations made over the last year. He said he’d like to reach the $80 million to $85 million figure before construction starts.

Shipman acknowledged the tough economic climate but said the center has already crossed enough milestones to prove to would-be donors that the project will happen.

“I think that all potential donors clearly are prioritizing where they give,” he said. “They are looking for projects that can get done … that really have the elements in place to get accomplished. That’s what we’ve been working hard to do.”

SunTrust’s King — no relation to the King family — agrees. Atlanta’s philanthropic community has started categorizing projects into “have to have” versus “nice to have,” he said

“Saving Grady is ‘have to have.’” King said. “There’s a strong desire by the philanthropic community to support Grady.”

The civil rights center got a big boost from city bonds, but other projects may not be so fortunate. The unsteady economy means government funds for big-ticket items may not be available.

A proposed $190 million plan to put a streetcar line on Peachtree Street, for instance, has been stalled in the wake of budget problems at City Hall.

“There’s a lot of stuff that we’re not taking up right now,” said Howard Shook, chairman of the Atlanta City Council’s finance committee.

Meanwhile, the Atlanta Symphony Orchestra has suspended fundraising for its major project pending further review of its plans.

City leaders involved in the acquisition of the King papers said they still owe about $11 million on the loan from SunTrust Bank to purchase the documents. The loan, with interest, is about $35 million.

SunTrust recently granted a one-year extension to pay off the loan. The deadline is July 2009, said John Ahmann, a public relations executive who’s been closely involved in the effort. Ahmann said he’s “confident” that the loan will be paid off.

Atlanta Mayor Shirley Franklin “is very committed to raising the funds,” he said. “She’s been a very successful fundraiser.”

Ahmann said the group has received donations ranging from $100,000 to $1 million from Merrill Lynch, McDonalds, BP, Cummins Engine Co. and Northrop Grumman.

King thinks all the campaigns will get funded, it will just take time. And despite the challenges, King thinks the civil rights museum is well-positioned to get its share.

“It clearly has strong leadership. The mayor has made this a priority. A lot of effort has gone into this in terms of planning. Coca-Cola has shown strong leadership with the donation of the property. And there’s a wave of momentum in the tourism community,” King said. Couple that with the project’s recent Tax Allocation District bond funding, and that gives him “reason for some optimism.”

— Staff writer Eric Stirgus contributed to this article.