Capital Campaign Analysis for BOD by fanzhongqing

VIEWS: 0 PAGES: 1

									                       STEWARDSHIP REPORT – CAPITAL CAMPAIGN WITH LCEF



Issues
    1. Current giving to the Building Fund does not cover the mortgage payment.
    2. Thus far, no impact on Pilgrim’s operations (shortfall covered by Capital Improvement
       Contingency Fund).
    3. Capital Improvement Contingency Fund will be depleted in two to three years.
    4. Assume will need $300,000 to acquire Euclid House No 3 and build parking lot

Strategy
    1. Hire LCEF to coordinate Capital Campaign Fund (three-to-five month active phase, three year
        fulfillment phase).
    2. At end of fulfillment phase, refinance remaining debt for twenty years
    3. Roll an additional $300,000 into the refinanced loan

Costs
   1. LCEF fee is $23,000 paid as follows:
       10% at Signing                                                           $2,300
       20% at Initial Commitments (about 12 weeks later)                        $4,600
       30% after Commitment Dedication (about 5 weeks later)                    $6,900
       40% at 40 days into giving period (about 6 weeks later)                  $9,200
   2. Refinance fee is $3,000


Analysis

Congregational Giving per Month (average, last twelve months):                  $5,423
Transfer from Euclid House rentals:                                               652
                                                                                $6,075

Current Monthly Payment:                                                        $7,052


                                                             No New Debt           Add $300K Debt

1) Don’t do Capital Campaign, but refinance after 3 years:       $5,630                   $7,715

2) Do Capital Campaign and refinance after 3 years
        a) Campaign reduces debt by 25%:                         $4,225                   $6,310
        b) Campaign reduces debt by 33%:                         $3,750                   $5,835
        c) Campaign reduces debt by 50%:                         $2,815                   $4,900



____________________
Refinance assumes 20 year loan at implicit rate of 5.625% (same terms as original loan)

								
To top