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11 Church Council December 11, 2007 Capital Fund Campaign.

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Presentation on theme: "11 Church Council December 11, 2007 Capital Fund Campaign."— Presentation transcript:

1 11 Church Council December 11, 2007 Capital Fund Campaign

2 22 Capital Fund Campaign Background Two mortgage loans with Compass Bank, one for $1.5M and one for $900K+ –25 year loans at 6.99% interest for first ten years, then renegotiate –Paying interest only for first year ($15,000/month), start paying P & I March 2008 –P & I on $1.5M = $10,685.16; P & I on $900K+ = $6,796.16; total = $17, per month Benefits of early payoff: –Action Planning Team report asked leadership to better fund ministries –Mortgage payment $$ can be better used for missions, ministries, and necessary capital improvements, not mortgage Reduces amount spent on interest significantly

3 3 Potential Fund Drive $1.7M in pledges for Family Life Center TMF indicates debt reduction campaign probably less successful –Could reasonably expect $1M in pledges Cost of Campaign: –$42K for outside consultant plus $25K other expenses (mailings, luncheon, etc.) –Stress on staff and lay volunteers to make campaign work

4 4 Why Hire a Consultant? No known successes without one We hire experts for many activities –Lawyers, real estate, surveyors, elevator inspectors, etc. We would probably need to hire some extra office administrative help

5 5 Impact of Early Payoff Total payments for 25 year loan: –Principal=$2,409,613 –Interest=$2,782,518 –Total=$5,192,131 Impact of $1M in capital fund pledges –Principal=$2,409,613 –Interest=$1,058,852 –Total=$3,468,465 –Savings=$1,723,665 – Payoff $900K mortgage in 44 months, $1.5M loan in 13 years versus current 25 year payoff

6 6 Finance Committee Recommendation to Church Council on October 23, 2007 The Finance Committee recommends we conduct a Capital Fund campaign starting in January 2008 and hire TMF to conduct the campaign Recommend the Church Council approve and forward to the Church Conference for approval

7 Church Council Response Approved Present to annual Church Conference for approval 7


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