If the capital campaign fails to raise the $4.3 M in time to begin construction, we could use some of Temple’s reserve funds for this purpose. As these funds are required for the future financial viability of our synagogue, ongoing fundraising over a longer timeline would be necessary to replace the reserve funds.
Temple is fortunate to have a positive financial situation: we have no debt and a modest reserve fund in the bank. A general rule for non-profits is to have at least three months of operating funds on-hand as back-up for unforeseen circumstances. Temple has performed above and beyond this standard. Temple has managed its funds wisely over several decades and, with the generous support of the community, has acquired the equivalent of approximately 12 months of operating funds on its balance sheet. However, the organization must remain diligent in how and under what circumstances these precious resources might be utilized.
We could also sell the adjacent residential property, the ‘bayit’. These strategies combined could cover a shortfall of $900,000 or 20% of the 4.3M target, assuming the remaining $700,000 is raised and the 2.7M pledged is realized.
Under the current project plan, resources might be used to help cover cash flow requirements, however there is no plan at this time to utilize any of Temple’s existing resources to fund the building project per se. The expectation is that the necessary funds will be raised through the capital campaign.
If we still cannot raise the needed funds, the Board would need to suspend the project and establish a new building renewal team. This would require new leadership, new mandate and resources (people and funds) to develop a building facility proposal to address accessibility, safety, aesthetics and affordability of our future accommodation.