sustainable first parish first parish in cohasset financial update developed by the finance...
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Sustainable First Parish
First Parish in CohassetFinancial Update
Developed by the Finance CommitteeDRAFT FOR MARCH 2008 MEETING
Draft v3
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Agenda
Organizational Changes
New Initiatives
Update on Long Term Plan
The Fiscal 2008-09 Stewardship Drive
Discussion
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All Financial Elements Under One Committee
Parish CommitteeRepresentation
Financial Custodian /Endowment Sub-
Committee
Stewardship CommitteeSub-CommitteePlanned Giving
Sub-Committee
Fund Raising Events Analysis
Treasurer
Finance Committee
Long Range Planning
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New Programs – New Approaches
The Legacy Program: A new major gifts program is being designed to leave a legacy of a financially stable church. Donors may elect to have their gifts directed towards: Eliminating the mortgage and its ~30K/yr interest penalty Building an endowment to provide long term financial security Endowing the minister’s salary and benefits
Planned Giving: A series of seminars on Planned Giving will be conducted in the Fall. First Parish in Your Will: A 5 year outreach program to meet with
all Parish members regarding the inclusion of First Parish in their will.
Creating a Trust: Working with a finance professional to create a trust that benefits First Parish.
Giving appreciated assets: Using this approach will benefit First Parish and yield tax advantages to the donor.
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New Programs – New Approaches
Friends of First Parish Meeting House Program: A program that will reach beyond the immediate parish members to others Cohasset residents and businesses who value the iconic Meeting House on Cohasset Common and want to support its continued preservation.
New and Old Fund Raising Activities EBay Sales for Members Unused Valuables Gingerbread Sale ReUUsable Sale Valentine Chocolate Auction Lobster Sale Other Auctions More Wedding & Building Uses
Direct our volunteer fund raising activities to highest yielding ones
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Update on the Long Term Plan
Task Force Conclusions from Feb 2005:
Need to increase revenue or decrease expenses by ~$65,000 per year
Decreasing expenses by $65K would require significant reductions in programs and/or staff
– Only as a last resort
Increased Pledging is our most likely source of revenue. – Healthy congregations average 72% of total revenue from pledges– We will continue to look for other revenue sources
There are only two ways to increase pledge revenue– Increase membership (then at 110 pledging households)– Increase household pledge levels (then at average $1,489 year)
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UUA Congregation Growth Statistics
The overall growth rate of 1,050 UUA congregations throughout the world has been ~1% per year over the last 10-12 years.
The 1% overall growth came from: 20% of the UU congregations growing at a rate of 6.5%
– Less than 3% had growth rates greater than 6.5% A similar proportion declining at an equivalent pace With the vast majority of congregations in the middle
With some optimism we set a target growth rate of 3%.
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3 Cornerstones of Financial Stability (2005)
Financially Stable Church
(72% income from pledges)
Membership Growth
(3% per yr)
Pledge Growth
(5% per yr*)
Capital Campaign
(Payoff
Mortgage)
* 15% in 1st year
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2005 Financial Plan Summary
This plan projected a balanced budget in 6 years if:
Use of funds: Expenses increased 3% per year And an additional 5K$ each year was spent on programs
Source of funds: Pledging households increased by 3% Average pledge amounts increased by 5% Other income increased by 3% We withdrew 5% from the endowment each year
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Progress against goals at 3 years
Financially Stable Church
(72% income from pledges)
Membership Growth
(3% per yr)
Pledge Growth
(5% per yr*)
Capital Campaign
Actual: ~1% per yearto 120 pledging households
Actual: Average gift Increased by 5%per year from $ ~1,500 to $~1,750
Actual: Committee formed and worked with a UUA consultant, reached conclusion the time was not right
Overall pledge income grew from $164,000 to $208,000 (from 53% to 63% of budget)
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1% Growth with Mortgage Payoff
Income G.R. F 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
# Pledging Households 1% 110 121 125 120 121 122 124
Average Pledge Amount 5% $1,489 1,549 1,513 1,733 1,820 1,911 2,006
Pledge & Gift Income $163,790 $187,429 $189,125 $207,960 $220,542 $233,884 $248,034
Rental & Nursery School 3% $27,550 32,430 35,606 34,400 35,432 36,495 37,590
Fundraisers Budget 3% $15,000 12,000 17,000 10,700 11,021 11,352 11,692
Plate & Misc. Budget 3% $3,400 4,400 6,400 9,000 9,270 9,548 9,835
Endowment 5 % withdraw $34,960 $30,949 $28,174 $26,049 $24,281 $23,887 $23,626
Total $244,700 $267,208 $276,305 $288,109 $300,545 $315,167 $330,777
Expenses Budgeted
Salaries & Benefits 3.0% $185,115 173,834 172,775 179,251 184,629 190,167 195,872
Office & Property 3.0% $63,440 79,038 88,764 92,467 95,241 98,098 101,041
Programs 3.0% $20,148 26,345 38,570 29,373 30,254 31,162 32,097
Mortgage $41,866 $41,866 $41,866 $41,866 $41,866 $0 $0
Total $310,569 $321,083 $341,975 $342,957 $351,990 $319,427 $329,010
Surplus (Shortfall) ($65,869) ($53,875) ($65,670) ($54,848) ($51,444) ($4,261) $1,767
12Sustainable First ParishSustainable First Parish
Increase Average Pledge to $2,100
Income G.R. F 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011
# Pledging Households 1% 110 121 125 120 121 122 124
Average Pledge Amount 5% $1,489 1,549 1,513 1,733 2,100 2,205 2,315
Pledge & Gift Income $163,790 $187,429 $189,125 $207,960 $254,520 $269,918 $286,249
Rental & Nursery School 3% $27,550 32,430 35,606 34,400 35,432 36,495 37,590
Fundraisers Budget 3% $15,000 12,000 17,000 10,700 11,021 11,352 11,692
Plate & Misc. Budget 3% $3,400 4,400 6,400 9,000 9,270 9,548 9,835
Endowment 5 % withdraw $34,960 $30,949 $28,174 $26,049 $24,281 $23,887 $24,193
Total $244,700 $267,208 $276,305 $288,109 $334,524 $351,201 $369,558
Expenses Budgeted
Salaries & Benefits 3.0% $185,115 173,834 172,775 179,251 184,629 190,167 195,872
Office & Property 3.0% $63,440 79,038 88,764 92,467 95,241 98,098 101,041
Programs 3.0% $20,148 26,345 38,570 29,373 30,254 31,162 32,097
Mortgage $41,866 $41,866 $41,866 $41,866 $41,866 $41,866 $41,866
Total $310,569 $321,083 $341,975 $342,957 $351,990 $361,293 $370,876
Surplus (Shortfall) ($65,869) ($53,875) ($65,670) ($54,848) ($17,466) ($10,093) ($1,319)
Sustainable First Parish
First Parish in Cohasset2008-09 Stewardship Drive
Developed by the Finance CommitteeDRAFT FOR MARCH 2008 MEETING
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What it means to be “Sustainable”
Care Circle Social Justice Green Sanctuary
Circle Ministry Home share Angel Tree
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Where does the Money go?
What Our Annual Pledges Support:
Circle Ministry Religious Education 2 historic buildings on
Cohasset Common Choir and Music Programs for all ages Outreach Social Justice
Proposed Budget = $350,000
Program Budget Expenses FY08Worship & Music
Religious Education
Community Within
Community Outside
Denominational
Income Generation
Worship & Music 27%
Religious Education 16%
Community Within 28%
Community Outside 19%
Denominational 6%
Income Generation 4%
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Where does the Money Come From
Pledges and Gifts from 120 households of Members and Friends
Healthy congregations should have 72% of income from pledges
Endowment withdrawal rate is too high.
Program Budget Income FY08
Pledges & Friends' gifts
Rentals & NurserySchool
Fundraisers
Plate & Misc
Endowment Withdrawal
Pledges & Gifts63%
Endowment Withdrawal
20%
Plate & Misc 3%
Fundraisers
Rentals & CHNS 11%
Proposed FY09 Budget = $350,000
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We are of counting on YOU
You are charitable people, but look at the impact you have on First Parish compared to other charitable organizations The United Way
– $4100M Budget
– 12M Contributors Trustees of Reservations
– $16M Budget
– 100,000 Members First Parish in Cohasset
– $252,000 Pledge Budget *
– 120 Pledging Households Clearly the impact of one member not pledging to TTOR or The United
Way is hardly noticeable, but at First Parish it makes a world of difference.
$342 per contributor
$160 per member
$2100 per household
* $350,000 Total Budget
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First Parish Giving 2008
60% of pledge dollars come from 25% of households
25% of pledge dollars come from 25% of households
15% of the pledge dollars come from 50% of households
Greater than $2500
$1000
$100
$
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Let’s change the shape of our giving to look like this
If every pledging household could give $2100 we would make our budget
We acknowledge the generous support of those on fixed incomes And we encourage everyone to increase their pledge if possible Remember $1400 in 1997 needs to be $2100 today
$2100
350,000 x .72 = $252,000/120 = $2100
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It’s your choice
Think about what we have said and make a pledge today – the Stewardship Treasurer is ready to accept your pledge
Go home and consult with your spouse and make a pledge in the next 2 weeks
Request a visiting steward to call or visit
Request info about planning giving
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Thank You
22Sustainable First ParishSustainable First Parish
Moderate Growth with Mortgage Payoff (Feb 2005)*
Income F 2005 F 2006 F 2007 F 2008 F 2009 F 2010 F 2011
# Pledging Households* 3% 104 107 110 114 117 121 124
Pledge Amount 5% $1,577 1,814 1,904 1,999 2,099 2,204 2,315
Pledge Income $164,010 $194,267 $210,100 $227,223 $245,742 $265,770 $287,430
Rental & Nursery School 3% $27,550 28,377 29,228 30,105 31,008 31,938 32,896
Fundraisers 3% $15,000 15,450 15,914 16,391 16,883 17,389 17,911
Plate & Misc. 3% $3,400 3,502 3,607 3,715 3,827 3,942 4,060
Endowment 5 % withdrawal $34,960 $28,060 $25,888 $23,709 $20,983 $19,017 $17,923
Total $244,920 $269,656 $284,737 $301,144 $318,442 $338,056 $360,220
Expenses
Salaries & Benefits 3% $185,115 190,668 196,389 202,280 208,349 214,599 221,037
Office & Property 3% $63,440 65,343 67,303 69,323 71,402 73,544 75,751
Programs 3% $20,148 20,752 21,375 22,016 22,677 23,357 24,058
Mortgage $41,866 $41,866 $41,866 $41,866
Building Maint. Reserve $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
RE Program Additions $5,000 $10,000 $15,000 $20,000 $25,000 25,750
Total $310,569 $333,630 $346,933 $360,485 $332,428 $346,500 $356,595
Surplus (Shortfall) ($65,649) ($63,974) ($62,196) ($59,341) ($13,985) ($8,445) $3,625
Cumulative Shortfall ($65,649) ($129,623) ($191,819) ($251,160) ($265,146) ($273,590) ($269,965)
*Note: household count did not include friends of FP