Facts about Finances
Budget Basics: What are our sources of income? What does it pay for?
- 60% of total income from pledges and plate donations
- 25.5% from designated funds and financial reserves total
- 11.5% from facilities usage (e.g., weekly AA/NA meetings), rental income from Mackey Frame Shop, and the former Rectory
- 65% payroll for our staff
- 16% insurance, utilities, buildings and grounds, admin costs
- 16% Diocesan Apportionment (the collective ministries of the Diocese)
- 3% (modest!) expenses for ministry programs
- Most expenses are fairly “fixed” if we maintain our current level of services to the parish
- Outreach ministries, e.g., Open Table, are fully self-funded by direct donations and income generated by Heavenly Treasures
The current (and chronic) situation: A Deficit Budget
A deficit budget means that income is lower than expenses. Our pledge & plate offerings would ideally be 75% of the Church’s total income, the remainder from financial reserves and rentals. However, pledge and plate offerings are currently 60% of total income, which is over $100,000 short of the 75% desired threshold.
- 2003-2013, pledge & plate income averaged 71% of income.
- 2014-2018 (destabilizing period of staff and clergy transition), pledge & plate offerings dropped from 74% (2013) to 46%. During that time, expenses increased significantly: interim clergy salaries—with rector on paid leave—severance, search expenses for a new rector. We found it necessary to take substantial withdrawals from financial reserves.
Since 2019, our first full year with our new rector, our pledge & plate offerings improved to 60% of income. However, for year 2023, our budget deficit of over $60,000 is to be covered by reserves.
Short-term: Covering the Shortfalls
Of late, we have taken significant withdrawals from our financial reserves to cover deficit shortfalls. What, exactly, are these financial reserves?
- The largest: The Don and Maureen Green Fund, a donation of $2.8 million made in 2001. This fund is not an endowment in which the principal can never be touched. These Funds are to be used as needed, with no expectation that the funds remain in perpetuity. The Greens suggested a 7% yearly withdrawal. From 2015- 2018, we withdrew $1,404,017 in excess of our standard 7% annual withdrawals. As of August 2023, the Don & Maureen Green Fund has $1,454,502.
- From 2020-2022 (pandemic years), the church received Federal PPP and ERTC funding which augmented financial reserves, and allowed for limiting withdrawals from the Green Fund to the standard 7%.
- For 2023, over $60,000 from leftover PPP/ERTC funds covers our deficit.
Long-term: Bringing About Financial Sustainability
Ideally, income and accessing the principal from our reserves would provide the funding to expand our ministries, not just cover the deficit. Increasing our pledge & plate offerings to 75% of total income would allow smaller, more sustainable withdrawals from our financial reserves. This year, 75% of our 2023 budget of over $800,000 would be $600,000. However, pledge & plate income is $487,080.
In 2023, the average pledge was $2,951 (based on 149 pledgers). For 2024, based on the same number of pledgers, the average pledge would need to be $3,355 in order to meet our goal of $500,000. In order to meet the bigger goal of 75% of total income, the average pledge would have to be $4,000.
If every pledger increased their pledge by $400
—that's less than $8.00 a week—
or more, in 2024, we’d make great progress.
Call to Action: What can we do, right now?
Make your pledge for 2024 using the concept of proportional giving. Proportional giving is when you base your pledge upon a percentage of your income. For example, a $3,500 pledge is 5% of a $70,000 income. Raising it 1% would bring it to $4,200. (Chart provided in this packet.)If you are giving cash dollars in lieu of a pledge, please use an envelope with your name on it. Doing so, you make it known that you are financially participating as a member of this parish, and you will receive a year end statement for tax purposes.