United Church of God – Lafayette, Indiana

Building Fund Discussion

Local Survey ResultsAugust 2008 congregational survey to determine

what to do with over $45,000 in unrestricted funds currently categorized for a building fund

• 16 responses “…be kept locally, meaning we should complete the required building study, after which the final disposition would be determined.”

• 9 responses “…be sent to the Home Office as excess income, per the Rules of Association.”

U.S. Church Policy for Local Church Buildings

• The Church is committed to providing appropriate meeting facilities for weekly Sabbath services in all congregations

• If it is determined that no adequate facility exists for the local congregation to rent or lease after a thorough search of properties throughout the area, the congregation may pursue other options.

• A thorough financial report documenting all the details of the cost and effect on the congregation and the Church as a whole must be prepared.

1) Background on hall rentals in the local church area.

Our local congregation has met in four buildings since 1970

• Sunnyside Middle School, $693/month (1995)

• Pacelli Health Complex, $500/month

• Prince of Peace Lutheran Church, $400/month

• Seventh Day Adventist Church, $650/month

1) Background on hall rentals in the local church area.

Current situation:– access to sanctuary and balcony– access to mother’s room/nursery– access to classrooms– access to Ross Room (twice a month)– access to kitchen (twice a month)– access to gymnasium (twice a month)– sound system provided– seating provided– private storage room provided

1) Background on hall rentals in the local church area.

Other rental options in the area:

– Sunnyside Middle School available for $175/wk, approx $760/month

– Vinton Elementary or Tecumseh Middle School, $200/wk, approx $870/month

– Other schools and churches may also be available

2) Approximate annual contributions by local congregation

Donations to Home Office (2006)

• First tithe - $50,000

• Holy Day Offerings - $28,000

• Assistance - $1,500

Donations to Local Congregation

• General/First tithe - $15,000

Total Annual Contributions: $95,500

3) Cost of proposed purchase6) Projected cost of utilities

7) Will there be a mortgage?

Three scenarios considered, each with $50K down payment and 25 yr. mortgage at 7.75% interest:

• $220K: monthly payment of $1,240

• $170K: monthly payment of $875

• $120K: monthly payment of $510

Utilities, building services, maintenance, equipment and insurance: $1100-$1750/mo. Pick a low end figure of $1200 for our cost.

3) Cost of proposed purchase4) Plan for paying for the property/building

Cost• $220K: $2,440/month• $170K: $2,075/month• $120K: $1,710/month

Current local contributions are $1,250/month

Approximately $250/month needed for non-facilities needs

Based on current contribution patterns, this leaves $1,000 maximum available locally for facilities. Additional cost of $700-$1400 would need to be redirected by home office to our local account.

5) Is the congregation in agreement on the need to purchase a building or property?

This has not been determined.

A survey would be needed to determine whether there is agreement that we “need” to purchase a building and justifiable reasons why it is needed.

We need to determine whether we have the interest and manpower to maintain our own facility.

8) Long term potential for growth in the area. Will the property be in a good location for the entire area?

Lafayette metro area experienced 13.2% growth in 1990s, third largest growth rate in the state.

Our congregation is geographically dispersed around Lafayette with no area of high concentration.

8) Long term potential for growth in the area. Will the property be in a good location for the entire area?

Average Monthly Church Attendance

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2002 2003 2004 2005 2006 2007

Open Discussion