State of the congregations
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STATE OF THE CONGREGATIONS. Our Future. State of the Congregations of the Diocese of Rhode Island. Purpose: To review the financial condition of the parishes in order to understand our need to find a way to vitality. Healthy Congregations are the Foundation of a Healthy Diocese.

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STATE OF THE CONGREGATIONS

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STATE OF THE CONGREGATIONS

Our Future


State of the Congregations of the Diocese of Rhode Island

Purpose:

To review the financial condition of the parishes in order to understand our need to find a way to vitality


Healthy Congregations are the Foundation of a Healthy Diocese

  • Churches provide 62% of Diocesan income

  • Therefore, the trends that affect individual churches will affect the Diocese


Trends to Watch

  • Average Sunday Attendance (ASA)

  • Pledge & Plate

  • Draws on Endowment


ASA 2003-2009

  • Percentage decline 2003-2009 = 28.2%

  • Percentage decline 1999-2009 = 29.9%


Total Pledge & Plate for All Churches in the Diocese


Keeping up with inflation? No


Running Faster to Stay in Place

  • By 2009 the Average Episcopal Parish in Rhode Island needed to cut 20% of its budgeted expenses just to stay even to pay the same set of bills it had in 2003.


Ten largest percentage draws

  • Ascension, Cranston39%$ 39,5772.6 yrs

  • Cathedral, Providence28%$250,0003.6 yrs

  • Trinity, Cranston24%$ 85,6154.1 yrs

  • St. Mary’s, E. Prov.17%$ 23,6405.7 yrs

  • Transfiguration, Cran.13%$134,2967.5 yrs

  • St. John’s, Barrington12%$211,7668.5 yrs

  • St. David’s, Cranston12%$ 40,8888.2 yrs

  • St. Paul’s, Pawtucket12%$397,4568.0 yrs

  • St. George’s, C.F.11%$ 14,5349.1 yrs

  • All Saints, Providence10%$ 140,9109.9 yrs

    Total Revenue of Endowed Funds$1,338,682 X 17% = $227,575

    Apportionment Revenue at Risk when restricted funds are reached


Churches with draws on endowment > 20% of operating revenue

  • St. Paul’s, Pawtucket72.8%

  • St. Stephen’s, Providence67.8%

  • St. Michael’s, Bristol65.9%

  • All Saints, Providence64.1%

  • Cathedral of St. John64.0%

  • St. James, Woonsocket62.8%

  • Transfiguration, Cranston57.6%

  • Grace, Providence49.2%

  • Redeemer, Providence43.5%

  • St. Mary’s, East Providence40.1%

  • Trinity, Cranston39.1%

  • St Mary’s, Portsmouth38.1%

  • St. Mark’s, Riverside34.4%

  • St. John’s, Barrington32.1%

  • St. Martin’s, Providence29.4%

  • Ascension, Cranston25.4%

  • St. Francis, Coventry24.6%

  • St. David’s, Cranston20.3%


Are we covering our costs?

ChurchExpense/AttendeeAverage PledgeDifference

St Paul’s, Pawtucket$5,407$1,046-$4,361

All Saints, Providence $4,782 $1,610 -$3,172

Grace, Providence $4,091 $1,443 -$2,648

St. Michael’s, Bristol $3,934 $1,176 -$2,758

Trinity, Newport $3,869 $1,523 -$2,346

St. Stephen’s, Providence $3,631 $1,471 -$2,184

Emmanuel, Newport $3,568 $1,615 -$1,953

St. James, Woonsocket $3,435 $ 826 -$2,609

St. John’s, Barrington$3,233$1,699-$1,534

All Saint’s, Providence$3,201$1,610-$1,591

Plus many more…

No Church in the Diocese that has a full time priest covers it’s budget with pledge and plate.


Breakeven Analysis for Episcopal Parishes with full-time Pastoral Care

Expenses

  • $80,000-$100,000 Pastoral Care (full time Priest)

  • $20,000-$30,000 Heat, Light, Water, Minor Repairs, Sexton

  • $15,000Part-time office person

  • $10,000Music

  • $5,000Miscellaneous Expenses

  • $20,000Diocesan Apportionment

  • $160,000TOTAL

    Revenues:

  • Average Pledge: $1,600 X 100 Pledge Units = $160,000


Back of the Envelope

  • Breakeven budget to support full time pastoral care and a simple church building is $160,000

  • Requires 100 Pledge units @ $1,600 average pledge

  • Note: this bare bones budget does not include funding for Mission & Outreach, Growth or ministry beyond the basics

  • Does not include insurance or any reserves for Capital Costs (ie vulnerable to the expected but unpredictable needs of 100 year old buildings*)

    *95% of Diocesan Buildings are 100+ years old, with no parking.


What happens to a Break Even Parish?

  • If there is no investment in growth then the Parish is vulnerable to attrition and decline

  • Need to have investment in growth - just to stay in place

  • So Breakeven = No Growth

    SURVIVAL MODE


SURVIVAL MODE SIGNALS

  • A few people do all the work

  • Same people doing all the work

  • Burnout of Parishioners

  • Doing the same ministries and events with less participation while creating less energy

  • Clergy often feel responsible, burdened, and depressed

  • Parishioners feel hopeless and angry


Diocese of Rhode Island

  • 54 Church Communities

  • 54 Churches to house ASA 5,601 = average of 104 per church

  • Distribution is not even:

    • 8 Parishes > 150 ASA

    • 17 Parishes < 60 ASA

  • 33 Parishes have less than 90 pledge units

  • Diocesan average pledge = $1,292

  • 29 Parishes do not meet the diocesan average pledge


Diocesan Income 2011 Budget

  • Church Apportionment = 62%

    $1,997,801

  • Diocesan Endowment and other sources = 38%

    $1,247,376

  • Total Income = $3,245,177


Total Church ApportionmentIncomeAnticipated 2012Broken out to reflect the percentage that comes from congregations pledge & plate versus draws on their endowments

  • Pledge and Plate = 71%

    $1,520,448

  • Church Endowments = 29%

    $610,427

  • Total = $2,130,875


Challenges

  • Parishes are struggling to care for aging buildings

  • Aging congregations

  • Making up for lost real income in pledge & plate by drawing down on endowments

  • Hitting ‘restricted funds’ at some key parishes

  • Churches were built for an era when people walked to church - we have too many buildings too close together

  • Reducing mission and outreach, evangelism and formation ministries


Implications for the Diocese of Rhode Island

  • ASA is declining, 30% over the past decade

  • Pledge & Plate is not keeping up with inflation

  • Churches are drawing down on their endowments to make up the difference - at an alarming rate

    Financial health and spiritual presence of the Diocese is in jeopardy


Check YOUR Survival Breakeven

  • Is your Operating Revenue > $160,000

    (Operating Revenue = Total Operating Costs)

  • Calculate your Average pledge needed to cover Total Operating Costs

    Average Pledge Needed = Operating Revenue/Number of Pledge Units

  • Calculate Number of Pledge Units Needed

    Number of Pledge Units Needed = Operating Revenue/Average Pledge


How Does Your Church Measure Up?

Breakeven ActualGap

  • Operating Revenue$160,000????

  • Average Pledges NeededCalculated ????

  • Pledge Units NeededCalculated????


What are YOUR Options

  • Reduce costs

  • Increase income

  • Reduce costs AND increase income

    So HOW do you do that?

    List three concrete examples of actions that you could take within the next year that would increase income and/or reduce costs equal to 1/4 of the gap


What are the options for the Diocese of Rhode Island

  • Stay where we are and try to keep as many parishes open as possible (currently 54 parishes) - data tells us that this is choosing decline

  • Look for ways to share ministries and costs between parishes - unclear how this could produce significant enough savings

  • Support mergers & reallocation of resources:

    • Diocesan wide ASA is 5,601

    • Suggests 40 parishes - at breakeven no growth mode

    • Would suggest no more than 30 parishes if we choose moving forward


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