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Kocher, Claudia; University of Michigan-Dearborn; Northpoint Community Church - A case study in evaluating capital project financing options:

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Margaret Boldt · Apr 7, 2020

I like the idea of using a church as the context of a case. However, I have about 30 years experience in working with churches and there is one aspect of the case that is potentially problematic. Endowments are often designated for specific purposes. While the designation may not be a legal designation, it can be seen as unethical to borrow against it by some people. The other thing I would mention is that when some churches have considered borrowing against endowments, they have not considered the possibility that they might not be able to put it all back. If the repayment does not occur as planned and on the planned timeline, this can be very divisive and volatile. I think having the students discuss some of these qualitative aspects could be healthy as they can be present (albeit in a somewhat different form) in the for-profit contexts as well.
Finally, I really liked this case. The presentation is very well done and the visuals are excellent.

Claudia Kocher · Apr 13, 2020

Margaret - thank you for your comments! Incorporating the qualitative aspects of borrowing from the endowment is an excellent suggestion.

Jillian Alderman · Apr 5, 2020

Great idea for a case. I would absolutely use a case like this in an accounting, finance, or non-profit org. course. Also liked the PPT presentation visuals, which would be useful to have to accompany the case materials.

Chad Kendall · Apr 3, 2020

Chad Kendall - Metropolitan State University of Denver
Great case study. Just to throw my two cents in - a healthy percentage of church salary to overall budget is 48%
I like the idea of case studies in upper level undergraduate classes and graduate courses.

Kelly Hall · Apr 1, 2020

Case studies result in learning through application and problem-solving. Thank you for your well-done presentation.

director@aabri.com · Mar 25, 2020

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