Church Capital fund ... Faith-Based Investing.

[TWiley]

Church Capital Fund Raises Rates March 15, 2009
On March 15, 2009 Church Capital Funding, LLC raised the rates on its Certificates of Participation, which were originally issued May 15, 2008. The rates for these certificates (available in 2, 3, 4, and 5-year maturities) have increased from 5.0-6.6% to 5.6-7.35%.

Investing in the Church Capital Fund
The fund is now open for investing by residents in the following states :

Alaska, *California, Delaware, Florida, Georgia, Hawaii, Illinois, Maine, Massachusetts, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, Rhode Island, South Dakota, Texas, Utah and West Virginia.

*There are certain suitability requirements imposed by the Department of Corporations.

The fund is not currently open to residents of other states pending regulatory approval from those jurisdictions.

A wholly owned subsidiary of California Baptist Foundation, Church Capital Funding LLC (also referred to as Church Capital Fund or CCF) was established for the purpose of creating an investment fund from which to extend loans to evangelical churches for the construction and expansion of their buildings.

The Church Capital Fund is administered by Strongtower Financial, a FINRA-registered company

Links and Details here: http://www.churchcapitalfund.com/

They claim to be paying up to 7.35% on "Certificates of Participation". I looked for tax exempt status, and could not find any information on that. I do hope it is not another tax advantage for Evangelical Christianity to take advantage of. Which bonds would Jesus buy?

[mod mom]

1. Is this a religious based ponzi scheme?

[TWiley]

6. With 7.35% promised for tax free revenue (from tithing) it sure could be ...

[Critters2]

9. The interest isn't tax free. nt

[TWiley]

11. That is what I was wondering about. Did you find info on that?

It would be interesting to see how they ferret that out. I was refering to the fact that Church revenue is tax free; the actual money they would use to pay back the loan if that is what you were responding to. If the fund pays 7.35% to its shareholders, and the money comes from a tax-free revenue stream .... ?

[Critters2]

12. I have my savings with a similar program. I get 1099s on my interest,

so I have to report it and pay tax on it. See post no. 8.

But I'm not getting interest like that!!

[rrneck]

2. Coming soon

(if not here already).

CDO's, CDS's, faith based investment ratings, and another dose of "fuck you, I got mine" with a religious spin.

[TWiley]

10. Ya, greed with a halo ....

[gratuitous]

3. If you're interested in socially responsible investing

Try the Brethren Foundation of Brethren Benefit Trust, administered by the Church of the Brethren. They will not invest in companies whose products primarily relate to weapons, pornography, tobacco, alcohol or gambling.

[sarcasmo]

4. More Religious Tax Exempt BULLSHIT!

[Doctor Cynic]

5. Their accounting and investment strategy will also be faith based.

[TWiley]

7. Faith based accounting ..... now that sounds REAL bad ..

[Critters2]

8. I actually have my emergency fund in a fund with my own denomination

that does exactly this. It makes loans to local churches for building programs, making buildings accessible, making buildings green. I have two accounts with the Cornerstone Fund, a demand note, which is basically a money market, and a term note, which is a CD. I do this for the same reason I bank with a credit union, so that people (in this case my faith community) can support one another in meeting our needs, without having to go to banks that are in it first and foremost for profit.

Of course, my notes aren't getting the kind of interest noted in the OP. My CD has a rate of 2.75% and an APY of 2.769%. When it matures, soon, I'm going to roll it into a longer note with higher rates. My money market has a rate of %1.25. I'm also surprised that the OP program seems to be managed by a third party. The fund I save with doesn't do that.

Not only does this help congregations that would have trouble getting loans from banks these days, but it's a safer--if less profitable--investment than Wall Street. I haven't lost anything in these investments. Wish I could say the same for my pension.

I assume all denominations do this. I know for a fact that the Lutherans have an even more diverse financial program--Thrivent Financial for Lutherans--as do the Mennonites in Mennonite Mutual Aid.

Again, I don't know how they're getting those rates, but other than that, programs like this are common. Here's the website for the one I save with: cornerstonefund.org

[TWiley]

13. 1.25% mm and 2.75% CD would seem right .... but 7.35% ?

I smell something fishy

[Critters2]

14. Yeah, the more I think about it, the more I can't figure how they're pulling interest

like that. It does smell Ponzi-esque.

[TWiley]

15. Return is generally correlated to risk ..... where is the risk?

That is what I dont understand.

[Critters2]

16. Or why would the risk be so different,

when the funds are used to make loans to evangelical churches than when making loans to UCC churches, to make that kind of difference in the interest between that fund and the one I save with? I would think churches would be at relatively low risk of defaulting, though it could certainly happen. But, if they're making the same kinds of loans, why the discrepancy in rates? As you noted, the fund I use has rates similar to banks. It's a bit better than my credit union, but within a fraction of a percentage point. But 5 or 6 points' difference? What's with that?

[ColbertWatcher]

17. You'd think with all those buildings they could house a few homeless people.

Or, is that not part of the mission of the churches that receive loans?

Am I missing something?

[TWiley]

18. Maybe laundering "loan $$ into Conservative PAC's?"

There is something not right about it.

[ColbertWatcher]

19. The GOP has found all sorts of ways to funnel tax payer's money to their interests. n/t

[Critters2]

20. We often complain here that only 5 churches out of the 35 in town

take nights to staff the local homeless shelter. The five who do are the UCC, Presbyterian, one of the 3 UMCs, the Evangelical Lutheran, and the Mo Synod Lutheran. Of these, two would be considered Evangelical and none are large congregations. The Nazarene mega-church, the largest for light years around, somehow can't find 6 people to serve 2 people at a time on a 3-shift night. I keep pointing out to other clergy that if every church in town worked one night a month at the shelter, the paid staff wouldn't have to find any other volunteers at all. But most are too busy gettin' into heaven, I guess.

[TWiley]

21. We have well over 100, with 3 "soup kitchens" and 2 food pantry's

The rest of them .... well, I dont know what they do.

[ColbertWatcher]

22. "But most are too busy gettin' into heaven" QFT. n/t

[Critters2]

23. QFT? nt

[ColbertWatcher]

24. Quoted for truth.

It means I agreed with it, so I'm going to post it again!

[Critters2]

25. Ah, thanks! nt

[ColbertWatcher]

27. Thank you, I may even use it! n/t

[jwirr]

26. From what I have experienced this is not the only church denomination

that funds building of churches in this manner. When we were trying to build a new Lutheran church we went to our churches bank which asked the members of our church to take their accounts out of other banks and redeposit them in the church bank (a bank like any other bank). They then lend the money to churches and are repaid just like a mortgage on a house. Your accounts at this bank are handled just like in any other bank. Very few churches foreclose so your investment is pretty secure. The churches are willing to pay the interest in order to build.

[Critters2]

28. We do something similar in the UCC, although, the asking of

people to invest in order to get a loan we wouldn't do, I don't think. But we do have a loan fund for church capital needs.

I think what caught people's eye was the rate of return. 7% is unusually high. See my post no. 8.

[jwirr]

29. I should clarify - they did not demand we move to their bank but told

us that it would be a help if we would.