FAQ

Here are answers to some frequently asked questions. If you have a question that you don’t see answered below, please post your question as a comment on this page. We’ll get the answer back to you as soon as possible. Others probably have the same question, and we may want to add it to the page. Click on your question in the list to jump to the answer below.

• Why “Break the Bonds”?
• Why are we doing this?
• What will we accomplish?
• Why now?
• How can I help?
• What is an Advance Commitment? Who makes one?
• Why do people who make an Advance Commitment get invited to a special party?
• What is an Imagine Gathering? Will I be asked for money at one?
• How much does St. Margaret’s owe?
• How much did St. Margaret’s parishioners raise to build the Thrift Shop and sanctuary?
• Why did we build more than we had cash to pay for?
• Has the parish explored ways to refinance the debt?
• Andrew’s Glen could have been a larger project that would have repaid more of the debt. Why didn’t we go that route?
• What is the impact of the debt on St. Margaret’s budget?
• What has the parish done to reduce expenses?
• Can St. Margaret’s draw on reserves to pay the debt?
• How much money does St. Margaret’s need to retire the debt?
• What gift is right for me?

Why “Break the Bonds”?
The title of the Ministry Enrichment campaign is a play on words. We’re breaking more than one kind of bond. We want to stop paying interest on our construction bonds, so that we can focus our resources on doing God’s work. Our ministries have been held in bondage to our debt. Without needing to service our debt, we would have more than enough income as a parish to invest in the ministries our members yearn to strengthen.

Why are we doing this?
For the past several years, a large part of St. Margaret’s budget has had to go toward servicing our debt. Despite our best efforts at restructuring our construction bond debt, the weight of making those payments has been a drag on our resources, weakening the ministries that are central to St. Margaret’s mission in the community. We are ready to move beyond that phase of our congregational life and begin to grow again.

What will we accomplish?
In the course of this campaign, we will refocus our energies on building up our ministries. We will look beyond the immediate, and develop a vision for what St. Margaret’s congregation wants to accomplish in our community. And we will put ourselves in the financial position to act on that vision.

Why now?
With the nation’s economy in the doldrums, this may seem to be an odd time to launch a campaign to reduce debt and expand ministry. The vestry chose to do this now for three reasons:

1. Because of the debt payments, we cannot sustain our current levels of staffing or
   ministry.
2. We have already taken all other possible steps to increase our income and reduce our expenses. Reducing the debt is the only way—other than cutting staffing to unacceptable levels—to put ourselves on a sustainable financial footing.
3. We believe that given the choice, the St. Margaret’s community would rather reach out in faith than hunker down in doubt.

How can I help?
This is a big project, and there are many roles available, large and small, for everyone to help. Look over the list of people already on the leadership team, and find someone who is working in an area that you might be interested in, or that you are particularly comfortable talking with. Contact that person, and they will help you find a role that you find interesting, and is the right fit for you. If you’re still not sure who to talk to, you can email the leadership team at breakingthebonds@saintmargarets.org.

What is an Advance Commitment? Who makes one?
An Advance Commitment is just that: a commitment that is made before most other commitments. It is not about the size of the commitment. It is about the timing. The congregation as a whole will be asked to make their commitments on December 18. Some people will be invited to make their commitment early. The people who will be asked are the people that we think might be ready sooner. We hope that their commitment will serve as an example to the rest of the congregation of what we can accomplish. Anyone who believes that they are ready can make an Advance Commitment. If you think you are ready, please contact Jeff Webber or someone else on the Advance Commitment committee. You don’t need to wait to be asked. They would be more than happy to receive your commitment now.

Why do people who make an Advance Commitment get invited to a special party?
People who wish to make early, inspirational financial commitments to our Break the Bonds – Imagine the Possibilities debt reduction campaign are invited to a hosted gathering on December 4. The purpose of this event is to gather pledges ahead of the all-church ingathering as a way of providing energy and encouragement for others as they consider their financial response. Those attending will be asked to fill out their financial commitment pledge cards at that event. If you would like to make your commitment early and be included in this event, please contact Jeff Webber. All are welcome.

What is an Imagine Gathering? Will I be asked for money at one?
A series of small Imagine Gatherings will be hosted in people’s homes and at church to review our accomplishments as a congregation and to discuss St. Margaret’s future. You will not be asked to make a financial commitment at these gatherings. The Imagine Gathering is your opportunity to be part of the conversation that will help us determine how to move forward. The gathering will include

• an audio-visual presentation
• brainstorming about ministry opportunities and community outreach
• a frank discussion of St. Margaret’s current situation
• some food and fellowship

A trained leader will be on hand to moderate the conversation. Everyone is encouraged to attend an Imagine Gathering, even if you do not anticipate being able to make a financial commitment. Each of us has a part to play in the future of St. Margaret’s. Look for an Imagine Gathering coming to a neighborhood near you.

How much does St. Margaret’s owe?
As of Oct. 1, the parish has bond debt of $1,288,000 and owes the diocese $89,000 in past due diocesan assessments. The bond debt is what remains of the $7 million cost of building the Thrift Shop, and the wing containing our sanctuary and the rooms below. The facilities these buildings replaced—a World War II-era barracks which served as the Thrift Shop and a sanctuary built in 1968—were either overcrowded or obsolete. Worshippers on Christmas and Easter spilled into the Narthex. Sunday school classes met in corridors.

How much did St. Margaret’s parishioners raise to build the Thrift Shop and sanctuary?
Inspired by a vision of expanded service and ministry, St. Margaret’s members contributed approximately $4 million in two capital campaigns between 1999 and 2002. The proceeds of the first campaign were sufficient to pay off the mortgage on the old sanctuary and, together with additional funds contributed by the Thrift Shop, build a new Thrift Shop.

Why did we build more than we had cash to pay for?
Two reasons: We expected to raise more and we planned to finance part of the balance.
The second campaign was not expected to cover the full cost of construction. The plan was to obtain a mortgage for the balance, and the parish did get a mortgage for roughly $3 million. The payment on this mortgage was expected to be within the means of a growing membership, assuming historic growth rates, along with the appeal of the new sanctuary, which was consecrated in 2003.
As it turned out, the dot-com bust dampened the success of the campaign. In addition, attendance and membership dropped due to the disruption of construction. Membership growth was further discouraged by uncertainty brought on by the departure of the rector, followed by a series of interim leaders. Hence, parish income didn’t rise to the level required to sustain mortgage payments.

Has the parish explored ways to refinance the debt?
In 2005, a creative plan to replace the mortgage by issuing bonds succeeded in reducing debt payments by $100,000 per year. The refinancing also extended the repayment period to 25 years from 13 years.
In 2007, St. Margaret’s entered into an agreement with Imagine Housing (formerly St. Andrews Housing Group) to sell a portion of our parking lot and build 41 units of affordable housing for veterans and people transitioning from homelessness. This plan helped St. Margaret’s live its mission while raising $1.4 million, which was used to repay some of the outstanding bonds and bring the repayment period back to 13 years. Approximately $1.3 million in bonds now remains. If repaid on the original schedule, St. Margaret’s will pay $12,000/month for the next 13 years. Interest payments during this period will exceed $625,000.

Andrew’s Glen could have been a larger project that would have repaid more of the debt. Why didn’t we go that route?
We originally pursued a larger project, but it required a parcel of property north of our parking lot to be added to the portion we would contribute, and the property owner declined to sell it.

What is the impact of the debt on St. Margaret’s budget?
Because of the debt payments, which equal $12,000 per month, St. Margaret’s expenses exceed its income by an average of $10,000 per month.

What has the parish done to reduce expenses?
To manage the burden of the debt, St. Margaret’s has held auctions, cut operating expenses, reduced outreach funding, deferred maintenance, missed payments on its diocesan assessment and eroded its operating reserve. This has severely limited the resources available for ministry. Through cost cutting measures, we reduced monthly operating expenses from $80,000/month at the end of 2010 to $57,000/month now. We achieved this by:

• Eliminating the parish bookkeeper position and combining the administrative assistant and parish administrator positions into one position that now includes the bookkeeping functions.
• Cutting or freezing salaries. The staff hasn’t had a pay increase in two years. Low
  salaries are undermining our ability to keep talented people.
• Deferring payment of the diocesan assessment. We are current with this year’s assessment, but owe the diocese $89,000 for past years, even after the diocese forgave some of the debt.
• Deferring maintenance such as painting the church and resurfacing the parking lot.
• Cutting ministry budgets to the bare minimum.

Can St. Margaret’s draw on reserves to pay the debt?
Despite the above measures, we are steadily drawing down our cash reserve. We started 2011 with a reserve of $165,000. By April 2012, even with a successful auction, that reserve will be entirely gone. A reserve of $170,000 (three months’ operating expenses) is recommended for a church of our size.

How much money does St. Margaret’s need to retire the debt?
The best outcome would be an amount sufficient to fully repay the debt and repay most of our past-due diocesan assessment, while continuing to pay our current assessment—something we cannot do without further drawing down our reserves. These add up to approximately $1.6 million.

What gift is right for me?
What gift if right for me? That’s a natural question as we begin to imagine the possibilities of ministry in a parish free of debt.
The answer will be as unique as each of us. As you ponder the question, consider:

• What does God call me to be?
• How has my life been enriched by my connection to St. Margaret’s?
• What gift would truly reflect the importance of St. Margaret’s in my life?
• Where does my heart need to be in order to give joyfully?
• How can I make my giving an expression of my love for God and thankfulness for his blessings?
• What would constitute a sacrificial gift?

A sacrificial gift is one that causes us to reflect, identify what is really important, extend the depth of our faith, and give in measure of that depth. Each of us differs greatly in the wealth we have, and thus in our ability to give, but we can be equal in our sacrifice.
St. Margaret’s will ask you to make two pledges: one to our annual operating fund and a second to eliminate the debt. Please prayerfully consider the questions above and make a sacrificial gift.