CAPITAL CAMPAIGN
FINANCIAL FEASIBILITY STUDY REPORT
September 23, 2009

EXECUTIVE SUMMARY

Overview and Background

Chartered in 1909, the UU Church in Eugene is starting its second century with plans to move from its home at 477 East 40th Avenue into a larger building with room to accommodate growth. The congregation currently has approximately 336 voting members plus 100-150 additional friends and has experienced consistent growth and attendance at Sunday worship services over the past decade. The congregation voted in May 2007 to “rigorously pursue finding and obtaining a new location for our physical church in accord with our principles.” The Building Project Oversight Committee (BPOC) was appointed to facilitate this research. During the two-year search for a new location, the congregation selected and settled a new minister, Rev. Stephen Ames, and worked to strengthen and grow its programs. After a thorough search, at the recommendation of the BPOC, the Board of Trustees made an offer in July 2009 to purchase the building and property at 1685 W. 13th Avenue in Eugene. The offer has been accepted by the seller, and the congregation is currently in a 60-day due diligence period, to determine if it will move forward with this proposed site, and is scheduled to vote in early November.

Study Methodology

The purpose of the financial feasibility study was to determine the level of interest in and potential financial support for the proposed capital campaign. The study tested the congregation’s capacity and interest in donating through outright gifts and pledges (to be paid by June 2013) a total of $1.25 million. UUA Congregational Stewardship Consultant Aggie Sweeney led the study and was joined by Mary F. Gleason. From September 11-17, 2009, they met in person or by phone with 60 individuals representing approximately 20% of the UUCE’s 247 donors (pledging units/households). The interview pool was chosen form a process designed to insure that a representative sample of the congregation is interviewed in a financial feasibility study. The study sample was designed to have approximately one-fourth of its interviewees from each of the four giving quartiles. Those donors making the largest financial commitments to the congregation were, by design, over represented in the study.

For the current year, UUCE’s members and pledging friends have committed a total of $343,964 to support the operating budget. Overall, the average financial commitment is $1,392.57 per donor unit (household) and the median is $700.00. This is a typical range for UU congregations, with many falling above or below this level. For capital campaigns, it is typical to see total giving at three times annual giving, if not greater.

Study Findings, Analysis, and Conclusion

Moving forward with the proposed capital project is a high priority for the congregation, ranking as 8.2 on a scale of 10, providing a strong mandate for deciding to purchase the new site provided due diligence is completed to the congregations’ satisfaction. While most support moving forward 10-15% are reluctant and another one out of five remains cautious. Many congregants have questions about the specific financial and building renovation plans and would appreciate answers before voting in early November and before pledging financial support (this fall or early spring).

Donors participating in the study indicated a high interest in making a financial gift or pledge (payable in the next few months to cover the down payment or over the next 3-4 years). Based upon the generous gifts indicated through the confidential interviews, and applying conservative formulas to project giving by the whole congregation, the projection for the total capital campaign is $1.1 million. The ten largest gifts needed to reach this goal have all been indicated (and some already paid). The congregation’s success in raising $1.1 million or more depends upon good participation in giving and generous pledges by those donors able to increase their financial support for the congregation.

Recommendations

Move ahead, following the congregation’s vote and approval, with a two-phase capital campaign to raise $1.1 million. The early gifts campaign, the first phase, is to secure gifts to be paid within the next few months to cover the down payment and demonstrate the congregation as the financial capacity to make future mortgage payments. The second phase, conducted in conjunction with the annual budget drive (stewardship drive) in the early spring is to secure pledges payable over the next 3-4 years (by June 2013).

Give all congregants the opportunity to make a gift in the early phase, yet recognize many will not be able to “write their checks” until later.

Develop a comprehensive growth and financial plan

Further define the capital budget and renovation plan for the new building and site.

Recruit additional campaign leaders, including 60 visiting stewards, to carry out the early spring campaign to secure financial commitments for the annual budget for the year starting in July 2010 and 3-year commitments for the capital plans.

Implement the “dual ask” campaign in the early spring (starting as early as February), with personal visits of all congregants.

Explore potential opportunities for additional revenue to complete the capital plans.

The complete 20-page report is available for review and posted on the church’s website at www.uueugene.org/FinFeasRpt09.html.

For more information contact Capital Campaign Co-chairs Kay Crider or John Wagner, or direct questions to Aggie Sweeney, CFRE, UUA Congregational Stewardship Consultant, aggies@collinsgroup.com or aggie@uua.org