THE AM QUARTERLY NEWSLETTER | 2021
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CHURCH FINANCES AND THE COVID-19 PANDEMIC By Gil Aguilar, CPA I trust all of you are staying safe and well. Over the past 20 years, I counseled many non-profit organizations and churches. I pounded them with the importance of Budgeting and Saving for a rainy day. I used the example in Proverbs 6:6-8 (KJV) “Go to the ant, you sluggard; consider its ways, and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in the summer and gathers its food at harvest.” In the past 10 months, life drastically changed, “regular” church services seem like memories for many, and the proverbial rainy day has arrived. I remember early on, we thought, “everything will be fine, in a month. We will be back in church, and tithes and offerings will resume.” Instead, we scrambled to stay within the parameters of various state edicts forcing us to find other ways to preach the Word. We turned to Zoom, YouTube, smart phones, etc. to be our main modes of communication. But one of the church’s primary methods of collecting tithes and offerings vanished. No more passing the offering plate. As we endured the devastating effects to our physical health throughout this pandemic, our financial health suffered challenges, as well. We must turn to alternative methods in order to secure necessary funds and cut down costs. However, many of us are unwilling to adjust our spending habits. We should take a fresh look at our budgets to see where we can trim the fat. For some churches it may be travel, meals, or special activities. But small churches, and churches with little reserves, begin to eat away at the muscle in order to survive. As you know, this is dangerous, and may lead to the church’s death, because of insolvency.
DIRECTORS & EXECUTIVE OFFICERS
JOHN FORTINO, CHAIRMAN AM QUARTERLY NEWSLETTER FELIPE LUGO, VICE CHAIRMAN EDDIE CAMPA, EXECUTIVE DIRECTOR JOSEPH A. RODRIGUEZ, DIRECTOR JORGE MONTES, DIRECTOR LEOBARDO MAFFEY, DIRECTOR ABEL RODRIGUEZ, DIRECTOR GIL AGUILAR, DIRECTOR SUZANNE VALENCIA, DIRECTOR YVONNE VASQUEZ, DIRECTOR
LOAN COMMITTEE
In business, we know that keeping a customer is much easier than gaining a new one. This is also true with church membership. I encourage all pastors and leaders to maintain a good relationship with your sheep. Reach out to them, encourage them, and offer them words of comfort. It is time to use what many other industries have turned to for maintenance and growth—social media, phone calls, texting, whatever it takes. Examine the examples in the Bible. Many books of the Bible were letters written to churches. The letters were not physical meetings in which Paul and the other apostles preached. We have the ability to do so much more today. Stay in touch with your flock, they will gladly give if they feel their shepherd is tending to them. Proverbs 27:23 sums it up, “Know well the face of your flocks.”
FELIPE LUGO ELISEO RAMIREZ GEORGE LOPEZ MARTIN AMADOR CELEDONIO SALDAÑA
FINANCE COMMITTEE GIL AGUILAR SUZANNE VALENCIA ISAI BAEZA
COMPLIANCE COMMITTEE JORGE MONTES YVONNE VASQUEZ ERICKA JUÁREZ
STAFF
ABRAHAM MAFFEY, ACCOUNTANT ESTEBAN ROBLEDO, LOAN OFFICER GLADIA PACHECO, BUSINESS RELATIONS DAVID S. TELLYER, ASSIST. EXECUTIVE DIRECTOR DOMINIC MOSCHETTI, CREATIVE DIRECTOR
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THE AM QUARTERLY NEWSLETTER | 2021
FEATURED ARTICLE
Pastor Partners with Apostolic Mutual to Successfully Navigate the Pandemic Storm By David Silas Tellyer WE NEEDED A MIRACLE
delay created some skepticism, Pastor Plascencia trusted the process. He felt relieved, “When Bishop Lugo called to inform me that the loan was approved, I valued that personal connection.” As of January 1, 2021, Christian Life Tabernacle acquired a $350,000 fifteen-year loan with a 4.5% interest rate, paid off the bank mortgage, and will utilize the $122,000 balance of the Apostolic Mutual loan for the building to repair the foundation and do some remodeling. Change is occurring, and he wants to go the extra step to ensure this does not happen in the future.
In between the cities of Fresno and Los Banos in California’s agricultural capital of the San Joaquin Valley; amongst the dairy lands, ranches, and farms of hard-working people is the thriving church of Mendota, California. “We needed a miracle,” said Mario Plascencia, Pastor of Christian Life Tabernacle. As the leader and visionary of this North Central District church, they saw their thirty-year-old building’s foundation crumbling and became despondent when no contractor would work with them. The issue of their building’s poor foundation plunged them into double despair when the estimate finally came in at a cost of $100,000. Not only NAVIGATING THE PANDEMIC STORM did they have a 7.5% interest rate on their mortgage with WITH APOSTOLIC MUTUAL their current bank, but they needed an extra $100,000 in Pastor Plascencia said, “We can see the light in the middle financing to fix their foundation to continue providing church of this storm,” because at the end of the fifteen-year loan services for their community. When the COVID-19 pandemic with Apostolic Mutual they will own the building, modernize infected the world, and slowed every facet of our way of the interior, and fix the foundation. Working with Apostolic Mutual brought a life, Pastor Plascencia fresh and exciting felt hopeless that hope. Christian Life “When Bishop Lugo called to inform me that the loan anything would move Tabernacle sees the forward, “for many, was approved, I valued that personal connection.” loan as a reward, and many years it did not there is a sense of seem likely to happen. pride in the building This foundation was a that reflects their hard work as a church community. Pastor burden, a drag, a downer. Previous generations were just Plascencia thanks Apostolic Mutual and everyone involved, ignoring it and hoping that it would just stop breaking and “they were always responding to my questions, concerns, go away.” He felt frustrated, because his church had a vision to make improvements, remodel, and create a space and emails in a timely manner. They helped me feel to serve God, and see souls saved. The pandemic storm important. I felt like they worked for me.” He has a burst of renewed energy going forward to fill the house of the brought stagnation, frustration, and desperation. Lord built on a sure foundation. Their vision is coming to pass. “We are working the pandemic in our favor. We built, THE MIRACLE HAPPENED During the pandemic, Pastor Plascencia sought help for his repaired, remodeled, fixed, refurbished, and upgraded dire situation. He eventually contacted the Assembly when he the interior of the soul of the building to get ready for ran out of traditional financing options. They connected him God’s outpouring of His Spirit. He will fill this building, with Apostolic Mutual. Together, they created a resolution and it is ready to be filled,” said Pastor Plascencia. to refinance the building so the church could pay off the bank, fix the foundation, and still have funds to remodel. Under his leadership, and the great efforts of his congregation at Christian Life Tabernacle, finances grew and became very stable. Apostolic Mutual did their due diligence and found their church to be a solid candidate for the loan fund. But, when the pandemic became full blown, everything halted for a while as adjustments, protocols, and plans continued behind the scenes. He stated, “I waited, and thought that it [loan process] was almost over.” CHRISTIAN LIFE TABERNACLE In reality, Apostolic Mutual began to find solutions to his most complex problems. Even though the THE AM QUARTERLY NEWSLETTER | 2021
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SOWING NOW TO REAP THE HARVEST “And let us not grow weary while doing good, for in due season we shall reap if we do not lose heart.” – Galatians 6:9 NKJV
Keeping our sights on our goal of doing good will prevent us from becoming worn down by these tumultuous times. The season of reaping fuels our passion to press forward. This passion ignites the heart of Apostolic Mutual’s vision for kingdom expansion. Since our founding, our mission through finance and investing supports the Apostolic Assembly fulfilling its purpose to reach the world for Jesus Christ. With great joy, Apostolic Mutual announces that at the end of the 2020 calendar year, our Board of Directors approved the contribution of 10% of the net interest earned to be given to International Missions. Over $8,000 was contributed! As Apostolic Mutual continues to grow, so will our capacity to invest in the mission fields.
2020 FINANCIAL REPORTS
BALANCE SHEET As of December 31, 2020
INCOME STATEMENT January - December 2020
BALANCE SHEET As of December 31, 2020
INCOME STATEMENT January - December 2020
REVENUES Interest on Loans Receivable Interest Expense on Investments REVENUES Loan Fees Interest on Loans Receivable Contributed Services Interest Expense on Investments Contributions Loan Fees Contributed Services Contributions TOTAL REVENUES
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$
94,552 (14,362) $ 94,552400 46,800 (14,362) 132,757 400 46,800 $ 132,757 260,147
TOTAL REVENUES EXPENSES Staff Salary EXPENSES Payroll Taxes Staff Salary Travel Employee Payroll Taxes Officers & Directors Travel Employee Travel Board & Committee Expense Officers & Directors Travel Online Subscriptions Board Committee Expense Office&Supplies Online Subscriptions Insurance Office Supplies Depreciation Insurance Bank Service Charges Depreciation Marketing & Promotions Bank Service Charges Legal Fees Marketing & Promotions Accounting Services Legal Fees Management Consulting Fees Accounting Services Management Consulting Fees TOTAL EXPENSES
$
TOTAL EXPENSES NET INCOME
$
NET INCOME
$
260,147
$
$
13,250 1,582 13,250 3,849 1,582995 3,849 5,350 995930 5,350 1,408 930789 1,408 232 789 888 232 5,037 888 24,943 5,037 30,565 24,943 77,073 30,565 77,073 166,892
$
166,892 93,256
$
ASSETS Cash Prepaid Expense ASSETS Interest Receivable Cash Loans Receivable Prepaid Expense Furniture & Equipment Interest Receivable Less Accumulated Loans Receivable Depreciation Furniture & Equipment TOTAL ASSETS Less Accumulated Depreciation TOTAL ASSETS LIABILITIES & FUND BALANCE Payroll Tax Liability LIABILITIES & Certificates FUND BALANCE Investment Payroll Tax Liability Investment Certificates TOTAL LIABILITIES
$
831,555 6,131 11,910 $ 831,555 2,417,348 6,131 1,031 11,910 (232) 2,417,348 1,031 $ 3,267,743 (232) $
$ $
TOTAL LIABILITIES Unrestricted Net Assets Unrestricted Net Assets TOTAL NET ASSETS TOTAL NET ASSETS
3,267,743
324.99 1,289,172 324.99 1,289,172 1,289,497 1,289,497 1,978,246
$ 1,978,246 3,267,743 $
3,267,743
93,256
AM QUARTERLY NEWSLETTER
THE AM QUARTERLY NEWSLETTER | 2021
NEW TEAM MEMBER Apostolic Mutual welcomes our newest team member, Bro. David Silas Tellyer from Community Faith Center in Redlands, CA. Bro. Tellyer has several years of experience in administration with non-profit organizations as an Executive Director, Program Specialist, Federal and State Grants Manager, and Professional Developer. He completed his master’s degree from the University of California, Riverside, earned his Administrative Credential at the University of California, Irvine, and worked on his Doctor of Educational Leadership at the University of California, Los Angeles’s Graduate School of Education and Information Studies. We are excited to announce him as our new Assistant to the Executive Director. Bro. Tellyer will focus on the governance and administrative functions of Apostolic Mutual.
DAVID SILAS TELLYER
OUTSTANDING LOAN SUMMARY
District Central Texas East Los Angeles East Texas Florida District Interior District Los Angeles Mid America Midwest National Missions New Mexico North Central North Texas Northern Golden Valley Northern Pacific Coast South Texas Southern California Washington TOTALS
Number of AM Loans in the District 2 3 1 1 3 2 2 4 2 1 4 1 1 2 1 1 1 32
Interest Rate 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
Original Balance 65,000 466,780 195,000 93,000 205,939 198,286 125,324 225,000 265,000 50,000 684,000 135,000 150,000 60,000 100,000 60,000 26,533
Outstanding Balance $ 33,869 $ 345,953 $ 189,094 $ 59,983 $ 167,343 $ 146,684 $ 97,748 $ 146,377 $ 211,554 $ 25,720 $ 648,549 $ 104,112 $ 141,949 $ 22,405 $ 69,600 $ $ 6,408
3,104,862 $ 2,417,348
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THE AM QUARTERLY NEWSLETTER | 2021