Volume 3 - Issue 1  



April 30, 2012

(podcast) What is Risk?
Every change brings with it some amount of risk. When Church leaders make financial decisions should they strive to eliminate all risk that their decisions will incur, or is there a level of risk that is acceptable and proper?

Patrick O’Meara discusses “risk” in this podcast, answering the following questions:

 •   What is risk?
 •   When and why do we take risks with the temporal goods of the Church?
 •   Why is choosing to do nothing sometimes a risk?
 •   What is the “happy medium” between foolhardiness on one hand and complete avoidance of risk on the other?

listen to the podcast

Moody’s Reviewing Banks for Potential Credit Downgrades
Moody’s Investor Services announced that 17 large financial institutions are under review for potential credit rating downgrades. Moody’s finding will be released in mid-May. These financial institutions include Bank of America, J.P. Morgan and Citigroup. Many not-for-profit borrowers have issued tax-exempt bonds that are backed by a letter of credit from large financial institutions. These bonds are sold to money market funds which are required by regulators to invest in highly rated securities such as those rated P-1 by Moody’s. If a bank’s short term rating is downgraded to P-2, it may be more difficult to remarket the bonds, necessitating either an increase in the interest rate or potentially a draw on the letter of credit. Options available to borrowers include substituting the letter of credit provider, refinancing the bonds with a direct placement to a bank, or remarketing fixed rate bonds. Borrowers should consult with their financial advisers to determine if any action is necessary to assure that their bonds remain in the market.

Please contact Pat O’Meara, or Dave Morrison, if you have any questions.
O’Meara Ferguson Advises on the Construction Financing for the Sixth Catholic Medical School
in the U.S.
Marian University is currently constructing a new College of Osteopathic Medicine, only the sixth medical school in the country associated with a Catholic university. This project reflects the vision of President Dan Elsener and the Board and is a truly
transformative undertaking for the University. To provide assistance in realizing this goal, the University hired O’Meara Ferguson to prepare a Long-Term Capital Plan (the “Plan”) and serve as financial advisor to the University for any financings related to the Plan.
Marian University is a Catholic, co-educational, comprehensive liberal arts university located in the City of Indianapolis, Indiana. The University traces its beginning to a school for teacher training founded by the Sisters of Saint Francis at Oldenburg, Indiana in 1851. The program was formalized in 1860 as the Academy of the Sisters of St. Francis. In 1864 it was renamed the Institute of the Immaculate Conception, and the following year it became the Academy of St. Francis. On April 8, 1885, the institution was chartered by the State of Indiana and called the Academy of the Immaculate Conception. In 1937, the college was chartered by the State of Indiana as Marian College with a four-year liberal arts program for young women and a teacher training department. Marian College moved to Indianapolis for the fall semester of 1937. In 1954 Marian became Indiana’s first Catholic coeducational college, and in June 2009, Marian College became Marian University.
Over the past several years, the University grew and progressed through expansions of the academic curriculum, enhancing the faith dimension on campus ... read the full article
The Pastor’s and Chairpersons’ Roles in a Successful Campaign
As a stewardship consultant I am often asked, “What makes for a successful campaign?” That is a difficult question because each pastor, chairperson, leadership team, parish, and locale is so different. And yet, there are elements of successful capital campaigns that keep
A capital campaign is an exciting adventure for most parishes because it is a process that allows them to move from dreams to reality. It is the combination of prayer; inspiration, drive and conviction; well-crafted plans; effective communications; the employment of gifted individuals and teams; and the sacrifices and financial resources on the part of many people that turn dreams into reality.
While all these elements are present in a successful campaign, further analysis of campaign results indicate that the role that the pastor and campaign chairperson assume as the campaign unfolds is critical to success. The following elements are found in pastors and chairpersons leading successful campaigns.
1) The pastor and chairs of successful campaigns are people seeking God’s guidance in prayer while encouraging the parish staff, campaign team, and parish to do the same ...

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Good Steward Newsletter – April 2012
Easter Good Steward
“For I handed on to you as of first importance what I also received: that Christ died for our sins in accordance with the scriptures; that he was buried; that he was raised on the third day in accordance with the scriptures; that he appeared to Cephas, then to the Twelve. After that, he appeared to more than five hundred brothers at once, most of whom are still living, though some have fallen asleep. After that he appeared to James, then to all the apostles. Last of all, as to one born abnormally, he appeared to me.” (1 Cor 15:1-8)
St. Paul believed that it was of “first importance” to remind the Church of Corinth (and all of us) that there were actual eyewitnesses to the resurrection of Jesus Christ from the dead ...

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© 2012 O'Meara Ferguson