Living Into Living Into Christ’s Mission: Christ’s Mission: A 2012 Budget Vision A 2012 Budget Vision for the Diocese of Newark for the Diocese of Newark Report of the Budget & Finance Committee January 2012 1
Budget & Finance Committee The Rev. Vicki McGrath The Rt. Rev. Mark Beckwith The Rev. John Mennell, Chair Mr. Tom Bisdale Ms. Martha Reiner The Rev. Virginia Dinsmore Mr. Paul Shackford, CFO Mr. Dall Forsythe Ms. Mary Sunden The Rev. Joseph Harmon Mr. Don Taylor Mr. Lyle Hatch The Rev. Canon Sandye Wilson The Rev. Thomas Mathews Italics signifies member of Diocesan Council 2
Agenda • 2011 Results—Actual vs. Budget • Diocesan Trends • Issues That Challenge Us . . . This Year and Beyond • 2012 Congregational Pledge Status • 2012 Proposed Budget 3
2011 Results – Actual vs. Budget 4
Preliminary 2011 Results (Unaudited) Better (Worse) Budget 2011 Prelim Actual 2011* vs. Budget INCOME Pledge Revenue $ 2,160,000 $ 2,105,152 $ (54,848) Alleluia Fund Contributions 110,000 94,325 (15,675) Rental Income: Episcopal House 50,000 3,300 (46,700) All Other Income 256,741 263,488 6,747 Total Income 2,576,741 2,466,265 (110,476) EXPENSES Personnel Salaries & Benefits 1,317,050 1,292,458 24,592 Outreach 172,082 147,538 24,544 The Episcopal Church 475,752 424,367 51,385 Office & Administration 482,721 485,778 (3,057) All Other Expenses 129,136 116,099 13,037 Total Expenses 2,576,741 2,466,240 110,501 ‐ Income Over (Under) Expenses $ ‐ $ 25 $ 25 * Includes accrual of $170,000 for 2011 pledges expected to be received in 2012 5 5
Diocesan Trends 6
Average Sunday Attendance Declining by 2% per year 7 7
More of Our Congregations Are Small, Family-Sized, with Average Sunday Attendance Less Than 75 225-400 225-400 4% 3% 140-224 140-224 13% 18% 1-74 ASA 1-74 ASA 42% 59% 75-139 25% 75-139 36% 8 8
Most Congregations Cannot Afford Full ‐ Time Clergy • Full ‐ time Clergy Cost is $100,000 ‐ $130,000* per year • Average Pledge in the Diocese is Approximately $2,000 • This Requires 50 – 65 Pledges to Afford a Full ‐ Time Clergy • Currently 43 of 108 Congregations Do Not Have Full ‐ Time Clergy * Actual cash cost for full ‐ time clergy depends on housing situation (church or clergy ‐ owned), medical insurance (family, single, etc.) and other items. 9 9
Percent Giving to the Diocese Declined 13.6% 9.6% 10 10
Diocesan Pledge Income Has Decreased 11 11
Issues That Challenge Us . . . This Year and Beyond 12
Outreach* as a Percent of 2012 Budget is Slightly Above Outreach in 2011 * Includes Domestic and International Outreach, Cross Roads, Cathedral, and Prison Ministries. 13 13
Outreach, Scholarships, & Support for Congregations Actual Prel. Actual Budget 2010 2011 2012 Outreach and Scholarships The Episcopal Church Pledge $ 439,530 $ 424,367 $ 422,000 Outreach (International & Domestic) 145,341 147,538 151,021 Gertrude Butts (Scholarships to Diocesan youth) 75,000 101,000 101,000 George Rath (Scholarship for clergy children) 16,500 16,200 16,200 Total Outreach and Scholarships 676,371 689,105 690,221 To Support Congregations Ward J. Herbert (Building renovations ‐ Diocese) 167,232 170,929 170,000 ACTS/VIM (Programs & projects ‐ Diocese) 139,974 130,000 130,000 BCEF (Mission; building renovations) 29,765 22,989 23,000 Congregational Vitality (Mission; projects) 15,000 25,000 25,000 Total Support to Congregations 351,971 348,918 348,000 Total Funding $ 1,028,342 $ 1,038,023 $ 1,038,221 14 14
Issues • Outreach – 2010 Actual: $145,341 6.1% of Operating Income – 2011 Actual: $147,538 6.1% of Operating Income – 2012 Budget: $151,021 6.2% of Operating Income • Includes – Domestic and International Outreach, Cross Roads, Cathedral, and Prison Ministries • International Outreach budgeted at 0.7% of income (Millennium Development Goal minimum) 15 15
Issues • Lay Pension Plan – Funding in 2011 ($26,000) and 2012 Budget ($28,000) – Plan remains underfunded • Plan assets of approximately $1.5 million • Potential gap of approximately $1.0 million – In 2012 will review assumptions and funding requirements for future years 16 16
Giving to The Episcopal Church 17 17
2012 Congregational Pledge Status 18
2012 Congregational Pledge Process • Analysis of past giving highlights two issues: – Median giving to Diocese is 10% – Congregations have used different ways of computing operating income on which pledges are based • Approach: – Move to uniform definition and use of Normal Operating Income as base – The “Ask” of congregations • If 2011 pledge was at or above 10% ‐ increase pledge by 0.5% • If 2011 pledge was below 10% ‐ move half ‐ way to 10.0% • Stewardship MUST BE a year ‐ round discipline 19 19
Status of 2012 Pledges • 93 congregations have submitted 2012 pledge – Pledge Percentage • 32 Increased their pledge for 2012 • 15 Decreased their pledge for 2012 – Normal Operating Income • 31 Estimate higher NOI in 2012 • 49 Estimate lower NOI in 2012 – Pledge Dollars • 39 Expect higher pledge dollars in 2012 • 40 Expect lower pledge dollars in 2012 20 20
Status of 2012 Pledges • Of the 93 congregations that have submitted 2012 pledges – Median Pledge Percentage: 10.0% • Same as 2011 Pledge Percentage – Median Normal Operating Income (NOI): $144,000 • A decrease of 5% from $152,000 in 2011 – Total Dollars Pledged for 2012 Approximates Actual Pledges Paid in 2011 21 21
Distribution of 93 Pledges Received for 2012 22 22
Distribution of 93 Pledges Received for 2012 23 23
Distribution of 2012 Pledges Received (93 Pledges) 24 24
2012 Proposed Budget 25
Proposed 2012 Budget Budget 2011 Prelim Actual 2011* Budget 2012 INCOME Pledge Revenue $ 2,160,000 $ 2,105,152 $ 2,100,000 Alleluia Fund Contributions 110,000 94,325 90,000 Rental Income: Episcopal House 50,000 3,300 25,000 All Other Income 256,741 263,488 268,400 Fund Development Advisor ‐ ‐ 70,000 Total Income 2,576,741 2,466,265 2,553,400 EXPENSES Personnel Salaries & Benefits 1,317,050 1,292,458 1,292,565 Outreach 172,082 147,538 151,021 The Episcopal Church 475,752 424,367 422,000 Office & Administration 482,721 485,778 490,124 All Other Expenses 129,136 116,099 127,690 Fund Development Advisor ‐ ‐ 70,000 Total Expenses 2,576,741 2,466,240 2,553,400 Income Over (Under) Expenses $ ‐ $ 25 $ ‐ * Includes accrual of $170,000 for 2011 pledges expected to be received in 2012 26 26
2012 Budget Income 27 27
2012 Budget Expenses 28 28
2012 Budget Expenses 29 29
Comments and Questions 30
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