LOA Debt Reduction Plan Update
November 29, 2023
As we approach the end of the first year of our Love One Another (LOA) campaign five-year pledge payment window, I want to provide you with another update on this significant fundraising effort. To recap, by the end of 2022, we had received pledges of $1,615,765, with 40% of that amount supporting Archdiocese of Milwaukee priorities such as Catholic schools and priest formation, and 60% ($969,459) being returned to St. John XXIII for the expressed purpose of reducing our Gather & Grow mortgage debt (that currently stands at just under $1.37M).
Of the $969,459 LOA funds we expect to receive, $324,738 (33%) has been disbursed to date. Rather than using these funds to pay down our debt, which is only subject to a 3.3% rate of interest until September 2025, we have been investing them in relatively short term (5-6 month) U.S. Treasury Bills at an average rate of 5.3%. By this upcoming April, this investment strategy will have generated nearly $13,000 in interest, with more to come given additional like investments.
Beyond this positive financial management performance, since this past June we have been blessed to receive non-LOA parishioner donations to our Gather & Grow fund totaling $52,000 which have enabled us to entirely cover our monthly mortgage payments of $7,334 and, in turn, dedicate all the more of our LOA funds to our U.S. Treasury Bill investments.
Once again, I am amazed by the extent to which our parishioners are willing to support the financial needs of St. John XXIII, and most grateful for their generosity. My heartfelt thanks to all who have contributed in any way to both our Gather & Grow and LOA campaigns. May God bless you this joyous holiday season!
Bill Henkle, St. John XXIII Director of Administrative Services