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If you tilted the Y and the C letters and modified the arms you could certainly eliminate some of the gap. It's more apparent in between the y and the l and will be slightly amplified when/if you go to the capital L.
It's a great concept and it can work (much stronger concept than the fish).
As for the type. I think it just screams Fred Flinstone to me. Kind of rugged and a bit chissled for a "christian leadership" logo.
Again, this is all opinion, feel free to stop me or ignore me. I see a lot of potential in the design.
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