Sort of a Credit Union for Texas Lutheran Churches

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Welcome to engaging truth. I'm pastor David Bon, your host for today's program and welcome Becca Jones. The, uh, what is actually your title, Becca with the church extension fund of the access district.

I am the executive

Director, the executive director, and you have been in that position for how long?

Just over three

Years now. Wow. The time flies though. I mean, it just seems like yesterday that this was all unfolding. And, uh, so tell us just a little bit about yourself, first of all, who you are, who's your family and those kinds of important details.

Sure. Happy to do that. And thank you for asking. Yes. Um, I have been part of the Texas district for the last three years now and what a delight it was to transition into serving in such a fine district. Um, prior to that, I had almost 20 years serving our church body in St. Louis for through the Lutheran church, um, Missouri Senate in the extension fund, the national organization. So it was again, a pleasure to take that service that was nationally and really be able to personalize it and really, uh, be directly with the ministries rather than making national decisions to again, be really specifically serving a community such as our Texas district.

Okay. Uh, you're married. Do you have, do you have any kids, any children?

Yes. Thank you for asking my husband, Wally and I, we, um, have been married for 26 years. We have, uh, five children and we have 14 now grandchildren. No, no, yes. They, they keep us hopping and there's, there's always an exciting adventure to have, so it, it makes it quite of joy.

Yeah, that's pretty good. Uh, we, we have only nine, so, uh, but that's, that's great. So, um, you have been with the church extension fund for three years. And for you, the biggest change in that, I think you kind of mentioned, was moving from, uh, the national Lutheran church extension fund, which is, uh, a national body to the Texas church extension fund, which is in the state of Texas. Uh, the biggest change for you, you mentioned, was being able to be more personalized.

Absolutely. You know, I think that, um, again, serving with LCE up and what a fine organization, but they're a national organization and the reality is that there is uniqueness to the geographic areas in which ministries serve. And I think it's important to recognize that. So when I'm making decisions on behalf of church extension fund, I'm actually sitting in a congregation, um, with that community, with that community and understanding what their unique needs are. And I'm not applying standards that might work in New York, but might not work in Oklahoma, uh, for us in Texas. Again, we are so very ministry focused and, and focused on relationships. Mm-hmm . So again, rather than being in a boardroom, I'm in a congregation setting and being able to really uniquely understand what they're facing, what their vision is for ministry and how exciting that is to be welcomed into that process. So if sharing that vision, then we get to figure out how can we make that happen, uh, from a financial side, um, and really lead with ministry, certainly.

And you mentioned that coming out of COVID that, uh, this is one of the places where, um, you know, the whole performance of C F and, and the people that, uh, we serve, uh, has been just really very encouraging. Can you say bit about that?

Absolutely. You know, I am just so, so thankful and, um, of the way the holy spirit really just took care of our congregations. I mean, it was amazing. It was a frightening time. It was a lot of unknown and for our borrowing base, one of the things we wanted to make sure of as they were focusing on so many things, ministry relays that their financial concerns weren't overwhelming their ministry needs. And we immediately looked at creating some very unique products that would respond to possible needs, that they might have created a business interruption line of credit in case there were needs. In that regard, we offered all of our borrowers and opportunity to go on interest only on their loans for a designated period. Again, just to provide relief and to remove any distractions. We didn't want their energy to be solely focused on how are we gonna make our mortgage payment, but rather, how are we going to reach our clock?

How are we going to make sure that our people continue to be connected? So in offering those, those unique opportunities, I'm just delighted to say that really only about 10% of our borrowers required relief, we were joyfully, um, extending that out to them. And today I can tell you that, um, we have a 0% delinquency rate, every one of those borrows borrowed faithfully return to the terms of their loan. And I just think, again, that is just such a testimony to the faithfulness of our congregations, to the, the way in which God really care for our congregations and our people, the people in the pew were so faithful to continue to support their congregations, even when they couldn't in the pews. Right. So I just think that is a huge blessing. And I have to tell you to be able to respond promptly and, um, create unique products that didn't require us to jump through a bunch of, of hoop, um, loops and hoops to, to get it approved, but we saw a need and we were able to respond as part of the Texas district and step with the Texas district. And it was just a, again, a really beautiful thing to happen.

That's great. Hey, we need to back up maybe, uh, for the sake of some who are hearing this, uh, for the first times about this church extension for, I, I've tried to maybe sometimes describe the church extension fund as a credit union for churches. I don't know if that's a fair way to talk about it, but how would you describe what is C F what is the church extension fund?

Thank you. Thank you for asking that. And you're absolutely right. I get so excited about talking about what we do that I forget to aren't at that very beginning. And, and I think actually your, your, um, explanation is a pretty good one. We do operate similarly to a credit union. We are here for a specific purpose and that's to serve our Texas district LCMS, our members and our congregations. We have investment products so much, like you would find in a finance to institution. We have a savings account, we have CDs. Um, we have investment opportunities. Those investments allow us to provide the loan. So they're very, very importantly connected. So, um, those investments, individuals and congregations, they make investments, they put dollars on deposit with church extension fund. Those dollars are then in turn, lent, lent out to congregations as those congregations pay their loan back or able to again, pay that interest to our investors and also make those additional loans that happen.

We have over 12,000 investors with church extension funds, those 12,000 investors by the way, have on deposit about 176 million. So that's our investor side of the house. Again, very, very important couldn't happen without them. We are very mindful of making sure that they get a very attractive interest rate while their funds are on deposit at CEO, but the funds belong to them and can be withdrawn when they're for those funds. On the other side of the house, we have our loans, we have 153 borrowers, and they have borrowed, um, 123 million. So again, those two sides of the house as an organization, our total assets are about $226 million. So that's quite a significant operation. Um, but again, uniquely led with the ministry lens. So that's about, um, who we are and how unique we are. Okay. So we do operate like a financial institution, like a credit union, but then the, the most significant difference is our decision are made with a ministry lens.

So certainly we have underwriting guidelines to make sure we're making responsible loans. We don't want a congregation or a ministry to be burdened with debt that they can't manage. So our responsibility to go through that process and make sure that the debt they're requesting isn't gonna negatively impact the ministry. Um, but our decisions are made not just by the numbers and not just by the financials, although they're important. We also wanna understand what's the ministry vision, how are you going to reach more people with the love of Jesus, this loan request that you're making that ministry story is just as important to us when we consider a loan as the financials, they go hand in hand.

Yes. We're talking with Becca Jones, the executive director of the Texas church extension fund. Becca. You had also mentioned, uh, before we began tonight, uh, that, uh, you have recently done a little bit of a change to your mission statement. Can you share a little bit about that?

Yeah. Thank you for asking about that. I think it's really exciting. I, our mission statement by the way has been around for a very long time and it's served us very well, but, but as we look at relevancy in the future, you know, we look at how we serve ministries and we all know that ministry and, and the way in which ministries are planted and, and, um, begin are very different than they were decades ago. When, when we were serving our previous mission statement, talked about, um, buildings and land, again, very, very important part of our ministry work. However, in the future, we know that not all ministry plants will not all mission starts, will be about bricks and mortar. So how do we, um, continue to be relevant and serve ministry needs without just narrowly defining our service as about land and building. So we did a recent modification to our mission statement, and this is kind of a pre because we haven't even formally launched it. Oh, wow.

All right, here, we gotta scoop here.

Exactly. So an exciting scoop to say that we really, we, we changed the wording a little bit again, still the core of what we do is serving Texas ministries and their needs, but we wanna be more of a preferred financial partner because again, we're partnering with individuals and we're partnering with ministries and we wanna be focused on helping the ministries that are working to multiply the followers of Christ to really reach people with the love of Jesus. However, that looks, and it may not be bricks and mortar in the future. Um, but we wanna make sure that when those needs arise and when those opportunities to partner come up, that we are not restricted or bound by a mission statement that limits the way in which we can walk with you. Mm-hmm

mm-hmm . So have you had a occasion to provide some funds, uh, along those lines that are maybe not directly related to, or is this something that's yet in the future?

Well, it's certainly something we are going to use as a springboard for future opportunities, but we've already been kind of looking at piloting and testing a few things and, um, really within the boundaries of what we currently do, but, but maybe expanding them a bit. And I'll give you an example if I may, and that is a, we extended a line of credit to a congregation that was partnering with a, a church plant in their area and the church plant, obviously wasn't in a financial state to secure a loan on their own at this point. Um, this congregation just lovingly and boldly stepped forward with their congregation membership support and said, we will, in essence, really kind of be, um, the collateral and the co-signer for this loan, for this mission plan. Um, so I thought, you know, again, what a beautiful, bold way to ministry that this congregation was doing, and I really felt compelled to, but what can we do to be part of that as well? So looking at the terms of, um, our traditional line of credit and to modify that uniquely so that we could support this, this, again, bold initiative to, to help this the implant we wanted to be part of it. So we were able to take a current product and modify the terms. And, um, I think it it's a beautiful pilot and I think things like that, pardon of me? I think things like that will kind of help us to, um, explore what other products and services might be relevant.

Sure. Uh, thank you all for connecting with us on engaging truth. I'm talking with Becca Jones, executive director of the Texas district, uh, Lutheran, uh, church. Uh, but it's the church extension fund of the Texas district evangelical life ministries. Elm is a group of volunteers in the Houston area who not only plan each of these broadcasts, but also produce them. Each podcast is founded on God's word sended to the saving grace of Jesus Christ. Your prayers and financial gifts helped send us, uh, the opportunity to send each broadcast through various delivery technologies to our country and even throughout the world. So please go to Elm houston.org and click on the donate button there. Or you can send your support to El P O box 5 68, Cypress, Texas, 77, 410. Again, that's Elm P O box 5 6, 8, Cypress, Texas 77, 400 0, or go to Elm houston.org. We appreciate every gift and promise to use your gifts to send the good news of Jesus around the world.

Thanks for your help. And Becca, you mentioned something, as you were talking about here, we're talking about this financial institution and we're talking about making, uh, opportunities for people to invest, and that's always a, a good thing. Uh, and also the turnaround of that is that you can, um, uh, provide funds for ministries, but as you were describing that you, you specifically mentioned to help them to, uh, to make disciples, to make followers of Jesus Christ. So really, I mean, are you serious that Jesus Christ and his message is important, uh, to, to what you do? Is that just happy talk or is that real?

It is real. It is everything it's essential. Um, um, you know, again, what is beautiful about church extension fund is we are part of the Texas district. We are not a separately incorporated into entity that has business objectives. Certainly we're gonna manage this institution with, um, professionalism with, um, responsible actions from a financial standpoint, but we're, we're the Texas district. So what we do is we joyfully walk with the district. We are, um, we care about the patterns of people being reached and we celebrate those opportunities recently had a, a real blessing to go to a congregation and celebrate a note burning. And, and I had a member stop me and say, it's so strange that our bank would come and celebrate the fact that we don't have on anymore. And it was such a great, you know, what? We are not a bank. I mean, we are your ministry partner and we are delighted that you were able to retire this debt.

Um, but it was awkward and it for him, we just couldn't understand why would the bank be here? I'm surprised you're not trying to get us to take another load. And that's just not who we are. Um, we sit with the district, we look for ways which we can walk with our district that may mean supporting an educator's conference. You know, CF wants to be part of these gatherings, not just in terms of a loan or an investment, but what other things are we doing in the Texas district that really do help to share that love of Jesus, because that is what we are all, that's what we're celebrating. And our part is a small part in it. Again,

We're talking with Becca Jones, executive director of the church extension fund, the Texas district church extension fund, by the way, Becca, I have one of your wonderful, uh, notepads right here in front of me. These are the greatest. And, uh, so don't stop producing notes that you support in ways you never would think, uh, on a, on a serious level. Um, I remember, uh, at least at one time there was the Texas two step. Uh, is there a program like that still going on or plans in the future for that?

Absolutely. The Texas two step is just a wonderful opportunity and an example of how we are part of the Texas district and the way in which we connect with one another, the Texas two step is an opportunity to make an investment with church extension funds. Um, it's a win-win so you make an investment. You not only get the very attractive base interest rate that we offer, but we will give you a 1% bonus rate on that investment and exchange or alongside you making a gift to Texas partners and mission. So, and we, by the way, church extension fund will match your gift. So again, a win for missions, a win for the work that we do in our district, a win for your investment to earn an even more attractive interest rate. And we're able again, to match your gift so that more ministry can happen. Again, we don't have, we're not here to make profits and pay shareholders. We're here to invest in ministry. And that's just another little example of the way in which we want resources to be poured back into

Ministry. Absolutely. In fact, it almost sounds like a three step. I mean, you're investing and, and allowing, uh, C to make loans, to congregations and ministries at getting an extra amount of interest and also, you know, uh, really supporting Texas partners and min in mission, which is a funding, uh, source for the work that we're doing to try to share the gospel of Jesus with other people. That's, uh, that's really, really good. Um, as you think about the, uh, challenges you have, uh, I, is there, are there hard things that you have to deal with in C or is it all just roses?

Uh, yeah. Well, it's certainly a joy. It's a joy to serve in this capacity. I would say that, um, the opportunities that come up are related to, again, understanding the unique seasons for a congregation and really making sure that that that's the focus that we use. I mean, we serve very, very large congregations and, and then we serve very, very small congregations, you know, maybe a multimillion dollar, um, outreach, um, recreational center that a congregation wants to establish, or it may be equally significant for a small congregation to be looking to, um, repave their parking lot. And we wanna make sure that every request be small is treated with the same level of, of respect and also, um, ministry celebration. So again, how do you celebrate, you know, a, a parking lot, um, versus a recreational center, they're all a part of the, you know, the, the effort to represent Christ's love in those as community than beyond.

And so they all matter. And so I think the opportunity is to make sure that we continue that uniqueness. We continue that, um, personalized service that as we grow, and we've been blessed with growth and opportunity and charge extension funds. And I think that, um, therefore we are, we are really required to be a blessing to others, and to keep that uniqueness don't become institutionalized, don't become, um, too far removed. I want us to continue to be sitting in those congregations to hear the excitement about how this loan will make a difference, or even frankly, to process that deposit from that family who just opened a rainy day fund and they're saving for their family vacation next year, and they're faithfully making a deposit every month and that's wonderful to reach their goal, but also to remind them they're also helping those congregations while they're saving for that family event. So I think the real, not, not a difficult thing, but just an important thing to always be mindful of. And that's, again, keeping it, making it personalized, keeping the connections there. We don't wanna just become a financial institution. We always need to make the ministry connection as to what we are doing, because that's what we're about. Otherwise. Um, we're not any different than your credit union than your secular financial institution that ministry blanket has to be there always.

Yeah, I, I think, you know what you said, there's really important. And maybe as, uh, our listeners, we're talking to Becca Jones from the executive director of the Texas district church extension fund, and our listeners may think, you know, this doesn't, uh, necessarily have anything to do with me, but it really could. And if it's your opening that first savings account, maybe for your grandchildren or, uh, for, like you said, uh, a, a family vacation next year, whatever it might be, the potential there is that you are helping, uh, to support work of the gospel, uh, in congregations across the state and maybe your own, even because I know that there's another program that the CF has, that's really a blessing to congregations. If they have supporting investments. Is that something that's still happening as well?

It is. And again, it's another one of those opportunities to just really return them the blessings back to the ministries. Um, it's called our rebate program and it's available for all of our borrowers. When you open an investment with church extensions fund, you're asked to name the congregation that you're supporting that kind congregation, if you will receipt, um, credit for those supporting dollars. And there's a formula that we use on a monthly basis that, um, allocates a rebate back to the congregation it's based on their loan and their supporting investments. So it's really a very simple calculation that ultimately depending on the, of investments that you have in your congregation, your congregation can receive up to 2% of their loan back to the congregation in a rebate forms. Amazing.

That's just incredible. Yeah.

It is such an exciting time of the year for us when it's rebate time. Um, at the end of our fiscal year, we, we calculate a everything up and we're able to distribute those dollars and, and frankly, significant dollars again, return to the congregation, um, completely for however, the congregation chooses to use that. Um, and again, it's just a wonderful thing for that person in the pew to understand that your investment again, where are the wins, right? The win-win here, investment earns an attractive interest rate. You're helping ministry. You're also helping your home congregation in the form of that rebate. And here's a little UN, um, maybe not so well known secret that I'm gonna share with you. If your congregation doesn't have a loan, um, you can still, if you have a neighboring congregation or you have, let's say that your, your family, you have a brother that's, um, you know, down in Houston and then you have another brother that's up in Austin. The Austin congregation has a loan with church extension fund, but your congregation currently doesn't, you can support another congregation. If your congregation doesn't need your supporting dollars, and you have a brother sister congregation that might need that support, you can support another congregation in the justice

District. What a great thing. Thank you, Becca, for joining us on, uh, engaging truth. We hope that, uh, for people will take advantage and reach out to you and be a part of this incredible ministry. Thank you for joining us on engaging truth.

Thank you for listening to this broadcast of engaging truth. Be sure to join us each week at this time, to help support our ministry, contact evangelical life ministries, post our office 5 68, Cypress, Texas 77, 410, or visit our website Elm houston.org, or find us on Facebook evangelical life ministries. Thank you.