Thank you to those that attended the $0-99 Million Breakout by Fund Size session at the 2025 DILA Conference on September 15 in Bellevue, WA! The session was led by Dean Mielke, Executive Director of Mission Development Certificates.

Download Dean’s Handout on the strengths, weaknesses, opportunities, and threats facing smaller Church Extension Funds. This handout was used as a starting point for discussion. Here are some of the additional ideas and observations raised in our discussion.

Strengths:

  • We can react quickly.
  • We are relational.
  • We do this for the Kingdom of God.
  • Because there is a denominational connection, there is already an element of trust.

Weaknesses:

  • We are overdependent on the 70+ age group.
  • Most people aren’t familiar with CEFs.
  • We have limited investment options.
  • Concentrated in one area (both a strength and weakness?).

Threats:

  • Smaller banks are getting more competitive.
  • Reduced staff makes it harder to visit more churches.

About AI…

  • Have an AI policy that spells out how we want to use it and how we don’t want to use it.
  • AI may show up in underwriting.

How are others getting new money?

  • Encouraging churches to invest (Church investments are on the rise; individual investing is down.
  • Educating beneficiaries about the program before the person dies; communicate with the beneficiary that they can keep the money in the program.
  • Get messaging out to youths: if you start investing now, you’ll be ahead of where your parents/older generation is.
  • Most church growth is with young, ethnic population.
  • Reinvestment rate is high, some 80% and up to 90%.
  • In the past, ministers were highly invested in the program. Need to educate present day ministers about when CEFs do.

Where are smaller CEFs investing their resources?

  • ETFs
  • Fixed income securities
  • Very short-term CDs
  • Some CEFs trade a lot; others very little trading this year.
  • Some groups have outside investment advisors.

How are CEFs guaranteeing their loans?

  • Some have autonomous churches
  • Denominational guarantee
  • Nearly churches help to support.

What do we bring of value to churches besides loans?

  • In the Pacific Northwest, we are seeing more repurposing of church property to benefit the community.

How do we balance Mission vs. Financial goals?

  • We need to accept that our mortgages are going to be smaller.

How do we deal with high-risk loans?

  • Continue conversations with pastor and church representatives on how to bring down the risk.
  • Heed warning signs, i.e., a pastor leaving is riskier.