Annual giving is money for the school’s current year operating expenses. Its functional equivalent is a checking account that helps the school accomplish its daily work. These gifts support teacher salaries and benefits, but also library acquisitions, teaching tools, educational technology and equipment, even down to such necessities as light bulbs.
Capital giving is major gifts to meet building, major equipment and related endowment needs that the school cannot pay for out of operating funds. These gifts usually fund bricks-and-mortar building projects and are generally larger amount gifts. Pledges to capital projects are usually paid over three to five years.