Frequently Asked Questions
Why are we having this campaign now?
There are two reasons. First, it was written in our 2019 loan covenants that we would run a capital campaign to reduce our debt below $1.0M as soon as we opened the addition on our building. That campaign was supposed to happen in 2020-2021; however, due to the pandemic, that campaign never happened. We are required by our lender to run this campaign in 2025. Second, we are spending just under $200,000 a year on principal and interest. As we grow, those funds need to be diverted to expanding our ministries and mission activities.
It feels like we just ran a campaign to raise money in July 2024. Why are we doing it again?
In 2024, our operating income from month-to-month pledges and offerings was significantly behind our already decreased spending. In March, we forecasted that we would be out of operating cash by early July. We did a special, one-month campaign to increase our ongoing giving to cover our operating expenses, which include salaries, facilities, administration, and our ministry programs. With an increase in congregants’ monthly giving as well as some one-time gifts, we were able to secure a strong financial foundation, thus allowing us to turn our attention to our debt.
Why do we have two mortgages?
The first mortgage was taken in 2014 for the construction of the original church building. Based on how quickly membership was growing and the projection of continued growth, a decision was made in 2017 to add on a new, larger sanctuary to accommodate the church and Dripping Springs’s growth. This mortgage was taken in November 2018. Together, our original loan amount was $2,687,000.
Have we paid any of our loans off?
In January 2022, the loan balance stood at $2,190,000. Thanks to the generosity of a few folks in 2022, we paid down our debt by $200,000, resulting in a savings of $15,200 a year. The stipulation for receiving this money was that the savings on principal and interest would only be used for Missions. We currently fund our missions with this $15,200 annually.
Why do we have a variable-rate mortgage? Why did the interest rates go up?
DSPC’s loans are with the Presbyterian Investment and Loan Program (PILP). Options for most churches are limited, relegated typically to a bank within the denomination. Unlike your typical home loan, an adjustable-rate mortgage is the industry standard for church loans. PILP mortgage rates are not locked in for the duration of the loan and adjust every 3 years. Our interest rates jumped 2.0 and 2.5 percentage points because both terms expired when the market rates were high.
Why don’t we shop around for a better interest rate?
PILP is the principal lender for Presbyterian churches, due to their flexibility and commitment to church growth and ministry success. Last year, the Finance Team negotiated to pay interest only for a good portion of 2024 due to being strapped for operating cash. Other banking alternatives would not have offered that flexibility. At the time of this writing, their rates are and tend to be below market rate. The finance team continues to monitor the interest markets with an eye to when we might renegotiate the loan for better interest rates.
What happens if we do not raise the full $1.8M during this campaign?
No matter how much we raise, the funds will be used to reduce our mortgage principal. Any amount that we pay down will result in less principal and interest being paid and therefore more money we will have to put into our ministry programs.
Isn’t it healthy to have some debt?
Debt can be beneficial if you are borrowing money for something that has the potential to increase in value or expand potential income. Since selling our building is not an option, our debt is preventing us from expanding our missions and ministry programs.
What percentage of households currently give to the operating budget?
Currently, 96% of our households give towards the operating budget. This should not be confused with how many submit pledge cards, which inform the Treasurer of how much they plan to give in a given year, thus aiding in the development of a budget. Over the years, the number of folks who provide a written pledge has significantly decreased across most churches as new generations fill the seats and are unaccustomed to pledging.
How is this different from our annual stewardship campaign?
Our annual stewardship campaign typically runs in the fall and funds the church’s annual budget. Our Imagine campaign will reduce debt on our building loan so that we can grow our ministry programs. We ask that your Imagine gift be beyond your annual stewardship giving, not as a substitute.
What is the financial expectation for each household?
We invite every household in our congregation to be part of this season of prayerful discernment, praying a simple prayer, “Lord, what do You want to do through me?” We hope that each DSPC household, in sensing the leading of God, will participate in the campaign by making a sacrificial three-year commitment. As we each determine our part and make the sacrificial commitment we feel compelled to give, we believe we will raise the funds needed to fully fund this campaign vision. Gift size will vary numerically, as each household is gifted in different measures financially. “Not an equal share, but an equal sacrifice.”
How will commitments be requested? When does the 3-Year timeframe start?
A commitment card will be mailed at the end of May, and you will be asked to make a commitment by returning a commitment card by June 7. The 3-year timeframe begins, therefore, in June 2025.
Do I need to give all my 3-year commitment this year?
No. You can make a 3-year commitment and give that amount over the next 3 years. You can set it up online, through ACH (bank withdrawal), or physical check. Of course, you can give the full amount upfront should you be in a position to do so.
How do I know the funds collected will be used to pay down our debt?
We have excellent systems that allow us to track funds separately for different causes, such as our operating budget, missions, designated giving to special causes, and the Imagine campaign. We will also report quarterly on our progress and share it with the congregation. And just as we post our monthly financials on our website, we will do the same with this campaign.
There are two reasons. First, it was written in our 2019 loan covenants that we would run a capital campaign to reduce our debt below $1.0M as soon as we opened the addition on our building. That campaign was supposed to happen in 2020-2021; however, due to the pandemic, that campaign never happened. We are required by our lender to run this campaign in 2025. Second, we are spending just under $200,000 a year on principal and interest. As we grow, those funds need to be diverted to expanding our ministries and mission activities.
It feels like we just ran a campaign to raise money in July 2024. Why are we doing it again?
In 2024, our operating income from month-to-month pledges and offerings was significantly behind our already decreased spending. In March, we forecasted that we would be out of operating cash by early July. We did a special, one-month campaign to increase our ongoing giving to cover our operating expenses, which include salaries, facilities, administration, and our ministry programs. With an increase in congregants’ monthly giving as well as some one-time gifts, we were able to secure a strong financial foundation, thus allowing us to turn our attention to our debt.
Why do we have two mortgages?
The first mortgage was taken in 2014 for the construction of the original church building. Based on how quickly membership was growing and the projection of continued growth, a decision was made in 2017 to add on a new, larger sanctuary to accommodate the church and Dripping Springs’s growth. This mortgage was taken in November 2018. Together, our original loan amount was $2,687,000.
Have we paid any of our loans off?
In January 2022, the loan balance stood at $2,190,000. Thanks to the generosity of a few folks in 2022, we paid down our debt by $200,000, resulting in a savings of $15,200 a year. The stipulation for receiving this money was that the savings on principal and interest would only be used for Missions. We currently fund our missions with this $15,200 annually.
Why do we have a variable-rate mortgage? Why did the interest rates go up?
DSPC’s loans are with the Presbyterian Investment and Loan Program (PILP). Options for most churches are limited, relegated typically to a bank within the denomination. Unlike your typical home loan, an adjustable-rate mortgage is the industry standard for church loans. PILP mortgage rates are not locked in for the duration of the loan and adjust every 3 years. Our interest rates jumped 2.0 and 2.5 percentage points because both terms expired when the market rates were high.
Why don’t we shop around for a better interest rate?
PILP is the principal lender for Presbyterian churches, due to their flexibility and commitment to church growth and ministry success. Last year, the Finance Team negotiated to pay interest only for a good portion of 2024 due to being strapped for operating cash. Other banking alternatives would not have offered that flexibility. At the time of this writing, their rates are and tend to be below market rate. The finance team continues to monitor the interest markets with an eye to when we might renegotiate the loan for better interest rates.
What happens if we do not raise the full $1.8M during this campaign?
No matter how much we raise, the funds will be used to reduce our mortgage principal. Any amount that we pay down will result in less principal and interest being paid and therefore more money we will have to put into our ministry programs.
Isn’t it healthy to have some debt?
Debt can be beneficial if you are borrowing money for something that has the potential to increase in value or expand potential income. Since selling our building is not an option, our debt is preventing us from expanding our missions and ministry programs.
What percentage of households currently give to the operating budget?
Currently, 96% of our households give towards the operating budget. This should not be confused with how many submit pledge cards, which inform the Treasurer of how much they plan to give in a given year, thus aiding in the development of a budget. Over the years, the number of folks who provide a written pledge has significantly decreased across most churches as new generations fill the seats and are unaccustomed to pledging.
How is this different from our annual stewardship campaign?
Our annual stewardship campaign typically runs in the fall and funds the church’s annual budget. Our Imagine campaign will reduce debt on our building loan so that we can grow our ministry programs. We ask that your Imagine gift be beyond your annual stewardship giving, not as a substitute.
What is the financial expectation for each household?
We invite every household in our congregation to be part of this season of prayerful discernment, praying a simple prayer, “Lord, what do You want to do through me?” We hope that each DSPC household, in sensing the leading of God, will participate in the campaign by making a sacrificial three-year commitment. As we each determine our part and make the sacrificial commitment we feel compelled to give, we believe we will raise the funds needed to fully fund this campaign vision. Gift size will vary numerically, as each household is gifted in different measures financially. “Not an equal share, but an equal sacrifice.”
How will commitments be requested? When does the 3-Year timeframe start?
A commitment card will be mailed at the end of May, and you will be asked to make a commitment by returning a commitment card by June 7. The 3-year timeframe begins, therefore, in June 2025.
Do I need to give all my 3-year commitment this year?
No. You can make a 3-year commitment and give that amount over the next 3 years. You can set it up online, through ACH (bank withdrawal), or physical check. Of course, you can give the full amount upfront should you be in a position to do so.
How do I know the funds collected will be used to pay down our debt?
We have excellent systems that allow us to track funds separately for different causes, such as our operating budget, missions, designated giving to special causes, and the Imagine campaign. We will also report quarterly on our progress and share it with the congregation. And just as we post our monthly financials on our website, we will do the same with this campaign.