Shareholder Frequently asked questions

On this page I will be addressing any questions you may have, including information about the Abbey's InHouse Mortage Program. Few ideas strike at the heart of a problem with such a perfect long term, cooperative solution. Please don't hesitate to ask questions as they help others better understand the process of participation.

Email me at lewis@peaceabbey.org

Thanks, Lewis

OVERVIEW: For the past few years the Peace Abbey has struggled to make ends meet as is common with organizations that promote peace and nonviolence.

In an effort to create an endowment from the equity in the property, we decided to move forward with a real estate firm that would seek out a wealthy benefactor who would consider it a "privilege" to own the Peace Abbey and lease it back to us for a nominal sum. We then could continue our work through the revenue from the sell of property. The Abbey went on the market in March of 2007.

A buyer who would allow us to continue our work was not found so we sought a single benefactor who would provide an interest free loan of $400,000 to retire the debt and save the Abbey over $40,000 in annual mortgage payments.

Helen Caldicott visited the Peace Abbey in November to meet with several key individuals to discuss options to keep the Peace Abbey funded and to plan for its future. We left the meeting optimistic that one foundation in particular would be helpful because of the connection with Gandhi and certain Indian values that the Abbey not only embraces but defines itself through.

When the Abbey was notified by this foundation that it would not provide any funding due to the "scope of our mission", we came to realize that it would be "individuals" who care about the Abbey that would save it.

We later learned that the foundation which denied the Abbey any funding receives its endowment from a Massachusetts high tech company that has huge, lucrative contracts with the Department of Defense and plays a significant role in the communications network of the weapons industry. Which side their bread is buttered on determined who they would support. It all comes down to Guns and Butter and peace is bad for their business.

At the December New England Peace Studies Association meeting, Professor Joe DeRivera of Clark University proposed a creative solution to the Peace Abbey's financial challenge: Divide the Abbey's mortgage debt (note) of $400,000 by 400 people, each giving a loan of $1,000.

Instead of seeking a single donor or purchaser, a community of "peace shareholders" would provide a cooperative democratic solution to help insure the Abbey's future.

Q1) How do I participate? What's involved?
A: Once you've decided to be a "Peace Shareholder" by providing the Peace Abbey with an interest free loan of $1,000, make a pledge by phone, online, or in person and your name will be added to the growing list of pledges. Send a check for $1,000 (one thousand) to THE PEACE ABBEY and write "interest free loan" on the memo line. Address the check to The Peace Abbey, P.O. BOX 216, Sherborn, MA 01770. (Those who wish to take a tax deduction should write "contribution" on the memo line.) Within the following week, a signed agreement by the director of the Abbey to repay the lender will be sent to the address designated by the lender. (Loans are to be repaid upon written request from an active line of credit at the bank which is linked to the equity in the property.)

Q2) Why don't you just fund raise this amount instead of borrowing the money?
A: To learn why we are philosophically opposed to fundraising, visit Why we refuse to compete with other worthy nonprofits.

Q3) What does it actually cost a person to loan the Abbey $1,000 interest free?
A: If a person takes $1,000 from a checking account, which generates a paltry 1% would cost $10.00 in annual interest. A thousand dollars taken from a savings account which generates about 3%, would cost you $30.00 in annual interest. A loan by a shareholder of $1,000 used to decrease the Abbey mortgage, which is set at 9.25%, saves the Peace Abbey $92.50 annually. Your thousand dollars, whether it comes from checking or savings has greater value for peace when being used by the Abbey to reduce its debt than it does sitting in an account at your bank. This simple, cost effective borrowing system turns the banking model inside out for peace.

Q4) Does a "Peace Shareholder" own a piece of the Property?
A: NO. Each Shareholder holds a share of the InHouse Mortgage Relief Program with no liability or risk. Ownership remains under the tax-exempt, nonprofit educational organization - THE LIFE EXPERIENCE SCHOOL/PEACE ABBEY, INC. Each shareholder holds a Promissory Note for the amount loaned to the Abbey that is repaid at any time throughout the year. A shareholder assumes the the role of a banker for $1,000 through this InHouse Mortgage Relief Program and waives the interest "in the interest of peace".

Q5) I'd really like to do this but I'm concerned that when the day comes when I need to be repaid I'll feel awkward about asking - and it will end up being a gift which I can ill afford.
A:The truth is that when you ask to be repaid, how could we feel anything but gratitude for being able to use a thousand dollars of your money and save on the interest for whatever period of time? A line of credit will always be in place to repay our shareholders when that day comes.

We are, in turn, rightly concerned that over time we'll find that people aren't asking to be repaid - which might indicate that your concern is also the concern of others. We are therefore putting in place a rotating expiration of loans so our shareholders can decide periodically as to whether they would like to continue with the interest free loan.

The repayment side of the equation is where the integrity of the Peace Abbey will find expression so don't hesitate to ask for your money back for whatever reason.

We realize that conditions change in our lives. At any time, you need only let us know and we'll repay you with a debt of gratitude in our hearts. A good way to test this is to ask for your money back - as a test - without telling us that such is the case and give us feed back on how the experience went for you.

I look forward to hearing from folks that would like to comment, offer suggestions or ask questions. Email me at lewis@peaceabbey.org

Thanks, Lewis