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Cherokee Presbytery Finances Crisis

Cherokee Presbytery Finances Crisis. Painting a Portrait. Where are we now?. Presbytery has current Y-T-D shortfall of $6000 We have only $7600 in mortgage reserves There are no other reserve funds. We have no money for Mission Coordinator search process.

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Cherokee Presbytery Finances Crisis

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  1. Cherokee PresbyteryFinances Crisis Painting a Portrait

  2. Where are we now? • Presbytery has current Y-T-D shortfall of $6000 • We have only $7600 in mortgage reserves • There are no other reserve funds. • We have no money for Mission Coordinator search process. • If giving trends to the presbytery continue at current rate, it is estimated we will be short $55,000 to $85,000 by year-end 2008 (includes money for search and $20,000 reserves).

  3. How did we get here? • Declining membership • Massive Increase in capital expenditures/debt • Decreased contributions to presbytery • Years of over-spending presbytery budget • National / Global economic realities. • Resulting decreased rental income at Cherokee Retreat Center • Life Cycle of programmatic presbytery on decline

  4. Decreased Membership Only 7 of 41 churches have shown a net increase since 1998, and 4 of those 7 were organized during those 10 years.

  5. Increased Debt • About ½ of all churches in Cherokee Presbytery currently have outstanding notes and loans. • Our current indebtedness has increased from $1.3 million in 1998 to over $4.7 million in 2007 -- an increase of 362%! • Some churches pay almost 50% of all income to debt relief.

  6. Decreased Giving to Presbytery • Validated giving to Presbytery has dropped from about $1,000,000 in 1999 to about $700,000 in 2007. • The presbytery budget just in the last 4 years has been cut from over $700,000 to $500,000 in 2008. • The 2009 budget is projected at $410,000, a 42% reduction in just 5 years.

  7. Who’s to blame?

  8. The Dilemma We Face • Projected shortfall of between $55-85,000 • Presbytery bank loan will severely affect any / all churches with PILP (Presbyterian Investment Loan Program) loans. • No safety net / money for churches that may default on loans. • Cuts to ministry, including Campus Ministry and its staff • NCD funds may be at risk

  9. Options on the Table • Get bank loan in short-term • Ask individuals to step up and help • Ask churches to pay full pledge, if at all able • Eliminate or cut back presbytery staffing • Eliminate or cut back mission / ministry • Spin off Cherokee Retreat Center and/ or minimize funding • Open to other suggestions

  10. Impact of New Structure/Vision • Time may have come for Cherokee Presbytery to be reborn / start new life cycle. • Candidates under consideration are excited about new model for presbytery ministry • Hope and expectation is that by not being a programmatic presbytery, the budget will be considerably streamlined.

  11. What Can YOU Do Now? • Pray for – God’s will, churches, Council • Give – as you are lead • Serve – on new CRC Board of Directors • Ask – who do you know who can help? • Suggest – what ideas have we not considered?

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