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8/9/2019 Interim Report of St Johns Challenge Committee
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INTERIM REPORT OF ST.
JOHNS CHALLENGECOMMITTEE
June 27, 2010
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Agenda
a. Setting the Stage
b. Research and Lessons Learned
c. Interim Recommendations and Next Steps
2
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Setting the Stage: Annual Meeting
Budget out of Balance: $146,000 (expenses larger thanrevenues)
Strongly divided opinions in congregation about what todo
Result:
Split vote to approve a 3 year plan to balance revenue andexpense
Approved creation of data and Challenge committees andreport back to Council and Congregation
3
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Setting the Stage: Financials4
Summary Financial Report 5/31/2010
Y-T-D
Budget
Y-T-D
Annual
Budget
Total Income $ 379,693 $ 406,782 $ 976,276
Total Operating Expenses 312,185 333,980 812,944
Mortgage Expense 68,055 68,055 163,332
Total Expenses $ 380,241 $ 402,035 $ 976,276
Net Surplus (Deficit) ($ 547) $ 4,747 -
Budget assumes $94,276 in reserves use; plus $46,000 in challenge
revenue. Through May, no reserves have been used. No challenge revenue request
yet made.
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Total Income
By Month
January Feb. March April May Total
2009 $ 50,203 $ 57,318 $ 99,464 $ 75,003 $ 98,130 $ 380,118
2010 $ 91,650 $ 67,748 $ 74,067 $ 64,424 $ 81,964 $ 379,853
Decrease ($ 265)
Offerings
By Month
January Feb. March April May Total
2009 $ 47,540 $ 52,540 $ 75,578 $ 55,214 $ 80,981 $ 311,853
2010 $ 87,945 $ 62,082 $ 61,150 $ 56,255 $ 69,585 $ 337,017
Increase $ 25,164
Monthly Update on Giving 2010
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Setting the Stage6
Expenses 5/31/2010
Y-T-D
Budget
Y-T-D
Annual
Budget
Benevolence & Social Concerns $ 44,990 $ 45,388 $ 119,230
Total Personnel 203,997 218,349 524,038
Property & Grounds 32,041 31,648 77,076
Debt Service 68,055 68,055 163,332
Adult Ministry & Education 6,505 9,678 19,420
Business Management 10,278 11,126 26,620
Children's Ministry & Education 3,253 3,637 9,550
Evangelism & Communications 2,111 3,375 8,100
Faith & Health 626 1,356 3,125
Stewardship 435 720 2,800
Worship & Arts 5,416 5,296 12,660
Youth Ministry & Education 2,507 3,063 9,050
Mutual Ministry 26 344 1,275
Total Operating Expenses $ 380,241 $402,035 $976,276
Of the Benevolence: $33,000 is pass-through: Food Shelf/World Hunger/LWR/Missions.Largest of rest: $55,000 ELCA
91% in
these
4 areas
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Setting the Stage
Cash Status:
Unrestricted funds: $360,559
Approximately 4.5 months cashflow
Outstanding Debt Status: May 31, 2010
$1,662,018
7
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Setting the Stage: Charge
Approved by St. Johns Congregation Council April 27, 2010
The Challenge Team in coordination with church staff and appropriate boards and subcommittees, ischarged with the following by the St. Johns Congregation Council:
Charge: Charge Goal Current Status/Goal
1. Gather information on Congregation: May 31, 2010. COMPLETE
2. Review Membership rolls and Trends: April 30, 2010. COMPLETE
3. Develop Strategic Plan: April 30, 2010. SUMMER/FALL
4. Strategies to increase attendance May 31, 2010. SUMMER/FALL
5. Strategies for increased giving May 31, 2010. SUMMER/FALL
6. Routine updates on Progress on-going IN-PROGRESS
7. Final Report to Council/Congregation Sept.30, 2010. IN-PROGRESS
8
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Setting the Stage: Charge
Why not just cut or ask for money now?
1. Concerns at Annual meeting went beyond just finances (e.g.membership trends, staffing levels, etc.)
2. Many different assumptions about congregations finances,membership, and programs ---but not based on facts
3. People want to contribute to something they believe in. We need aclearer plan for St. Johns both programmatically and financiallybefore asking for more money.
4. Long-term problem needs a long-term plan.
5. Current finances on track and reserves allow thoughtful but timelyprocess.
9
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Setting the Stage: Workplan
March: Gather, develop and understand the Charge
April/May: Gather Informationto understand congregation history and current status
June: Interim Report to Congregation: lessons learned, interim recommendations and next steps.
July/August: Review and focus congregation mission, strategies, programs, resources
September/October: Make recommendations to Council and Congregation for Long-term workplan
Launch implementation groups based on the workplan (both on giving and program sides).
10
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Research and Lessons Learned
Giving
Financial History
Current Finances
Membership
Congregational comparisons
Survey
Program summary Staff time study
11
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2009 Giving12
St. Johns has many members that do not give $
723 Households in last annual report
279 or 39% give $0
Most of St. Johns budget comes from small number ofmembers
444 households with recorded giving: of these
11% gave 41% of funds
29% gave 28% of funds
60% gave 31% of funds
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Financial History:
Giving and spending growth over 15 years has been relatively stable,though with spending growing slightly over giving.
Financial challenge began in 2003 with the building addition.
Several attempts to address the challenge (campaigns)
Decision to direct some of campaign dollars to debt interest vs.principal.delayed financial challenge
Congregation faces financial challenge that can be defined in 2 ways
$146,000 recurring annual gap (expense over giving)
$1.6 million outstanding debt
13
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Financial History: General Fund
$(100,000)
$(80,000)
$(60,000)
$(40,000)
$(20,000)
$-
$20,000
$40,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Net (loss) or gain in General Fund14
Addition
Began 2002
Debt Service
Paid from Campaign
2007-2008
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Financial History: Capital Campaigns
DESCRIPTION
Cost of New Building construction (2002-2003) $3,262,185.55
FINANCING OF BUILDING-
FROM "GWG (Growing with Grace) $1,287,522.83
FROM LONG-TERM DEBT (2003) $1,974,662.72
$3,262,185.55
Cumulative Fund Drive Activity-
Sources of funds:
Allocation of special gifts $18,000.00
Contributions (both SOG and GWG) $2,546,249.19
Interest income $16,460.13
Total Income $2,580,709.32
Uses of funds:
Fund raising costs & consulting ($94,721.89)
Benevolence ($160,158.21)
Building project costs funded ($1,287,522.83)
Debt service (both principal and interest) ($1,038,306.39)
Total ($2,580,709.32)
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Where the Money Comes From:
Pledged Offering,$619,934 , 67%
UnpledgedOffering,
$171,921 , 19%
Rental, $7,579 ,1%
Designated/Appeals, $38,839
, 4%
Reserves,Used for legal costs
$72,797 , 8%
Interest Income,
$12,455 , 1%
Other, $3,763 ,0%
2009 General Fund Revenues: $927,28616
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Where the Money Goes
Pastoral Ministry,$188,020 , 20%
Support StaffMinistry,
$307,326 , 34%
Benevololence,$124,475 , 14%
Debt Service,
$139,932 , 15%
Business Mgmt.,$30,292 , 3%
Boards andProgram Costs,$52,658 , 6%
Property,
$75,033 , 8%
2009 General Fund Expenses: $917,73617
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Membership Trends
543487 489 504 502 499 512 475 483 495
508 517 526542 576 554 512
449 459 434 425 405
1704 1725 17251738
17991834 1859 1852
16201659
16951745
18141858
18941965 1948 1960
1981
1812 18231836
1358 1357 1362 13531393 1452 1427 1420
1343 13591376 1406 1446 1449
14711526 1498 1506 1523 1522
15331546
831767 772 737 763 767 730
809
727 734 729 750 721 721778 792 771
685 710738 738 723
285211 216 226 234 234
254 251219 194
240283
223 223 200 195 209 207 215 191 187 186
0
500
1000
1500
000
500
Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Avg. Sunday School Aged (grades 3-8)
Confirmed Membership
Avg. sunday Attendance
Baptized Members
# Households
St. John's Lutheran, Northfield Congregation Numbers 1988 to 200918
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Membership Trends
Have not actively managed active vs. inactive membership.
Overall Membership has grown on books since 1988 Baptized by 132 to 1,836 in 2009
Confirmed by 188 to 1,546 in 2009
Northfield Population has grown 5,000
Participation (measured by Sunday attendance) In 1988: 543
Peaked: 576 in 2002
Low:405 in 2009
19
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Congregational Comparisons
Members Regular
Baptized Worship Attendance Regular Giving/ Operating Total Debt
Membership 1990 2001 2008 Giving Worshiper Expenses Benevolence Payments
St. John's 1,836 489 542 425 $ 899,500 $1,918 $648,761 $121,797 $163,332
St. Peter 1,527 300 400 400 $ 444,903 $1,112 $430,579 $94,648 $20,149
Bethel 1,048 226 441 490 $ 709,937 $1,449 $573,175 $115,804 $65,880
Minnesota Peer Average (4) 1,645 366 422 414 $ 626,803 $1,584 $519,448 $70,413 $108,149
National Cohort Average (3) 1,207 379 387 372 $ 704,729 $1,925 $555,631 $83,044 $152,359
* Unless Noted: All information from 2008
20
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Survey Results
412 completed surveys
Demographics: 103 Members with Children (18 and under)
309 Members without Children
Worship Frequency More than once per week 29
Weekly or nearly every week 298
6-12 times in the last year 53
1-5 times in the last year 24
Not in the last year 8
21
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Survey Results
Would You Recommend St. Johns to a Friend:
377 Yes
35 No
Is St. Johns in your will?
28 Yes
293 No 91 Prefer not to answer
23
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Survey Results: Overall Satisfaction
SATISFACTION LEVEL
NUMBER OF
RESPONSES
PERCENT OF
RESPONSES
Extremely Satisfied 80 19%
Very Satisfied 206 50%
Somewhat Satisfied 75 18%
Neutral 16 4%
Somewhat Un-Satisfied 28 7%
Very Un-Satisfied 7 2%
Extremely Un-Satisfied 0 0%
24
87%
Satisfied to
ExtremelySatisfied!
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Program Summary &
Staff Time Study
Works in Progress
25
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Interim Recommendations:
Communications
Improve and expand communications
Need multiple delivery communication approach
Cable; Newsletters; newspaper; radio; email; in-church
communications; facebook, etc.
Enhance and Improve web site (in-progress)
Maintain and utilize Email (in-progress)
26
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Interim Recommendations: Membership
and Attendance
Conduct a broad review and adjustment of membership rolls,database and bylaws (underway: complete by September)
Develop Active Membership Recruitment /Retention Plan
Exit interviews Personal contact for visitors
Search out and call on prospective new members.
Pastors & selected assigned committee members to call and followup on members who DO NOT attend worship services on a regular
basis and document reasons.
Targets: Improve worship attendance by 20% (100) in the next 1 year and
40% in next 2 years.
27
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Interim Recommendations:
Congregational Care
Enhance efforts to personalize congregational care
Grow our capacity for membership visits to St. Johns members who are
in retirement centers or homeboundin addition to visitation pastor
calls.
Improve our follow up with families who have lost a family memberwithin three/six months.
Identify additional supports to members who have needs.
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Interim Recommendations: Finances
Improve Financial Transparency and Communication
Add routine updates: weekly bulletin; monthly newsletter;announcements by Pastor; and other communications.
Annual Giving Continue personal statements for pledge status
Develop targeted asks based on interests and participation
Build Asking Teams
Advertise and Seek automatic donations
Planned Giving Need to build a strong planned giving plan
Target: Increase number of members including St. Johns in their
wills to 50% by 2015
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Interim Recommendations: Finances
Spending/Debt: Defer payment of $25,000 of ELCA benevolence pledge until we
have met our challenge metric for the year (no more than $94,000of reserves utilized by December 2010). Beginning 2011 reduceELCA benevolence by 10% ($5,500) until budget balanced
(subject to review).
Target: By 2012, the congregation will reduce the percent of totalrevenue budgeted for Personnel to 50% (currently 54%).
Debt Reduction Plan: September/October envelope will include option to contribute
directly to debt reduction
Target: Reduce mortgage payments to below $1 million by Fall2012
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Interim Recommendations: Program31
Increase Focus of Programming Complete program review
Routinely monitor participation (in development: PersonnelCommittee and staff)
Seek out feedback for every program (in development) Review other daily tasks that could be done by others.
Targets;
Pastors and Staff to review and re-evaluate all programs andfind ways to end 10-15 present programs to give Pastors andstaff time to concentrate on higher priorities or critical areas.
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Next Steps
Hold Focus Groups (July) Staff
Past Members
Effort to review and focus mission and strategies (July/Aug) Review findings from surveys and focus groups
Engage Congregation in setting direction and priorities
Complete recommendations and present to Congregation
Council with specific dates, tasks, assignments and metrics.(September/October): Programmatic Plan
Financial Plan
Fundraising Plan
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Summary33
Concern: Will we be out of money soon? Response: Have 4.5 months of cash reserves and have not
utilized any of these reserves yet this year.
Concern: Missing specific plans. Raise $ or Cut? Response: We began our effort in March. We are working
through our plan.
What is our Plan?
Research: Who we are, our history, . Roadmap: What are our strategic efforts for congregation
Hit the Road: Implement
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The End - of Phase I34
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Setting the Stage35
Balance Sheet Summary
Assets May 31, 2010December 31,
2009
Cash & Cash Equivalents -- Unrestricted $ 360,559 $ 320,457
Cash & Cash Equivalents -- Restricted 25,000 83,615
Land, Building & Equipment 4,866,760 4,866,760
Other Current Assets 1,618 802
Total Assets $ 5,253,937 $ 5,271,634
Liabilities
Accounts Payable $ 10,729 $ 27,420
Mortgages 1,662,018 1,688,901
Other Current Liabilities 6,326 4,875
Total Liabilities $ 1,679,073 $ 1,721,196
Fund Balance & Property Equity $ 3,574,864 $ 3,550,438
Total Liabilities & Fund Balance $ 5,253,937 $ 5,271,634
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Setting the Stage: Charge
Approved by St. Johns Congregation Council April 27, 2010
The Challenge Team in coordination with church staff and appropriate boards and subcommittees, ischarged with the following by the St. Johns Congregation Council:
1. See that data and information is gathered to help the Congregation and its leadershipunderstand the state of the congregation relative to member needs, participation and interestsby May 31, 2010. COMPLETE
2. Understand and describe the various characteristics of the membership rolls of St. Johns by April30, 2010. COMPLETE
3. Develop a strategy for communicating strengths, weaknesses, opportunities and threats of St.Johns to the congregation by April 30, 2010. SUMMER/FALL
4. Define and propose strategies for increasing attendance at St. Johns events, with particularemphasis on Sunday worship services by May 31, 2010. SUMMER/FALL
5. Define and propose strategies for increasing financial giving from members of the congregationby May 31, 2010. SUMMER/FALL
6. Provide monthly updates and progress reports to the Congregation Council. IN-PROGRESS
7. Complete work by August 31. 2010 and submit final report and any relevant recommendations tothe Congregational Council by September 30, 2010. IN-PROGRESS
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Financial History: Long-Term Debt History 1994-2008
DESCRIPTION AMOUNT
Debt balance 12/31/93 $430,000.00
New debt-2003 (building project) $1,974,662.72
Tuck pointing refinancing, 2006 $148,109.79
Total long-term-debt to retire $2,552,772.51
Long-Term debt balance, 12/31/08 $1,744,330.46
Net long-term debt retired , principal (through 2008) $808,442.05
Debt service recap-
From general fund (1994-2006) $712,530.96
From "GWG (Growing
with Grace) $231,831.82
From "SOG (Stewards of Grace) $776,074.77
Total debt service $1,720,437.55
- Principle, per above ($808,442.05)
- Interest, computed ($911,995.50)
37
Outstanding Debt12-31-09
$1,685,000
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Congregational Comparisons38
Bethel: Giving units who actually give: 340
Average weekly attendance, 2009: 494
Personnel budget: $499,455
Percentage of entire budget, 2010: 60%
FTEs:
Pastors: 2, FT
Program staff: Director of children's ministry, .6; Director of youth ministry, 1.0; Director of worshipand music, .75 Administration: church accountant, .5; office administrator, 1.0; parish secretary, .4Custodial: janitor, .5; set-up, .25
Emmaus
Giving units who actually give: 225
Average weekly attendance, 2009: 450
Personnel budget: $290,000
Percentage of entire budget, 2010: 49.2%
FTEs: Pastor: 1 FT
Program staff: student ministries, 1.0; worship, 1.0 Administration: office management, 1.0.
994 2009
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Financial History: Long-Term Debt History 1994-2009
DESCRIPTION AMOUNT
Debt balance 12/31/93 $430,000
New debt-2003 (building project) $1,974,662
Tuck pointing refinancing, 2006 $148,109
Total long-term-debt to retire $2,552,772
Long-Term debt balance, 12/31/09 $1,685,000
Net long-term debt retired , principal (through 2009) $867,772
Debt service recap- Through 2008
From general fund (1994-2006) $712,530
From "GWG (Growing with Grace) $231,831
From "SOG (Stewards of Grace) $776,074
Total debt service $1,720,437
- Principle, per above ($808,442)
- Interest, computed ($911,995)
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