Archdiocesan Procedures Detailed
The information below was obtained from the Archdiocese on November 20, 2007 and is the most up to date detailed guide on how to proceed with funding a project. If the Parish decides to move forward with a project that requires us to borrow money, the steps outlined will need to be followed.
ARCHDIOCESAN BUILDING, FUND-RAISING AND LOAN PROTOCOL
FOR PARISHES, SCHOOLS OR AGENCIES
Revised - February, 2007
Pastors, Principals and Agency Directors are commended for their dedicated leadership as they strategically plan for the future. Such stewardship of monies and collaboration with volunteers and donors continue to strengthen our local Church as she follows those predecessors who have made our Archdiocese vibrant. In the end, we combine our mission “to fulfill our Baptismal calling by prayer and worship, teaching and sharing our faith, serving others and fostering unity in diversity. Guided by the Holy Spirit, we commit ourselves to the responsible stewardship of all God’s gifts”. (Mission Statement – Archdiocese of St. Louis)
Following are the procedures when embarking upon a project(s) of building, raising funds and/or seeking a loan.
§ Clearly define with parish leadership the nature and scope of the project concept. Schools and agencies should involve their Board of Directors or Advisory Councils. Parishes should involve the Parish Council and the Parish Finance Council.
§ Write to the Archbishop requesting approval for proceeding with the project concept exploration (i.e. explaining the case and strategic plan, architect, financing and fund-raising).
§ Please copy the Vicar General for Finance and Administration as well as appropriate office director(s) on all letters. (See page 5 for address)
FOR BUILDING COUNSEL
§ After approval of the project concept by the Archbishop, contact the Director of the Office of Building and Real Estate to become acquainted with Archdiocesan building policies and procedures. It will be necessary to follow these policies and procedures throughout the entire project. In consultation with the Office of Building and Real Estate, select an architect to develop cost projections and preliminary drawings.
§ Contact the Director of the Office of Worship for any renovation of chapels, churches or the building of new churches. It is necessary to submit preliminary drawings to the Archbishop, the Vicar General for Worship and the Director of the Office of Worship. All church designs, especially those affecting the tabernacle, need to be reviewed for liturgical and pastoral suitability. The Archbishop must grant written approval for all Church designs. Any change made in the course of the project also needs the approval of the Archbishop.
IF THE PROJECT CAN BE FULLY FINANCED FROM EXISTING FUNDS
§ Once the project costs and strategic plan for payment are identified write again to the Archbishop, requesting authorization to execute the project. A copy of this letter should be sent to the Vicar General for Finance and Administration and appropriate office director(s).
§ Once the Archbishop gives authorization to proceed with the project, the Parish, School or Agency (P/S/A), in consultation with the Office of Building and Real Estate, is ready to request bids and select contractors. The Director of the Office of Building and Real Estate shall negotiate and sign all construction contracts.
IF THE PARISH, SCHOOL OR AGENCY IS IN NEED OF RAISING FUNDS FOR THE PROJECT
§ Write to the Archbishop summarizing the project status, defining the costs and requesting approval to proceed with a feasibility study at a determined time. A copy of this letter should be sent to the Vicar General for Finance and Administration and the Chief Development Officer.
§ After written approval of the Archbishop to conduct a feasibility study, contact the Chief Development Officer for guidance in the selection of a professional consultant to conduct the study. The feasibility study will ascertain the level of donor support, the potential for a capital campaign and the optimum timing for a campaign. The feasibility study results may indicate that the preliminary case statement (plan) should be redefined.
§ Choose the firm and sign the contracts.
§ When the campaign feasibility study is complete, write to the Archbishop informing him of the results, attach a copy of the feasibility study and request permission for a specified time to proceed with the capital campaign. A copy of this letter should be sent to the Vicar General for Finance and Administration and the Chief Development Officer.
§ After written approval of the Archbishop to proceed with the capital campaign, the Pastor, Principal or Agency Director may sign the consultant contract. Inform the Chief Development Officer when the contract is signed. Most likely, the same professional consultant who developed the feasibility study will conduct the capital campaign. If it is not the same consultant, notify the Chief Development Officer.
§ The parish, school or agency is responsible for updating the Chief Development Officer on a monthly basis regarding the status of the campaign.
SPECIAL NOTES
Note #1: All Capital Campaign Funds are donor-restricted and should be in a separate cash account, and can be used only for the purpose intended. Since Capital Campaign Funds cannot be used for operations, they are considered to be surplus funds, which by statute should be kept on deposit with The St. Louis Archdiocesan Fund. Also, in accordance with Archdiocesan policy, all capital campaigns funds are included in the parish assessment base. For these purposes, these funds are included in the base for the years collected, not the years pledged. This assessment replaces any past fees incurred by parishes, schools and agencies from Archdiocesan offices (i.e. Building and Real Estate, Legal Counsel, Finance and Development).
Note #2: Notify the Chief Development Officer of any extraordinary donations during the capital campaign. These might include “matching gifts” or “challenge grants”. The Chief Development Officer will assist the P/S/A in monitoring and complying with any requirements to qualify for a matching gift or challenge grant. All correspondence with “matching gift” or “challenge grant” organizations must be reviewed in advance by the Chief Development Officer for compliance with Archdiocesan policies and principles.
IF THE PARISH SCHOOL OR AGENCY WILL NEED TO BORROW FUNDS
§ Contact the Finance Office to obtain a Preliminary Analysis of Debt Service. This will be a preliminary indication of the amount the parish can borrow based on historical financial performance. It is not a firm commitment to lend but will allow the Parish or Agency to plan for project funding. You can request this at any time, and early in the planning stage will prove beneficial for you.
§ After completion of a feasibility study, and costs have been refined, determine the loan amount needed. Inform the Archbishop with an updated description of the project, the project costs, campaign results and, if approval has not been previously granted, request permission to apply to The St. Louis Archdiocesan Fund (the Trust) for a loan.
§ The Finance Office can deliver a loan application package by email or via the U.S Postal System. Complete the loan application form and provide other requested documentation to the Property and Financing Committee (PFC) of The St. Louis Archdiocesan Fund (SLAF). This Committee requires that 50% of the cost of the project be on deposit with SLAF at the time of application for a loan and that a recent internal audit report be available for review. You may be requested to make an oral presentation to the PFC, describing the project and proposing a repayment plan.
§ The Property and Financing Committee, as delegated by The St. Louis Archdiocesan Fund Trustees, will make a recommendation to the Archbishop relative to the loan application. The Archbishop will communicate to the Parish or Agency the decision of the Trust regarding the loan, as well as any conditions the Trust has required for loan approval.
§ If loan approval is granted, the Pastor, as officer of the Parish Corporation, will be asked to sign a promissory note and loan agreement that sets the maximum loan amount and articulates the loan repayment terms. The Chair of the Parish Council and the Parish Finance Committee will be requested to acknowledge, by written signature, their knowledge and acceptance of the promissory note and loan agreement. A promissory note to a School or Agency will require the signature of the Director or Administrator, along with acknowledgement by at least one Board member (preferably the Chair of the Board) or other appropriate party. The initial note will require that interest only be paid monthly during the period of construction. Prior to loan approval, project-designated cash reserves must be separated into a special disbursement account with SLAF restricted for the payment of approved project costs.
§ In consultation with the Office of Building and Real Estate, you are ready to request bids and select contractors. All change orders must be submitted to the Office of Building and Real Estate for approval. Before change orders can be approved, you must be able to satisfactorily demonstrate to the Office of Building and Real Estate your ability to either fund the additional amount from your own reserves or service the resulting increase in debt. Any increase in debt must be requested from
§ and approved by the Property and Financing Committee. Advances from the loan can only be requested after cash raised and designated for the project is disbursed.
§ Submit all construction invoices to the Office of Building and Real Estate for approval. Approved invoices will be forwarded to the Finance Office for payment, and charged to the project account or approved loan. An acknowledgement of the paid invoice will be returned for your files.
§ After construction is completed, contact SLAF and inform them of the completion. A renewal note will be sent specifying the monthly payment required to repay the debt within the time approved, and any other terms of repayment.