1. Transfiguration Expansion Project Financials

2. Topics Project Financing Overview Fundraising & Pledge Program
Obtaining Credit
Convincing our bank that we are capable of assuming a loan
Mortgage Servicing Strategy
Convincing ourselves that we are capable of handling loan obligations

3. Project Financing Overview
Total Project Cost
$4M
Down Payment
$2M
Mortgage Loan
Mortgage Payment Set Aside $0.5M
Fundraising
$1.5M
Multiple scenarios address community’s needs in $3M-$4M price range
Growing community demonstrates need for near-term action
Conservative approach needed to avoid over-burdening the community with debt
50 / 50 debt to equity split balances need for near-term action with financial conservatism
Financial strategy needs to demonstrate an ability to cover mortgage payments long-term

4. Fundraising & Pledge Program
Project Financing
$2M loan
$2M down payment
Down payment achieved through $0.5M mortgage payment set aside & $1.5M fundraising campaign
Fundraising Campaign
$1.5M capital campaign needed to prepare down payment over next 4 years
$375K per year increase in individual giving, fundraisers, etc
Achievable goal given past success raising funds for sanctuary, icons, walkway, etc
Schedule at right shows pledges needed to secure $1.5M in funds over 4-year campaign
4-Year Giving Schedule
$1.5M over 4 years
Near-term fundraising unlocks long-term borrowing options

5. Credit Evaluation Metrics
How can Transfiguration convince our bank that we are credit-worthy partners?
Banks use multiple metrics to evaluate credit worthiness (see examples at left)
General evaluation categories:
Revenue relative to loan payments
Total amount borrowed vs collateral pledged
Operating strength (members, attendance, etc)
Project financial targets aim for an “above average” or “outstanding” ranking in key credit metrics
Key Financial Objectives:
Increase recurring revenue by 8% per year for next 4 years
Control costs by putting 70-80% of increases in revenue aside to cover future loan payment

6. Mortgage Servicing Strategy
How do we show ourselves that we are ready to take on mortgage servicing obligations?
Anticipated Mortgage Payment- $14K
$3.5K
Achieved
$14K per month anticipated mortgage payment
Need to demonstrate ability to sustain payments
Set aside increasing monthly sums funded out of recurring stewardship revenue until reaching level of expected mortgage payment
Revenue growth and expense discipline needed to grow “set aside” to support mortgage payment
Strategy results in $500K set aside towards down payment over 4 years