Sustainable First Parish First Parish in Cohasset Financial Update Developed by the Finance Committee DRAFT FOR MARCH 2008 MEETING Draft v3

Sustainable First Parish

First Parish in CohassetFinancial Update

Developed by the Finance CommitteeDRAFT FOR MARCH 2008 MEETING

Draft v3

2Sustainable First ParishSustainable First Parish

Agenda

Organizational Changes

New Initiatives

Update on Long Term Plan

The Fiscal 2008-09 Stewardship Drive

Discussion


All Financial Elements Under One Committee

Parish CommitteeRepresentation

Financial Custodian /Endowment Sub-

Committee

Stewardship CommitteeSub-CommitteePlanned Giving

Sub-Committee

Fund Raising Events Analysis

Treasurer

Finance Committee

Long Range Planning


New Programs – New Approaches

The Legacy Program: A new major gifts program is being designed to leave a legacy of a financially stable church. Donors may elect to have their gifts directed towards: Eliminating the mortgage and its ~30K/yr interest penalty Building an endowment to provide long term financial security Endowing the minister’s salary and benefits

Planned Giving: A series of seminars on Planned Giving will be conducted in the Fall. First Parish in Your Will: A 5 year outreach program to meet with

all Parish members regarding the inclusion of First Parish in their will.

Creating a Trust: Working with a finance professional to create a trust that benefits First Parish.

Giving appreciated assets: Using this approach will benefit First Parish and yield tax advantages to the donor.


New Programs – New Approaches

Friends of First Parish Meeting House Program: A program that will reach beyond the immediate parish members to others Cohasset residents and businesses who value the iconic Meeting House on Cohasset Common and want to support its continued preservation.

New and Old Fund Raising Activities EBay Sales for Members Unused Valuables Gingerbread Sale ReUUsable Sale Valentine Chocolate Auction Lobster Sale Other Auctions More Wedding & Building Uses

Direct our volunteer fund raising activities to highest yielding ones


Update on the Long Term Plan

Task Force Conclusions from Feb 2005:

Need to increase revenue or decrease expenses by ~$65,000 per year

Decreasing expenses by $65K would require significant reductions in programs and/or staff

– Only as a last resort

Increased Pledging is our most likely source of revenue. – Healthy congregations average 72% of total revenue from pledges– We will continue to look for other revenue sources

There are only two ways to increase pledge revenue– Increase membership (then at 110 pledging households)– Increase household pledge levels (then at average $1,489 year)


UUA Congregation Growth Statistics

The overall growth rate of 1,050 UUA congregations throughout the world has been ~1% per year over the last 10-12 years.

The 1% overall growth came from: 20% of the UU congregations growing at a rate of 6.5%

– Less than 3% had growth rates greater than 6.5% A similar proportion declining at an equivalent pace With the vast majority of congregations in the middle

With some optimism we set a target growth rate of 3%.


3 Cornerstones of Financial Stability (2005)

Financially Stable Church

(72% income from pledges)

Membership Growth

(3% per yr)

Pledge Growth

(5% per yr*)

Capital Campaign

(Payoff

Mortgage)

* 15% in 1st year


2005 Financial Plan Summary

This plan projected a balanced budget in 6 years if:

Use of funds: Expenses increased 3% per year And an additional 5K$ each year was spent on programs

Source of funds: Pledging households increased by 3% Average pledge amounts increased by 5% Other income increased by 3% We withdrew 5% from the endowment each year


Progress against goals at 3 years

Financially Stable Church

(72% income from pledges)

Membership Growth

(3% per yr)

Pledge Growth

(5% per yr*)

Capital Campaign

Actual: ~1% per yearto 120 pledging households

Actual: Average gift Increased by 5%per year from $ ~1,500 to $~1,750

Actual: Committee formed and worked with a UUA consultant, reached conclusion the time was not right

Overall pledge income grew from $164,000 to $208,000 (from 53% to 63% of budget)


1% Growth with Mortgage Payoff

Income G.R. F 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

# Pledging Households 1% 110 121 125 120 121 122 124

Average Pledge Amount 5% $1,489 1,549 1,513 1,733 1,820 1,911 2,006

Pledge & Gift Income $163,790 $187,429 $189,125 $207,960 $220,542 $233,884 $248,034

Rental & Nursery School 3% $27,550 32,430 35,606 34,400 35,432 36,495 37,590

Fundraisers Budget 3% $15,000 12,000 17,000 10,700 11,021 11,352 11,692

Plate & Misc. Budget 3% $3,400 4,400 6,400 9,000 9,270 9,548 9,835

Endowment 5 % withdraw $34,960 $30,949 $28,174 $26,049 $24,281 $23,887 $23,626

Total $244,700 $267,208 $276,305 $288,109 $300,545 $315,167 $330,777

Expenses Budgeted

Salaries & Benefits 3.0% $185,115 173,834 172,775 179,251 184,629 190,167 195,872

Office & Property 3.0% $63,440 79,038 88,764 92,467 95,241 98,098 101,041

Programs 3.0% $20,148 26,345 38,570 29,373 30,254 31,162 32,097

Mortgage $41,866 $41,866 $41,866 $41,866 $41,866 $0 $0

Total $310,569 $321,083 $341,975 $342,957 $351,990 $319,427 $329,010

Surplus (Shortfall) ($65,869) ($53,875) ($65,670) ($54,848) ($51,444) ($4,261) $1,767


Increase Average Pledge to $2,100

Income G.R. F 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

# Pledging Households 1% 110 121 125 120 121 122 124

Average Pledge Amount 5% $1,489 1,549 1,513 1,733 2,100 2,205 2,315

Pledge & Gift Income $163,790 $187,429 $189,125 $207,960 $254,520 $269,918 $286,249


Fundraisers Budget 3% $15,000 12,000 17,000 10,700 11,021 11,352 11,692

Plate & Misc. Budget 3% $3,400 4,400 6,400 9,000 9,270 9,548 9,835

Endowment 5 % withdraw $34,960 $30,949 $28,174 $26,049 $24,281 $23,887 $24,193

Total $244,700 $267,208 $276,305 $288,109 $334,524 $351,201 $369,558

Expenses Budgeted

Salaries & Benefits 3.0% $185,115 173,834 172,775 179,251 184,629 190,167 195,872

Office & Property 3.0% $63,440 79,038 88,764 92,467 95,241 98,098 101,041

Programs 3.0% $20,148 26,345 38,570 29,373 30,254 31,162 32,097

Mortgage $41,866 $41,866 $41,866 $41,866 $41,866 $41,866 $41,866

Total $310,569 $321,083 $341,975 $342,957 $351,990 $361,293 $370,876

Surplus (Shortfall) ($65,869) ($53,875) ($65,670) ($54,848) ($17,466) ($10,093) ($1,319)

Sustainable First Parish

First Parish in Cohasset2008-09 Stewardship Drive

Developed by the Finance CommitteeDRAFT FOR MARCH 2008 MEETING


What it means to be “Sustainable”

Care Circle Social Justice Green Sanctuary

Circle Ministry Home share Angel Tree


Where does the Money go?

What Our Annual Pledges Support:

Circle Ministry Religious Education 2 historic buildings on

Cohasset Common Choir and Music Programs for all ages Outreach Social Justice

Proposed Budget = $350,000

Program Budget Expenses FY08Worship & Music

Religious Education

Community Within

Community Outside

Denominational

Income Generation

Worship & Music 27%

Religious Education 16%

Community Within 28%

Community Outside 19%

Denominational 6%

Income Generation 4%


Where does the Money Come From

Pledges and Gifts from 120 households of Members and Friends

Healthy congregations should have 72% of income from pledges

Endowment withdrawal rate is too high.

Program Budget Income FY08

Pledges & Friends' gifts

Rentals & NurserySchool

Fundraisers

Plate & Misc

Endowment Withdrawal

Pledges & Gifts63%

Endowment Withdrawal

20%

Plate & Misc 3%

Fundraisers

Rentals & CHNS 11%

Proposed FY09 Budget = $350,000


We are of counting on YOU

You are charitable people, but look at the impact you have on First Parish compared to other charitable organizations The United Way

– $4100M Budget

– 12M Contributors Trustees of Reservations

– $16M Budget

– 100,000 Members First Parish in Cohasset

– $252,000 Pledge Budget *

– 120 Pledging Households Clearly the impact of one member not pledging to TTOR or The United

Way is hardly noticeable, but at First Parish it makes a world of difference.

$342 per contributor

$160 per member

$2100 per household

* $350,000 Total Budget


First Parish Giving 2008

60% of pledge dollars come from 25% of households

25% of pledge dollars come from 25% of households

15% of the pledge dollars come from 50% of households

Greater than $2500

$1000

$100

$


Let’s change the shape of our giving to look like this

If every pledging household could give $2100 we would make our budget

We acknowledge the generous support of those on fixed incomes And we encourage everyone to increase their pledge if possible Remember $1400 in 1997 needs to be $2100 today

$2100

350,000 x .72 = $252,000/120 = $2100


It’s your choice

Think about what we have said and make a pledge today – the Stewardship Treasurer is ready to accept your pledge

Go home and consult with your spouse and make a pledge in the next 2 weeks

Request a visiting steward to call or visit

Request info about planning giving


Thank You


Moderate Growth with Mortgage Payoff (Feb 2005)*

Income F 2005 F 2006 F 2007 F 2008 F 2009 F 2010 F 2011

# Pledging Households* 3% 104 107 110 114 117 121 124

Pledge Amount 5% $1,577 1,814 1,904 1,999 2,099 2,204 2,315

Pledge Income $164,010 $194,267 $210,100 $227,223 $245,742 $265,770 $287,430


Fundraisers 3% $15,000 15,450 15,914 16,391 16,883 17,389 17,911

Plate & Misc. 3% $3,400 3,502 3,607 3,715 3,827 3,942 4,060

Endowment 5 % withdrawal $34,960 $28,060 $25,888 $23,709 $20,983 $19,017 $17,923

Total $244,920 $269,656 $284,737 $301,144 $318,442 $338,056 $360,220

Expenses

Salaries & Benefits 3% $185,115 190,668 196,389 202,280 208,349 214,599 221,037

Office & Property 3% $63,440 65,343 67,303 69,323 71,402 73,544 75,751

Programs 3% $20,148 20,752 21,375 22,016 22,677 23,357 24,058

Mortgage $41,866 $41,866 $41,866 $41,866

Building Maint. Reserve $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

RE Program Additions $5,000 $10,000 $15,000 $20,000 $25,000 25,750

Total $310,569 $333,630 $346,933 $360,485 $332,428 $346,500 $356,595

Surplus (Shortfall) ($65,649) ($63,974) ($62,196) ($59,341) ($13,985) ($8,445) $3,625

Cumulative Shortfall ($65,649) ($129,623) ($191,819) ($251,160) ($265,146) ($273,590) ($269,965)

*Note: household count did not include friends of FP

Documents

Sustainable First Parish First Parish in Cohasset Financial Update Developed by the Finance Committee DRAFT FOR MARCH 2008 MEETING Draft v3