MENTY Conference December 15, 2016 $ustaining our Sacred - PowerPoint PPT Presentation

MENTY Conference December 15, 2016 $ustaining our Sacred Communities

Planning? Why Bother? • More likely to achieve your desired result • Anticipate problems • Protect against negative occurrences • Makes sense

How far ahead should I plan? Detailed one year budget • Summary 3 year projection • 5 to 7 year plan • • These should be done in reverse order • You are thinking about things that will have a significant financial impact

5 to 7 Year Plan • Your biggest asset is your facility • Review your facility infrastructure and estimate cost and timing of repairs, replacements, improvements and additions. • Physical plant - roof, grounds, foundation, signage, etc. • Mechanicals - HVAC, electrical, security, plumbing, etc. • Equipment – computers, kitchen equipment, audio visual, furniture, etc. • Supplies – prayer books, scrolls, play ground equipment, etc. • Federal and local regulations – handicap access, security for young children, lead paint or asbestos remediation

What else to consider in the 5 to 7 year timetable • Your synagogue’s vision – add a preschool, add a cantor, build a new sanctuary, create new programming, changes to dues structure • Clergy hires and retirements • Senior staff hires and retirements, benefits, pension • Mortgage or loan balloon payments or significant changes in payment structure • Demographic changes to the surrounding neighborhood includes declining population, urban decline, redevelopment • Competition from other shuls, including reform & orthodox • Competition in the preschool market • Endowment size and performance

Evaluate your membership • What kind of membership do you have? • Dues relief • Aging population • Average length of membership • Fund raising • Historical trends/acceptance • Community involvement?

What about a 3 year Projection • Start with your existing budget that you are in • Factor inflation into compensation and general expenses • Look at contracts and factor in replacement contracts • Clergy, equipment, custodial, landscaping, maintenance, etc. • Overlay your membership dues structure and membership population • Lay out your tuition structure and student projection • Factor in adding and dropping programs • Add in any major issues from the 5-7 year analysis

Next Year’s Detail Budget • Take the 3 year budget and build next year’s budget from the bottom up • Look at the last 3 years membership information to forecast dues • Look at the schools’ last 3 years student enrollment and tuition schedule for next year to forecast revenue and teacher support • Evaluate the revenues and expenses for the programs, high holidays, fund raisers • Do a detail review of the headcount required for schools • Set a synagogue salary increase %

Final Considerations on Next Year Budget • Don’t just focus on breaking even, consider the long term goals and needs • Include cash drains (primarily capitalized expenditure) that will not be funded by endowment money • Be realistic, if you have never had an annual appeal that raised over $50k, what makes you think you can suddenly raise $175K • Create a culture of giving • Annual appeal • Long term pledges • Bequest • Appreciated stock donations

Checkmate!

Presenters David Beyth and John Grippo Founders and owners of Kesef Accounting Service 50 Chestnut Ridge Road, Ste 207 Montvale, NJ 07645 (201) 746-0270