FREQUENTLY ASKED QUESTIONS
1. What is the “The Spirit Moves Us Forward: Towards a Debt-free Future” capital campaign?
This is an initiative to raise sufficient funds from the congregation by August 2025 to pay off the church’s mortgage.
2. Why does the church have a mortgage?
After the 2001 Nisqually earthquake damaged our church at 5th and Marion, it was clear that we could not afford the repairs to the building and that our needs as a congregation had changed. Members of our congregation spent many years as part of the Building Advisory Board planning for a new church building, homeless shelter and parking garage that would meet the congregation’s long-term ministry and outreach needs. The plan was to match the costs of the new building with money from the sale of the old property and from a capital campaign to be conducted in 2009-2011.
First Church sold its property at 5th and Marion for $30.2 million in 2008, at the peak of the real estate market and soon thereafter, purchased the property on Denny Way. However, the Great Recession which started soon thereafter negatively impacted the financial plan for the new buildings. Construction costs increased more than budgeted, there was a shortfall in the capital campaign pledges and there were costs for leasing temporary office space and the Sunday morning worship space at Children’s Theater.
Once the impacts of these changes became clear, church leaders explained to the congregation that if we chose to complete the construction of the buildings as planned, it would be necessary to borrow money. In two separate Charge Conference meetings, the congregation unanimously approved the plan to take out a $1.8 million mortgage that was secured through the United Methodist Development Fund. Since that time, the church has been steadily paying off the mortgage.
3. How much is the outstanding principle on the mortgage?
At the time that this capital campaign was first announced in October 2022, the remaining principle was just under $454,000.
4. What amount did the church include for the mortgage payment in the 2023 budget and what percent is that of the church’s total budget?
The mortgage expense (principle and interest) in the church’s 2023 budget is $43,200 ($3600 per month) which is 5.5% of the church’s total 2023 expense budget of $777,114.40
5. Why is this campaign being held now?
The church’s current mortgage is a 5-year loan which expires in September 2025. Whatever amount of principle remains at that point will either have to be paid in full or a new loan negotiated. With the recent rise in interest rates, there is a concern that a new loan would have a substantially higher interest rate (and thus, higher cost in monthly interest charges) than the interest rate on the church’s current mortgage which is 2.84%. By starting the campaign now, it provides the congregation with 27 months (June 2023 through August 2025) to raise sufficient funds to pay off the mortgage.
6. What is the goal of the campaign?
The goal of the campaign is to raise $454,000 in pledges that will be paid to the church between June 2023 and August 2025.
7. What is the status of the campaign?
Thanks to generous lead gifts as well as pledges received in the last several weeks, $225,000 has been raised through the end of April 2023.
8. What if I increased my pledge to the church’s operating budget when asked to do so earlier this year and I don’t have any more in my budget this year for the capital campaign?
Thank you for your pledge to the church’s operating budget. This is a 3-year campaign so our hope is that you would consider giving funds to this campaign in year’s 2 (2024) and 3 (2025).
9. Do I have to pledge the same amount each year?
No, you don’t have to pledge the same amount each year. But it would help us to know the total amount that you plan to pledge and in a best-case scenario, how much you plan to give in each year – 2023, 2024, and 2025.
10. If my priority in giving is to the church’s programs, how will this campaign help those programs?
We are grateful for your support of the church’s programs. Everything that the church does and that members of the congregation want to see in terms of programming will be much easier once the building is paid for.
11. What if I don’t have the ability to commit financial resources to this campaign until 2025?
Any amount received by August 2025 will help to achieve the goal of paying off the church’s mortgage.
12. What if I can’t pledge as much as your “giving ladder” suggests?
We hope you’ll prayerfully consider giving what you can.
13. What if the campaign exceeds its goal, how will those funds be spent?
Any funds raised above the goal of $454,000 will be gratefully received and put under the jurisdiction of the church trustees to use for building repairs and improvements.
14. How do I make a pledge?
You can complete a pledge on-line or fill out a pledge form and put it in the Sunday morning offering.
15. When do I turn in my pledge?
You can make a pledge at any time. Our hope is to have all pledges completed by Sunday, May 21st. We plan to announce the results of the campaign at the Charge Conference on Sunday, June 4th.
16. Can I donate other assets such as stocks to the campaign?
Absolutely! If you have stock that is held in a brokerage account that you wish to donate, your broker can transfer your gift electronically. Please visit the church’s website for information on how to complete a stock transfer.
17. Is there someone at the church with whom I could consult about my capital campaign gift?
If you have any questions concerning your campaign pledge, please contact Melinda Waggoner, the Business Manager at First Church. She can be reached at Melinda@firstchurchseattle.org
Thank you for your support!
Greg Wallace and Jim Schone
Co-chairs for a Debt-Free First Church