LENDING TO CHURCHES

COURSE OVERVIEW

Non-Profit Organizations (“NPO”) generally comprise a large percentage of outstanding loans on the books of community banks. Most of these loans are extended to Religious Organizations (Churches). The skills required to understand and underwrite the credit risks involved in this type of lending is quite different from lending to For Profit Organizations (“FPO”). Unlike conventional loans, church loans have a higher risk level because they are typically un-guaranteed. This course will cover the major church lending risks and discusses how a bank can prudently manage these risks by exposing participants to the appropriate methods of analyzing and lending to Religious Organizations.

Classroom instructions will also review the Statement of Financial Accounting Standards 117 (Required Financial Statements Presentation for NPOs). This Standard replaces Fund Accounting, which was used previously by NPOs for many years.

After completing this course the participant will be able to:

  • Understand NPOs’ financial statements utilizing Net Asset Fund Accounting under SFAS 117.
  • Identify and understand the primary differences between the accounting principles for NPOs and the accounting principles for FPOs.
  • Identify the basic information required to analyze Religious Organizations
  • Analyze the financial statements and other information available from Religious Organizations
  • Utilize key ratios used specifically for Religious Organizations
  • Identify the risks of lending to Religious Organizations
  • Structure loans to minimize the risks associated with lending to Religious Organizations

WHO WILL BENEFIT FROM THIS COURSE?

Commercial Loan Officers, Loan Review Officers, Compliance Officers Consumer Loan Officers, Branch Managers, Credit Analysts, Loan Support Personnel, Senior Credit Officers

Testimonials

"Jeffery did a fantastic job all week keeping us engaged in the material and involved. He was a fantastic coordinator & lead professor"

Cliff Knowlton, Prime South


"WONDERFUL!! Great Instructor, great information. Will definitely attend more of Jeffery's classes".

Ansley Oliver, Georgia Commerce Bank

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