religious institution reserve study

zumBrunnen is an industry leader in conducting reserve studies for religious institutions. Our team of seasoned professionals possesses a wealth of knowledge, experience, and expertise in the construction and facilities of religious institutions. Our proven track record speaks to our ability to deliver comprehensive reserve studies that empower religious institutions to make well-informed decisions regarding capital replacements and maintain their financial security.

Reserve Studies for Religious Institutions

zumBrunnen has been delivering religious institution reserve studies for over 33 years, aiding clients in gaining a deeper understanding of their current and future capital requirements. Our reserve studies encompass a thorough assessment of the facilities, along with an analysis of the funding necessary for future capital replacements. Our reserve studies enable clients to make well-informed decisions about their reserves, helping them to strategize for the future and ensure proactive asset management.

About Reserve Study

A reserve study is a vital planning tool for property managers, enabling them to gain a better understanding of their long-term fixed asset replacement requirements. Our reserve studies involve examining all capital assets and assigning replacement costs and future replacement dates. The result is a thorough replacement schedule that aids property owners/managers in making informed decisions and proactively planning for the future of the religious institution.

Contact zumBrunnen to do a Reserve Study for Your Religious Institution

If you’re looking for an experienced and reliable team to assist you with your religious institution reserve study needs, then look no further than zumBrunnen. Our dedicated team of experts has over 30 years of experience in the field and is committed to delivering the highest quality of service. We understand the importance of accurate reserve studies, and our team of professionals will ensure that you receive the best possible results. With our extensive knowledge, you can be sure that your reserve study needs are performed with accuracy and precision by seasoned experts. Contact zumBrunnen today and let us help you make informed decisions for your religious institution.

More About Religious Institution Reserve Study

At zumBrunnen, we acknowledge that religious institutions possess distinct financial constraints, and our unwavering commitment is to cater to those needs through our detailed reserve study reports. Moreover, our team of project managers is readily accessible to provide personalized guidance and counsel at every phase of the process.

Religious Institution’s #1 Choice for Reserve Studies

Save More Time and Money for Your Religious Institution With a Reserve Study

Our services for religious institution reserve studies equip religious institution property owners/managers with a systematic process and indispensable tools to anticipate the future capital requirements of a religious institution for its entire useful life. Our capital reserve study solution is user-friendly and powered by our exclusive FacilityForecast® software, which enables users to tailor their data in several ways. For instance, users can modify inflation rates, interest rates, and year of terms, consolidate or filter budgets, cost categories, budget item classifications, set minimum unit cost values, and compute institution condition indices.

Religious Institution Reserve Study Funding Plan Descriptions

Current Funding Plan

zumBrunnen assesses the Client’s reserve fund balance and examines their past and projected yearly reserve allocations. The Current Funding Plan reports then present a detailed summary of the reserve balance and anticipated contributions, offering a thorough understanding of the situation.

Funding Plan Line Chart Example:
This report displays a line chart of the Client’s Current Funding Plan that showcases their yearly capital expenses, reserve balance, and contribution throughout the reporting period. Additionally, the report highlights any inadequacies in the Client’s existing funding approach.

Funding Plan Table Example:
The report evaluates the efficacy of the Current Funding Plan based on expected capital expenses. It provides information such as the essential balance to be funded entirely, the factual reserve balance, the percentage of funding achieved, the yearly contributions as per the current plan, the income generated from interest, the capital expenditures, and the per-unit per-year and per-month funding necessity. The report identifies any potential underfunding of the Current Funding Plan in the upcoming years.

The plan illustrates the existing state of affairs if the 20-year budget is pursued without any modifications. It indicates the financial position at the conclusion of each year for the ensuing 30 years.

Here is an example of a capital religious institution reserve study current funding plan
Here is an example of a current funding plan capital religious institution reserve study zumbrunnen inc
Here is an example of a capital religious institution reserve study fully funded funding plan
an example of a fully funded funding plan capital religious institution reserve study zumbrunnen inc

Fully Funded Plan

In the early 1980s, HUD created the Fully Funded Plan Component Method, which requires separate funding accounts for each component each year, amortized over the component’s lifespan. For older properties, accelerated funding is necessary to pay for the remaining life of said components, as well as the amortized balance of items to be replaced in the future. If there is a budget deficit, savings or a special assessment can be used to make up the difference. For older properties, a Fully Funded Plan would lead to larger initial contributions and a more conservative reserve balance than the Baseline and Threshold Funding Plans.

Funding Plan Line Chart Example:
Displayed here is a bar graph representing the yearly contributions, capital expenses, and anticipated reserve balance of the National Register of State and Societal Services’ Fully Funded Plan.

Funding Plan Table Example:
The objective of the Fully Funded Plan is to provide coverage for 99% or more of the accumulated depreciation. The report comprises yearly specifics on the necessary NRSS balance as per the depreciation schedules, reserve balance, extent of funding, NRSS contributions determined by the remaining lifespan amortization schedules, interest income, capital expenses extracted from Table VII-A, and contributions computed on a per-unit, per-year, and per-month basis.

The Fully Funded Plan aims to finance 99+% of the accumulated depreciation for properties exceeding one year in age. This will necessitate larger initial contributions than the Baseline and Threshold Funding Plans, but it will also yield a more cautious reserve balance.

Baseline Funding Plan

The objective of this funding plan is to identify the minimum yearly contributions required to prevent the reserve balance from dropping below zero dollars throughout the Reserve Term. This is achieved by conducting experiments with different levels of annual contributions in correlation with the projected expenses until the annual contributions are adequate to maintain the reserve balance at zero dollars, even in the years with the highest expenses throughout the Reserve Term.

Funding Plan Line Chart Example:
A line graph shows the Baseline Funding Plan, including the required NRSS annual contribution for each year, capital expenses, and the reserve balance.

Funding Plan Table Example:
This report details the annual essentials of the NRSS fully funded balance in accordance with the depreciation schedules, reserve balance, percentage funded, vital year amortization-based necessary NRSS annual contributions, interest income, capital expenses, and yearly contributions computed on a per unit per year and per month basis.

Please note that the Baseline Funding Plan ensures sufficient reserve funds only for the Reserve Term years. Subsequent to the first critical year, contributions may decrease, except when a sole critical year falls in the last year of the Reserve Term. In most scenarios, there will be multiple critical years, and the Baseline Funding Plan will reduce the annual contributions to maintain the Reserve Fund balance at or above zero. It is important to consider that extending the Reserve Term may result in higher annual contributions beyond the designated Report Term, as an additional critical year with greater contributions may arise beyond the specified Reserve Term.

This report presents your financial status assuming you modify your yearly contribution to maintain a reserve balance of $0 or higher.

Here is an example of a capital religious institution reserve study baseline funding plan
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Here is an example of a capital religious institution reserve study threshold funding plan
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Threshold Funding Plan

The Consultant’s recommendation for the Client is to incorporate a minimum threshold percentage into the Baseline Funding Plan to mitigate the risk of deferring critical replacements or the possibility of special assessments. This percentage is determined by the Consultant based on the property owner’s/manager’s risk tolerance.

The Threshold Funding Plan is derived by adding the minimum reserve balance of zero dollars, adjusted by the threshold amount, which includes inflation adjustments, to the Baseline Funding Plan. The threshold dollar amount is calculated by multiplying the threshold percentage with the total one-time replacement cost of all capital expenses. However, it is important to note that expenses not immediately apparent, missed, or any changes in pricing, variations, or life cycles, as well as interpretations, means, and methods outside the control of the Consultant, are typically not accounted for in the Baseline Funding Plan or Fully Funded Plan.

Funding Plan Line Chart Example:
A bar graph showing the yearly NRSS contributions, capital expenses, and reserve balance for each year of the Threshold Funding Plan is needed.

Funding Plan Table Example:
For every year, this report will furnish data on the fully funded balance as per the depreciation schedules, the factual reserve balance, the percentage of funding, the NRSS yearly contributions based on the critical year(s) amortization together with the threshold amount, interest revenue, capital expenses, and the yearly contributions assessed both per unit per annum and per month.

The outlined strategy highlights the required donations for the current year that guarantee the reserve fund remains at or above a minimum balance cushion equal to a predetermined percentage of the one-time replacement cost of all the items listed in the capital budget.

Religious Institution Reserve Study FAQ’s

For religious institutions, anticipating and preparing for catastrophic failure is crucial. It is not uncommon for churches and other religious buildings to experience unexpected malfunctions in their HVAC systems or roof leaks during heavy rains, which can lead to devastating consequences.

Unfortunately, many religious institutions are caught off guard when these issues arise because they have not adequately planned and budgeted for future repairs. Our mission is to help religious institutions reduce the risk of unexpected occurrences by conducting an inventory and appraisal of their capital assets and establishing a savings plan for future repairs well in advance. By doing so, we can help ensure that your place of worship remains a safe and secure sanctuary for your congregation, even in times of crisis.

Religious institutions must keep a close eye on the state of their assets to ensure that they are well-maintained and prepared for any necessary repairs or replacements. We recommend conducting a reserve study every three to five years, depending on the size and complexity of your property, to ensure that your development is adequately prepared for any future expenses.

Regular reserve studies can provide invaluable insight into the state of your assets and help you plan for the future. By conducting these studies, you can make informed decisions on how to allocate your resources to meet the needs of your religious institution. With a well-managed reserve fund, you can be confident that you are well-prepared to handle any unexpected maintenance or repair requirements that may arise, ensuring that your place of worship remains a safe and welcoming sanctuary for your community.

For religious institutions, a reserve study can provide essential information on the state of your community’s assets, enabling you to make informed decisions for the future. To ensure that you maximize the benefits of your reserve study, it is crucial to have all necessary information readily available beforehand and to ask relevant questions throughout the process.

Moreover, carefully reviewing the results of the study is critical to developing an action plan to tackle any issues that may arise. This plan should take into account the unique needs and priorities of your religious institution and provide a roadmap for addressing any necessary repairs or replacements.

“As a neutral third party, zumBrunnen added an extra dimension to our team and helped us bring a $14 million project under budget and on schedule. I was very pleased with the professionalism of zumBrunnen’s project manager, and the value they added to the team.”

Ric Sanderson
President - Sundance Design and General Contractors

Reserve Study Clients

  • greystone
  • ziegler
  • hjsims
  • beacon-1
  • woodward
  • covenant
  • grayco
  • kennesaw-state-university
  • fiftythirdbank1
  • abhow

Your Trusted Religious Institution Reserve Study Partner

At zumBrunnen, we pride ourselves on our extensive experience working with religious institutions, and we understand the unique requirements that come with reserve studies. With over 30 years of experience in this industry, we have developed a keen eye for identifying blind spots that others might miss. To further streamline the process and improve efficiency, we have developed an innovative software solution called FacilityForecast®. This user-friendly tool is designed to assist your team in managing long-term capital replacement and operating expenses with ease. The software allows you to forecast expenses, analyze financial performance, and generate detailed reports in a snap. Additionally, our team is always available to provide personalized guidance and advice tailored to your religious institution’s specific needs.