PAYING THE PRICE
PURCHASE BY WITHOUT WALLS INC OF 88 BELMONT AVENUE

Many prayers and prophecies lay behind our faith and belief that Without Walls Inc will have its own home free from debt - in our Lord’s perfect timing.  We do not know that timing but believe 88 Belmont Avenue is the place.

A contract has been entered into to purchase that property for $3,100,000 plus GST. So $3,410,000 needs to be paid to the sellers for Without Walls Inc to acquire the property.  The $310,000 GST should be refunded to Without Walls Inc by the Australian Tax Office within 3 months of payment of the purchase price.

Our known resources for our Building Fund are being regularly reported and updated at our gatherings. Our current resources include some exceptional obedience to our Lord and sacrifice but every single dollar is appreciated and is an investment in the Kingdom and a legacy for future generations.

There is still a substantial gap between our known resources and the funds required to complete the purchase of the property within the time frame required by the sellers.  Under the contract we are required to apply for finance for this.  Negotiations are progressing to bridge the gap with commercial borrowing secured by a mortgage on the property - as most of us do when acquiring our own homes.

Obviously the greater resources we can bring to the table the more likely we are to successfully negotiate a loan for the balance, as well as improving our capacity to ultimately repay the borrowing.

There is a lot of space for the Lord to work in.

We wish to give an overview of various ways in which each person, according to their own situation, can assist in closing the gap between our current known resources and what is needed.

The categories of assistance are Gifts, Ongoing Pledges and Loans.

GIFTS
A separate bank account has been opened for all monies given for the purpose of the Building Fund, which will only be used for that purpose. Any monetary gifts can be made direct to:

Without Walls Building Fund
BSB:        036 062
Account No:    595171

In addition to direct deposit to the Building Fund account, gifts can be made by cheque or credit card. Please talk to Wendy or Amanda for any assistance with this.

Until all borrowing has been repaid, there will be an ongoing need for any gifts that can be made.  This gifting is totally separate from tithing.  First and foremost our tithing needs to continue to support the ongoing activities of the Ministry.  So gifts to the Building Fund are additional love offerings.

The purchase of a home for our Church is not a purpose that attracts a tax deduction.  So any gifts may be to the glory of God but they are not allowable income tax deductions.

Without Walls Inc is registered with ACNC as a charity and is exempt from income tax.  So all monies received can be applied to the work of the Ministry without payment of tax.

We suggest that any persons who have,  or have family access to, a family trust or family company look at making their gifts through the family trust or company.

The vast majority of small businesses in Australia are run through family trusts or family companies. Most trusts include charities amongst the beneficiaries so that pre-tax income can be distributed to charities, of which Without Walls Inc is one.  Due to the exemption from income tax of Without Walls Inc, all income received this way can be used for the Ministry without payment of taxation.

Also, most family companies can issue income shares by which distributions of profit and imputation credits could be made to Without Walls Inc.  Anyone who wishes any further background information about using family structures in this way is welcome to speak to Murray or Vanda Smith but should also obtain advice on their particular situation from their accountant.

PLEDGES
Many people are in a position to be able to give sums of money on a periodical basis. It is of considerable assistance to our administration to have pledges of gifts that will be made over the next 5 years, or any period that you wish to nominate.  It is understood that circumstances do change and it may prove necessary for pledges to be withdrawn.  The Pledges we are referring to are treated as faith statements not legally binding obligations.  A letter or email as to your intentions advising the amount, regularity, eg, monthly, quarterly, annually and for how long, eg 5 years, is all it takes.

It is emphasised that every dollar helps.  There is no sum that is too large or too small for Gifts and Pledges.

In negotiating for commercial borrowing to meet the gap between the known resources and funds needed to complete the purchase, the bank has indicated it would like to see an additional income of Without Walls Inc of $40,000 per annum.  Ways of meeting this are being considered but pledges for monthly, quarterly or annual payments for the next 5 or even 3 years would be of great assistance.

This could be one person pledging $40,000 per annum, 10 persons pledging $4,000 per annum or 80 persons pledging $500 per annum, or 200 persons pledging $200 per annum, or indeed any combination of persons and amounts.

In the commercial borrowing setting, the Pledges would carry more weight if coming from a family trust or family company.  That is, an investment or business entity that has the means to meet the Pledge. Also,  doing this through a trust gives to you the advantage of being able to distribute pre-tax income.

LOANS
It would be of considerable benefit to Without Walls Inc if funds you are holding for some future purpose could in the meanwhile be loaned to the Building Fund.  For example, there may be $10,000 set aside for your daughter’s wedding in 2 years time. If this was loaned to Without Walls Inc for those 2 years, on an interest free basis it would be used to reduce the amount of borrowing from the bank upon which interest is being paid. That is, it will reduce the funds Without Walls Inc has to spend on interest.

In the terms of the borrowing, that will be a repayment of part of the loan. However, under the arrangement being negotiated, any repayment like this carries with it the right to ‘redraw’, that is to take it out again.  So the funds are always there to repay your loan as, unless specifically directed by you, they will not be used for any other purpose than to offset the interest charged by the bank.  Thus, if you have given an interest free loan to Without Walls Inc of the $10,000 for 2 years but then your daughter brings her wedding forward by 12 months, Without Walls Inc will be able to redraw the $10,000 from the bank and repay you.  Of course, Without Walls Inc then pays the bank interest on the increased loan balance.

Like the Pledges, Loans can be for any amount and any length of time but periods of 5 or even 3 years would considerably assist our planning and also significantly reduce the funds of Without Walls Inc going out in paying interest to the bank.  

Although you will be given a written acknowledgement of the Loan specifying the period, this will only be a statement of intent and at your request the funds can be redrawn from the bank and returned to you on short notice.

There is also a special need for a short term Loan or Loans for the $310,000 for the GST.  Without Walls Inc is registered for GST and should receive a refund of this money from the Australian Taxation Office within about three months from the time the money is paid out for completion of the purchase of the premises.  This could be made up of a single loan or multiple smaller loans  specifically for that short-term purpose.  We need to hear from anyone able to assist in this as soon as possible.

Board Members Murray and Vanda Smith are happy to discuss and further explain any of these options.

Please prayerfully consider how you may assist with paying the price for the home for Without Walls Inc.