This seems to be a question on a lot of peoples minds, so I thought I would take a moment to answer it.
First off we intend to raise money!!
We have set a goal of $170K so we can purchase the property outright and then use that as a match to apply for grants for the renovation. Several grants are 1:1 to match, so we could apply for $170K and create $340K, match $340K to get to $680K and so forth. This is the ideal situation, for us to get the most grant money and complete the project the quickest.
However, the minimum amount we need to keep the project going is $42,500 (a 25% match) to apply for a grant for $127,500 = $170K to purchase the building. There are limited large grants available for this project, and this would take up one of them. Which would put us in the position, of reapplying to the same grantor (success unknown) and piecing together many smaller grants, additional fundraising, and receiving lots of in-kind labor. All great things! But that further complicate the administration (and increase costs) and timing of financing, which translates to adding at least 1 year maybe more until the project is completed.
If we are not able to raise the minimum amount and secure the grant, then 94% of donations will be returned to the donor, and up to 6% retained for administrative costs incurred during the fundraising period.