Building Committee Work Step Guidelines

By Clair O. Langebrake

The objective of this book is to provide resource material for those members and organizations planning on physical growth of their facilities. It includes information relative to land procurement all the way through building construction and completion. The book's perspective is that of a land acquisition and or building committee member. While much of the material presented is aimed at church physical growth, it will also be helpful to any organization's expansion committee planning to buy land and build.

• Language: English
• Publisher: Page Publishing, Inc.
• Release date: Sep 3, 2019
• ISBN: 9781645841524

Book preview

PLANNING CHURCH PHYSICAL GROWTH

This chapter of the book gives three key steps to planning church physical growth. Church physical growth does not happen without planning for it. However, few churches actually have a clear-cut plan for adding to their facilities. Sooner or later, someone or a group in a viable church will be concerned about how the church might physically expand. Finally, some action will be taken. There are many advantages to starting early to plan for growth even though a church may see no immediate need for it. The following are recommended steps to be taken in planning for church physical growth.

Section I.1: Set Up a Church Physical Growth Committee

The actual name of the committee may well depend on the scope of responsibility the church wants to give it. If the church is in need of land to grow, it should immediately set up a land acquisition committee or a committee with similar responsibilities that can plan and act when land becomes available. It is unlikely that when a church does decide it needs to expand, that land will somehow, all of a sudden, become available. With a land acquisition committee set up, the church is prepared to pursue purchasing action when land does become available even though it may be over an extended period of time.

If land is already available and the next step is to plan to build, then set up a building committee early. There are many things that need to be done in advance of actually building as will be described later.

It is equally important to find a person who is willing to be chairman of the group. This may be a commitment that will last several years, and consistent leadership is important. The land acquisition committee chairman may well wind up being the building committee chairman. Do not leave it up to the committee being formed to decide who will be chairman. Too often this can result in an odd man out decision without a commitment to serve. The church needs to ask a person and get a commitment in advance for this committee to function efficiently over the years ahead.

It is highly desirable to have members on any building or land acquisition committee who have backgrounds in areas related to the job to be done. Anytime improvements to a church are contemplated, it is an opportunity for the church to catch up with the latest technology. Churches do not muster the enthusiasm needed to improve or build easily, and years can elapse between improvement steps. The church will want to take advantage of this opportunity by choosing people who are familiar with new relevant technologies and the construction field. If an architect is chosen to do the design work, he will be familiar with many new technology items and can lead the way. However, there are instances where smaller churches will choose to hire a contractor and do much of their own design work. In this case, the church can miss the opportunity to work newer technology into their church facilities. The main concern is in the computer, sound, video, and lighting areas. It is important to realize that the church is in the business of inspiring its constituents. Early planning by knowledgeable people can significantly add to the level of inspiration achieved when newer technologies are used.

People selected from the following work experience areas can make good members of the building committee: electricians, plumbers, technicians familiar with HVAC systems, lighting equipment, audio/video equipment, computers and networking, engineers in various related fields, electronics, telephone equipment, contractors, architects, real estate agents, company managers, bankers, lawyers, professional fund-raisers, business owners, and others.

Section I.2: Give the Committee the Authority to Act

The authority of the land acquisition or building committee(s) to act should cover a fairly wide range of activities. While it is the responsibility of the administrative group of the church to define the authority of the committees, it is almost never put in writing. One of the main reasons for defining the committee’s responsibilities early is to save time later when time matters.

Some of the areas in which the land acquisition or building committee should have authority to act are as follows:

Purchasing land

Arranging for bank loans

Initiating contracts with various companies

Applying for a demolition permit

Negotiating with city/county authorities for zoning variance

A land acquisition or building committee without approval to spend funds or have access to available funds is severely handicapped. For instance, they simply can’t act as fast as the real estate market may require to purchase choice land. Getting church approval to just purchase the land can consume valuable time, let alone the time needed in trying to get suitable funding.

Another reason for wanting to act speedily is to not jeopardize earnest money. When making an offer on a piece of property, earnest money (part payment for the property) must be deposited to guarantee the offer’s sincerity and fulfill a legal requirement. Associated with this payment is a commitment by the buyer to complete the purchase of the property within a specific amount of time. The earnest money could be in jeopardy of being lost if the time limit is exceeded.

Many of the committee’s activities will require coordination with other church groups, such as the church secretary, church treasurer, and church trustees. It is important that all building committee bills first come to the building committee for approval. This permits a determination to be made by the land acquisition or building committee that any billing for work or items is appropriate. The committee will know if the work has been done satisfactorily or if items ordered have actually arrived.

The church secretary will normally send all bills to the church treasurer for payment. The secretary may have difficulty determining which bills the land acquisition or building committee may need to see. A procedure may need to be set up for the secretary to, when in doubt, check with the building committee chairman concerning disposition of a bill. The point is that the same double check system needs to be set up so that inappropriate payments do not occur. If action and approval procedures have not been established by the time that the land acquisition or building committee starts meeting, then one of the first acts of the committee should be to get approval to act in the various areas needed.

Section I.3: Start a Homegrown Capital Improvement Fund

Leadership in any church should consider the possibility that they will want to expand their facilities at some point in the future. It is worth starting a capital improvement fund and even though it is not likely that such funds would be used in the near future. There are always those in any congregation who are interested in seeing the church grow and are willing to contribute to such planning. This is a way of accumulating funds for the church that would otherwise be lost. Down the road, when a growth plan is more developed, it may be wise to hire a professional fund-raising company to enhance giving to the growth project. Such a step may not be necessary if only land is to be purchased. For the moment, plan on starting a homegrown capital improvement. Start a publicity campaign within the church to advertise the need for the funds.

When starting a homegrown capital improvement fund, it is highly desirable to prepare special envelopes for the purpose. Small envelopes can be printed or rubber-stamped with appropriate words like Building Fund, Expansion Fund, Capital Improvements, etc. The envelopes are not only a collection device but also a publicity medium when left in church pews.

The objective of the building fund needs to be spelled out in writing. These objectives will be the basis for the publicity to raise funds. They should also be presented to the congregation verbally. Beware of those who want to spend such funds for sideline objectives. Once some people see these assets growing, they will want to spend them. It is wise to suggest that they start their own fund-raising. If the objectives of the fund are written, it is harder to justify using them for something else. It is unethical to raise funds for one objective and spend them for another. There have been legal cases decided based on whether money spent by a church is truly spent for the announced objectives for which the funds were raised (Jimmy Baker case).

One of the main uses of such funds is to purchase land that may become available and require the church to act in a short period of time. Such growth funds could be used to purchase land adjacent to the church or a larger piece of land at the edge of the city. There is a big advantage to the church if it is prepared to strike while the iron is hot, so to speak. Mustering support to purchase land at the last minute is difficult, let alone getting funds together to purchase it. Often real estate is available only on a short-term basis, and this is particularly true if it is a choice piece of land. No church should be without a church-recognized capital improvement or church growth fund. Choosing a good name for the fund can be important.

Another point that should be made here is that any funds raised in this way should be invested in an insured interest-bearing savings account that grows. Do not put these funds in the church’s checking account where little or no interest is gained. These funds must be available for the objectives for which they were established. If a capital improvement fund is not set up as soon as possible, the church is essentially loosing these funds and the interest they can gain. This is a significant loss to the church or any church that hopes to grow. These funds can significantly reduce what has to be borrowed in the future to buy land or build.

Once these three steps have been taken, the land acquisition and/or building committee is ready to act. They can now set up a plan of action and proceed efficiently. Chapter II, Purchasing Property, contains steps that the committee should review and follow as they relate to the individual church’s established procedures and needs.

CHAPTER II

PURCHASING PROPERTY

This chapter of the book first describes things to consider when preparing to buy property. It then describes steps that the land acquisition committee and various professional groups will likely take in the process of purchasing property. The land procurement steps will be particularly helpful to those who have not been through a property transfer before. Finally, a list of things to consider when renting facilities on newly purchased property are reviewed.

Section II.1: Prepurchasing Considerations

There are several things that the land acquisition committee should review before actually committing to buy property. As was previously pointed out, it is well for all churches to have a capital improvement fund with a savings account that is separate from the church checking account. If such funds are available, it will allow the land acquisition committee to act more quickly. Available funds can also reduce the amount of money that must be borrowed to purchase a selected piece of property. If such a fund was not previously set up, set it up now.

When the land acquisition committee first begins to consider how to expand, the first tendency is to try to buy land adjacent or near the existing church. The availability of land in range of the church simply does not become available often if the church is located in a city. Unless a church takes growth action early, it may unwittingly be planning its decline and perhaps its demise. Depending on the magnitude of the pressure to expand, there may be time to try to buy land adjacent to the church. It is never too early to start inquiries. Otherwise, the land acquisition committee will likely have to look for land out away from its present location.

Any church with an eye to growth should contact land owners adjacent to the church advising them that should they be interested in selling their property, the church would be interested in buying it. This simple contact can mean survival and a future for the church. It can short-circuit private sales, which the church may not know about at a critical time. If this is not done before a land acquisition or building committee is formed, it should be done immediately after it is formed. A rough idea of the value of property that the church may be interested in can be found by checking county tax records. These records give a professional estimate of the value of property and buildings on the property.

Be prepared to spend more than what the land acquisition committee or appraiser feels the property is worth. Church inquiries on the availability of land may actually raise the asking price of the land. However, getting the land is the most important thing even if it has an unwanted building on it and a high price. The church must have the land to grow. Relocating is much more expensive and may be economically impractical.

Another option the land acquisition committee may want to consider is purchasing another larger church in the area that might be available. This does occasionally happen with good results. Languishing churches are reluctant to put their churches on the market. It may be worth contacting such a church to learn if a purchase is a possibility. Faced with the possibility of another church wanting their facilities may lead them to think that this is a good solution to their problem, if indeed they feel they have a problem.

If a church finds itself land locked and there is an immediate need to expand,