Decreasing Endowment Dependence
|
Where we are now |
|
Where we want to be |
|
We
use most of our endowment income to meet operating expenses. In addition,
under certain circumstances, we make withdrawals of endowment principal to
make up for shortfalls. (Our non-endowment income falls significantly short.) |
We
use the entire 5% of endowment income for strategic outreach projects and
maintenance of our historic facilities. We withdraw nothing from the
principal and leave the endowment intact for future generations. (Our
non-endowment income is sufficient to meet our operating expenses.) |
How
we get there
We can reach our goal in two very positive
ways: By increasing our pledge base, or
by increasing our membership. Or a combination of both. A third way is through
significant reductions in our operating expenses, not our preferred route at
this time.
The following chart presents one “high
level” 4 year plan to achieve this goal. It assumes annual increases of 2% in
the operating budget, 8% in average pledges, and 8% in membership. (Alternate
and more detailed financial plans are available.)
|
Year |
Operating
Budget |
Pledge
Income |
Average
Pledge |
Other
Income |
Endowment used for operating
expenses |
Endowment available for strategic
outreach |
|
2004 |
$344,000 |
$190,000 (356) |
$1067 |
$48,000 |
$106,000 |
$-23,000 |
|
2005 |
$350,000 |
$218,000 (383) |
$1142 |
$49,000 |
$86,000 |
$-2,600 |
|
2006 |
$357,000 |
$251,000 (411) |
$1222 |
$50,000 |
$56,000 |
$23,000 |
|
2007 |
$365,000 |
$289,000 (442) |
$1307 |
$51,000 |
$25,000 |
$53,000 |
|
2008 |
$372,000 |
$332,000 (442) |
$1503 |
$52,000 |
$0 |
$89,000 |
FOOTNOTES:
Operating Budget = All expenses excluding
property maintenance and social outreach.
Pledge Income = pledge income portion of
our operating budget. It is anticipated that future increased giving will be a
combination of church growth (church membership is indicated in parentheses)
and increased member generosity.
Average Pledge = average giving per pledge unit. The generous increase this year
shows, we believe, that the congregation values our current programs and wants
to free the endowment for strategic outreach.
Endowment used for operating expenses =
endowment withdrawal portion of our operating budget. We would like to reduce
this to zero over a four-year period by asking the congregation to fully
support current programs. This will enable us (without overly burdening the
congregation) to maintain our historic facilities for generations to come, and
to gradually free a large portion of the endowment for use as was intended: to
enable significant and meaningful outreach involving the whole church community.