By Ronald Kelly
By Ronald Kelly
PASADENA—Once again we close a month right on our targeted budget projections. We had forecast regular donation income at $1.43 million for July and ended with $1.44 million. Can’t get much closer than that.
That’s on the positive side. On the negative side, this is down 10 percent from July 2002. Of course we would always like to see growth in donations, but meeting our projection is certainly a primary goal.
July was also a fairly good month for all other sources of income, with about $343,000 coming from a variety of sources. Even though donation income was a few percentage points down, our total income was up slightly more than July of last year. We closed the month with $1,791,007 in total revenue.
Stable financial position
All in all we are maintaining a stable financial position, and even though our expenses continue to exceed donation income by a considerable amount, we still have a small cash gain to our reserve fund for the first seven months of this year because of the sale of two peripheral properties and a legal settlement. Another two properties were scheduled to close in early August.
For the past several years Bernie Schnippert, church treasurer, and I, along with our Finance & Planning team, have diligently worked to minimize expenses while at the same time maintaining financially responsible procedures. It has not been an easy task, but we are thankful the church’s financial position is positive and our reserve funds are maintained above the board-recommended minimum level.
Financial strength in congregations
A primary focus in financial planning is achieving our goal of financial strength in our congregational operations—that is, putting the highest priority on our pastors and local congregations. With that in mind, as we begin to work on our 2004 budget, we are implementing a variation to our expense accounting systems.
Rather than have all the expenses of the denomination’s headquarters in one budget area, for 2004 we will divide our budgets into two categories: (1) church operations and (2) property sale expenses.
Funding property sale
Up to now all of our expense categories were in one budget. The expenses that are attached to the operations of the church will be funded by member donations and other regular sources of income. The property sale expenses will be funded from income not related to donations, from peripheral property sales and other financing packages the church will put together.
As we move through the Pasadena property sale process, we have retained the services of respected consultants and professionals to assist us. One of our consulting teams advises us on financial matters. They fully support these transitions and have given excellent additional input.
Balanced budget
We have been working on that premise, and I’m pleased to report that we are planning a WCG church operations budget for next year that projects that income and expenses will balance.
In order to effect the goal of a balanced budget, we have had to make additional difficult decisions that will require reductions in almost every department and will mean that we cannot maintain all the programs and activities we did this year. We have prayerfully considered many possibilities and will present our proposed reduced budget to the church board in a couple of months. At that time I will be able to share with you what some of the impact of these reductions will be.
2004 a pivotal year
In many ways 2004 will be a pivotal year for us. If all goes as planned, the City of Pasadena will render a decision on the Ambassador campus development plan. If approved, the development will begin and our financial reorganization will also commence.
If the project is not approved, or if we experience lengthy delays, we have alternate plans to put into action. Of course our hope is for a positive city decision and a smooth transition of relocation and implementation of our new financial model. Please continue to pray with us for God’s direction in our fellowship.
Wills and Trusts
Many members have requested information on how best to make a gift to the Worldwide Church of God, either during their lifetime or upon death through wills, trusts or other means.
If you want to receive information regarding such gifts, the Legal Department of the church is available to aid you in this regard without cost or obligation. Please write to Legal Office, Worldwide Church of God, Box 5005, Glendora, CA 91740.
Copyright © Grace Communion International, 2003