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STATE OF THE CONGREGATIONS

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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  1. STATE OF THE CONGREGATIONS Our Future

  2. 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

  3. 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

  4. Trends to Watch • Average Sunday Attendance (ASA) • Pledge & Plate • Draws on Endowment

  5. ASA 2003-2009 • Percentage decline 2003-2009 = 28.2% • Percentage decline 1999-2009 = 29.9%

  6. Total Pledge & Plate for All Churches in the Diocese

  7. Keeping up with inflation? No

  8. 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.

  9. 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

  10. 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%

  11. 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.

  12. 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

  13. 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.

  14. 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

  15. 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

  16. 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

  17. Diocesan Income 2011 Budget • Church Apportionment = 62% $1,997,801 • Diocesan Endowment and other sources = 38% $1,247,376 • Total Income = $3,245,177

  18. 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

  19. 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

  20. 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

  21. 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

  22. How Does Your Church Measure Up? Breakeven Actual Gap • Operating Revenue $160,000 ?? ?? • Average Pledges Needed Calculated ?? ?? • Pledge Units Needed Calculated ?? ??

  23. 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

  24. 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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