Facing the many challenges imposed
on today’s non-profit organizations
including fund acquisition, a weak economy and decreased donations, St.
Matthew’s United Methodist Church needed to fill its budgetary shortfall.
The congregation’s most pressing need
was in acquiring funding to support
building improvements and
expansions.
Reverend Bradley Resare of St.
Matthew’s United Methodist Church of
Newbury Park, California, wanted to
pay the congregation’s $88,000
mortgage balance in full while
simultaneously increasing revenue to
fund urgent structural improvements.
“We had problems with our
pavement,” the Reverend explained.
“It was uneven. Due to that, we had
our sanctuary flooded. Our bathrooms
were in such horrid conditions that
many people, who took a trip to our
bathrooms wouldn’t return to visit us
again. It’s like going to the restaurant
and visiting its restrooms. The
condition of the restroom tells a lot
about the place. When people first
come to God, they don’t have a
commitment. So, first impression is
oftentimes the last impression.”
The congregation had two wireless
tenants on their property, Verizon and
Cingular, who paid monthly rents of
$1,200 and $650, respectively. This
revenue represented a vital piece of
the Church’s overall budget. The
Church Board believed this income
stream was guaranteed for the next 15
years and budgeted as such.
When Reverend Resare learned about
Wireless Capital, he was immediately
intrigued by the opportunity to turn
both cell site leases into immediate
cash to fund urgent facility
renovations. In discussing his options,
he learned that the wireless lease
income wasn’t as secure as the Church
thought, and that Wireless Capital had
already assisted several churches and
other non-profit organizations in the
same manner.
Wireless Capital was invited to present
relevant telecom information and
instruct the Church Finance Board on
possible scenarios that could
negatively affect the organization’s
budget. They discovered that, with a
plethora of mergers and acquisitions in
the telecom field, carriers often
approached landlords to offer a rent
reduction in exchange for a rent
guarantee for the next term. In many
instances, landlords have no choice
but to succumb to the wireless tenant
threats in fear of losing their rental
income.
After careful deliberations with the
Church Board, the congregation
decided to sell both leases in exchange
for one significant upfront payment.
Their decision was influenced not only
by possible site decommissioning
threats, but also by their operational
needs and Wireless Capital’s
professionalism. “The Wireless Capital
team has changed our attitude,” states
Reverend Resare. “They expressed the
interest in the church’s needs, made
sure it was a win/win situation for both
parties and treated us with the utmost
honesty and respect. They were not pushing or rushing our decision, but
they were moving at a pace that we
were comfortable with.”
The St. Matthew’s Church earned
$125,000 from the sale of both
wireless leases. Using this revenue,
they were able to pay off their
$88,000 mortgage and become debt
free. The remaining profit funded
building repairs; the patio and
bathroom were replaced and the
drainage system was finally fixed. “It
created a momentum of
beautification,” explained Reverend
Resare. “Everyone in the congregation
got fired up to help to make
improvements to the church property.
We got some huge contributions for
this momentum. When we were dead
on the track, the money received from
Wireless Capital for those cell site
leases didn’t just help make physical
improvements, it also changed our
attitude from the survival mode into a
growth mode.”
The Reverend also said that the entire
process was a win/win, low-pressure
transaction. Through their interaction
with Wireless Capital, the congregation
gained knowledge about current
industry trends, received experienced
input and advice, and learned about
their telecom lease options. The
congregation was thus able to make
the wisest, most informed decision
possible.
Several months after the sale, the
Reverend received a letter from his
wireless tenant pushing for a rent
reduction to guarantee their continued
occupancy. He simply directed the
company to Wireless Capital and
avoided the stress of threats and
negotiations. “Churches out there need
to consider the fact that a cell site is
not an apartment that you can lease
out to the next tenant if this one
leaves. You might be much better
served if you take a chunk of money
now and spend it on improvements,
which would attract more people to
the congregation, causing more people
to come, to stay and to tithe, which
would result in a stable capital flow for
the church, building a stronger church
in the end.”
Wireless Capital helped the St.
Matthew’s United Methodist Church
achieve its goals even in light of a
weak economy and diminishing
contributions. This decision also
created a powerful momentum that
encouraged even more member
contributions and enthusiasm.