1. What is the goal of this capital campaign?
Our goal is to reduce or eliminate our present debt, which currently stands at approximately $1.7 million.
2. Why now?
Last summer, the Vestry determined, upon the counsel of the Bishop and recommendation from the Finance Committee, that a campaign was necessary to lessen the pressure of debt service on our mission and ministry budget. Coincidentally, and independently of that decision, an anonymous donor has offered a challenge match.
3. How will the match work?
The match will be determined by the amount of total pledges that we receive by May 20, 2018. It is a dollar-for-dollar match, up to $850,000, provided we reach a minimum of $500,000.
What might this look like:
If we raise $500,000, it will be matched immediately at $500,000, paying off a million dollars of our debt by 2021.
Because the matching funds will come in immediately, in May 2018 our loan payment would drop to approximately $8400/month, freeing up almost $2000/month for mission and ministry this year alone. As pledge payments come in, that monthly savings will only grow.
If we raise $675,000, it would be matched immediately at $675,000, paying off $1.35 million by 2021. Again, because the match comes in immediately, in May 2018 our loan payment would drop to just over $7,000, freeing up $3500/month for mission and ministry right away.
If we raise $850,000, with the match of $850,000 our debt would be completely paid off by 2021. With the match coming immediately, in May 2018 our monthly loan payment would drop to approximately $5700/month, freeing up nearly $5000/month for mission and ministry this year.
4. When can I make my commitment?
Commitment Sunday is April 29, 2018.
5. How long is my commitment and how is it paid?
Your pledge commitment will be made in April, but the payment of the pledges can be spread out over three years, to the spring 2021. You can pay in whatever way is most convenient for you and on whatever schedule works best. Some members will pay monthly, others quarterly, others annually, and some may choose to make a one-time gift. Ideally, it would be helpful for the campaign to collect the money as early as possible.
6. What is the “Back Story” regarding this debt?
In 2005 and 2006, the Vestry of All Saints’ realized that additional space was necessary to accommodate our growing congregation. The original plan envisioned a substantial new sanctuary, additional classrooms, and a parish hall with an expanded up-to-date kitchen. The old parish hall would be converted into a Welcome Center. In the interests of fiscal responsibility, the new sanctuary and education wing were eliminated from the final plans. The project cost $2.71 million and was financed by a short term (2 year) construction loan. The plan was for the project to be paid for through reserves (approximately $450,000), receipts from a capital campaign, and a long-term mortgage.
In 2007 All Saints’ launched a three-year capital campaign drive to finance the construction of the parish hall. $1.1 million was pledged, and $925,000 was realized.
When the national economic crisis hit in 2008, our repayment plan was no longer possible. All Saints’ was unable to obtain the long-term mortgage and had to develop an alternate repayment plan. We began taking steps to position us as favorably as possible in response to the economic circumstances that existed.
With few options available, the Vestry secured a $2.25 million loan with a five-year interest rate swap at 6.98% (which was considered a very good rate at the time). Payments were approximately $15,000/ month, and would come from the Building Fund.
A second three-year campaign was undertaken in 2010, with a dual goal of further reducing the mortgage debt and funding a Children’s and Youth Minister. $289,000 was pledged, and $246,000 was realized. From 2008-2013, lower interest rates worked to All Saints’ advantage such that during those five years $10,000 more was applied to the principal than would have been under a conventional loan.
After the two campaigns, the mortgage balance was $2.1 million, and in 2013, All Saints’ took out a conventional loan at 4.125% with a 10-year balloon loan, which lowered the monthly payments from $15,700 to $12,500. In December 2017, we negotiated a lower interest rate of 3.98%, which has again lowered the monthly mortgage payments to $10,601.
Our current loan ends April 2023. At that time, we will still owe $1.25 million, and we will have paid $345,000 in interest during the last 5 years.
7. When would I begin paying on my three-year commitment?
“First Fruits Sunday” is May 20, 2018. Initial payments are scheduled to begin that Sunday. This is also the day we will certify the total pledges we have received to the challenge match donor. If we meet or exceed the $500,000 threshold, the donor will immediately send All Saints’ a check for the match. As money is received it will be transferred to the loan principal.
8. Does All Saints’ have any other debt obligations?
9. What happens if we don’t meet the match?
“Ye gods and little fishes”, don’t even think that way! BUT all campaign money will be used to reduce our debt by being applied to the principal of the loan. The Vestry would have to make the decision if it’s best to recast the current loan, or refinance a new loan.
10. Will any of the money raised through the capital campaign be subject to diocesan assessment?
No. The diocesan assessment is based on annual operating income, not debt services.
11. Will giving to the capital campaign have a negative effect on our annual budget giving?
Campaign pledges are separate from and additional to annual budget giving.
12. How will this “set us free to serve”?
Our mortgage payment currently consumes more than 20% of our annual spending, significantly limiting our options for new initiatives in mission and ministry. A successful campaign will allow us to direct money that currently goes to the mortgage, to our mission and ministry in our communities.
13. Will any of the capital campaign money be used for expenses?
None of the money received in the capital campaign will be used for annual operating expenses. To keep the expenses of the capital campaign separate from the annual budget, a small portion of money received from the capital campaign will be used to cover capital campaign expenses. This is expected to be 4-6% of what we raise (4-6 cents per dollar pledged).
14. Why do we need a consultant and how much are his services costing the church?
The Vestry has determined that this opportunity is too significant to attempt without professional, experienced help. Experience shows that professional consultants improve campaign results–a capital campaign consultant typically increases giving by 50% to 100% or more over pledges raised from a less formal appeal from the pulpit. The Vestry understands that costs of a consultant are of concern, and has weighed costs against potential benefit in our approach to this campaign.
15. How will I know what to give?
God is gracious and generous. Begin in prayer asking, “Gracious God, what do you want to do through me?” God knows your situation even better than you do and can be counted on to lead you appropriately. Attend one of the gatherings to learn more about the difference your pledge can make, listen and ask questions.
Continue in prayer, do not rush to a determination, allow God to lead your decision. You will know that you have received your answer when you have peace with your decision.
16. What if I am not able to make a major gift; how would my small gift make any difference?
Every gift is important. Every dollar counts as we seek to reach the minimum match threshold. If we have pledges above the $500,000 minimum, your dollar will count twice. Looking long term, every dollar put against the principal today saves two dollars in future mortgage payments. With the match, your gift today is immediately doubled, and future savings to All Saints’ make it double again.
17. What is meant by “sacrificial” giving?
Generosity is not measured by the size of a gift, but rather by the sacrifice that goes into the gift. Jesus specifically points this out while observing people donating to the temple. He identifies the widow’s gift as more than all the rest, because it was not given from her surplus, but from her own need (Luke 21:1-4). Not everyone will be able to contribute the same amount of time, talent, and treasure. What is hoped for is that all are making a sacrifice in the spirit of faithful generosity for what God has given to them.
18. Are gifts to the capital campaign tax deductible?
Yes, gifts to the capital campaign qualify for tax deductions to the fullest extent of the law. All Saints’will send annual receipts for the duration of the campaign to all donors; these can be used for tax purposes.
19. Can I make a gift of stock?
Yes. In fact, you may find it advantageous to give appreciated securities. This offers you the benefit of a tax deduction for the full value of the security without paying capital gains. The Church Administrator, Hannah Crone, would be happy to assist you.
20. I could pledge to the capital campaign and stop my regular pledge. Is that okay?
Please do not stop your regular pledge giving. That money is needed to support the day-to-day operations of the church and its many ministries and outreach programs. These programs serve the needs of our parishioners and the wider community as we attempt to demonstrate God’s love for all.
21. Since many things can change in three years, including my financial situation, can I make a pledge for only one year?
Your pledge is not a binding contract. We encourage you to make a pledge for the 3-year period of the capital campaign. If you encounter financial hardships, or if your situation improves, we ask you to prayerfully decide how to handle the remainder of your commitment. However, if after praying you wish to make a one-time gift to the capital campaign, you may certainly do so. Should we reach the minimum threshold for the challenge match, only pledges received by May 20, 2018 will be matched.
22. Who can I talk to if I still have questions?
Please speak to one of the Campaign Directors, Karen Robinson, Scott and Brenda Trott, or Jim and Shelley Williams and they will make sure you get the information you need.