Dear Brothers and Sisters Here is the short form of the plan as first proposed. For Rev. Paris the S&L component is now the Credit Union component for each District. Please feel free to submit questions either by response or direct to me. Blessings to you all.

Consolidated Banking April 12, 2004 Components: Direct Banking (Commissions Contract) Church Owned “Off-Shore” Bank Financial Services Company - -(Credit Union Network)- Connectional Card Services Connectional Insurance

Direct Banking: The AME Church presently raises over $330 million (M) dollars per year. A consolidated Banking Contract would provide a royalty or commission of at least 1% which at minimum would be $3M of additional income per year. Discussions have already begun and can proceed based on legislation compelling ALL Churches to participate in this program. Earning potential $3M.

Church Owned Bank: The proceeds from the direct banking contract would be sufficient to establish and incorporate an International “Off Shore” Bank. The Church bank would then sweep all funds to garner further interest on short terms investment strategies. This is one of the core businesses in the Bermuda Financial Services Sector.

Financial Services Company: This company would then operate as an “S&L” in each District offering services to individual Churches

Connectional Card Services Company: Local Banking Sources have shown that for 20 Thousand Card holders the annual revenue (profit) derived is approximately $ 4-5M per year. With our membership in access of 1 million and more than 200 thousand are card holders (presently some Churches already have credit card services) we can at a minimum set up a company that can generate at 20 thousand card holders an additional $4M per year and grow to a membership of 200 thousand card holders that can increase revenue to $ 40M per year. Infrastructure planning is designed and best runs outside of the United States with the insurance for the credit cards to be held with the Church Insurance Company

Connectional Insurance: The Company, while set up has not realized any business thus far and can only succeed through binding legislation compelling churches to participate. This will increase the revenue by a minimum of $2M per year.

Combined increased revenue potential is a minimum of $7-10M per year. After 5 years the growth increase can range from $ 12M to $58M per year. Maximum projected revenue is approximately $68M per year.

This proposal demonstrates that in the first year of application we could generate an additional $4M. Over time this could increase to over $68M per year.

Respectfully Submitted

Sen.Rev. Dr. Leonard M.D. Santucci,Candidate for Episcopal Honors 2004 Bro. Nalton S Brangman

-- Anonymous, June 09, 2004

Answers

That proposal sounds great. With an additional $68 million dollars per year, the connectional AME Church could easily offer a minimum salary stipend for pastors who are out in the field.

-- Anonymous, June 12, 2004

The Plan states:

"The AME Church presently raises over $330 million (M) dollars per year."

I assume this is what is expected to be deposited each year. But isn't most of this money deposited each Monday and checks written out for most of it before the Friday of the same week?

For example, a church might have receipts of $1500.00 per week average and expenses of $1490.00 per week average. In other words, the net gain is only $5.00 per week. Most of the churches in Texas spend everything each week and have nothing left after the weekly bills are paid. If these churches deposit into Consolidated Banking there would be nothing left. What happens then?

-- Anonymous, June 12, 2004

It is thatg power of collective economics that makes the plan interesting.

While an individual church maynot see the benefit of its 5 to 10 dollar residual deposit, when you gather the residual deposits of thousands of these, you still have enough to make a loan, offset a liability, and other banking things. It is this power of economic work that makes a bank able to be succesful, even with little apparent income from our 1 and 2 percent accounts.

-- Anonymous, June 12, 2004

Assume we have 10,000 churches (I don't believe we do) carrying a bank balance of $10.00 per church. That amounts to an average balance of only $100,000.00. The interest on that won't pay the postage.

-- Anonymous, June 12, 2004

Brother Brangman,

Thank you for providing this information on the plan. Let me say up front that I have no background in high finance or economics so I will make no attempt to comment on the financial soundness of the plan.

So, to my questions... 1) How does the local church benefit in the profits realized by these Insurance, Banking and Card Services Companies? 2) Who runs and manages these companies and how does the church exert its influence and will on direction, policy, etc? 3) Does the plan suffer from the 'all eggs in one basket' syndrone - meaning, does failure of these institutions constitute financial bankruptcy of the entire body? 4) What are the anticipated operating expenses of this entity and what percentage of the church's income does that represent? 5) Do our present financial numbers suggest a growing church? What rate of growth must be sustained in order to realize the numbers projected in the plan? 6)How would a local church be compelled to participate in such a plan - would there be penalties levied for non-participation? 7) Would the banking/S&L institution be an exclusive provider to the A.M.E. church or would it compete in the marketplace for customers with other like enterprises? 8) Lastly, What benefits would compel the Lay to support such a venture?

Thanks for your patience, In His Service,

-- Anonymous, June 13, 2004

Bro. Ron Harris Thank you for your questions. I will seek to answer all of them to the best of my ability. If any of the answers are still not clear please do not hesitate to let me know. 1. The Church benefits directly from the revenue generated in this program. This program would be run, controlled and owned by the Church and be structured for all profits to be used to phase down the assessments from the local Churches and eventually provide an economic base by which the local Church can receive financial assistance in Church growth and development

2.(a) The program will be managed, if approved, by a special committee set under the Commission of Economic Development through the General Board. The committee would eventually be re-constituted into a corporate board comprising all level of input within the Church. (b) The Church would not need to exert influence as it would indeed own the entity. The General Board and the General Church would have oversight power of the activities and account management of the program.

3.There is no risk of loss due to the "All of the eggs in one basket scenario". A valid concern Ron but remember all institutions must be insured and again this program is based on our annual revenue. We can change our relationship contracts at anytime, particularly if the Church feels the deal is not being well served. This is covered in section 2(b)where the General Board will have oversight.

4. (a)The program is a tranitional one. In the short term there are very limited expenses which would be covered by the first banking contract. As it expands the costs would increase in proportion to the development being undertaken. All again being properly approved. (b) This program would be working with approximately all of the local deposits of the American Churches first. This would then represent all of the Church generated revenue.

5(a)Do our number suggest our Church is growing? That question I unfortunately cannot honestly answer. I do not have sufficient information to answer it apropriately and would therefore be guesing. (b)The rate of growth is only figured in the Connectional Credit Card program. The Banking is a sound deal. Pastor Paris makes a good point about the need for some Churches to pay out funds immediately. In the program first developed in Bermuda the Bank itself was prepared to stand as credit guarantor for the more financially challenged Churches.

6.(a) Churches would be compelled, if approved at the General Conference, by Church Law. This would place this program in the same arena with the quarterly assessments paid by Churches at the Quarterly Conferences conducted by the Presiding Elders. It is not intended for this to be a punitive program but a disciplined fiscal program.

Brother I must run for a brief moment but will return to answer the other questions later today.

Blessings to you all and keep posting

-- Anonymous, June 14, 2004

Brother Ron Back to you with the rest of your answers. 7. The Banking / S&L component would be owned by the Church and can service the Church ar a lower rate. I have researched Rev. Paris suggestion on the S&L component and it indeed would work well from the Episcopal District.

8. There is no reason to compel members to join. The intent is based on feedback from Jazzman and many others on this board, that they would support their Church with the investment of capital if structured correctly. By using a credit card from the Church the Church, not the regular business, would directly benefit from the regular profit raised from interest charges.

Brother Ron the plan of Rev. Dr. Santucci and myself was to elevate the work of the Church by the re-engineering of its financial base. I am not a banker nor am I an economist (check with Professor Dickens, he will verify)I stand with my associate in faith that we can make a difference for the kingdom building of God through our Church. This plan is already being embraced by the other Black Denominations in America and for the first time in our history, the Black Church may finally realize the true power it has by operating as a single business unit. The combined Black Churches in America raise and handle Billions of Dollars (yes I did say Billions) yet we do not collect our fair share of the value of our business because we are all spread out. Sadly all of our white brothers and sisters already engage in this type of business. Can you seperate the success of the Marriotts from the success of the Mormons?. The lost goes on and on.

Thank you for your questions my Brother. I hope these answers help. May God Bless You all and your families.

From Bermuda

-- Anonymous, June 14, 2004

Please forgive my spelling. I have been working on 3 hours of sleep over the last few days. I believe it should be the list goes on and on as well as other typo's. Sorry

-- Anonymous, June 15, 2004