Lakeline Church: Leander - Austin, Texas - POL

A7: The goal amount is based on our average giving, not the price of land. In three-year capital campaigns, most churches raise one to two times the amount they normally bring in annually. Our church receives around $300,000 per year, so our goal is based on receiving just under two times our annual receipts.

Q8: What happens if the land costs less than the amount we raise?

A8: If the land costs less than the amount raised, any money not used for the land will go toward a future building fund.

Q9: Why don't we find land first, and then raise money for it?

A9: Most sellers are not willing to hold the land for months while potential buyers are organizing their finances. We must be ready to secure land when we start shopping for it.

Q10: Are we going to pay cash or finance our land?

A10: We will do whatever is necessary. Generally speaking, the preferred way to purchase anything is by paying cash. However, many churches, like many families, cannot accumulate enough cash to meet space needs as they occur. Just as individual Christians finance houses, collective Christians (churches) finance land and buildings. Otherwise, by the time the church accumulates the cash, the window of opportunity has closed. Because of increasing land and construction costs, the expense of waiting exceeds any interest charges that would have been paid on financing the land or buildings. Prudent borrowing is an essential part of most expansion plans. The Bible counsels us on the wisdom of saving wisely (Proverbs 13:11) and on the dangers of borrowing irresponsibly (Proverbs 22:7). But the Bible does not go so far as to call debt sin. Manageable debt acquired for an appreciating asset can be both productive and good stewardship.

Q11: Why do we have to make pledges?

A11: We need them and lending institutions require them. As Christians, we cannot grow without making commitments, so pledges enable our spiritual growth. Lending institutions will make their decision on how much money to lend our church partially based on the total amount pledged in our Possess Our Land capital campaign.

Q12: How much can we borrow to purchase the land?

A12: The amount usually depends on a church's income and expenditures, the value of church property, the terms of the loan, and any capital campaign pledges.

Income and Expenditures: Most lending institutions prefer that the maximum churches should be using in their budget income for debt is 30%. The percentage available for debt service has a direct bearing on how many dollars will be available for a church to borrow. Any existing indebtedness has to be taken into account. This is why retiring our existing debt is a goal of this campaign.

Value of Church Property: Lakeline Church does not own any significant church property, so this will not apply when we purchase land. However, when it comes time to construct our first building, our land can be used as equity.

Terms of Loan: Obviously, the length of the loan and the rate of interest have a bearing on the monthly payment required.

Capital Campaign Pledges: Most lending institutions finance up to 80% of what is pledged in a capital campaign.

So, based on our income and expenditures (in a school) and $550,000 pledged in a capital campaign, we could finance around $1,000,000 for land.

Q13: When will we be able to start building?

A13: This will depend on how much we raise for land and how much the land costs. Most lending institutions prefer that the maximum churches should be using in their budget income for debt is 30%. The percentage available for debt service has a direct bearing on how many dollars will be available for our church to borrow for building. Any existing land indebtedness has to be taken into account. The goal will be to pay off as much of the land loan as possible as quickly as possible in order to minimize our indebtedness so we can build sooner.

Q14: What can I do?

A14: You can begin now by praying and seeking God's will concerning your financial part in this capital campaign. Each person at Lakeline Church will be asked to make a three-year commitment. The total commitments will be announced on Victory Sunday, November 27, 2005.

Q15: When and how do I make my commitment?

A15: First you need to decide how much of a CASH offering you'll make on November 20th. Then decide your pledge COMMITMENT that you will give in addition to your cash gift over the next 36 months. If you want to give a non-cash asset (a gift-in-kind such as stocks, bonds, property, or other items) then determine the approximate value of the CONTRIBUTION. Next, write these amounts on your commitment card, add them together for a total (CASH + COMMITMENT + CONTRIBUTION), and sign your commitment card. Bring both your cash gift and your commitment card to the worship service on November 20th.

Q16: Will I be pressured to give?

A16: No. God only wants us to give joyfully from our hearts (2 Corinthians 9:7).

Q17: Will my contribution be made public?

A17: No. Only the total of all commitments received will be announced on Victory Sunday, November 27, 2005.

Q18: Can each member of our family make a separate commitment?

A18: Yes! Even young children can learn the values of commitment, generosity, faith, and sacrifice by signing their own commitment card. Extra cards are available at the Information Table or you can download one here.

Q19: Is it OK to make a commitment to give an amount that I don't have right now?

A19: Yes! That is called faith! It pleases God (Hebrews 11:6).

Q20. When do I start giving?

A20: We will have a one-time cash offering on November 20th, and we will start fulfilling our 36-month pledges in January 2006. However, if you want to give any gifts before the end of the year, that is fine as well!

Q21. How can I construct my giving plan in order to increase my impact?

A21: There are some creative ideas to increase your impact above and beyond your regular giving: Pray through the list and respond to God's leading if some of these ideas apply to you.

Diverting Funds: Free up funds currently going to other areas of spending. Some examples: entertainment, dining out, cable TV, cell phones, high-speed internet, dues, subscriptions, gifts, and/or allowances.

Delaying Purchases: Delay purchases of major items such as cars, furniture, remodeling, computer/electronic equipment, clothing, and/or trips.

Gifts from Savings: Consider giving out of savings set aside for purchasing or replacing items.

Selling Assets: Sell assets, such as a house, land, vacation property, business, jewelry, artwork and collectibles. The proceeds can then be donated to Lakeline Church. Transferring ownership of real estate may provide you with tax savings. A residence, summer home, commercial property or vacant land may have appreciated in value to the extent that its sale may result in a sizable tax on the gain.

Gifts from Securities: Gifts of stocks, bonds, and mutual funds that have increased in value since you purchased them can bring extra tax savings. If you have owned them for more than a year, you will receive an income tax deduction for the full fair market value of the stock and the capital gains tax is entirely avoided. If you sell the asset and then give the proceeds to the church, the tax advantage is lost. The asset itself must be transferred to the church.

Gifts from Retirement and Estate Plans: Gifts such as life insurance, charitable remainder trusts, annuities, charitable lead trusts, etc. can often offer significant tax advantages to the donor and can usually be handled with minimal effort through a tax professional.

Income Producing Assets: Give interest income, payments from rental properties or monies from other income producing assets.

Unplanned Income: Dedicate future raises, bonuses, tax refunds and other increased income you anticipate.

Freedom from Debt: As debt obligations are fulfilled, give the freed-up revenue.

Strategic Charitable Giving: Consider focusing some of your other charitable giving to Possess Our Land for a three-year time period.

Corporate Gifts: Can you use your business as a source for giving? If your company has a matching gifts program, you may be able to double or even triple the amount of your donation to Lakeline Church. See your company's Human Resources Department and ask them how you can set up a matching gift. This might create a tax benefit as well.

Unique Skills Income: If you have marketable hobbies or skills, dedicate all or a portion of the profits.

Additional Work Income: Take a part-time job or come out of retirement and dedicate the earnings.

Cash Flow: Give smaller amounts at higher frequencies. Weekly, semi-monthly, or monthly giving allows large gifts to be reached in smaller steps.

Q22: How can I give?

A22: You can give in various ways:

Checks or Cash: Write a check to Lakeline Church with "Possess Our Land" designated in the memo field and place it in the basket. Or if giving cash, put the cash in an envelope, write your name and "Possess Our Land" on the envelope, and place it in the basket.

Bill Pay: Set up a recurring transaction through bill pay at your bank. Your bank will cut the check and mail it to Lakeline Church.

Automatic Debit: Pick up an "Automatic Debit Contribution Form" from the Welcome Center or contact our Administrative Pastor, Steve Pryor (422-9531). After filling out and returning the form to Steve, your card will be automatically debited each month according to your preferences (which can be changed at any time by contacting Steve).

Online Giving: You can give online here.

Gifts-in-Kind: Often, people give non-cash assets such as stocks, bonds, property, collectibles, jewelry, or other items. In most cases, if such a holding has appreciated in value, the donor may gain a significant tax savings (avoiding capital gains taxes) by giving such an asset to the church (which pays no tax on the gift). For giving strategies that may have a tax-advantage for you, contact our Administrative Pastor, Steve Pryor (422-9531) for information about transferring such assets to the church.

Q23: Will I be able to change my 36-month commitment if I need or want to?

A23: Of course! Unforeseen circumstances may cause you to want to increase or decrease your giving commitment in the future. At any time during the 36 months all you'll need to do is ask for another commitment card and turn it in with your revised commitment!

Q24: Are we paying any fundraising consultant for this capital campaign?

A24: No.

Q25: When will our present lease end?

A25: Our present office lease will end October 2009. We can renew the school lease annually.

Q26: Why did we choose to go portable instead of staying in a storefront?

A26: Going portable and meeting in a school is the best way to accomplish our goals of doing effective ministry and acquiring land. There are many reasons for this:

First, in a school we have considerable lower financial overhead, and this will allow us to finance land. A bank would not lend us money with the financial overhead we had in a storefront.

Second, in a school we can move into our target area of Cedar Park and Leander. Most storefronts are outside of our church’s target area.

Third, in a school we can allocate money from our budget for land to supplement the funds we receive from our capital campaign.

Fourth, in a school we can do more effective local outreach into the community through advertising and community events.

Fifth, in a school we can give more to global missions and dedicate more resources to India.

Sixth, in a school we can hire adequate staff. A church our size should have at least three staff members. Going portable enables us to hire more staff, like an administrative assistant, a children's pastor, and a student pastor.

Seventh, in a school we can build on our pioneering spirit. The most effective churches in America have a pioneering spirit regardless of how old they are. A portable church is a pioneering church!

Going portable is a great opportunity to maximize our finances on staff, ministry, and land – three things we could not do well in a storefront. Churches that go portable are common, and the decision can lead to great effectiveness. Saddleback Church in California met in 79 different locations over a period of 15 years before they possessed their land, and they grew to over 10,000 people while they were portable! So, the low overhead that comes with being portable actually can strengthen and grow a church!