On Sunday, February 2, 2020 at 11:30 a.m. we will convene a Special Congregational Meeting of the members of Unitarian Universalist Church West (UUCW). This meeting has been duly called by President Scott Shulick in accordance with Section VI.B. of the UUCW Bylaws. The purpose of the meeting is to authorize a loan of funds from the UUCW Endowment Fund to UUCW to bridge the cash flow gap between final payment of construction costs for Build 2020 and the receipt of outstanding capital campaign funds pledged for years three to five (2020-2022) of the five-year Build 2020 Capital Campaign.
FREQUENTLY ASKED QUESTIONS
1. Why does UUCW need to borrow funds from the UUCW Endowment Fund to cover construction costs of Build 2020?
Because the Build 2020 Capital Campaign pledges were set to be repaid over a five-year period, some of the funds we need to pay current Build 2020 construction costs have not yet come in. A loan will allow us to bridge the “cash flow gap,” and manage the ebb and flow of monthly income and expenses. Any loan will be repaid promptly as our members complete their Capital Campaign pledge payments over the next two years.
2. How much pledged money for Capital Campaign will come in between 2020 and 2022?
Currently, outstanding Vision 2020 Capital Campaign pledges from our members and friends total approximately $186,800. Please note that if you are able to pay off your Capital pledge early, we encourage you to do so. It helps us reduce borrowing costs.
In addition, if you’d like to make a pledge or give a donation to the Vision 2020 Campaign – it’s never too late. Talk with Church Administrator Vicki Banville (262) 782-3535 ext. 1007 or firstname.lastname@example.org. You also can make a donation (or pledge payment) online here. Select “Capital Campaign for Build 2020” from the FUND drop-down menu.
3. Is it normal for a UU church to borrow from its endowment?
Unitarian Universalist congregations do this kind of “construction borrowing” all the time, and most church endowment funds have provisions for it. It’s a good strategy, because banks are often reluctant to provide construction loans to churches. For example, we did seek a line of credit from BMO Harris, our bank of record, but after sitting on our application for several months, they approved an amount that was less than half of our request. In addition, congregations are highly motivated to “pay themselves back” when an endowment loan is made.
4. Do our church bylaws allow us to borrow from the Endowment?
Lines 550-553, Section 2F on page 13 of the UUCW Bylaws state that a two-thirds majority of the Voting Members at a duly-called congregational meeting can authorize lending funds from the Endowment’s principal, as follows:
The [Endowment] Committee shall not expend (or “loan” within the church) the principal of any of the funds administered, except as instructed by a two-thirds majority vote of Voting Members at a duly called meeting of the Members.