Q—What are we celebrating with the CBI Centennial?
A—We are celebrating our congregation's 100-year history! In 1923, a group of Conservative Jews met informally to pray together in Millburn, NJ and in 1925, they established the first congregational home of CBI above Buncher's Hardware. In honor of this history, our CBI Centennial Celebration will take place from 2023 to 2026.
Q—Do we have a goal in connection with our Centennial?
A—Yes! In honor of our Centennial and in order to safeguard and secure the financial stability of our congregation for the next 100 years, we are embarking on a fundraising campaign with the primary goal to retire the current mortgage on our building, and a secondary goal to build up our endowment.
Q – Why do we have a mortgage?
A – During preparation for CBI's most recent renovation fifteen years ago, the 2008 recession interrupted our capital campaign to fund the social hall and school wing expansion. Construction for the school wing started as planned and, subsequently, we were able to raise another $2 million, which would have covered the original cost. However, numerous price increases in raw materials and the bifurcation of the project resulted in extra expense. The Board and the congregation decided to proceed with the project and borrow $2.2 million to complete the construction.
Q – How did we plan to pay the original mortgage costs?
A – We expected to help pay mortgage costs through an increase in preschool enrollment and social hall rentals for celebrations. While this income did not materialize as we had hoped, we have been diligently making payments on our loan and had lowered our principal owed to $1.8 million at the start of this campaign.
Q – How has the synagogue budget been affected by these mortgage payments?
A – Prior to the construction, the CBI budget ranged from $2 million to $2.2 million per year. Over the past decade, the Board has reduced expenditures and increased our financial efficiency. When we began the fiscal year, our expense budget was $2.0M and mortgage payments amounted to $16,000/month. We are happy to report that early gifts to the campaign have allowed us to make a payment of more than $500,000 against the mortgage principal. This, together with a re-amortization of the loan has reduced our monthly payments to just under $10,000. The mortgage cost continues to be a burden and contributes to a deficit situation. Deficit budgets are not uncommon for a nonprofit; however, we would not want years of overspending to create an accumulated deficit which would undermine our financial footing. Retiring or reducing our mortgage would ease the pressure on our annual budget and buttress our future.
Q – What is the current status of the mortgage?
A – In November of 2024, the bank changed our interest rate from a 4% variable rate to a more current 6.75% rate. However, we were able to use funds already collected from the Centennial campaign to reduce our principal balance from $1.8 million to $1.3 million and thereby reduce our mortgage payment. We have the option to make additional payments of $200,000 or more to reduce our principal further and recalculate our payments, so we appreciate all accelerated payments for pledges to the Centennial campaign. The current mortgage expires in 2026, and we intend to pay it off fully before then.
Q – What is the Centennial fund-raising plan?
A – Much like the building campaign fifteen years ago, our fund-raising efforts will consist of asking each of our congregants to consider a contribution to be paid over a three year period to support this exciting project to strengthen CBI meaningfully for the future. Our goal is to raise $2.2 million which would mean an average per household donation of $10,000 over the next three years ($3,333 in each of the three years). Some members will give more and some will give less, the right amount for each family should be determined by their own conversations about the role CBI plays in their family, and within their community, balanced with their personal circumstances. The Centennial Fund contributions are in addition to the requests we make for annual fundraising and which are critical to meeting our operating budget.
Q – How will we celebrate our Centennial? What events are contemplated to celebrate the 100?
A – We have held and are planning many events and programs to connect congregants to CBI’s 100 year history and our future together – fun, thought-provoking, spiritually enriching and multi-generational. These include exciting speakers, musical concerts, museum excursions, walking tours and invigorating hikes, a bike ride, social action projects and so much more.
Q – What have Board members done?
A – In accordance with best practices, the members of our Board of Trustees were recruited to be fully behind this project before launching it to the broader congregation. All board members have donated to the campaign as generously as they can and act as sources of information and encouragement for the rest of the congregation. Our clegy have enthusiastically donated to the campaign as well.
If you have further questions, please contact Mariela Dybner/David Touger via centennial@cbi-nj.org.