By Ronald KellyUpdate from Finance & Planning
October donations
top $1.8 million
By Ronald Kelly
Member donation patterns continue to remain reasonably stable as we proceed toward the end of the year. For the past few months our contributions have been: June, $1.6 million; July $1.6 million; August $1.6 million; September, $1.5 million; and now October, $1.8 million. The five-month total is just over $8 million. For the same five months last year the total was $8.7 million. That’s about an eight percent decrease for the same period.
Thanks for your financial assistance
So the bad-news-good-news scenario is: income is down eight percent, but donations have remained at a steady level for several months. And I don’t want to underestimate the gratitude we have for your financial assistance to our church—especially the stable pattern that seems to be emerging. (Obviously on my wish list would be a higher level of stable!)
The total cash revenues and funding for the year-to-date beginning in January has now topped $20.5 million. That figure is above our budget projections—primarily because of proceeds from the sale of the Orr, Minnesota, property.
The church’s reserve fund flows up and down based on normal operating expenses. However, because we have sold properties, equipment, furnishings and art, we have been able for the past few years to keep the reserve fund at a controllable level.
10 percent cut
The bottom line, however, regarding our finances, is that we have consistently needed to use reserve funds to maintain operating expense levels for the general international work of the church. With a balanced budget in mind, during managerial meetings, church managers and the board of directors implemented a new budget plan for 2003 that asks all departments to reduce their 2002 expenses by 10 percent.
These reductions affect all facets of our expenses including Church Administration (both U.S. and International), Legal, Finance & Planning, Discretionary Assistance and Facilities. We are budgeting with a plan in mind that will move us through the sales process to ensure the property is entitled and approved for project development.
Certainly making reductions is an emotionally draining procedure. It may mean additional staff reductions and certainly will affect the programs and projects funded by the church. However, we must keep in mind that our goal in the new financial model will be to determine an optimum staff size for the international headquarters of the church —certain to be significantly smaller than our current staffing. So, painful though cutbacks may be, such cuts are necessary to work toward our goal of a balanced budget.
PTM to be self-funded
Another step is for PTM to be self-funded by Jan. 1. The final step in this transition is that the WCG can no longer provide free subscriptions to members. You have all received magazines with a cover-wrap announcing this change. A letter from PTM offered subscriptions with incentives and special offers. We all think the magazine is one of the finest transdenominational publications in the Christian community. It offers a balanced perspective on Christian living, theology and human-interest topics. If you haven’t ordered your subscription, we urge you to do so. Don’t miss an issue of this inspiring magazine.
Statement of Operating Income and Expenses for
WCG for the Month Ended Oct. 31, 2002
For the Month For the Year-to-Date
Income
Mail Income $ 1,841,000 $ 16,305,000
Other income (90,000) 1,771,000
Subtotal 1,751,000 18,076,000
Gain on sale of SEP Orr $ 0 $ 1,336,000
Income from Legacy
deposit forfeiture 0 1,439,000
Subtotal 0 2,775,000
Total income 1,751,000 20,851,000
Expenses 2,999,000 25,998,000
Net gain (loss) to bank reserves $ (1,248,000) $ (5,147,000)
Copyright © Worldwide Church of God, 2002