• Why is Pilgrim running a capital campaign?

  Our church facilities are stretched to the limit. The daily and Sunday activities of the church are taking up all the available space, and the lack of extra space is restricting our ability for further growth and outreach. Our congregation’s vision, expressed in the work of the Long Range Planning Committee and refined by the Building and Building Finance Committees, requires that we add to the church’s capacity to support worship and outreach. Urgently needed are more spaces for Christian Education (youth and adult), Youth and Family Ministry, Health Ministry, Little Pilgrims Preschool, and the necessary food preparation and sanitary facilities required by a larger building. This additional space will allow the sanctuary and Fellowship Hall to be used more for their original purposes, as opposed to the current “every available space” juggling act. The narthex and other transition areas will be improved to make passage between events easier. Our church staff needs updated space and support to manage a growing church effectively in the digital age. The current vision provides for all these needs in two major sections. The intent is to build Section 1 and Section 2 in sequence; this enables us to continue our mission without shuttering the church during construction.

• Why now, when the economy is so bad?

  God calls us to be faithful stewards at all times. Pilgrim’s need is now, and if we waited for another year or two it might be five years until we started to see the use of a new facility. Our church is growing by 30 members each six months, and we need to plan for the future. The campaign donations are stretched over a three-year giving period. The expectation is that the economy will start to turn around in six months to a year. We will hopefully be able to benefit from the fact that construction companies will be actively searching for work during that time, and therefore allow us to get a good value for our money.

• Why is the church board moving forward when the economy is so bad?

  The church board presents proposals to the congregation, but all activities to date (hiring The Enrichment Group consultants and the architects plus proceeding with the Grateful Hearts capital campaign) were approved by the entire congregation during the June 2008 semi-annual meeting. The board has limited ability to spend the congregation’s money without specific approval ($6000 or less).

• Is my Grateful Hearts campaign donation part of my annual giving to the church?

  No, the capital campaign is a separate donation. If church members decrease their annual giving to give money to Grateful Hearts, then we end up running short on our operating budget.

• I’ve heard that there are families in the church that won’t be able to fulfill their annual pledge commitments, much less contribute additional money to Grateful Hearts. Why are we starting a capital campaign in a situation like this?

  Our financial secretary has not reported any increase in church members failing to meet their pledged commitments. If you have direct knowledge of a family that is in financial trouble, please help them to seek guidance and assistance from the church and state and federal agencies if needed. But also please carefully consider the effect that rumors, especially unfounded ones, can have on our congregation and the success of the capital campaign.

• What are the next steps?

  The congregation will vote on proceeding with more detailed plans on February 8th, and again for a specific construction plan in the June 2009 congregational meeting. Our hope is to have a firm plan with known financial resources and at least an initial response to our request for construction bids for the June 2009 meeting.

• Are the project costs final?

  No. The current project numbers are based on cost-per-square-foot estimates for churches and site preparation estimates, plus contingency allowances and sales tax. The numbers are in projected 2011 dollars.

• Why can’t you give us firm estimates of the final cost?

  Our building committee is working diligently to provide us with the best possible estimate. The final cost can be affected by a large number of factors, all of which are beyond our control:

  • Fluctuations in building material costs
  • Changes in site preparation and permitting costs
  • Possible changes in the permitting process, which would lead to delays in construction and increased cost
  • Amount of construction work happening at the time we ask for bids
  • Unpredicted complications in site prep and meshing the new construction in with the existing building
• What are our financial resources?

  The congregation has the ability to borrow, based on a Thrivent estimate, up to $2.5 million. Our current mortgage is roughly $600,000. That leaves an additional borrowing limit of $1.9 million. The caution with regards to maximum borrowing is that it would increase our annual operating budget by 25% to service the debt on a note of that size. Our borrowing capacity plus the financial results of the Grateful Hearts capital campaign will provide us with a defined amount for the project.

• What are the campaign goal steps, and what do we get for each step?

  Our vision, based on the work of the Long Range Planning Committee and the Building Committee, is a $4.8 million facility built in two sections. Again, please realize that these numbers are estimates, and that the final project costs will come from builders’ responses to our request for construction proposals.

  • At the first or Cornerstone goal ($1.3 million) combined with borrowing up to our Thrivent-imposed limit ($1.9 million of new money), we estimate that we can do detailed planning, get permits, move dirt, and be very close to completing the classroom and multipurpose building indicated on the plan in the Grateful Hearts campaign booklet as Section 1. Borrowing less than the maximum could result in a scaled-down version of Section 1.
  • At the second or Challenge goal ($2.2 million) combined with borrowing up to our Thrivent-imposed limit ($1.9 million of new money), we estimate that we can complete Section 1 and do a considerable amount of work on Section 2. By borrowing at a medium level ($1.2 million), we estimate that we could complete Section 1 with a lesser increase in the operating budget to service the debt.
  • At the top or Celebration goal ($2.8 million) combined with borrowing up to our Thrivent-imposed limit, we estimate that we would be very close to being able to complete the whole project.
• How did you arrive at the three goal steps?

  The Enrichment Group has excellent historical data that enables a congregation to estimate the potential amount of a capital campaign based on annual giving. The Cornerstone and Challenge goals were placed at the low and high ends of this estimate. The Celebration goal was derived to place the entire project within our reach based on a celebratory response from the congregation.

• Borrowing to our maximum amount would place a large burden on our annual operating budget. What will be done to mitigate this problem?

  Our stewardship (pledged offerings) has increased by 10% each year over the last three years. As our congregation grows in response to the project, we will have increased operating funds. We would also plan to run a subsequent capital campaign after the conclusion of Grateful Hearts to reduce the debt.

• I’ve heard that my donation might be used to pay off the current mortgage instead of going directly to the new building. Can I keep that from happening with my money?

  This would not be the case. In order to borrow up to the maximum amount, we might pay off the old loan to enable us to secure financing at a better interest rate. Funds collected for the Grateful Hearts campaign will not be used to service the existing mortgage. All money donated to the Grateful Hearts campaign will be used in support of new facility.

• What will happen if we don’t raise a significant portion of the money required for the project?

  The results of the capital campaign combined with out borrowing ability from Thrivent will ultimately define the amount of money available for the expansion. On February 8th, the congregation will vote on a proposal to proceed with more detailed planning, but we won’t yet know the final results of the capital campaign. Even getting to the point of letting out bids for contracts costs money. We have had to pay both the architects and The Enrichment Group for their services. So far, there have been sufficient funds through both donations and operating budget line items.

  Between the February and June 2009 congregational meetings, the Building Committee, the Building Finance Committee, and the church board will work together to define our project based on the money available to us. It is our vision and our prayerful hope that there will be sufficient funds for the entire project. If a lesser amount of money is available, the project will be changed to address the most critical needs first and to prepare the way for future additions. It is our intent to request bids from several construction companies to build this updated project, and present a solid construction proposal for approval at the June congregational meeting. The congregation will have the final say in the direction and use of the funds raised during the capital campaign.

• What is the value of doing as much of the project as possible at one time?

  Each delay on the total project would result in increased costs due to inflation. There could be changes in county land-use and permit laws that would result in increased costs for a project done in more than one part. Building the project in separate sections would result in a greater cost than building it all at once. With many variables, it’s difficult to provide a hard number or even define a percentage increase, but there would be significant costs associated with shutting down construction and re-starting it at a later date.

• What are the Thrivent matching funds and how are they being used?

  Thrivent matches up to $300 per person ($600 per couple) in support of the preschool for Thrivent members who have accounts totaling $1500 or more. The funds were obtained because of the preschool but not to directly support the preschool and as such those funds have been entirely earmarked to support the capital campaign efforts. The majority of those funds have already been expended on costs associated with the architect and the Enrichment Group. If you do not currently have a Thrivent account, and you are interested in participating, please contact Maynard Hedegaard for more information.

• Can you assure me that the church would not build if the funds needed were not donated?

  If sufficient funds were not pledged to even build a portion of Section 1, the church board would present proposals to the congregation for future plans. The congregation would have the final say on any project plans.

• About the dinner on Feb 20th; why weren't the funds being used towards the campaign instead of renting out the hall (why not use Pilgrim)?

  The banquet on February 20th is a visible reminder of why we're running the capital campaign - there just isn't room at the church to hold the event. It had to be held at an outside venue. One member donated the reservation fee and several members have donated funds for the dinner.

• Why was money spent on glossy handout instead of being fiscal stewards and using it towards building funds?

  Your campaign team is working diligently to be good stewards of donated funds, but it's also important to provide quality materials to effectively communicate the message and plans to the congregation. The printer for many of the promotional items is donating to the campaign by not charging the full cost for the campaign materials. Members have donated all writing and formatting; another member has donated copies of all letterhead, invitations, programs, and commitment cards; another member created and donated the banner; and one couple paid postage for mailing invitations to the Advance Commitments recipients. We have also saved the office staff time by formatting and copying nearly all of the documents outside of their operation.

• If I have other questions, where can I find more information?

  Each church family has been given the Grateful Hearts Campaign booklet. This labor of love provides a concise look at Pilgrim’s history, vision for the future and needs. It also lays out the goal stages of the capital campaign and provides tables to assist you in preparing your campaign commitment.

  The Grateful Hearts campaign team has planned several large events, including the all-church bible study, 24-hour prayer vigil, and all-church banquet. The resources staff is mailing regular updates in four campaign newsletters.

  Any member of the Grateful Hearts campaign staff will be happy to take your questions. If we can’t answer immediately, we will get the answer to you as soon as possible. Follow the Grateful Hearts link on Pilgrim’s web page, www.pilgrimpuyallup.org, for information and links to campaign documents.

If you have additional questions please e-mail them to Jim Wilkerson  or Steve Lessard.