The total amount of the project is projected to be $4.7 million. This includes a completed and furnished church, office area, gathering space, restrooms, elevator, storage, conference room, finished basement 11 classrooms, social area to seat 300 at tables, and an equipped kitchen. Contingency fees and archdiocesan tax are also included. At a later date, an additional $370,000 will be needed for paving the parking lots.

Can we reasonably expect to meet this goal?

Our parishioners are very generous. Each year we generate more funds than we spend. We assist the needy locally, nationally, and around the world. A feasibility study for this project was conducted by fellow parishioners. Results demonstrated that we can be successful with this project. Parishioners must be willing to pledge at suggested levels or higher, however. No doubt each of us will have to sacrifice in various ways, but to gain a facility for worship, education, formation, socialization, and administration that we can be proud of and that meets our needs and those of the future will be worth it.

Did the parish hire a fundraising firm to facilitate the capital campaign?

No. The capital campaign committee and building committee recommended to the parish council that we could undertake this project ourselves. We are relying upon the talent of fellow parishioners. The cost savings is substantial. Parishioners recognize the need for this project.

Are donations made to the capital campaign tax deductible?

Yes. The total amount of donations made to our project can be fully tax deductible. Parishioners will receive an accounting of gifts made to this campaign along with their regular adult envelope giving at the end of each calendar year. While not deductible, hopefully parishioners will also contribute labor as necessary. Building materials can also be donated and a tax deduction taken for the value of the materials.

Can donations of securities or grain be given? What is the tax advantage?

Yes. In addition to donations of cash, the parish can accept gifts of stocks, bonds, mutual funds, and real estate. If ownership of the security is transferred to the parish, the donor does not have to pay capital gains taxes and may also benefit from the charitable tax deduction based on the current market value. Donations of grain can be made as well and include tax advantages. Likewise, those over age 70 ½ can make gifts from their IRA up to $100,000 without incurring income tax on the money. Questions about these types of gifts should be directed to your tax preparer or to the parish who will refer you to the appropriate expert.

If I make a donation now, and the project doesn’t move forward, will the money be returned in full?

Yes. If the project does not come to completion, donors will be given an opportunity to either have their gifts returned or have their gifts retained by the parish in anticipation of a future capital project.

If I make a pledge now and the project changes significantly, am I bound by the pledge?

No. Pledge forms are created as a means for the parish to have an idea of what parishioners plan to donate. They are not legally binding documents. If a parishioner wants to increase or decrease the amount of a pledge, that is possible. As pledges are returned according to the suggested levels, the project will proceed as planned.

If something changes in my life (i.e. loss of job, serious illness, etc.) and I am unable to meet my pledge, what is my legal obligation?

Hopefully our parishioners will maintain their lifestyle or even improve it. Should something significant change their status negatively (or positively!), pledges can be changed. There is no legal responsibility for completing a pledge. However, the parish will enter into financial obligations based upon parishioner pledges and expected income. The parish will need to meet those responsibilities to function successfully.

What if pledges do not meet the expected project cost?

The building committee in consultation with the capital campaign committee will evaluate the situation at that point. Several things could happen: a.) the project could be altered slightly to reduce costs to meet pledged funds (i.e. utilize less brick or somewhat lesser quality materials); b.) parishioners could be presented with the amount of the difference and asked to increase their pledges to meet the deficiency; c.) the project could be altered significantly to meet the level of pledges and then parishioners would be consulted about the changes; d.) the project could be abandoned.

What are the projected monthly costs for maintaining the new site?

The annual cost of operating the church facility at Parkersburg (approximately 13,000 sq feet) is $ 4,500. The new church is planned to be 26,000 sq feet. Therefore we might expect the annual cost of operation of the new facility to be $ 9,000, which is approximately the same cost of operating the current churches at Dike, Reinbeck, and Grundy Center.

Will donations in addition to the pledge need to be made by parishioners over the next 3-5 years?

Yes. Donations made to fulfill pledges will be used to repay the building debt. Additional funds will be needed for parish operational expenses to maintain the facilities, pay salaries, conduct ministry, make repairs, etc. Thankfully our expenses are kept to a minimum and our parishioners have been generous. Our parish has run operational surplus budgets for at least six years.

Who will loan the parish the money for the new church facility? What is the interest rate?

The Archdiocese of Dubuque operates a deposit and loan system for the parishes of the diocese. Parishes that have money to save can do so with the archdiocese currently at a variable rate of 4.5 %. This money still belongs to the individual parishes and can be withdrawn at any time without penalty. Parishes that need to borrow money can do so from the archdiocese currently at a variable rate of 5 %. Therefore, when the parish needs to borrow money for this project, it will be done from the archdiocese deposit and loan.

How much money do we need to raise initially?

Typically the archdiocese requires that institutions seeking loans for capital projects have 60% of the necessary funds in hand and 40% in pledges. However, the archdiocese has waived this requirement for this project. In our case, the archdiocese requests that we accumulate the total cost of the project in 3-5 year pledges.

What if we do not pay back the loan in five years?

Hopefully, pledges will be fulfilled according to plan. Should the parish be unable to meet its repayment obligations, renegotiation will be necessary with the archdiocese. Thankfully they have been very patient and understanding in this regard. For example, after 10 years there is still $20,000 left on the building loan at Parkersburg.

Are monies raised in this capital campaign taxed by the archdiocese?

Yes. Funds raised through capital campaigns are taxed at the normal 11% rate by the archdiocese. Money raised through archdiocesan tax helps to educate seminarians, pay chancery staff, and carry out various ministries throughout the archdiocese. All institutions carrying out capital campaigns have encountered this tax. Exemptions are given, however, for education spaces. Thus, roughly half of our project will be free of tax.

What if I do not want to make a pledge, but plan to make donations to the project?

Making at least a guess of what you plan to donate will assist the parish greatly. We must show that we have raised the entire amount of the project in 3-5 year pledges to secure the loan. As was stated, people are not legally obligated to their pledges.

Can I make a pledge based upon bequest in my will?

Charity extended beyond the grave is highly commendable. Thankfully many parishioners and even people outside the parish make bequests. Unfortunately, such giving cannot be counted as a pledge since the funds may not be available at the time of death. Also, we hope that the parishioner would live beyond the pledge period!

Capital Campaign FAQ

What is the projected cost of the new church facility?