Treasurer’s Report: Q3 2020

Financially, the church has so far weathered the coronavirus pandemic and economic downturn reasonably well, though we still face many months of uncertainty.

Assets and Liabilities
Asset balances as of September 30 2020 add up to $356,257. This does not include the money in our endowments and trusts. Total liabilities are $299,052. Overall, we have $57,205 in net assets, a manageable amount to pay bills with. The liabilities balance includes the Paycheck Protection Act loan of $71,200, since we are still treating all of this as a loan until and unless we apply for loan forgiveness. The Board of Trustees will soon make a final decision on whether to apply for loan forgiveness.

2020 Budget
The budget is slightly behind where we forecasted in terms of income ($369,991 as of September 30, versus about $389,464 budgeted for this point in the year), and also slightly under where we expected it to be for spending ($374,530 actual, versus $416,144 budgeted for this point in the year). This gives us a better overall budget balance than expected ($4,538 current loss, versus $23,734 loss budgeted for the whole year, for a budget variance of $19,196 in our favor, so far). Importantly, however, this is a significant decline from last quarter’s numbers – over the last 3 months, expenses exceeded income by $24,109. It’s not clear yet whether these losses will continue in Q4.

Our endowment and other investments have recovered to pre-corona levels. Although important, endowment withdrawals only contribute 12% of our budgeted income. By comparison, pledge payments contribute 74% of our budgeted income. And speaking of pledges…

Pledge Drive
As you’ve probably seen, we are in the middle of our annual pledge drive. If you have already made your pledge, thank you for helping fund another year of worship, music, social justice and community.  If you have not yet had a chance to pledge, please do so now. Please consider increasing your pledge. We have a challenging financial year ahead, and your pledge could make the difference. And speaking of next year …

2021 Budget

Next year’s draft budget has been under development for several months, and continues to be refined as we watch how coronavirus is impacting our community, and as we begin the process of calling a new minister. Welcoming a new minister is an exciting event on the horizon, but also one that brings with it large costs. These must be considered alongside the potential for the church to remain closed for at least part of next year. The closure of the church is a net cost, because we lose income like event and plate contributions, but still pay salaries and most building expenses. The board will present the draft budget to the congregation at a meeting on Sunday, December 6.

-Kyle Gracey