Facility Stewardship Can Save You Money!

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Who doesn’t like to save money? I love it when I am able to save money by either making some changes in my behavior or implementing a new strategy. What I have also seen is that it is not just about the quantifiable savings, but the additional abstract benefits.

For example…let’s say I buy a Toyota Prius to save money on gas. I am pretty convinced that I will in fact reduce my budget allocated for gasoline. That is GREAT…but it is not all. An abstract benefit is that I do not have to stop at a gas station as frequently which provides me with additional time to do other things. And knowing that “time is money” the abstract benefits can actually manifest themselves into real dollars. So in this example, I have 3 benefits…maybe more:

  1. Save money on fuel
  2. Save time to reinvest in other activities
  3. Which can either save me money or allow me to take that time/money and invest in an activity that could produce income, or reduce the need for someone else to perform the tasks.

Let’s take that concept to Facility Stewardship…and particularly the operation, maintenance, and management of the facilities that have been entrusted to us.

Our FACILITeSPACE module which includes the following is a great way to get started.

  • COOLSPACE – HVAC integration with Building Automation and WiFi thermostats
  • SECURESPACE – Door access controls
  • INFOSPACE – Comprehensive system to integrate with your digital and room signage
  • TECHSPACE – Coming Soon! – Will provide integration and alerts with early detection sensors
  • BRIGHTSPACE – Coming Soon! – Integration to lighting throughout your facility…more on this later.

Since we released these options we have heard lots of testimonials from churches that have shared how they saved money on energy…but the abstract was that they saw a large increase in operational efficiency. Here are a couple comments from our clients:

Our church has been a client of eSPACE Event Scheduling and FACILITeSPACE for years. Using this cloud based software has allowed us to save around 25% on utilities and use those funds toward ministry and missions of the church to help grow the Kingdom. Very easy to use product and great customer service!  –Jeff McClanahan – CPA, Living Hope Baptist Church

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We have been using eSPACE with FACILITeSPACE for three years, and our church saw a 30% reduction in utility expense immediately after installation. The interface is easy to manage, easy to teach to our staff, and we can make adjustments from anywhere. FACILITeSPACE has now paid for itself several times over in return on investment as we’ve saved on electric bills and maintenance. No more lock-boxes on thermostats, and no more forgetting to “turn the air up on the way out” after a service or event. –Hank Garner, First Baptist Church

Let’s put this into context. These churches, and dozens more, started using FACILITeSPACE with the desire to save energy costs….which they did. The issue of “behavior” was the root issue with their efficiency, or lack thereof. They would turn units on when the spaces were not occupied. Not smart. But these churches and many others also are seeing the more abstract causality at play:

  1. Reduced run time of the units which can lengthen the life expectancy of their HVAC units. Units last longer if they run less (but they still need preventive maintenance). This means that a church may be able to get another 1, 2, 3 years out of their units which in turn allows them to modify the needs for capital reserves…which can not only save money, but if you have a true capital reserve account that is earning interest, you can actually “make money” by not spending it.
  2. Reduce if not completely mitigate the manual operations of adjusting thermostats and building automation systems for your events and space utilization. This can free up the staff to perform other duties (i.e. my car example).
  3. We have empirical data tied to the issues of deferred maintenance and the number of full time general maintenance workers you have. In every case of the Facility Condition Assessment that we perform, when a church has deferred maintenance (which is nearly 100% of the time) we see an under funding of the general maintenance line items in their budgets and a understaffing of facility teams. That is why they called it DEFERRED Maintenance. We should have done things that we put off…we deferred maintenance that should have been performed. Let’s look at how this can manifest itself.

Imagine having an extra 5-10 hours a week of general maintenance time for each of your maintenance team. If they are not having to turn thermostats on and off…and don’t have to run around locking and unlocking doors…how many hours could you recapture? We recently had a conversation with a church that indicated that their facility manager spent 20-25% of his time in a week double entering events in his building automation system. The event Coordinator would schedule events, meetings, etc. Then, print out the schedule and provide to the facility manager who in turn would RE-ENTER all of the same data into their BAS. That is pour utilization of a skilled person.

The other thing we have learned, or known for a long time but now have data, is that churches are not going to staff up their general maintenance team to a level of best proactive…which is 1 Full Time Employee for every 35,000 Square Feet. I get that…but what if we could assist your current staff to be more efficient? What if they could recapture even just 10% of their time…so say 4 hours per week…208 hours a year? Do you think there are tasks, preventive maintenance, general maintenance, inspections, vendor management, etc. that you could back-fill their time? I will guarantee it!

If your church is looking for a way to decrease deferred maintenance, save energy costs and increase operational efficiency, you need to strongly consider the impact of integrations and automation.


Plant Your Tree Before You Need the Shade

Just over 20 years ago, Harvey Mackay wrote a book that shaped much of my thinking and approach to investing in people, situations, business planning and so many other aspects of my personal and professional life.  The book is entitled: “Dig Your Well Before You’re Thirsty.”

Later in my career I had a business coach that would tell stories about how we intentionally would treat his cab drivers (this was also about 20 years ago…before Uber…but the same applies), the receptionist at the hotel, the flight attendants, etc.   Why was this important?  He said that beyond human decency and respect for other humans (which should always be the basis even if there is no secondary motives) that you never know when you may need their help.  You may need them to provide a level of service that is more likely to exceed your expectations if you have already built a relationship.

In a recent blog, Seth Godin once again provides a thought provoking and yet practical example of this same tenet of human interactions, acceptable behavior and forward thinking.  See what he said here or below:

  • If you wait until you really want an avocado, the market won’t have any ripe ones. You need to buy them in advance.
  • If you eat an avocado that’s not quite ripe, you won’t enjoy it. AND, you won’t have a chance to enjoy it tomorrow, when it would have been perfect if you had only waited.
  • If you live your life based on instant gratification and little planning, you’ll either never have a good avocado or you’ll pay more than you should to someone else who planned ahead.
  • Buy more avocados than you think you need, because the hassles are always greater than the cost, so you might as well invest.
  • And since you have so many, share them when they’re ripe. What goes around comes around.

All of these truths lead to the real insight, the metaphor that’s just waiting to be lived in all ways: If you get ahead of the cycle, waiting until the first one is ripe and then always replenishing before you need one, you can live an entire life eating ripe avocados. On the other hand, if impatience and poor planning gets you behind the cycle, you’ll be just as likely to waste every one you ever eat.

Plant your tree before you need the shade.

What “trees” do you need to plant today? What kind of long term planning is needed to keep you in the “shade” of your planning (i.e. Capital Reserve planning…just saying).

-Tim


To Build, Buy, Lease or Rent…that IS the question

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To be or not to be…is no longer the question. For many churches, the burning question is what to do with facilities and do we even need to own a facility. This used to be a question that only church planters were asking.  When you are first starting out, the common question is how do we “house” our church?

Do we rent a school?

Do we rent a theater?

Do we find a store front?

What about using another church on an off night?

Given a number of factors, these conversations are no longer limited to church planters but are being asked in a whole host of church setting including established churches looking to get out from under a deteriorating facility that they cannot afford to churches needing to re-invent themselves. I have been involved in the planning, development and maintaining of church facilities and until recently, this topic was almost never discussed by churches that were more than 1-2 years old.

You may be saying…”Duh, Tim…we knew that.” Or this may be foreign territory for you…so let’s take a little time to explore as well as provide a very practical tool for your own evaluation.

To get started, let’s look at some trends and realities:

  1. For most churches, the cost of owning a facility is the second or third largest expenditure in their budget…usually second to personnel but ahead of dollars actually spent on ministry.
  2. In most regions of the country, as of the writing of this post, they are seeing significant increases in construction costs.
  3. In many cities and towns, there are still a large amount of empty buildings that were vacated as part of the aftermath of the Great Recession.
  4. The life cycle cost of owning a building during a typical 40 year period of time will be about 80% of the total cost of ownership…it takes a great deal to own a building.
  5. In addition, if you own a building, then you…your church…has been tasked to be a steward of the facility entrusted to you by God.  That is no small responsibility.  In fact, in order to keep up with the natural rate of physical deterioration and be prepared for the inevitable life cycle costs, you need to set aside $1-3.00/Square Foot EVERY YEAR.  Do if you have a 50,000 SF, you need to set aside $50 – $150,000 annually.
  6. Things change…if you do not believe this, please stop reading here. Here are some examples:
    • Your church goes through a period of expansive growth or decline…how does your facility flex with those trends?
    • Culture around us changes…do our facilities also morph?
    • Demographics change…not just race and language, but also age and needs associated with those changes.
    • Ministry means and methods change.  Are any of you doing “church”exactly like you did 20 years ago? I am a firm believe that the Gospel NEVER changes…but our means and methods must change.  How many of your churches use Gregorian Chant?  That was mainstream at one time.  Winston Churchill said “We shape our buildings, thereafter they shape us.” If you have a building that is more than 20 years old (maybe even less), that space may actually be telling you how to do ministry.
  7. There is an alarming number of aging church facilities across the country that have declining congregations and deteriorating facilities. Church mergers are on an increase…which I think is really smart.  But what about the old buildings? Is an old building right for your congregation? Consider THIS first.
  8. Church building are hard to sell. As a rule, if your church is not in a commercial setting or prime for re-development, it will likely take 2-3 years to sell and you are most likely going to only net about 50 cents on the dollar of the appraised value.

How do we address these issues?  How do we set up our congregation for long term impact and engagement?

I am not going to advocate one option over another…but what I do want us to do is to consider the options.  The first and only option should not be to buy land and build a building.  The other deeply ingrained paradigm has been that once you own a building, that is it…that is where your church meets.

End of story.

Again, I am not saying that is wrong…but we need to stretch our thinking. Ask WHAT IF…?

We have developed a tool to assist churches vet out some of these options.  This is not the end-all and 100% inclusive evaluation tool, but it is a tremendous resource to do some initial side-by-side comparison of the options.

If you click HERE you can download this tool.  Now, let me walk you through how to best utilizing the tool and some of the methods to our madness:

First, we make the premise that there are 4 basic options (with a multitude of subsets):

  • Rent a school
  • Lease a commercial/retail building
  • Buy a building
  • Build a building

We then break costs down into 3 sections:

  • Operational Costs
  • Sticks and Bricks
  • FFE/AVL (Furniture, fixtures, equipment and audio, video, lighting)
  • Lease Agreement Considerations

There are some formulas built in to the spreadsheet such as:

  1. Cost of TI (Tenant Improvement) for the purchase of a building – we used $100/SF
  2. Cost of new construction – we used $200/SF
  3. Operational costs
  4. Capital reserve costs

Everything else needs to be added based on information gathered in your local context.

Again, this is not the only evaluation tool you should use.  The old adage in real estate is “Location, Location, Location.” That also needs to be factored into your comparison matrix.  Is the location in the right part of the community?  Will there be visibility and signage opportunities?  Is it properly zoned? Is there ample parking, etc.

To round out this, you also need to give serious attention to any leased (not rented…there is difference…renting is usually short term and leasing is long term) facilities or purchased facilities. you need to consider:

  1. If purchasing, is there deferred maintenance you are also inheriting? Learn more HERE.
  2. If you plan on more than 300 seats in worship, does the facility have a fire sprinkler system?
  3. Is the power adequate to support your AVL systems?
  4. How old is the HVAC system and is it adequate to cool an assembly occupancy?
  5. What is the condition of the roof?
  6. Are there enough restrooms?

OK…that probably has your head spinning….which is good.  You MUST consider all of the above before you make a serious financial decision.  Do not take this lightly.  Do your due diligence. Consider all the options.  Seek wise counsel.  Pray continuously.

ONWARD!


Cool Solutions Group helps churches with the planning, development, and management of their facilities!

Retirement Planning…for your Facility

 

Unless the Lord decides to call you home premature, we all will be faced with some variation of “retirement.” That means plans need to be considered for that period in our lives when we are not producing income based on a full time 40-hour +/- work week.  For most, that takes the form of:

  • 401K or 403b
  • IRA’s
  • Annuities
  • Life Insurance
  • Investments
  • Pensions

For others, it may simply be hoping that Social Security, Medicare and Medicaid will be adequate.  I think we would all agree that is not very wise.

We will project what we believe our costs will be in retirement…then plan a strategy to utilize one or more of the above to ensure we have the basis from which to generate the level of income to sustain the desired lifestyle.

This all sounds prudent as we plan for the INEVITABLE stage of life.  Would you agree?

So what are we doing to prepare for the “retirement”of our ministry facilities? I guess the first question is…do you think it is necessary?  If you don’t, then why would you plan for your personal retirement?

Sorry for being snarky…could not help myself.

Even at the very worst of personal financial planning, their is a partial safety net (although tenuous) is Social Security and other entitlements (did you realize that Entitled and Entitlements are not mentioned in the Bible…just saying). Considering our facility retirement concerns, we do not even have a social security safety net.

You may be saying – “We do not plan to retire our facility.” Oh Grasshopper…that is flawed thinking.

You may not “retire” the entire facility…but you WILL retire nearly every component of the facility.

  • You will retire all roofs…and replace them…and retire them again.
  • You will retire all HVAC equipment…and replace them…and retire them again.
  • You will retire all paving…and replace them…and retire them again.
  • You will retire all floor coverings…and replace them…and retire them again.
  • You will retire all lighting, plumbing, windows, doors, etc, etc, etc.

Need I go on?

These facility retires…just like our personal retirement…are INEVITABLE. There is no getting around it.  There no magic bullet.  There is no “Facility Fairy” to wave a wand.

Given the above…what are your plans?  Do you have a plan?  If not, how do you start? What is your baseline? How much is enough?

These are great questions that can and must all be answered…and starting with your current reality is the best place to get going.  In light of that, we strongly recommend a Facility Condition Assessment. Such an assessment will provide you:

  • Fresh Eyes Assessment
  • Life Cycle Assessment
  • Benchmark of Budgets/Staff
  • Deferred Maintenance
  • Facility Management Best Practices
  • Preventive Maintenance
  • Energy/Operational Evaluation
  • Capital Reserve Planning

Make your facilities “retirement” a positive experience by being intentional Facility Stewards.

-Tim


New eBook – Four Buckets of Church Facility Budgeting

A few months back, we released a blog on the topic of the 4 specific buckets that churches should plan for when developing their facility operational budgets and facility stewardship initiatives.  As a refresher, they include:

Operations – The day-to-day items like utilities, janitorial, general maintenance, etc.

Deferred Maintenance – The things you have been putting off (See blogs on this topic HERE and HERE).

Capital Reserves – The money needed to address the inevitable costs of capital replacement.

Projects – For the items that fall outside the normal operations like major renovations and new construction.

Well…we have expanded on these topics and have released a FREE eBook entitled The Four Buckets of Church Facility Budgeting.  This will be a great resource for your team, your administrator and the finance team that needs assistance in addressing the reality of each bucket.

Get your free copy HERE and then share it with your church leaders.  You will be glad you did!

Facing the Inevitable: Capital Reserve Planning – WEBINAR

There are 3 irrefutable facts that every church must face if you own a facility:

  1. All buildings deteriorate at a rate of 1-4% per year
  2. As such, nearly every physical component of your facility will be replaced or have a major overhaul
  3. All of the above will require dollars

So the big question is…how much money will be needed?

Join us for an informative and fun session to explore:

  • What are Capital Reserves?
  • How does “Life Cycle” factor into Capital Reserve Planning?
  • How much money needs to be allocated?
  • What are some practical ways to get started?

Register today HERE.

We Focus On Your Facility…

…so you can focus on your mission.

That is more than just a tagline for our team.  This WHO we are.  It is WHY we do what we do. That is HOW we do what we do.

I am yet to find a pastor that went to seminary with the primary reason of focusing their energies, time and ministry on a building. I know a few Business Administrators and Executive Pastor’s that have previous experience in the world of the built environment…but that is not WHY they got into vocational ministry.

And yet…how many churches in America could continue to function without a facility? I dare say that every church…the body of believers…in North America relies on a facility in some form or fashion.  This reliance may be on a physical structure that they assemble in to worship, educate, disciple and/or meet the needs of others.  If you are a “home-based” church, you are reliant on a house or similar.  If you are 100% internet based, your church is still reliant on a facility to host your servers…to produce video and audio content.

I get it…the “church” is NOT a building.  I preach that at every speaking engagement and project we serve on.  The building will never save a soul.  It will never disciple a Christ-follower.  And yet, we have a reliance on it. I also get that this is a “First-World” issue. All of us have pointed to how the body of Christ can function in very austere settings in other countries.  And yet, here we are…reliant on a built environment.

So what are you to do?

First, be thankful we have such facilities to assist us in spreading the gospel.  Don’t despise it.

Second, don’t take it for granted or take a posture that we are entitled to these physical blessings.  Money does not grow on trees, as we all know, and it requires money to own a facility.  Did you notice I did not say BUILD…I said OWN.  When you evaluate the cost to own a facility, 71-80% of the total cost of ownership is in the OPERATIONAL costs…and usually, only 20% (over a 40 year period) is the cost to build.

Thirdly, do not try to go it alone.  As a ministry leader, you need to focus on the ministry, mission, and vision of what God has called you to.  That means you need to rely on others to plan, build, and care for your building. There are several ways to accomplish this:

  1. Hire the needed people on your staff to steward what has been entrusted to you
  2. Adequately fund your General Maintenance budget to avoid deferred maintenance
  3. Outsource duties and tasks to specialists (i.e. HVAC companies for Preventive Maintenance)
  4. Set aside appropriate Capital Reserves for the inevitable future costs
  5. Obtain a firm grasp on your current facility needs related to space allocation and Facility Condition
  6. Implement systems and processes to increase operational efficiencies (and energy efficiencies) such as software applications, system integrations, policies and procedures, workflows, etc.

Need some help to get started?  Let us know how we can help.

Cheap Shower Curtains (and church facilities)

If you have read my blogs for just about any time at all, you know that I am a big Seth Godin fan.

Recently he posted a blog entitled “Cheap Shower Curtains” that really caught my attention. Here is an excerpt:

The unskilled cost accountant might suggest you outfit your new hotel with cheap shower curtains. After all, if you save $50 a room and have 200 rooms, pretty soon, we’re talking real money.

On the other hand, experience will demonstrate that cheap shower curtains let the water out, causing a minor flood, every day, room after room. And they wear out faster. Cheap shower curtains aren’t actually cheap.

This is so in line with one of our recent blogs – “Cheap Is No Bargain”

Let’s take the analogy above a little further:

PERCEIVED SAVINGS: – $50 x 200 rooms = $10,000

AFTERMATH COSTS:

  • Damage to the floor and substrate of 200 rooms
  • Ceiling damage from water leaking from rooms above – about 75% of the 200 rooms requiring patch and repaint
  • Potential unseen issues such as mold, wet insulation, water migration to electrical fixtures, etc.
  • Increased humidity issues due to moisture causing HVAC to work “harder” to obtain comfortable levels
  • Replacement of floor covering to all 200 rooms
  • Loss of revenue due to repairs being made
  • Truncated life cycle of 200 shower curtains (this will be at least the cost of the original savings but at inflated dollars)

I am not going to venture a cost for the above…but I would say it is fair that it will be at least 10 times (and I actually believe it is 25-50 times) the perceived savings. So, unless your intent was to sell the hotel within the first few months of completion, you have just made an incredibly unwise decision. BY THE WAY: If you did plan to sell, you just sold a money pit to your buyer, damaging the one thing that really counts…your integrity and reputation. Another unwise decision.

“But Tim…we are not building hotels…we are a church.”

Right…all the more reason to not make such unwise decisions as you are utilizing Kingdom dollars entrusted to you and your church. You have been asked to steward them…not just on the “spending” of the initial costs/purchases, but of the long term value. The principle is the same whether you are building hotels, shopping centers or investing monies into the construction, renovation or sustaining your ministry facilities.

Sounds a lot like Facility Stewardship.

Church Revitalization: Boat Anchor OR Fresh Wind in the Sails?

Church Revitalization is alive and well.  This is not the “Church Growth” movement of the 1980’s or “Seeker Sensitive” or some other fad. Frankly, “CHURCH” revitalization has less to do (in my opinion) with the age or condition of a congregation as much as a revitalization of the purpose (the WHY) of the church universal.

We have seen some incredible initiatives the past 10+ years related to revitalization and church multiplication. The most obvious and most publicized are Church Planting and Multisite Church. Both are alive and well and growing in impact.

“We need to be cognizant to not burden the next generation of church leaders with facilities that will become the boat anchor around their ministry and missional impact.”

But there has been an upswell of 2 additional initiatives that need to be mentioned.  These may be subsets of the above; however, they bring an additional set of impactful elements and I believe they have significant nuances that need attention:

  1. Mergers – Our team has served several churches the past few years that have merged to not just “rescue” a declining church, but rather to form a stronger, more vibrant and impactful church. As Jim Tomberlin and Warren Bird have so well stated – BETTER TOGETHER!
  2. Revitalization/Redeveloped/Adoptive Re-Use – So many terms we could use here…but we see a trend (for the good) of revitalization and adaptive use of facilities that have either aged out or are underutilized and/or a “highest and best use” that may not be exclusive of a 1-day-a-week church facility.

A deeper dive into the above is merited, but that is for another day. Instead, I want to share a concern I am seeing with both of the above when we are not intentional. Both of the above are exciting…and they are a great way to not only grow the Kingdom/Church (capital “C”) but to breathe new life into aging church facilities.

HOWEVER…there are 4 critical considerations that both the “giver” and the receiver of such facility gifts need to consider:

1. Functional Obsolescenceis a reduction in the usefulness or desirability of an object because of an outdated design feature, usually one that cannot be easily changed. Here are some prime examples:

  • Not handicap accessible
  • Inadequate HVAC system
  • Flow feels more like a maze than an intentionally community space
  • Lots of stairs
  • “Wrong-sized” spaces
  • Limited parking

2. Incongruent/Non-contextual – In many cases, the “gift” does not communicate the story of the receiver. It may be in the wrong part of town…may feel like a monastery and not a thriving community-centric facility…or it may just be old looking, feeling, and smelling.

3. Deferred Maintenance – “Here is your FREE Building.” – Oh Goodie…but what about the $3-4M in deferred maintenance. Don’t miss this. I have seen too many well intended churches and church planting organizations hand over an older facility to a church plant or even a multisite campus that appears to be “free” only to find they had been give the MONEY PIT. Free is rarely ever free.

4. Uninsurable – Directly related to the above, make sure the facility being gifted is actually insurable. Put yourself in this scenario…you are the pastor of a church plant…you are gifted a facility only to learn that the facility in not insurable or the insurance cost, due to its condition, has massive deductibles and/or unsustainable premiums. OUCH!

We need to be cognizant to not burden the next generation of church leaders with facilities that will become the boat anchor around their ministry and missional impact.


4 Steps to Conquering Deferred Maintenance

Deferred maintenance is a term that gets thrown around a lot and yet I find many people have no real idea what it means. Let’s start with a definition:

Deferred maintenance is the practice of postponing maintenance activities such as repairs on both real property and personal property (i.e. machinery) in order to save costs, meet budget funding levels, or realign available budget monies. The failure to perform needed repairs could lead to asset deterioration and ultimately asset impairment. Generally, a policy of continued deferred maintenance may result in higher costs, asset failure, and in some cases, health and safety implications. (Wikipedia.com)

In a previous blog entitled “The “4 X” Reality of Deferred Maintenance” we provided some very sobering realities from national research projects…here they are again:

“Every $1 in deferred maintenance costs $4 of capital renewal needs in the future.”

“If a necessary repair is deferred and allowed to remain in service until the next level of failure, the resultant expense will be 30-times the early intervention cost.”

If those 2 statements do not shake you up a little, then you may need to see a doctor or psychiatrist. If you believe EVERYTHING belongs to God…and that HE has ENTRUSTED His ministry facilities to us to STEWARD…then you cannot take this lightly.

Let’s explore what the keys are to conquering deferred maintenance.

1. Identify YOUR deferred maintenance – The first step in nearly any issue in life is to first recognize there is an issue. If we do not acknowledge there is an issue, how can we resolve it? In most churches, there is a lack of understanding of what their deferred maintenance issue are. We get so busy with budgets, “doing church”, break/fix items, etc that we do not stop to take time to see the trees for the forest. In many cases, even if you took the time, you may not know what you are looking for. This is where a set of “FRESH EYES” can be beneficial.

2. Provide adequate general maintenance budgets – Over the past couple years, we have done facility assessments for several million square feet of church facilities. The aggregate amount of deferred maintenance has been in the tens of millions of dollars. That is sad!  The “church” claims to be an organization focused on being “good stewards” and yet we allow our buildings to deteriorate right under our feet. In every single case, the General Maintenance budget was under-funded. There was not enough money in the budget to keep up with the natural rate of physical deterioration. Check out this quote from Kevin Folsom, former Facilities Director at Dallas Theological Seminary:

“There are numerous levels that can be used to go about this, but to start we have to remember our early Physics lessons in high school about the 2nd Law of Thermal Dynamics. Everything we build will decay, but it may last longer if properly maintained. So, here’s a puzzling question…If we build facilities that the natural law causes them to decay at fairly predictable rates throughout its birth to burial, why do we not plan for it?”

The best way to conquer deferred maintenance is to have a budget that addresses the natural decay and deterioration of your facility.

3. Properly “staff” your facility team – In every instance referenced above, not only was the budget under-funded, but they were under-staffed…and not by just a little! If you only have enough staff to address the break/fix emergencies of the urgent, then how do you expect to stay on top of the natural decay and deterioration? Quick answer…YOU CAN’T! Based on national surveys by our firm and IFMA, we believe the number of facility staff for a well-run organization is one Full Time Facility Staff Employee for every 25,000 – 35,000 SF. This is not for cleaning…that is another story…this is for general maintenance.

4. Have a Properly funded Capital Reserve PlanGentlemen…this is a football! Church leader…capital replacement is not an “IF” consideration but rather a “WHEN” and “HOW MUCH”.  You WILL replace every HVAC unit.  You WILL replace all your carpet.  You WILL replace your roof. You WILL have to re-surface your parking lot. To turn a blind eye to the need of a capital reserve fund is kin to telling God that the laws of science and natural resources…that HE created…don’t apply to your church. You are above the laws of God. REALLY?!?! Do you have a 401K or similar account for the future or do you assume retirement or old age is not part of your future…that it does not apply to you?

If we were proactive with our operational budgets and capital reserves, there would not be any deferred maintenance. In a perfect world, we would properly fund our general maintenance budget to keep the building in the best physical condition as possible…AND…we would have adequate capital reserves when we approach “end of life” of our facility component.

That is how you conquer Deferred Maintenance. To quote Sean Connery in The Untouchables“What are you prepared to do?”


CAPITAL RESERVE PLANNINGAlmost every component of your facilities will have to be replaced at some point. Do you have an action plan? INTENTIONAL organizations plan today for tomorrow’s costs. That’s why it’s critical you establish a capital reserve account now.

Download our FREE guide to learn more.