By Ronald KellyUpdate from Finance & Planning
August--a 'good' month
By Ronald Kelly
As I write this month’s column during the first week of September, I am thankful to report that August donations have helped make up a portion of the deficit we have been experiencing the past few months.
Member and co-worker donations totaled $1.74 million for the month—just a trickle under the $1.79 million we received in August 2000. We are also happy to report that our mail processing is now up to date, so our records should be accurate when compared to last year.
I’ve reported a couple of times that one of our much-appreciated sources of donations comes through estate planning. So far this year our estate donations have not equaled those of the previous year, but we did receive one fairly substantial estate in August. That, coupled with Legacy escrow-extension payments and other forms of income, brought the monthly total to $2.5 million.
Last year, we just barely topped $2 million, so we are showing a 25 percent increase in total donations for the month of August! And that is truly good news to share with all of you. It’s also an opportunity to once again express our appreciation for your dedicated, sacrificial offerings.
Year-to-date figures
Looking at the year-to-date, we have received $14.47 million in member donations and just over $3.9 million from all other revenue sources. That totals some $18.4 million for the first eight months of the year. For the same time frame last year we received $20.2 million, so we are still running a negative nine percent for the calendar year.
I have often reported that to have as few staff reductions as possible, we have elected to take funds from church cash reserves. So far during 2001 we have taken just over $4 million from reserves.
Reserves
This might be a good opportunity to tell you about our reserves. From time to time I get concerned questions about the use of church reserves. When I first started to work in our Finance & Planning Office, I spoke with our PricewaterhouseCoopers account representative about our finances. His advice was that we should strive to have about one year’s operating capital in reserve.
Of course, since he represented our accounting firm, he knew we did not have that amount. So I asked him, "What is the next ‘safe’ level?" He answered that we really should not let reserves fall below a six-month expense level.
We did have more than that amount in our accounts, so I could sort of breathe easier. In spite of all the ups and downs of finances for the past three or four years we have maintained a reserve fund that ranges between a half-year and a full year’s expenses. The sale of the Big Sandy campus in the spring of 2000 brought us close to the full-year expense level. But the ensuing 17 months of deficit spending have brought that down some.
Sound financial management
I would like all our members to understand that the board of directors and department managers are committed to sound financial management. We keep a careful, almost daily, look at income and expenses. And we certainly do not want to drop below an appropriate reserve level. Church leaders have shown a strong resolve to make hard decisions when needed. Members should have confidence that the Worldwide Church of God plans to maintain proper financial and management principles.
We pray daily for our members who make up the small part of the body of Christ we call the Worldwide Church of God. Each of us is entrusted to his loving care—and there are no better hands to be in.
Statement of Income and Expenses for
WCG and PTM combined for August 2001
For the Month For the Year-to-Date
Income
Mail Income $ 1,740,000 $ 14,468,000
Other income 768,000 3,952,000
Total income 2,508,000 18,420,000
Expenses 2,536,000 22,491,000
Net gain (loss) to bank reserves $ (28,000) $ (4,071,000)
Copyright © Worldwide Church of God, 2001