How to Fund an Historical Preservation Project in WA State
Let's face it—restoring a historic building isn't just a construction project. It's a significant investment, and for many owners, figuring out how to pay for it is the biggest challenge.
The good news? You don't necessarily have to fund the entire project yourself.
Depending on how your restoration project is structured, there may be tax incentives, grants, private fundraising opportunities, and other financing tools available. The key is choosing the right ownership structure from the very beginning. That decision can dramatically affect what funding opportunities are available later.
At Figure Ground Collective, we help clients evaluate their options before the first application is ever submitted. A well-planned funding strategy can save months of work and open doors that many property owners don't realize exist.
When you work with our architects, we can seamlessly write your tax credit and grant applications, saving you time and money.
Which Ownership Structure Is Right for Your Project?
Every historic restoration project is different, but most fall into one of three categories:
Private ownership
Nonprofit ownership
A hybrid partnership between a private owner and a nonprofit
Each has advantages, tradeoffs, and unique funding opportunities.
Private Ownership
Many historic buildings are restored by private individuals or businesses who intend to operate the property as a commercial venture. Whether your vision includes event space, offices, retail, hospitality, or another income-producing use, private ownership offers the greatest flexibility and control.
The biggest challenge is that many grants and charitable funding sources are designed for nonprofit organizations. However, private owners may qualify for several powerful financial incentives that can significantly reduce restoration costs.
Depending on the project, these may include:
Federal Historic Rehabilitation Tax Credits
State and local historic preservation tax incentives
Specialized preservation grants
Location-specific funding opportunities
Every program has its own eligibility requirements, deadlines, and application process. Timing matters, and in many cases, planning ahead can make the difference between qualifying—or missing out entirely.
Nonprofit Ownership
For buildings that will serve the public through arts, education, preservation, or community programming, nonprofit ownership can unlock an entirely different category of funding.
Nonprofit organizations often have access to:
Federal preservation grants
Washington State capital grant programs
Foundation funding
Corporate sponsorships
Individual donor campaigns
Community fundraising initiatives
While nonprofits generally have more funding opportunities available, they also face additional organizational requirements and grant compliance obligations. Many funding programs expect applicants to demonstrate financial stability, organizational capacity, and a clear public benefit.
Choosing a nonprofit structure can be an excellent long-term strategy—but it's important to understand the responsibilities that come with it.
The Hybrid Model
Some of the most successful historic restoration projects combine the strengths of both private ownership and nonprofit programming.
Under this approach, a private owner maintains ownership of the property while a nonprofit organization leases the building and operates community programming. This structure may allow the project to benefit from both preservation incentives and charitable fundraising.
Hybrid projects require thoughtful planning and carefully drafted agreements, but they can provide access to a broader range of financial resources while preserving long-term flexibility.
Funding Opportunities Are More Extensive Than Most People Realize
Many people are surprised to learn just how many programs exist to support historic preservation.
Depending on your project, you may be eligible for:
Federal Historic Rehabilitation Tax Credits
Historic preservation property tax incentives
Federal preservation grants
Washington State preservation programs
Arts and cultural facility grants
Historic theater funding
Local government preservation grants
Private foundation funding
Capital campaign support
Corporate sponsorship opportunities
Each funding source has its own eligibility rules, matching requirements, application windows, and documentation standards. Some programs require applications before construction begins, while others are only available after specific milestones have been completed.
Understanding which programs can work together—and in what order—is often the most important part of the funding strategy.
How We Help
Navigating historic preservation funding can quickly become overwhelming. That's where we come in.
We work with property owners, nonprofit organizations, and community groups to develop funding strategies that fit their specific projects.
Our services include:
Identifying funding opportunities that match your project
Developing phased funding strategies
Grant research and applications
Coordinating historic tax credit applications
Helping clients understand funding timelines and compliance requirements
Every restoration project is unique, and there is rarely a one-size-fits-all solution. Our role is to help you understand your options and create a realistic roadmap before significant time and money are invested.
Let's Talk About Your Project
If you're considering restoring a historic building, we'd love to help you explore what's possible.
An early conversation can often identify funding opportunities that are much harder—or even impossible—to pursue once construction has already begun.
Whether you're just beginning to explore an idea or already own a historic property, we can help you understand your options and build a strategy that fits your goals.
Contact us today to schedule a consultation. We'd be happy to discuss your project and help you determine the best path forward.
Disclaimer: This article is intended as general educational information about potential ownership structures, funding strategies, tax incentives, and grant opportunities for historic preservation projects. It is not legal, tax, accounting, or financial advice. Funding programs, eligibility requirements, and regulations change over time. Property owners should consult appropriate legal, tax, and financial professionals before making decisions or pursuing any funding strategy.