GBIF Frequently Asked Questions (FAQs)
Who manages and owns the loan fund?
The affairs of the GBIF are managed by a Board of Directors and officers duly elected and/or approved by the delegates to the annual meeting of the General Association of General Baptists. However, the depositors actually “own” GBIF.
Who determines policies for borrowing and lending funds?
The Board of Directors determines all policies and guidelines for the corporation. All loan applications are submitted to the board for approval or rejection. The officers are responsible to see that all legal and board policies are properly executed.
Does GBIF earn a profit?
The GBIF is a self-sustaining entity which may, from time to time, show a gain or loss in assets. However, no individual(s) may receive personal gain from this operation, except through salaries and compensation for services rendered. All salaries and benefits are approved by the Board of Directors of GBIF.
As a not-for-profit religious organization, the GBIF does not qualify for insurance such as the Federal Deposit Insurance Corporation (FDIC), etc. However, it is board policy that a percentage of all deposits shall be held in a reserve account. Also, as a measure of security, the board requires a mortgage or deed of trust on all loans. Furthermore, being a Christian institution dealing exclusively with churches and Christian people, there is a degree of security not always prevalent in secular organizations.
How is interest paid?
Interest may be added to the principal and compounded semiannually, or interest may be paid monthly, quarterly, or semiannually.
Who has access to the money?
The President/CEO and Secretary/Treasurer of the corporation are the only persons authorized to receipt and expend the funds of the GBIF. These persons are adequately insured through a fidelity bond. There is an annual audit by an independent certified public accounting firm. A Monthly report is submitted to the Board of Directors and the annual report of the CPA firm is available for review upon request.
Where does GBIF get money for loans?
The GBIF offers investment notes at varied rates of interest. Investment notes are available to any individual who is a member of a General Baptist Church, any General Baptist congregation or entity which is a member of the General Association of General Baptists, or any related units.
What if money is invested in term notes and interest rates go up or down?
Investment notes are issued for various terms and at specified rates of interest. Withdrawal prior to maturity will result in a penalty being assessed to the holder (owner). Due to the volatility in the economy, the issuer (GBIF) reserves the right to recall an investment note (or notes) on the anniversary date of said note(s). In the event of such withdrawal, a written notice of intent must be given to the note holder, by certified mail, to the address of record, at least 30 days prior to the recall date.
The GBIF is designed to be a self-sustaining entity whose sole purpose is to lend funds to congregations and auxiliaries which are members of the General Association of General Baptists. Interest paid on investment notes and interest charged to borrowing churches and other auxiliaries should be competitive to commercial rates, and must generate income sufficient to cover all operational costs. Participants in the GBIF program have the assurance that all funds will be utilized toward building up God’s Kingdom through the General Association of General Baptists. It is a good program that has been proven over time.