From Podium to Parking Lot: Reserve Studies Create a Plan for Replacement
Move from “whack-a-mole” maintenance and crisis response to a strategic process.
It’s much more exciting to open a new building than to maintain an old one. But the process of entropy ensures that everything new will become old and require repair or replacement.
Sometimes it’s dramatic: A roof blows off during a storm. Sometimes it’s the drip, drip, drip of a water leak or the silent flaking away of exterior paint. These issues may be out of sight and out of mind, but a reckoning is coming. The only question is: Will we be ready for it?
There are three general approaches faith-based organizations and nonprofits can take for facility maintenance:
Do nothing: Wait until a facility failure that creates a disruptive and expensive emergency.
Do something: Leaders set some money aside for maintenance, but it’s not done on any kind of mathematical or real-world basis.
Conduct a reserve study.
“Reserve study” is an academic-sounding phrase. But it’s extremely practical. A reserve study answers the question, “How much will I need and when will I need it?” Without a guide, churches and nonprofits are left to guesstimate facility costs. Delayed repairs can result in costly emergencies that could have been prevented.
“This planning plays a significant role in providing an inspiring and distraction-free worship environment.”
In this presentation, Matthew Swain, of Association Reserves, explains how reserve studies help organizations:
Avoid surprises
Make informed decisions
Save money by preventing crises
Protect property values
Protect the true mission of ministry
In brief, these studies:
Identify, quantify and evaluate all of the big, predictable projects at your facility
Report how often each project should be completed, how many years of useful life remain and what today’s cost is for each project.
Compare funds already designated for capital reserve to the amount of deterioration that has occurred
Provide a range of funding plans to ensure you understand the true cost of your facilities
“Regardless of the property type, it’s a fact of life that the very moment construction is completed, every major building component begins a predictable process of physical deterioration. ”
The operative word is ‘predictable’ because planning for the inevitable is what a Reserve Study is all about.
About Matthew Swain
Matthew Swain is president of the San Diego County office of Association Reserves and oversees its national portfolio of camps and worship facilities. He joined the organization in 2005, just before completing his Bachelor’s of Science degree in Physics at California Lutheran University. Matthew’s background gives him a wide range of knowledge in mathematics, statistics, electronics, and fluid dynamics. It’s proven beneficial to clients as he applies these disciplines to create a financial roadmap that leads to the longevity of their properties.
FROM PODIUM TO PARKING LOT: RESERVE STUDIES CREATE A PLAN FOR REPLACEMENT
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Reserve Studies: Transforming Facilities from Liabilities to Launching Pads
One of the most important things houses of worship and nonprofits can do to stabilize their insurance rates is to maintain their facilities. Property insurance rates are impacted by the condition of facilities. If property is poorly maintained, the customer becomes a higher risk to the insurer. That means premiums may increase or the client could even be dropped from coverage.
Insurers are attracted to well-maintained properties. This factor has become increasingly important as church and nonprofit carriers have faced financial belt-tightening. An investment in the upkeep of your facility can help keep premiums level and make it likely coverage will be renewed.
Awareness of this fact is a start. But budget know-how is necessary. Enter “reserve studies.”
In this presentation, Matthew Swain of Association Reserves discusses the critical importance of reserve studies for faith-based organizations and nonprofits. He explains how proactive facility maintenance planning can transform buildings from potential financial burdens into effective ministry launch pads, emphasizing the need for systematic, professional assessment of infrastructure, lifecycle costs, and long-term maintenance strategies.
Key Points
🏗️ Reserve Studies Defined A comprehensive analysis of a facility's components, predicting when major systems and structures will need repair or replacement
💰 Typical Cost Range $6,000-$10,000 for an initial study, with annual updates much less expensive
🔍 Expertise Matters Professional assessment goes beyond simple checklists, involving deep research, vendor consultations, and customized analysis
📊 Inflation Considerations Studies account for cost changes by projecting expenses with annual inflation adjustments
🚨 Proactive vs. Reactive Maintenance Avoiding the "wait until it breaks" approach that leads to expensive emergency repairs
🤝 Collaborative Process Works closely with ministry leadership, finance committees, and facility directors to create actionable maintenance plans
💡 Strategic Insight Helps organizations make informed decisions about facility investments, potential property sales, and long-term ministry sustainability
🌉 Ministry Impact Ensures buildings support, rather than hinder, the organization's mission by maintaining infrastructure strategically and cost-effectively