St. Alban’s Episcopal Church

2014/2015 Financial Overview Annual Meeting January 25, 2015

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2014/2015 Financial Overview

n 2014 Financial Review

n 2014 St. Alban’s Helping Others

n Endowment Review

n 2015 Stewardship Review

n 2015 Budget Outlook 2

2014 Financial Highlights

2014 – Better than Budget n  Pledge fulfillment consistent with history n  Very generous non-pledge gifts n  Controllable expenses in line with budget n  Unbudgeted gifts combined with tight

expense control allows bottom line gain 2014 budgeted $8,500 use of Operating Reserve,

instead ADDED $9,018 3

2014 Operating Results Income

Actual BudgetPledge Contributions $408,491 $415,000Other weekly contributions $24,469 $24,000

Income from Weekly Contributions $432,960 $439,000

Undesignated gifts/Fundraising $32,258 $8,500Gifts/Donations with designated spending $9,689 $3,500

Total Contributions $474,907 $451,000Other income (interest, rent, other) $7,509 $3,500Endowment income contribution $15,972 $15,972

TOTAL INCOME $498,388 $470,472

2014

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2014 Operating Results Expenses

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Actual BudgetCompensation & Benefits $281,046 $279,263Office Operations $24,525 $24,700Christian Ed, Worship, Parish Activities $28,477 $27,725Communications $8,485 $2,500Mission & Outreach $4,861 $4,000Utilities $32,887 $31,891B & G Operations $24,797 $24,800Tax & Insurance $8,619 $8,620Diocesan Assessment $75,497 $75,497

TOTAL EXPENSE $489,194 $478,996NET (USE)/ADDITION TO OP RESERVE $9,212 ($8,524)

2014

St. Alban’s Helping Others

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2014 2013Haiti Fund $24,940 $31,355Root Cellar & Essentials Pantry $4,220 $5,689Clergy Discretionary Gifts $5,141 $2,982Preble Street (Sullivan Concert Proceeds) - $1,600Diocesan Contribution $75,497 $79,492

Endowment Review

•  Endowment grew by $198,563 in 2014 through net additions of $152,001, and net appreciation of $46,562 to end the year at $838,221.

•  Budget support is based on the guideline formula of 4% of the average market value of endowment assets as measured over the prior 12 quarters per the Endowment Policy approved by the Vestry on August 14, 2012.

•  In 2014 the endowment provided $15,972 in support of our budget based on the endowment guideline formula. In 2015 the budget support, using the same formula, will be $21,659.

•  Funds invested in Vanguard Star Fund, which was up 7.4% in 2014

•  Endowment Review Committee 2014: Gordon Gayer, Justin LeBlanc, David Wakelin. In 2015, Justin has moved to the Planned Giving Committee, and Michael Moore has joined the Endowment Review Committee.

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Funds & Account Balances

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Yearend Balances 2014 2013Operating Bank Account $103,878 $68,629Operating Reserve $43,995 $34,783Fund for Major Repairs $47,986 $43,777Flower Committee $7,637 $7,810Clergy Discretionary Funds $3,785 $3,651Audrey Fund $8,427 -Haiti Committee Fund $28,552 $15,197

ENDOWMENTS:Endowment for Ministries $78,039 $63,237Endowment for Mission & Outreach $104,052 $84,316Endowment for Children & Youth Ministries $124,864 $101,180Endowment Fund $531,266 $390,925

Total Endowment $838,221 $639,658

2014 Stewardship Report n  2015 Pledges of $403,103 so far; about $10,000 lower than this time last year; 4

fewer pledges than this time last year.

n  Average pledge about the same as 2014, 20 new pledges, partially offsetting 26 un-renewed pledges.

n  The need to reduce dependence on a handful of large donors is still critical.

$Pledges # Pledges Avg Pledge Concentration* n  2015 $403,103 188 $2,144 45% n  2014 $414,202 194 $2,151 45% n  2013 $407,961 198 $2,060 44% n  2012 $460,686 214 $2,153 44% n  2011 $470,178 215 $2,187 41% n  2010 $472,485 220 $2,148 40% n  2009 $495,220 210 $2,358 43% n  2008 $520,724 221 $2,256 40% n  2007 $510,493 230 $2,220 36% n  2006 $474,463 245 $1,937 35%

*Concentration represents the percent of total dollars the top 15 pledges represent of that year’s pledge total. 9

2015 Budget Outlook n  While budgeted pledges are currently forecast to be down

by about $10,000, this is offset by higher plate offerings, undesignated gifts, and increased support from endowment.

n  Expenses forecasts to be up very slightly: –  Continued commitments to all programs, no compensation

adjustment, allocations for Health Ministry, summer seminarian, Celtic Service (offset by plate offerings).

–  Slight growth in B&G spending, allocation for rectory painting, as well as availability of resources for B&G projects from Major Repairs Fund

–  Continued tight control of controllable expenses (office, hospitality, worship).

–  Electric rates surprise decline, but gas rates expected to be higher.

n  Bottom Line: Income gain (relative to 2014 budget) with tight expense control allows nearly balanced budget, meaning a small use of Operating Reserve.

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Compare 2015 Budget to 2014 Budget

n  Bottom line better by about $12,000: smaller budget gap, using only $3,435 of $44,000 Operating Reserve.

n  Income higher by $7,000: increased endowment support, and forecasted increase in plate offerings (Celtic Eventide) and non-pledged gifts.

n  Expenses lower by $1,500, although more dollars shifted to B&G, worship, utilities (higher gas rates.)

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2015 Operating Budget Income

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2015 2014Budget Actual

Pledge Contributions $405,000 $408,491Other weekly contributions $29,900 $24,469

Income from Weekly Contributions $434,900 $432,960Undesignated gifts/Fundraising $13,500 $32,258Gifts/Donations with designated spending $3,500 $9,689

Total Contributions $451,900 $474,907Other income (interest, rent, other) $3,500 $7,509Endowment Income contribution $21,659 $15,972

TOTAL INCOME $477,059 $498,388

2015 Operating Budget Expenses

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2015 2014Budget Actual

Compensation & Benefits $267,602 $281,046Office Operations $26,000 $24,525Christian Ed, Worship, Parish Activities $31,215 $28,477Communications $4,000 $8,485Mission & Outreach $4,000 $4,861Utilities $35,649 $32,887B & G Operations $28,000 $24,797Tax & Insurance $9,003 $8,619Diocesan Assessment $75,025 $75,497

TOTAL EXPENSE $480,494 $489,194NET (USE)/ADDITION TO OP RESERVE ($3,435) $9,212

Note: Operating Reserve Balance YE 2014 was $43,995