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2014 United Church of Christ

Church Building & Loan Fund

Survey ResultsPresented to the CB&LF Board of DirectorsMonday October 13, 2014

Our Mission

The mission of the United Church of Christ Church Building & Loan Fund(CB&LF) is to assist new* and renewing churches that desire to purchase a land site, and/or desire to purchase, construct or renovate church buildings, meeting houses, parsonages/rectories, and other facilities used by new and/or renewing churches of the United Church of Christ (or by any Christian church without limitation to sect, denomination, or name).

*churches 30 years or younger, about 10% of all UCC congregations

Our History

Founded in 1853, CB&LF finds its origins in the oldest

church building loan fund in the United States.

CB&LF is the successor organization to the building

societies of our predecessor denominations (the

Congregational, Christian, Evangelical and Reformed

Churches).

106Churches Responded (87 Completed)

526 Churches Contacted

20% Response Rate

Survey Participation

Survey Participants: Loan Partners, Special Mortgage Holders, PIB Participants, & Churches Considering Building Projects.

Who Do We Serve Today? Locations

69% of churches served by CB&LF are in a large municipality (54%) or in a suburb of one (15%). Almost 20% are in a downtown or central business district. This suggests that a number of our congregations are in robust real estate markets. About 17% of churches are in small towns (8%) or rural areas (9.2%).

Who Do We Serve Today? Membership

Almost 63% of churches that CB&LF serves have 50-200 members; 35% have 100-200 members. 25% of churches we serve have 200 or more members.

Who Do We Serve Today? Extravagant Welcome

Almost 73% of churches that CB&LF serves are Open & Affirming.

Who Do We Serve Today? A Cultural Mosaic

Nearly half of the churches served by CB&LF are composed primarily of African Americans, Asian/Pacific Islanders, or multiracial members. About half are composed primarily of White/European American members.

Who Do We Serve Today? Financial Capacity

From 2011-2013, the majority of churches served had annual budgets of $50K-$150K (33%) or $150K - $250K (27%). Almost 25% of churches served had budgets of $250K or more.

Who Do We Serve Today?

On average, new and renewing churches that engage in building projects are similar in membership size and slightly smaller in annual budget size compared to most UCC congregations.* However, they are far more racially and culturally diverse in comparison to older congregations in the denomination, and they embrace enthusiastically the mission and values of the United Church of Christ.* In comparison to the 2014 UCC Statistical Profile

Churches Seeking Technical Assistance 2007 – 2014

About one out of every two churches that contacted CB&LF were specifically seeking technical assistance. This affirms our new strategic direction which emphasizes two categories of offerings: loan products and consulting services.

"Technical assistance" is expertise provided to help churches organize, plan and prepare to finance church building projects.

How would you rate the quality of technical assistance provided to you?

Almost 89% of churches that received technical assistance felt that they received timely assistance. 65% of churches felt that their needs were met (the remaining 1/3 of churches are likely to still be prospective CB&LF loan partners or service recipients). No churches sought services from a bank or other financial institution after reaching out to CB&LF.

Churches Applying for Loans 2007 – 2014

Only 29% of churches applied for loans. Over 70% of churches needed only technical assistance and/or were not ready for, or did not need financing when they contacted CB&LF.

Loans Approved 2007 – 2014

93% of loan applications were approved, indicative of thorough pre-application preparation or screening.

Purpose of Loans

Nearly 1/3 of CB&LF loans since 2007 were for refinancing, reflecting more competitive interest rates. Almost twice as many new building projects were building purchases rather than new construction. One quarter of churches secured financing for major renovation projects.

Evaluating Building Professionals

Most churches were pleased with the professionals they contracted with for their building projects. Most churches used a general contractor and/or an attorney on their projects, but not a design/build firm, builder, architect, or engineer.

What do you consider to be the most important aspect of your loan experience?

More than 75% of churches served felt that CB&LF’s competitive rates & terms or our staff availability & support were most important to them. Almost 18% thought it was important that church building loan assistance is available through the United Church of Christ.

Quality of Assistance in the Loan Approval Process

100% of our loan partners rated CB&LF’s loan approval process as “Excellent” or “Good”, with over 82% of churches rating our services as “excellent”.

CB&LF Loan Services Compared To Banks & Other Church Lending Institutions

In every category (rates, terms, flexibility, knowledge, experience) churches rated CB&LF better than the competition. Overwhelmingly, churches believed that CB&LF was the best at communicating financial information to lay and clergy leaders.

Special Mortgages

While most churches said that they do not have special mortgages, the response to this question is not reflective of the facts. It is possible that many churches do not understand what a special mortgage is.

Time, Energy, Planning, Money Devoted to Building Issues

Almost 52% of churches had building issues arising from deferred maintenance; 24% were severely impacted by these issues. Roughly 8% of churches devoted most of their budgets to building issues. Over 10% of churches were worried about how they would continue to afford their buildings.

Church Building Scenario PlanningOver 48% of churches CB&LF has served are working on (29%) or exploring ways(19%) to re-use or reconfigure their church buildings to meet emerging needs in the community and advance the Gospel in a new way.

Some 48% of churches are working on (26%) or exploring ways (22%) to develop underutilized or vacant property to meet emerging needs in the community and to possibly generate additional income for the church.

Church Building Scenario Planning

Almost 37% of churches responding want to talk with CB&LF about their overall church building needs. Nearly 32% expressed interest in other ways to use church property to advance the mission of the church (community economic development, housing, income generation). Some 11% of churches, because of dwindling membership, want to plan for the legacy of the church.

Most churches in relationship with CB&LF are familiar with our loan products (79%), capital campaign services (69%), and our Partners in Building Program (41%).

Churches want to learn more about our Church Building Professionals Initiative (26%), loan products & capital campaign services (24% each).

CB&LF Products & Services

CB&LF Products & Services• Loans• Capital Campaign Services• Partners in Building• Partners in Vision• Lease-to-Own• Church Building Professionals

Initiative• Renewing Church Program

To view this and other CB&LF slide presentations, please visit :

For additional information or a loan application, please visit:cblfund.or

gslideshare.net/cblfund

Thank you!