Emergency = Maintenance We Neglected?

A capital “E” emergency is one we had no control over. Yet many facility meltdowns are predictable and preventable.

A simple definition of risk management is knowing and facing up to reality.

While this is more easily said than done, a great deal of it can be accomplished by diligent lay people who have no specialized training.

Very few risks are exotic or worthy of headlines.

Take your facility. Before the paint dried on your new building, entropy had set in. What’s that? It’s the process of systems running down. Unless new energy (caulk, primer, paint) is infused, deterioration is inevitable.

This is true not only of your paint job, but of your foundation, parking lot, roof, HVAC system and hot water heater. Even the freezer, oven and carpeting will one day cash in their chips.

“Facility and equipment failure are some of the most significant – yet foreseeable – risks for houses of worship and nonprofits. ”

What’s your game plan?
Most organizations have no plan except to fix a problem when it erupts. Whether it’s a burst pipe, an HVAC failure or a leaking roof, damage may be the only thing that gets our attention.

There are several problems with this approach:

• Severe disruption of day-to-day activities.

• Urgency usually results in a costly repair done by an unvetted vendor.

• You’re not just fixing a burst pipe, but collateral damage such as drywall, trim and ceilings.

• Insurance claims usually result in higher rates. They can even lead to being dropped by your carrier.

• If your insurer determines you were negligent in facility maintenance, your claim may not be covered.

Whack-a-mole maintenance
So what’s the alternative to “whack-a-mole” maintenance?

One idea would be to guesstimate maintenance expenses and try to set some money aside. Although this is better than nothing, guessing is never an optimal strategy. In addition, these funds could be viewed as a “phantom” maintenance account and can easily be raided for other needs (“Nothing’s broken. Why can’t we spend the money?”).

A real alternative
There is another way forward, but it requires a proactive – instead of reactive – approach.

The phrase “reserve studies” is unknown to most faith-based organizations. It sounds intimidating, but need not be. It simply means studying how much money needs to be reserved for property maintenance.

The concept is simple. But getting the right number is not. Awareness of the need to budget for an HVAC system is good. But how much do you budget, and when?

“Reserve studies answer the question, ‘How much will I need and when will I need it?’ ”

Matthew Swain, of Association Reserves, oversees the company’s camps and worship facilities division. He explains that reserve studies help organizations:

• Avoid surprises

• Make informed decisions

• Save money by preventing crises

• Protect property values

• Protect the true mission of ministry

After gathering data, an analyst provides a range of funding plans so an organization can understand the true cost of its facilities. With that data in hand, a house of worship or nonprofit can transition toward a crisis-free approach that minimizes chaos and protects its property and mission.

Take the next step
Learn more in our free webinar featuring Matthew Swain, who is president of the San Diego County office of Association Reserves and oversees its national portfolio of camps and worship facilities. He joined Association Reserves in 2005, just prior to completing his Bachelor’s of Science in Physics at California Lutheran University. Matthew’s background, which gave him a wide range of knowledge in mathematics, statistics, electronics, and fluid dynamics, has been a benefit to clients as he models complex physical and financial change at a wide range of properties.