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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 of the diocese of rhode island
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
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
Trends to Watch
  • Average Sunday Attendance (ASA)
  • Pledge & Plate
  • Draws on Endowment
asa 2003 2009
ASA 2003-2009
  • Percentage decline 2003-2009 = 28.2%
  • Percentage decline 1999-2009 = 29.9%
running faster to stay in place
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
Ten largest percentage draws
  • Ascension, Cranston 39% $ 39,577 2.6 yrs
  • Cathedral, Providence 28% $250,000 3.6 yrs
  • Trinity, Cranston 24% $ 85,615 4.1 yrs
  • St. Mary’s, E. Prov. 17% $ 23,640 5.7 yrs
  • Transfiguration, Cran. 13% $134,296 7.5 yrs
  • St. John’s, Barrington 12% $211,766 8.5 yrs
  • St. David’s, Cranston 12% $ 40,888 8.2 yrs
  • St. Paul’s, Pawtucket 12% $397,456 8.0 yrs
  • St. George’s, C.F. 11% $ 14,534 9.1 yrs
  • All Saints, Providence 10% $ 140,910 9.9 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
Churches with draws on endowment > 20% of operating revenue
  • St. Paul’s, Pawtucket 72.8%
  • St. Stephen’s, Providence 67.8%
  • St. Michael’s, Bristol 65.9%
  • All Saints, Providence 64.1%
  • Cathedral of St. John 64.0%
  • St. James, Woonsocket 62.8%
  • Transfiguration, Cranston 57.6%
  • Grace, Providence 49.2%
  • Redeemer, Providence 43.5%
  • St. Mary’s, East Providence 40.1%
  • Trinity, Cranston 39.1%
  • St Mary’s, Portsmouth 38.1%
  • St. Mark’s, Riverside 34.4%
  • St. John’s, Barrington 32.1%
  • St. Martin’s, Providence 29.4%
  • Ascension, Cranston 25.4%
  • St. Francis, Coventry 24.6%
  • St. David’s, Cranston 20.3%
are we covering our costs
Are we covering our costs?

Church Expense/Attendee Average Pledge Difference

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
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
  • $15,000 Part-time office person
  • $10,000 Music
  • $5,000 Miscellaneous Expenses
  • $20,000 Diocesan Apportionment
  • $160,000 TOTAL

Revenues:

  • Average Pledge: $1,600 X 100 Pledge Units = $160,000
back of the envelope
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
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
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
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
Diocesan Income 2011 Budget
  • Church Apportionment = 62%

$1,997,801

  • Diocesan Endowment and other sources = 38%

$1,247,376

  • Total Income = $3,245,177
slide18

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
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
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
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
How Does Your Church Measure Up?

Breakeven Actual Gap

  • Operating Revenue $160,000 ?? ??
  • Average Pledges Needed Calculated ?? ??
  • Pledge Units Needed Calculated ?? ??
what are your options
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
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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