By Bernie Schnippert
Greetings once again from the Treasurer's Office.In last month's column I reported that January's income was disappointing and that a hefty increase for February was needed to put us back on track for our projections.
While February was considerably better than January, with a daily mail income average of about $112,587, the increase was less than hoped for, and less than needed to meet projections for these two months.
We projected a significant, but manageable 10 percent decrease in income for 1998 compared to 1997 projections. This translates to a daily mail income average, at year's end, of about $112,500.
However, the daily mail income average for some months needs to be more than this because we know some months will be less.
Our calculations showed that January needed to come in at about $112,000 a day if it was to meet our projections. Unfortunately, it was only $90,013, a substantial shortfall.
At the end of January, I became quite concerned that our income projections might be too high, and, consequently, our budgeted expense projections would also be too high, thus eating into precious reserves if unchecked.
I felt we could wait till the end of February before taking action, since February is traditionally a good month and it thus might be good enough to offset the January shortfall.
However, as I reported above, although far better than January, February also fell below projections. The result is that income is running about 24 percent under last year instead of the 10 percent we planned for.
At this time, in late March, the trend has not reversed itself, and we are now engaging in discussions about the budget.
I urge each of you to pray for an income rebound, and, of course, that each of you will personally help out financially as God leads. All of us here, and I specifically, thank you for your support.
Our pastor told us about your letter asking that local pastors not begin soliciting local pledges and donations for our activity funds.I could understand this if the church were in a financial crisis, but you have said that the church is nowhere near bankruptcy.
So, I feel that your letter shows you don't care about us here in the local congregations enough to be considerate of our needs.
Although I intended my letter to convey not only the financial situation but also my heartfelt concern for the congregations, no written communication really conveys the personal emotion of the sender 100 percent. Therefore, so there will be no misunderstanding, let me address your points.
First, although we are nowhere near bankruptcy, we are liquid financially only because we have met our falling income with care, resolve, determination, serious and far-reaching budget cuts, and yes, a lot of love.
Our income has fallen from its highest of $170 million to a budgeted $35 million and, as I point out above, we are far short of this year's projection. By any definition of a crisis other than the specter of bankruptcy, we are certainly experiencing a crisis.
If we can agree that we have been in a continuing crisis, then we will also agree, according to your reasoning, that my request was justified by the circumstances.
I would not be faithfully executing my responsibilities if I did not respond to situations that can, unchecked, put our finances in further jeopardy.
Second, while I deeply appreciate the needs of your congregation, I also see the needs of all the other 440 congregations, our 185 salaried pastors, the more than 200 "retired" or disabled discretionary assistance recipients, the employees here, the headquarters facility, which must be cared for and kept safe during the sale process, and the international regions, which need our administrative and financial support so they will survive.
Since my signature is on the checks that pay for hall rentals, salaries, discretionary assistance and overseas subsidies, I feel these needs in a more personal way than others can understand.
I must look after the financial welfare of the church as a whole, even though this means that a real local need may temporarily suffer through circumstances beyond our control.
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