by Andrew Walter | Feb 1, 2024
The Rev. Andrew Walter, Canon to the Ordinary and Chief Operation Officer presented the new Stewardship Strategy for Parish Facilities and Finances at the 2024 Diocesan Convention.
Good Morning. I’m pleased to speak to you about one of the most consequential of our diocesan goals:
We will develop a stewardship strategy for our facilities and finances so that parishes are not constrained by building concerns.
During the diocesan-wide listening sessions that informed our strategic plan, one of the issues that kept coming up was the high cost of maintaining our church buildings and properties, and how those costs consumed a disproportionate portion of congregational resources that could otherwise be used for actual ministry.
As we emerged from the pandemic, this issue became more acute for many of us, as congregational income remained flat or even dropped, and higher inflation drove up maintenance costs. And for those congregations needing to refinance their mortgages, rising interest rates are forcing them to make larger– sometimes significantly larger–monthly payments.
The truth is, friends, our sacred buildings, despite their history, beauty, and architectural significance, are a financial liability. Toilets clog and overflow. HVAC systems breakdown, often at the worst possible time, and roofs need to be replaced – all of which consume financial resources.
Not long ago, I was speaking with our diocesan Treasurer, Jonathan Nicholas, about our buildings and their associated costs, and he said that church accounting is actually upside down. Congregations list their buildings and property as assets, but assets are defined as a source of future cash inflow, while in reality, our buildings are a source of cash outflow. So, for many of us, our facilities meet the technical definition of a liability.
As with all issues affecting congregational health and vitality, there are no easy solutions. There are, however, three ways to transform a church building from a liability into an asset, when vestries and congregational leaders are willing to make bold, faithful-filled decisions. As a diocese, and as diocesan staff, we can help provide resources and support for all three.
The three ways to turn a building from a liability into an asset are:
- Increasing Rental Income
- Redeveloping Church Property
- Selling a Building and/or Property
Let’s look at all three in more detail, starting with increasing rental income.
Many parishes already generate additional income by renting out space in their buildings. It may be the sanctuary that other faith communities will use for worship or it could be meeting and office space that outside groups will use to gather.
To maximize a building’s value as a source of income, it is essential for congregations to receive market rate rentals, and to do so, we will enlist the expertise of local commercial real estate brokers to assist vestries.
INCREASING RENTAL INCOME
Specifically, the diocese will have commercial real estate brokers on retainer to provide a market analysis of a neighborhood and an evaluation of parish space, so that vestries can clearly understand the going market rate in their area and what they can charge for rent. Such an analysis will be done upon your request.
We have already provided this assistance to congregations in several regions of the region and stand ready to help you.
These commercial brokers will also be able to help vestries market and lease space to potential tenants. In this situation, the vestry would enter into their own agreement with the broker. If and when the broker is able to secure a tenant for the vestry, the vestry would be responsible for paying the appropriate brokerage fee, upon execution of a final lease agreement.
Finally, the diocese will make available to all congregations template lease agreements that they can use when they lease space to other groups. This way, you will not have to draft your own agreements, but rather download an agreement from the diocesan website and tailor the agreement to meet your own specific needs.
Now, turning to the redevelopment of church property
REDEVELOPING CHURCH PROPERTY
In some situations, the best path or perhaps the only path forward for a parish will be to redevelop its church property. By using the term “redevelop”, I do not mean the renovation, repairing, renewing, or restoring of a building to good condition. By redevelop, I mean a vestry and parish partnering with real estate professionals to reimagine, replace, rehabilitate, and repurpose their buildings and properties. Recent examples here in the diocese include St. Anne’s in Northern Montgomery County and St. Thomas in Central DC.
This is a dramatic step, requiring faith and tenacity. Redevelopment is a lengthy, complicated process that involves government approvals, permitting, neighborhood engagement and legal guidance. From recent experiences within the diocese, we’ve learned there are many pitfalls in the redevelopment process, and congregations understandably struggle to manage all of the complications and details.
To help, the diocese is developing a roster of real estate professionals who can act as consultants, starting from the beginning when a vestry contemplates the possibility of redevelopment, through a market analysis and engagement with the community, and up to an evaluation of opportunities and partners. These consultants will not only have the necessary expertise in real estate, but also an understanding of the work and ministry of the church. Successful redevelopment will take into account the real estate, the neighborhood, and the congregation’s mission as followers of Jesus.
Recognizing that some parishes may not have the financial capacity to engage a consultant for some of the preliminary stages of the redevelopment process, the diocese will provide financial assistance in a manner determined by the circumstances of each church. If a vestry decides to move forward in redeveloping its property, the consultant would be compensated for their work by the vestry, with such compensation generated by income from the redevelopment.
As a reminder, any encumbrance of parish property requires approval from the Standing Committee of the diocese. Redevelopment projects almost certainly fall into this category. Therefore, a congregation seeking diocesan approval for redevelopment must be able to show how the redevelopment will lead to the long-term vitality and financial sustainability of a parish – based upon conservative financial projections – and the congregation must show it has done due diligence, including conversations with community leaders and stakeholders, so that everyone involved and affected by the redevelopment understands how the congregation’s sense of mission and the needs of the community are met by the project. This is transformative work of the highest order, and we want to help.
SELLING OF CHURCH PROPERTY
Lastly, the selling of church property.
Let me say first of all that none of us want to sell our property. Our church buildings are holy places, consecrated to God and made sacred by the generations who came before us to pray and worship. But, in all likelihood, some of us will have to sell property in the future.
A decision to do so would be incredibly difficult, but with all my heart, I believe it is better for a congregation to make a decision to sell while it still has a choice and a future, rather than wait until all assets have been exhausted and there is no choice, and no future for the congregation.
Any parish that must think about selling property will receive a lot of support from the Bishop, diocesan staff and leadership bodies of the diocese. We will walk alongside you. Together, we can mutually discern the long-term viability of the congregation. We can conduct a vitality assessment and review financial statements. We can identify real estate brokers who can analyze the property for opportunities and value. And, putting all of those pieces together, we can talk about a future, a new life, for a congregation unburdened by the stress and cost of maintaining buildings, and instead, focused on serving God and God’s people. Together, we can talk resurrection.
SUMMARY
In summary, the diocese will provide support to congregations seeking to
- Increase Rental Income
- Redevelop Church Property
- Sell a Building or Property
Within the next few weeks, there will be a dedicated page on the diocesan website with resources and more information, and of course, if you would like to speak with me about any of these options or possibilities, please reach out.
Thank you.
by EDOW | May 25, 2023
While “A Compelling Mission & Vision” is just one of seven vital signs identified by our Diocese [as areas that contribute to a healthy, growing church], I would argue that it’s the most important. A compelling mission and vision are the roots from which all the other vital signs grow.
The Diocesan Vital Signs resources suggest that a parish’s mission and vision are “vital” when they are stated clearly, when all of a parish’s ministries are aligned to that mission and vision, and when the mission and vision are supported by all levels of ministry leadership.
The way we’ve approached this work at St. Margaret’s is by articulating a clear, concise, and relatively permanent purpose statement, and a longer, specific, and measurable five-year vision statement. Both were a result of a strategic planning process, which we undertook in 2019 through engagement with the Unstuck Group.
Our purpose statement is in essence our mission: an articulation of why we exist. For us, it was useful to articulate this through the lens of our neighborhood’s demographics and the new people we hoped to reach. Of course, it also is informed by and resonates with those who are already part of our faith community.
St. Margaret’s purpose statement is:
St. Margaret’s is a warm place to renew faith in God, care for one another, and thrive in a diverse, LGBTQIA-affirming, and inclusive community.
Our vision statement is future-oriented–an articulation of where we’re going. And we’re not talking about 100 years from now–just five. After five years have passed, the intention is to repeat the process, recasting a new vision for the next five years. Year by year, the vision statement serves as a roadmap for our ministries and a filter for our priorities.
To discern our vision, we prayed, asking the question, “What is God’s preferred future for St. Margaret’s?” The resulting statement is our faithful answer.
St. Margaret’s vision statement begins: “Drawing on the diversity of our people and their gifts, with God’s help we will grow spiritually and numerically over the next five years by…”
We then list three overall “buckets,” each of which are action-oriented. In other words, they’re gerund verbs–each an articulation of how we aim to grow.
St. Margaret’s vision states that we seek to grow by:
-
- Inspiring every person to experience the love of God in Christ;
- Educating disciples of Christ and equipping people to put their faith in action;
- Growing generosity and neighborliness.
Under each of these three areas, we then list three specific objectives we hope to accomplish. Under the first, “Inspiring every person to experience the love of God in Christ,” we list goals related to worship; hospitality and newcomers; and sacramental commitments. We also track various metrics related to each objective. For example, under the second, “Educating disciples and equipping them to put their faith in action,” we measure parish engagement. That is, what percentage of our active members are engaged in formation programs, are serving regularly as worship leaders, or are volunteering through our outreach programs. By 2026, we’re shooting for the lofty goal of 100% engagement.
Similar to the process the Diocese is following with its strategic plan, St. Margaret’s Vestry meets annually to set three priorities for the year, informed by our self-assessment of the gaps between our vision’s objectives and where we currently are. Setting these priorities has arguably been one of the most challenging aspects of this work. Now that we have an energizing vision of where we want to go, it’s hard to slow down and acknowledge that we can’t accomplish everything in just one year. We’re constantly reminding one another, “This is a five-year vision–not a one-year sprint.”
You can check out St. Margaret’s full Purpose and Vision here.
For any parish considering the work of strategic planning and visioning, I highly commend you to make it a priority. For us at St. Margaret’s, it has been a vital, clarifying, and energizing tool, which has helped us align our purpose and calling with our day-to-day, year-by-year activities and resources. To God be the glory.
The Rev. Richard Weiberg
Rector, St. Margaret’s Episcopal Church, DC
In the coming months, we will continue to highlight parishes in the Diocese that exemplify each of the Parish Vital Signs through a story they share about their ministry. Read the series launch article
by EDOW | Feb 16, 2023
In early 2021, the congregation of Trinity, Upper Marlboro faced a painful truth: that their beloved parish could not survive much longer given the circumstances they faced. Rather than ignore the signs, Trinity’s leaders proactively requested to undergo a Canon 54 Diocesan Stewardship and Parish Viability assessment, becoming the first congregation in the diocese to go through the process after the canon’s approval at a special diocesan convention in the spring of 2021. They hoped to receive guidance around determining next steps for tending to finances and developing strategies for new ministries that would appeal to the people in the surrounding community.
The initial recommendation from the assessment committee, based on the state of Trinity’s finances and the leadership available, was to close. But during the period of the assessment, new life began to blossom in the parish. New leaders stepped forward, the church’s spaces were beautified, and a new ministry for children was planned. With this hard work of the members, Diocesan Council, rather than closing the parish, decided to change the parish to an organized mission status and to explore shared ministry with nearby St. Thomas’, Croom.
Under this new mission status, the Rev. Dr. Peter Antoci, rector of St. Thomas’, would be appointed as part-time Vicar of Trinity for one year with the Rev. Thomas Bauer serving as Sunday Chaplain. The twelve months would serve as a testing period for leadership and for the viability of Trinity, with the main goals being 1) to develop a plan for financial sustainability, 2) to engage the leadership of St. Thomas’, Croom regarding opportunities for coordination and collaboration in ministry, and 3) to commit to a renewal plan for Congregational Vitality. Trinity’s first service as a mission took place on July 31, 2022.
The Rev. Anne-Marie Jeffery, Canon for Congregational Vitality has been working with Trinity leaders on their renewal plans, and says from the first time she met with them, “The people of Trinity were energized and already had a sense of new ministries they wanted to try. They had created the Claggett Cafe, a space to have coffee hour that was near where worship happened, so people could easily be greeted and have a place to connect. A grant had been applied for and received to offer a program for children in the evenings to give parents a break.”
With some teaching about congregational renewal best practices, the Seven Vital Signs of Parish Health, and a study of the demographics of the surrounding area, the congregation’s commitment to the necessary renewal and vitality work deepened. During the fall of 2022, the new mission prepared to host a community event – the dedication of the monument celebrating the 100 year anniversary of Crain Highway. Volunteers at the mission also planned to walk the neighborhood so they could see with new eyes how they might be a blessing to the wider community.
The main focus of their renewal plan is the creation of Fit and Faith, a Friday evening program for children ages pre-K to sixth grade that draws on the strengths of the mission’s many educators and leaders in the surrounding community. The program will include arts and crafts, indoor and outdoor play, cooking, career awareness, and music awareness, with the particular hope that, through their participation in Fit and Faith, both children and parents will experience the gift of being in community – an experience important in the life of Trinity, Upper Marlboro and one its members are eager to share.
After a recent check-in, Canon Anne-Marie is pleased to report that Fit and Faith is well underway and the first informational meeting for parents will take place on February 17th. To get the word out, organizers have been advertising the program with the local school as well as with a large after school program. They are also reaching out to the area churches and have made arrangements with Prince George’s County Board of Education for this program to be a site for junior and high school students to get their service hours. By the end of May, organizers anticipate they will have held at least six sessions.
The Fit and Faith program is an example of what’s possible when a faith community focuses on one of the vital signs of parish health – in this case, blessing our community – with the intention of serving the needs of the people of that community. The members of Trinity Mission are finding hope and sowing the seeds of renewal in their good work.
Trinity has also made progress in their long-term financial planning, another key part of their renewal efforts. They are on track to end 2023 with a balanced budget.
On January 17th 2023, Trinity Mission held its Inaugural Eucharist & Formal Organizing Meeting, followed by a reception. St. Thomas’, Croom was well-represented at this celebration as the two congregations continue to collaborate and share life together.
