What are the funds we need to raise?
Our goal is to raise $5,000,000. We currently owe approximately $2,300,000 on the line of credit for the Church Life Center South building. The most recent cost estimate for completion of the original building plan is approximately $2,800,000. We have some pledges from the 2006 Jubilee Capital Campaign which were designated for portions of the remainder of the building.
How is this different from the 2006 campaign?
This campaign does address goals originally set during the Jubilee Capital Campaign, but it is a separate campaign. It will allow members of our parish who have joined us since the Jubilee Capital Campaign was completed to participate in the exciting growth of our parish and will allow those of us who participated in the Jubilee Capital Campaign to newly commit to Transfiguration’s vibrant and promising future.
When will building begin?
That will be determined by the Vestry based on the extent to which we raise funds beyond those needed to pay off the debt on the existing Church Life Center South building. It would be ideal if the results of this capital campaign allowed us to begin the building process in 2011.
Is the timing right for this campaign?
It is always difficult to know when the time is right for any capital campaign. However, the sooner we begin raising funds to pay off the debt on the building, the sooner we will free up funds from the operating budget that would otherwise have to be used to pay interest and principal. Additionally, we want to take full advantage of the generous gifts of those who have already designated funds for particular portions of the building.
What will our mortgage payments be if we do not pay off the debt?
Our recently renegotiated note for the nearly $2.3 million dollars owing on the Church Life Center South requires annual principal payments of $250,000, as well as monthly interest payments, which, at current rates, would be around $6000/month. This would be an expense of $322,000 per year until the note is paid off. Were we not to address this need with a Capital Campaign at this time, the money for these payments would have to be part of the annual parish budget, and that will have a negative impact on staffing and program needs, as well as other vital parish ministries.
Why did we decide to build the building and incur this debt?
The Jubilee Capital Campaign raised over $5,000,000 toward the cost of the organ and the Church Life Center South. The Vestry believed that the church would best be served by applying those funds quickly to create usable building space that could serve the needs of our growing parish family and honor the commitment of those who supported the Jubilee Capital Campaign. Because of significant increases in the cost of construction and because the Jubilee Capital Campaign did not meet its full goal of $8M, the building plan was phased back and some debt was incurred. Had we waited to build, construction costs could have increased further. The Vestry and clergy felt that this was the best solution to meeting the needs of the parish. Just as it is typically necessary for families to have a mortgage in order to obtain a home, it can be necessary for churches to incur debt in order to provide an appropriate living space for the church family.
If the organ builder has been paid, then why are Buy a Pipe donations still being requested? What happens to that money?
The cost of the organ was part of the whole program addressed by the Jubilee Capital Campaign, which is now to be completed by Capital Campaign 2010. The organ contract, of course, had to be paid per its terms, but there was not a single large donation to the Jubilee Capital Campaign that covered the cost of the organ, nor do the funds from the Buy A Pipe program cover it.
The Buy a Pipe program will continue as an opportunity for people to honor and memorialize loved ones. So long as we hold debt on the building, the funds will continue to be applied toward that debt and other capital campaign needs.
What is the status of the Outreach Endowment that was part of the Jubilee Capital Campaign?
The Jubilee Capital Campaign pledged that 10% of amounts raised as pledges would go into an Outreach Endowment. $60,000 was used to build the Jubilee Habitat House and $25,000 was placed in the Outreach Endowment. If we meet the goal for Capital Campaign 2010, we hope to be able to fulfill the pledge of the Jubilee Capital Campaign and place the outstanding $281,000 in the Endowment. Since one of the primary goals of Capital Campaign 2010 is paying off the debt on the Church Life Center South building, there is no additional outreach endowment pledge included in this campaign.
What will be done if we raise more than the amount needed to pay off the debt, but we do not meet our goal of raising enough to finish the building and paying the outstanding Jubilee Capital Campaign outreach endowment amounts? Will that money go toward the outreach endowment or be held in reserve for future building?
That will be a decision made by the Vestry based on the amount of money available and the circumstances that exist at that time.
Will this be our last capital campaign?
Our church is vital and thriving and our capital needs reflect that. At this point, it is not possible to know what opportunities may come our way and at what point it may be appropriate to engage in a new capital endeavor. We envision continued growth at Transfiguration and look forward to identifying possibilities for future expansion.
Can we meet this challenge?
Absolutely! Since its founding in 1956, this parish has responded to challenges and opportunities with a spirit that moves it into the future with vibrancy and hope and continues to make it stronger. For example, we have approximately 1,000 family units in our parish. If each made a three-year commitment to pay $140 a month, we would exceed our goal of $5,000,000. That’s less than $5 a day! We know that not all families can make that commitment, but many families can do much more.
Now is the time to let the world see that this community, Transfiguration, being empowered with the Holy Spirit of God, can lead with one voice and say a resounding “YES” to our future!