Fun Finance Presentation!

Keith Snoddy, Pastor Gwyneth and members of the Finance Committee presented our current financial situation in a thorough, easy-to-understand, and interactive format after church on Sunday, December 9. Attendance was about what we had expected -- fairly low. But everyone who attended seemed to be very excited about this format for presenting our financial situation to the church body that if you didn't attend, most likely you'll be hearing about it from someone who did!

Keith began with information on how the budget is put together and a simple pie chart showing the major expense categories and what they include - the largest expenses being building, pastoral compensation and mission shares to the Conference. Then the presentation shifted to looking at the same budget number but with a pie chart of ministries of the church. Yes, we spend money to heat the building almost every day during the winter, but how is our building being used to do exciting ministry? So expenses such as heat were divided among the categories of missions and outreach, discipleship, worship, fellowship, caring for one another, and support/administration. Folks enjoyed viewing photos of the church family engaged in such ministries.

The proposed budget for 2008 is $161, 539 (down from $167,283 in 2007), which will be voted on at Church Council on December 11.

After we discussed the projected budget, Keith then presented the income side, showing a pie chart of categories such as pledges, gifts, fundraisers, and building use -- with pledges amounting to by far the largest chunk.

In 2007, there were 40 pledges. Keith showed a slide with the number of pledges in each range. For example in 2007 there were 9 pledges in the range of $1-9 per week and 3 in the range of $150-199 per week. The average for 2007 pledges was about $42/week. If all were tithing, this would mean our average income per family at Peoples was $22,000. Although there are certainly some folks at this income level, the average is most likely quite a bit higher. This was eye opening to a number of folks who put it together that there are not many people pledging at even close to 10%.

The last piece of the presentation was the budget deficit, which is about $34,000 for 2008 (and was about $46,000 for 2007). According to Keith, the church has run a budget deficit for some 13 years. How do we continue to get by? One way is by not paying our total mission shares to the denomination, which are about $29,000. In so doing, we are breaking covenant with the denomination, so although we have been given a lot of grace over the years, we need to look at ways of getting back on track financially. Another way is through using income from endowments that have been designated for budget items. And in 2007 specifically, we have spent less through eliminating a staff position (secretary) and since we have not yet hired a music director. Pledges are up by about $4,000 too! Still, we will not be able to pay mission shares this year.

So what is the answer to this large deficit? Cuts in the budget would only amount to $2-10,000 and would reduce ministry so this isn't a great option. The only other cuts would involve staff - going to a half time pastor, which would be a sign that the church was beginning the stage of closing its doors ... and this is NOT where anyone seems to sense the church should be heading. Peoples church has an amazing potential for ministry, and a world right here that needs to hear the good news of Jesus Christ!

So what about income? One suggestion was to increase fundraisers. However, Pastor Gwyneth shared that we would like to see a day when the church had absolutely no fundraisers - that 100% of funds from bean suppers, auction, church fairs, etc. would go for missions such as the Root Cellar or Heifer International. In the short term, we may need to increase some fundraising though. We also discussed the danger of wanting to grow the church so that newcomers can increase the income -- rather we want to grow the church in response to the love of Christ we've experienced and can't help but share.

The presentation concluded with the reality that the biggest potential for growth is through pledging. If all active members and attendees were pledging at 10% (definition of the tithe commanded in Scripture), the church would have more than enough to cover the budget, and there would be room to grow in areas such as missions and discipleship with greater funding. What was amazing was the witness from several folks in attendance of the joy and blessing they have received in setting aside that 10% and trusting the Lord to provide for them and their family. The offering isn't supposed to be a burden but a joy!

Pam Beal of Finance suggested posting the presentation, perhaps in Ellis Hall. If there are any folks interested in working on this project, please let Pastor Gwyneth or anyone on the Finance Committee know.

Thank you to everyone on Finance (Pam Beal-Chair, Keith Snoddy, Walter Greer, Susan Angell, Chris Bowker, Earle Harvey), and to Rosemary Herd and Chris Ward for organizing the food, and for others who provided some of the food as well. Methodists can't meet without eating together, right?!