Eliminating the Mortgage Monkey
Help get the Mortgage Monkey off our back!
February Update:
We have two new "towers" to help track our progress! One is in the FLC and one is in the lobby! Check those out on Sundays to see how close we are to eliminating our debt!
The Challenge
When we built the new FLC/Gym and Sanctuary in 1996, our mortgage was a daunting number. We were able to pay for half right away, but spent the next 15 years paying back over $3 Million dollars on our Mortgage. We have successfully brought that number down to something much more manageable in comparison to where we began, but we would like to pay it all back completely in just 18 months, not another 15 years.
Our church family is extremely generous, and our hope is that together we can remove this Mortgage Monkey once and for all! Once we've done that, we will be able to allocate those resources into our ministries and move forward without the weight of a mortgage keeping us back.
This graph can give you an idea of where we started and where we are now. It's significant, but we're ready for that number to be ZERO by March of 2013!
The Plan
This is our goal for eliminating the mortgage debt in three steps:
Current Balance Owed as of March 2011: $553,487.00
A. October 2011 - One-time gifts of $100
B. September 2012 - One-time gifts of $55
C. Monthly Gifts of $10 for 18 Months (Oct 2011-March 2013)
Our goal is to have the mortgage 100% repaid by March of 2013! The church administration will also be making regular mortgage payments and pay all interest on the mortgage. We will be keeping regular updates on the remaining balance & the status of reaching this goal.
How We Will Accomplish This Goal
We will carry out our plan in two phases over the course of 18 months.
Phase 1 – Goal for October 2011-September 2012
One-time debt elimination gifts by church family of $100
Monthly debt elimination gifts by church family of $10
Ongoing monthly church mortgage payment of $5,000
Phase 2 – Goal for October 2012-March 2013
One-time debt elimination gifts by church family of $55
Monthly debt elimination gifts by church family of $10
Ongoing monthly church mortgage payment of $5,000
*Represents X 1,500 givers of record
These numbers are an estimation based on the participation of the church family. The numbers are based on 1500 givers of record with a total minimum contribution of $335.00 over the 18-month period of the campaign.
Frequently Asked Questions
Our church has carried debt for years. Why have we decided to address our debt now?
The desire to reduce or pay our debt in full results partly from conversations that our Senior Pastor, Dr. Larry G. Shelton, had with the Governing and Elder Boards earlier this year. While contemplating our nation’s economy and our church debt, after prayer, Pastor Larry felt it wise to eliminate our debt as soon as possible…if you will “to get this mortgage monkey off our backs”. The Boards agreed. Although the timing of this campaign may not be ideal – given our nation’s economic downturn, every monthly loan payment we make is money that could be used for ministry. If not now, when?
What is our debt payment history?
Starting in December of 1996, we were paying $21,680/mo. on the combined loan of our original buildings (FLC, educational wings) and the new Worship Center. Then, in April of 2003 we reduced our monthly payment to $17,443/mo. As the economy continued to slow down, last year we reduced our monthly mortgage payments to $ 4,700/mo.
Is PCMA in trouble financially?
We have done everything we can over the years of this economic slowdown to curtail spending while maintaining quality ministry. As a result, we are not in financial trouble. However, we constantly “dance” with the harsh realities of this financial environment. There is so much more we could do to reach our community if we did not have this “mortgage monkey” on our backs. And, should the economy really slow down, the mortgage monkey is something we really don’t want to have to feed at the expense of ministering to God’s people.
How did our church arrive at the goal of raising $553,487?
That is our loan balance as of March 2011.
What is the strategy for eliminating our debt?
Currently we have approximately 1500 “givers of record” to this ministry. (Those gifts may be anywhere from a few pennies to much larger gifts.) If the average gift of all these people was $335.00 dollars (Possible giving strategy:- A. A one time gift of $100.00 submitted on or before October 2nd of 2011. B. $10.00/ month for 18 months starting on or before October 2nd, 2011. C. On the anniversary of the first one time gift, October of 2012 – a one time gift of $55.00. A, B and C total $335.00), that amount in addition to an ongoing budgeted monthly mortgage payment of $5k will eliminate our debt in 18 months. This is doable!:)
Do we expect everyone to give the same amount?
No, some can give much more than this…and some less. The challenge isn’t equal amounts but equal sacrifice. Addressing this issue, the Apostle Paul wrote: 2 Corinthians 8:12-13 (NIV) “… if the willingness is there, the gift is acceptable according to what one has, not according to what he does not have. 13 Our desire is not that others might be relieved while you are hard pressed, but that there might be equality.”
Do I have to wait until October to start giving to the Debt Elimination Campaign?
No. Over and above their regular giving, people are already giving to this pursuit. We have a special debt reduction account set up to record all monies given to debt reduction between now and October. All debt reduction money given between now and October will be included in the “total amount given so far” announcement on October 16th. Giving “over and above” debt reduction gifts now helps reduce the life span of our loan even faster.
How can I give to help eliminate our debt?
Specially marked envelopes will be available for your “over and above” gifts to this campaign. If you prefer, you will be able to use PayPal.
Will any money in this year’s budget earmarked for ministry be moved toward debt reduction?
No, because payment of the current loan balance is already built into our operational budget
every year (currently $5,000.00/mo.). Paying down the note early with funds raised through this debt reduction campaign allows us to free up debt service dollars (principle and interest) that could be helping expand PCMA’s ministry in the community and beyond.
Why haven’t we addressed this debt before now?
Previously we were able to make larger payments on an accelerated mortgage pay off schedule. We haven’t been able to do that of late. This has resulted in reduced payments over the last few months as noted above (“debt payment history”). If we keep paying at our current rate ($4700/mo.) our loan will be extended 15 more years at an additional interest cost of approximately $240K. It makes sense to pay this loan off as fast as we can rather than drag it out for another 15 years. The savings is substantial.
Will we ever go into debt again?
Our current commitment to be debt free speaks of our heart attitude regarding debt. We have no current plans to go into debt again. However, not knowing what the future holds or who the future leadership of the church may be, we do not feel it is wise to make such a commitment at this time.
If we raised enough money to address our debt what would we do with the money that we currently spend on our mortgage?
The assumption here is that we will be running a positive cash flow every month we don’t have a mortgage payment. That is not necessarily the case. Currently, some months of the year, our income is rather low. During these times we draw on our reserves. Our reserves are back up to their bare minimums now…having been depleted to near zero last year. IF we have months where we have a positive cash flow, and IF our emergency reserves grow to a healthy level there are a number of items in our church that need to be repaired or in some cases replaced. For instance: new carpet in the FLC; the church Van; computers and A/V equipment etc. We would love to be in a position to give more money to missions and maybe even supply part of a pastor’s salary for a new church plant in Oroville. Who knows what God may lead us to do once the debt path is cleared?
What if we don't raise the $553,487?
Although the goal is to say “good bye” to our mortgage monkey, any reduction in our loan will
be a success.
I’m worried about my own debt reduction! Why are we doing this now?
These economic times are unprecedented for those of us who are under the age of 80. But
our church has always met financial challenges head on, using them as a way to trust God
and express our faith in his plan for us as a church and individuals. Our members are people
who make sacrifices when sacrifices are called for.
If I have only a certain amount to give, how do I choose between the ongoing financial needs of this ministry and the debt elimination campaign?
The bottom line is that in order to operate, our church needs the ongoing financial support of every person. If you choose to participate in the debt elimination campaign, we ask you to make sure that your gifts are “over and above” your regular giving. The fact of the matter is that every dollar given will help us move one step closer to our goal. No gift is too small. We believe, with God’s help, everyone can give something.
How shall I pray about this pursuit?
Please pray for:
*The Debt Elimination Campaign Team: for wisdom and endurance.
*Everyone to participate at whatever level they can.
*A cheerful (fun) spirit to pervade our fellowship as we pursue this debt elimination campaign together.
*People to discover creative ways to raise the needed funds and/or to recognize unexpected income as a potential gift.
*God to be honored (recognized, glorified) for whatever success takes place.
How can I learn more?
Visit the Debt Elimination campaign site at www.paradisecma.org OR you can email your questions to: mortgagem@paradisecma.org OR you can call 530-877-7069.
We are already receiving gifts to help us eliminate this debt. However, we anticipate the momentum for this campaign to build beginning August of 2011. We will update this information as needed while also anticipating an exciting announcement regarding our then current mortgage balance on October 16th, 2011. This information is accurate as of March 2011. Stay tuned.
For any additional questions please call the church office at 877.7069 or email mortgagem@paradisecma.org