FREQUENTLY ASKED QUESTIONS

1. Church Related
2. Campaign Related
3. Project Specific Related

CHURCH RELATED:

What does our Church history tell us about Capital Funds drives? Friedens Church has historically supported “project driven” initiatives very enthusiastically. Our culture is such that with well defined objectives, parishioners have responded enthusiastically and with gratitude.

Is this the right time to be raising money for renovations? Yes! This is the right time for multiple reasons. We have a new, young, energetic minister who has brought an excitement to Friedens, an excitement that hasn’t existed in years. The facilities are in need of major repairs. Quite frankly they suffer from neglect. They put forth an impression to members and visitors alike that either we are a congregation who can’t afford to, or don’t care to maintain what the founders of Friedens Church sacrificed to give us. Attendance and giving are up, and new partners are joining. NOW IS THE RIGHT TIME!!!

Why not do the work in phase; Don’t borrow the funds, but wait till given? Many of the needs are past due for attention, and must be addressed now. Most of the needed work overlaps other work (Ex: when termite repairs are made, and how extensive they are, will require painting, possibly plumbing and other crafts). There are times when we will not be sure of final costs, and without the buffers built into the overall budget we might face a shortfall. Deferred projects will cost more due to inflation, and pricing on a large project will be better than that on small projects. Finally, there is the human factor. Many people have special interests, and will only give support when these interests are being served - that is quite simply human nature. Church leadership feels the proper way to address the repair and renovation requirements are to proceed with a Capital Campaign that addresses the full scope of the project now.

What is our current level of debt? As has been the case for quite sometime, Friedens Church currently does not have external financial debt with outside third party financial organizations. Due to poor attendance and subpar church vitality at several times in the recent past, there have been periods where several of the sub-accounts within the Church operations (i.e. Memorial Fund, Building and Grounds, and Parsonage Repair fund) have been re-allocated to keep the doors open. It has been an unwritten policy that the borrowed funds would be replenished when fund surplus permits but this requirement is one of general goodwill among the members and not mandated by the current standing Church constitution. Church leadership has historically used these accounts to maintain the Friedens mission without the assistance of periodic major capital funds drives or external borrowing.

What is our need? Simply take a leisurely walk around the grounds of Friedens. Immediately you will notice the flaking paint and rotted trim board; look at the condition of the sidewalks around and leading to the church; the playground area sorely needs reworking. Friedens United Church of Christ is seriously in need of a “face lift”. Now, when you enter the Activity Center you will see areas of the ceiling that are damaged from prior roof leaks; the entire area needs repainting; flooring, carpeting. The Choir Room also has these same problems as does the Council Room. The kitchen is in need of a major overhaul. As many of us noted at our first annual retreat last year the kitchen is a priority. Once again, we have ceiling stains from previous roof leaks; floors need updating, as well as cabinets and countertops. As you continue down the hall to the Sunday school classrooms, you will notice how dark and dreary the hallways are. This needs to be addressed as well as the termite problem we have had in the past in the office workroom, confirmation room and the pastor’s office. You will also notice there are no working exit signs, or fire safety devices located in the building. We, the members of Friedens are to be responsible stewards of the gifts we are blessed with. This capital campaign is the first necessary step in fulfilling our responsibilities as we commit ourselves to Friedens long term sustainability and growth by providing attractive, functioning facilities that are consistent with our 100 + year heritage.

What is expected of me? The Capital Campaign is intended to provide a catalyst opportunity for each member’s personal spiritual growth relating to Stewardship and Giving generously out of Gratitude for our personal Abundance. It is most important is that each of us carefully and seriously consider the merits of the Capital Campaign and as a result reach a personal decision of our financial commitment that we feel is serious, generous, and sacrificial. One goal of the Campaign is for each and every member to give at the same level of personal financial sacrifice – not necessarily the same monetary level. Each member family of the Congregation is expected to return their Commitment Card defining the level of participation. The definition of a sacrificial or “large” gift depends on our own situation; “large” for one family may not be “large” for another family, or it may be well beyond another family’s ability to contribute. All members are also encouraged to stretch ourselves as much as possible within their own means.

Each gift can be a one-time gift; or it can be made in increments over three years –weekly, monthly, quarterly, and annually or whatever works for our personal budgets. Gifts may be made in cash, stock, property or a combination. In addition to financial commitments, it is the hope of the Capital Campaign committee that the congregation will “reach out” for this opportunity to participate in making life’s ultimate possibilities worthy of our best efforts. The campaign brochure – “Friedens – Rooted in the Past – Reaching for the Future” – outlines additional thoughts defining the personal expectations of each of us personally. Each of us is invited to share our unique gifts for the success of the campaign. The underlying message for making this campaign successful is: NOT EQUAL GIFTS BUT EQUAL SACRIFICE.

What previous Capital Funds drives has Friedens accomplished? During the mid 1980’s, a Capital Campaign program to add the Friedens Church Activity Center at a value of $368,277 went very well and included early payoff of the note in year four of a five year loan period. The most recent Capital Funds drive was performed in 2005-2006 for the purpose of repairing the Brick and Mortar structure of the sanctuary at a value of $50,000. The project was a huge success and vital to maintain the structural integrity and continued beauty of the recognized State Historical Building.

Do you feel general fund giving and daily operating contributions will suffer because of this campaign? No – historically opportunities such as this are an opportunity for personal growth related to our personal beliefs and attitudes defining our individual definitions of generous giving. Generous giving is a great American value that must be exercised. Where our treasures are, our hearts will also be.

How will my contribution be honored? Will a plaque have my name on it? Church leadership has long debated the need to continue the historical practice of displaying plaques that honor significant gifts – from a practical standpoint there is a limited amount of space that is suitable for a meaningful honor of this sort. Beginning with this campaign, the standing Church Council is giving serious consideration to the documentation of our individual participation by professionally logging contributor’s names in a newly created Family Record of Generous Giving.

CAMPAIGN RELATED QUESTIONS:

What is the “Capital Campaign”? It is a focused effort over a short period of time to secure gifts and long financial commitments to fund the repair and modernization of Friedens Church’s buildings and grounds.

How much do we want to raise in this campaign? A Campaign goal of $600,000 over a three year period has been identified as the primary target.

Will there be another Capital Campaign drive during the project three year period defined by this Campaign? An additional capital campaign for unknown reasons or undefined needs overlapping the current campaign is not anticipated or foreseen. The opportunity to proceed with an overlapping campaign should be considered a remote option at this point in time. The church member contributors will, in the end, control this type of consideration.

What is going to happen over the next several months? Great things are going to begin this spring – beginning with a kick-off for the Capital Campaign in April and concluding with great excitement in May. During that time, a great deal of information about what the campaign is about, anticipated accomplishments, and set a time line for reaching our goals will be shared. Each of us is asked to participate by offering our vision, commitment, and prayers as together we move forward in sharing our faith with one another while growing for the future.

Who are the leaders of the Capital Campaign drive? The Capital Campaign is being led by an Executive Committee of Church Members who has come forward as volunteers to help insure the success of the Campaign. The Capital Campaign concept has received unanimous approval of the standing, elected Church Council. The members of the Executive Committee include:

• Campaign Administrator – Jeff Bormann
• Leadership Gifts – Nelson Harborth
• Giving Potential – Jimmy Schriewer
• Printed Materials – Teresa Hudson
• Publicity – Trina Eastwood
• Group Meetings – Sylvia Mueller/ Bonnie Neumann
• Hospitality & Celebrations – Yvonne Reimers
• Administrative Support – Church Office
• Gift Recording – Tammy Harborth
• Follow-up – David Lamensky

In addition to the Capital Funds Campaign Executive Committee, a standing Building and Grounds committee composed of Roger Bading, Jeff Carley, George Bierstedt and Ken Cargil have been responsible for defining the scope of facility improvements and contracting strategy that will be pursued with the financial contributions. Third party interim financing options for the long term projects is being investigated by Eileen Peek with input from the Church Council and the Campaign Executive Committee.

Much of the behind the scenes activity of this team is being accomplished thru the personal coaching of Mrs. Nancy Ackley – a UCC capital funds campaign consultant who has personal experience in conducting over 200 successful individual campaigns all across the country.

How was the expected cost of the improvement projects determined? The Building Committee reviewed the facilities to determine areas and items that need repairs or modernization and consulted with contractors to estimate the costs to repair or modernize the facilities. An independent Reserve Study has also been completed as validation of the estimated cost and budgetary requirements.

Has the “Capital Campaign” been officially approved? The standing Church Council at the time of the campaign inception unanimously approved proceeding with the concept of the Campaign and the use of an outside campaign consultant. According to the terms of the contract with the Capital Campaigns consultant, approval of the final payment for services will require Congregational approval if a personal gift for the final portion of this agreement is not available.

Will there be a financing component to accomplishing the project goals? Yes. This amount will be determined primarily by which lender the church uses. At this time, it appears at first glance, using the UCC Cornerstone Fund will be less expensive.

How much money do we need to begin the construction improvements? Other than initial costs of the Capital Campaign, the construction project will be 100% financed by our lender based on the personal commitment process we are each being asked to sacrificially consider.

Is it possible for Friedens to receive additional financial benefit by me personally investing in the UCC Cornerstone Fund? Yes. It is called the Interest Rebate program. This program offers borrowers the opportunity to reduce the effective interest rate on a Fixed Rate loan by up to 1%. By investing part of the church's savings in Cornerstone Fund notes - and by encouraging church members to invest in the Cornerstone Fund as part of a personal portfolio —a borrower may be eligible for a rebate of up to 1%. While each investor retains full control of their investments, the amounts of the collective investments are added together to calculate a rebate that is sent annually to the borrowing church. If a church's collective investment totals 25% of the loan amount, a rebate check for .25% (¼ of 1%) of the loan amount will be sent to the church each year. A church with collective investments totaling 100% of the loan amount will receive a full 1% rebate on the loan amount. These funds are in no way considered collateral, and investors may access their investments at any time.

What are the terms of the financing package? Specific terms of the financing package will not be know until the Church Council has agreed to bring the recommended option before the Congregation. Use of the UCC Cornerstone Fund is currently considered the preferred option based on known, available information. Steps have been taken to qualify for loan consideration with the UCC Cornerstone Fund and two local banks.

What risk will the Church facilities be exposed to as a result of the financing package? Yes, there will be a risk because the church property will be used as collateral for the loan. However, if the church uses the services of the UCC Cornerstone Fund it is in essence borrowing from a family member. This means they are willing to find a “win-win” situation for both parties in the event of some financial difficulties. As proof of this, the UCC Cornerstone Fund in thirteen years of operating has never foreclosed upon a church!

Will the congregation approve the financing package? Yes – the Congregation will have vote approval of the debt and plan that the Church will be financing. The Church Council will have the responsibility of drafting a prepared motion defining the path forward, scope of project work, and roles and responsibilities for members volunteering to participate in accomplishment of the work. This motion will be presented at a properly called congregational meeting followed by a vote to proceed.

Can I commit my contribution or portions of my contribution to accomplishing specific portions of the defined scope? Yes, attempting to accommodate individual personal requests to accomplish specific portions of the work will be considered based on the priority list of the individual components of the defined capital projects list.

Will I be harassed into submitting a pledge or commitment Card? Positively NO. Every member of Friedens will be given several opportunities to participate in the Capital Campaign by working on a committee and by making sacrificial financial commitment. The Campaign Committee has an established goal of allowing each member family the opportunity to participate voluntarily and to make generous, sacrificial contributions. Harassment of members into making a financial commitment will not occur. Campaign Committee members may however be courteous, firm and persistent in asking for a confidential decision regarding our individual levels of participation. Because of human nature – this type of inter-action may be necessary to insure the success of the Campaign.

Can parishioners give without signing a pledge card? YES. All types of contributions will be accepted. Commitment cards will be used to track the progress towards reaching the stated goal, but no one will be required to sign a commitment card before making a donation.

How will I be asked to give? Each of us will be asked to complete a Commitment Card defining the amount of our contribution to the Campaign. Each of use will then choose how frequently (weekly, monthly, annually, etc.) and what amounts we will contribute. Contributions can be made in lump sum or periodically spread over three years.

When and how will I receive my commitment card? The “kick-off” of the Capital Campaign will occur on April 6, 2008 with a dinner following worship. At this time we will receive a campaign brochure along with a personal campaign commitment card. If for some reason a member is not present on “kick-off” Sunday, a representative of the Campaign Executive committee will make extra effort to personally deliver the campaign information and commitment card on a subsequent Sunday, or by personal delivery, or if you live out of the area, by mail.

What forms of contribution can I make? May I give stock, real estate, insurance, or other gifts in addition to cash? Any form of meaningful consideration of contribution whether it be cash or non-cash (stocks, personal property, real estate, etc.) is welcome and in fact encouraged.

Can I support our Capital Campaign in other ways? Certainly - Perhaps some members are skilled in construction areas, such as an electrician or plumber. The current President of the Church Council, David Lamensky, has a long history of donating many hours of his time and talents, and in the process saving our church considerable dollars by working on the air conditioning units over the years. The involvement of skilled members donating services in this way is encouraged. Careful coordination thru the project leadership team responsible for project performance will be necessary. Contribution of time and talent, although not the primary focus of the Campaign, is considered an excellent method for accomplishing several of the required renovation tasks. Early commitment and coordination thru representatives of the Church during discussions with the selected contractor(s) will be required to insure this type of contribution is effective.

Will I be able to receive personal income tax credit for my contribution? If you itemize your deductions, you will be able to claim income tax deductions for all of your contributions.

Is electronic deposit or credit card payment available? How can I give electronically? Yes, electronic transfers and credit card payment options will be available.

Can I commit a portion of my estate to the Church? Can the Church assist me with this process? YES. We can designate in our Wills that the Church is to receive part or all of our estate. The Church can provide some assistance but it is recommended that each of us obtain the assistance of an attorney in preparation of a Will listing Friedens Church as a beneficiary.

Where is the budget for costs to run the campaign addressed? The costs necessary to conduct the Capital Campaign will be funded by early contributions to the Campaign itself. Initial seed money was provided by a congregation member and committed to the initiation of a Capital Campaign drive. The Executive Committee has identified a budget of $20,000 to conduct a successful campaign effort. This budget is inclusive of the $16,500 commitment made to Nancy Ackley as the Campaign Consultant. The bulk of these costs will be incurred during the campaign drive during the Spring of 2008.

How do I determine my level of participation? Each person or family is asked to make a sacrificial gift to the “Friedens – Rooted in the Past – Reaching for the Future” campaign. Each of our commitments to the campaign is a personal decision between God and ourselves. Each household is being asked to prayerfully consider making a sacrificial commitment to the campaign. As we each consider our level of commitment for the campaign, it is important to understand that the campaign does not call for the same amount to be given by any two families or individuals. It does encourage everyone to make the same quality of commitment. While no one can define commitment for another person, we do know that if one is truly committed to a task, the involvement will be more than a token consideration. A commitment involving the true understanding of stewardship and the desire to share Christ with as many as possible is a gift of love to your fellow man and a show of appreciation for all that Christ has done for each of us.

What is the time frame for my personal financial commitment? The suggested time frame for the commitment period is three years (36 months), however our level of commitment is a personal decision – not an absolute contract – therefore a shorter or longer period is acceptable.

When will my contribution begin? On May 4, 2008 we will “wrap up” the “Friedens – Rooted in the Past – Reaching for the Future” Capital Campaign. Each member is asked to have prayerfully considered their level of giving and to be prepared to commit to making the campaign a success. Our personal contributions to the campaign can begin at any time – a separate bank account has been setup and procedures are in place to support the campaign.

Will my contribution be confidential? Who in the Church will know my level of giving? Each and every contribution will be highly confidential. Tammy Harborth, who has been accepted to role Recorder for the Capital Campaign drive and Eileen Peek, the Church Financial Secretary, will be the only two members of the congregation with access to our individual levels of commitment to the campaign. Both Tammy and Eileen understand the importance of maintaining the confidential nature of our personal decisions and have accepted this challenge with total commitment.

How will my weekly, monthly or yearly contribution be processed? There will be a financial database for every type of contribution. As soon as the contribution is made, it will be processed and deposited the next business day.

How am I going to be informed of my status in achieving my commitment goal? Information regarding the status of achieving our personal commitment goals will be available on a per person basis. Should a member desire a quarterly statement of their commitment vs. actual giving, they should contact Tammy Harborth or Eileen Peek for details. The status of our individual giving will be maintained by Eileen in the Church Financial records software program being utilized for our General Fund and other financial contributions. For reporting purposes, the distinction will be maintained between our personal Church General Fund contributions and Capital Campaign contributions. When making a financial contribution, each member is asked to clearly identify the purpose of that transaction – i.e. General Fund contribution or Capital Campaign Contribution on the check or envelope to assist the proper processing.

What happens if I fall behind on my commitment giving? We are asked to make a personal commitment that will be honored over time. Because the work will be financed using a line of credit approach, a checks and balances between the amount available for loan repayment and the amount currently borrowed will exist. If our contributions have fallen behind, the expectation is we will each honor our word as best we can.

What if we do not raise all of the money? The financial goal of the Capital Campaigns program has been realistically set based on the projected giving capacity of the Congregation. The goal of the Campaign is not to come up short with the fundraising. The practical answer is all of the identified repairs may not be accomplished and will have to be prioritized.

What if my financial situation changes or I move out of the area before the end of the three year commitment?
We are asked to make a personal commitment that will be honored over time. If your personal situation or commitment to the campaign changes, it is your discretion as to how to address the situation. Once we make our commitment, we are expected to carry our share of the responsibility in executing the plan. We are each asked to have an appreciation for the effort of fellow members in managing the campaign and improvements program. The use of the Golden Rule applies in this situation.

PROJECT SPECIFIC RELATED QUESTIONS

What is the scope of the Improvements being considered? A defined list of long needed improvements has been defined and budgetary pricing developed. This list will be explained in detail at several formal meetings that are intended to allow congregational members to become informed of the absolute necessity for accomplishing the improvements. Generally, the project can be segregated into four distinct categories

1. Church proper including HVAC, wiring, windows, doors, steeple, painting,
2. Church School Building including termite repairs, HVAC, modernization, flooring, plumbing
3. Activity Center including HVAC, kitchen and bathroom remodeling, flooring, and wall repairs
4. Grounds upgrade including sidewalks, signage, playground equipment, lighting, parking lots, and landscaping.

Why are these improvements necessary? The necessity is obvious. Several safety issues exist that need to be addressed. Maintenance not done for several years needs to catch up. Facilities need to be updated and refreshed. We need to protect and preserve the investment made by our forefathers.

When will the actual work to accomplish the construction improvements begin? A specific project time line will need to be established as the project progresses. Soon after the initial capital campaign push is completed, a project financing line of credit will be arranged and executed, Request for Proposal and contract documents will be prepared and selection of a contractor will begin during the summer of 2008.

Are using “green” building practices (environmentally friendly)? Considerations will be given to including potential “green practices” in the performance of the improvements, providing they don’t impact construction costs too dramatically. It is not a stated goal of the Capital Campaign to become a “green” certified facility – but from time to time certain materials may be considered for use.

How are we going to insure ourselves that we will be getting the best deal on construction services? A formal solicitation process requiring formal contractor proposals coupled with an interview selection process will be key to insuring ourselves we are making the Best Deal. A clearly defined contract addressing the base scope requirements and the proper handling of additional scope growth will be critical to controlling the costs of the work. The lowest priced contractor proposal may not necessarily have the greatest value – cost, quality and willingness by a potential contractor to help us achieve our projects goals will all be equally important.

What risks is the Church going to have during the construction process? What risks are the contractors going to have during the construction process? When we enter into a contract with a General Contractor, the typical risks associated with construction will exist. All contractors we use for the work will be bondable and carry statutory and Church defined insurance coverage. A formal contract will be executed with each and every contractor performing work on the Friedens property which will result in a clear definition of the risks anticipated with each portion of the work. General risks such as cost increases of materials, labor issues, material delivery delays, scheduling of sub-contractors, accidents/injuries, incidental damage, and scope growth are all risks that could reasonably be expected.

How will ongoing activities in the Church School and Activity Center area be affected? Some interruptions will be inevitable but proper scheduling of work and limiting the number of areas under construction at one time will help. Some activities may need to be temporarily moved to alternate locations or temporarily suspended.

Who will be performing the construction improvements? Contractors will need to be selected for the majority of the major repairs. It is anticipated that some minor repairs may be performed thru organized church congregation workdays.

How will construction contractors be selected to perform the work? Use of a General Contractor / Construction Manager overseeing several subcontractors in a Construction Management at Risk arrangement to accomplish the Work is being considered. The Building and Grounds Team in conjunction with the Church Council will develop and issue a solicitation document that defines the work scope to be performed and the responsibilities of the contractor and the Church. Upon receipt of General Contractor proposals, the Building and Grounds Team in conjunction with the Church Council will have responsibility for interviewing and selecting the General Contractor and all sub tier levels of subcontractors. Selection of contractors will be based on

1. Contractor Fee and Estimated Cost
2. Contractors interest in working for the good of the Church
3. Reputation and previous experience in accomplishing the type of work being considered
4. Demonstrated flexibility and defined work plan to accomplishing project goals in a timely, cost effective manner.

The Congregation, thru Congregational vote will have approval authority of the General Contractor selected and the proposed contract value for completing the work. The Church Council currently has the responsibility of ensuring the drafting a clearly stated motion to bring before the congregation approving the path forward. This motion will include but not be limited to definition regarding the financing commitment, the scope of the project, the timing and schedule for the project, the contractual relationship used for project delivery; the authority of designated congregational members (Project Coordinator(s)) selected to oversee the project, including spending limits and contracting authority; and the process for obtaining additional congregational input on project related aesthetics decisions. It is the purpose of this prepared motion to be remove significant doubt and uncertainty of how member giving will be entrusted going forward.

Can I use my time and talents to help perform some of the identified improvements? Certain portions of the work, although not defined at this point, are anticipated to be performed thru organized Church workdays. We will not be able to work in and around contractor personnel for risk considerations; however weekend opportunities to provide sweat equity are a distinct possibility. Each of these type opportunities must be carefully coordinated thru the Project Coordinators representing the Congregation with the Contractor.

Who is going to monitor the day to day construction activities? The selected General Contractor will have the primary responsibility for the day to day activities. The Building and Grounds Team or their designated Project Coordinator(s) will act as the single point of contact with the contractor and will be the only group with the authority to represent the Church as the interface with the Contractors daily and weekly activities and work oversight. The General Contractor will not have unilateral authority to proceed with unauthorized repairs without approval from the appropriate church representative(s) outlined in the prepared motion to be approved by the Congregation.