FINANCE AND TRUSTEES OPEN HOUSE April 27 & 28, 2014

1. FINANCE AND TRUSTEES OPEN HOUSE April 27 & 28, 2014

2. ROLES • Finance – Proposes a budget and then raises, manages and distributes the financial resources of the congregation to support and strengthen the mission and ministries of the congregation. • Trustees – Christian Stewards of the property God has entrusted to the congregation. Trustees supervise and maintain the property of the congregation (both real and financial properties) to ensure to ensure their use for the disciple-making ministries of the congregation.

3. FUNDS TRUSTEES OVERSEE • Bequests, significant donations for specific purposes or very large gifts to be used over several years have been placed in funds which the Trustees oversee. • Investment Committee assists Trustees in overseeing returns on some funds and asset mix within these funds.

4. FUNDS TRUSTEES OVERSEE – cont. • Trustees review requests for funds, often with input from other committees of the Church, to decide whether to approve such request. • Trustees on own initiative will recognize a needed repair to physicalplant or equipment replacement and will authorize expenditure. • Trustees vote on expenditures. It is not a one-Trustee decision. • For many funds, there is a written policy regarding what the funds may be used for and/or the process of reviewing any request before the Trustees give final approval.

5. CURRENT FUNDSMOST RECENT BALANCE $47,468 ($3,560 committed) $7,677 $6,996 Children & Youth Howell Children’s Fund Darrell Bryant Music Fund (Youth Music) Education in General Christian Education Fund

6. CURRENT FUNDS – cont.MOST RECENT BALANCE $76,759 $12,199 $3,233 Music Music Fund (Adult Music) Missions & Outreach Thibadeau Community Outreach Fund Clanton Missions Outreach Fund

7. CURRENT FUNDS – cont.MOST RECENT BALANCE 25% of distributions $1,895,088 ($117,994 committed) Maintenance & Capital Repairs Wilbur Fisk Glenn Capital Improvements Fund (not managed by Glenn) Capital Improvements & Operating Reserve Flora Glenn Candler Fund ($300,000 of which acts as operating cash reserve)

8. CURRENT FUNDS – cont. $177,536 ($82,060 committed) $10,020 $328,161 _____________ $2,565,142 ($203,614 committed) Unrestricted Good Shepherd Fund Memorial Fund Endowment - Unrestricted Mathias Fund Total:

9. FULLY UTILIZED FUNDS -- Outreach Ministries -- Children’s Ministries -- Large YAAB Expenditures Thomas Penland Fund Diane Koelemay Fund YAAB Reserve

10. AMOUNTS DRAWN ON FUNDS(2008 – 2013) $323,873 $108,604 $263,168 $9,860 $235,374 $11,100 Good Shepherd Fund • 12 times for capital improvements or repairs • 7 times for missions • 6 times for professional services Wilbur Glenn Fisk Fund • All repairs and improvements (as required by donor) Flora Glenn Candler Fund • Capital improvements and repairs and operating funds Christian Education Fund • Capital improvements and small amount ASP tuition assistance Howell’s Children Fund • Capital improvements, ASP tuition assistance, SPARK intern Mathias Fund • Wesley Fellowship (Supported Glenn Commitment)

11. AMOUNTS DRAWN ON FUNDS – cont.(2008 – 2013) $4,850 $11,477 $8,427 $9,679 For special concerts & musicians $786,415.63** Music Fund expenditures not included Darrell Bryant Fund • Capital improvements including JWFH lighting Thomas Penland Fund • Missions Diane Koelemay Fund • Missions YAAB Reserve • Major repairs and maintenance Music Fund Total:

12. TOTAL ON CAPITAL IMPROVEMENTS AND REPAIRS $633,351.91 Approx. $106,000/year $126,000.00 2008 – 2013 Average 2014 will boost the average: Chiller, Grease Trap, Security Camera, Pinewood Derby Track Plus Bridal Room and New Bus?

13. TOTAL ON MISSIONS AND PROFESSIONAL SERVICES $67,276.26 $89,787.27 ___________ $916,415.44 2008 – 2013 Missions, Helping Others Professional Services: Building Inspection, Architect, Coxe Curry, Attorneys

14. FLORA GLENN CANDLER MEMORIAL FUND • Started as a gift in 1969 of 1,200 shares Coca Cola stock from estate of Mrs. Flora Glenn Candler. • Mrs. Candler put no restrictions on use. • For 30 years, Glenn leadership regarded stock as not to be used for operating budget • In 1996, had grown to 25,700 shares (approximately $2,300,000) • Named the fund. • Began selling program to diversify holdings. • Use proceeds to help defray building costs and for future building acquisitions. • Portion of the earnings could be used to support operating budget. • Proceeds not used for c) & d) in a year, made available for future use of c).

15. FLORA GLENN CANDLER MEMORIAL FUND – cont. • 2008 – Trustees adopted new policy. • Fund to be treated as quasi-endowment with long term horizon. • Provide support for operating budget including: • Capital and maintenance expenditures as internal loans to be repaid from operating budget • Pension for one employee • Collateral for loans for capital improvements, no more than 25% of value. • Goal is to preserve purchasing power of FGC. • 2012 – Trustees revised policy. • Primarily a reserve to support major capital improvements and repairs, but not deemed a loan to be repaid, including expenditures before 2012. • Continue to supplement operating budget, but this support to be gradually eliminated. • Be a reserve to provide internal loans when cash flow for operations is inadequate. • Continue pension support.

16. FLORA GLENN CANDLER MEMORIAL FUND – cont. • Expenditures other than to operating budget. • 2008 - $141,000 – Sanctuary ceiling (originally a loan from Emory paid back by the FGC Fund). • 2009 - $72,000 – Two busses (originally a loan from FGC to be paid back). • 2011 - $26,000 – CSB Security System. • 2012 - $30,000 – New YAAB roof. • 2014 - $113,000 – New Chiller. • 2014 - $4,000 – Security Camera addition. $386,000 – Total

17. FLORA GLENN CANDLER MEMORIAL FUND – cont. • There have been discussions concerning the 2012 policy decision allowing capital expenditures from FGC to not be treated as a loan to the operating fund. The concerns expressed the view of FGC as the “heritage” fund at Glenn and a strong desire not to allow its purchasing power to be diminished, or worse, eventually depleted. • Others, including 2012 Board of Trustees, concluded: • Not realistic to expect operating budget to repay loans in the foreseeable future. To require such would put impossible burden on future operating budgets. • Policies regarding FGC have all been internally adopted by Glenn’s Trustees and can be changed from time to time. • Have tried to provide a policy to allow for growth of the FGC Fund, but permit a more flexible use. • Finance committee recognizes need to have an annual capital budget. (2014 Glenn UMC Budget recognizes $75,000 for capital expenses).

18. EMORY-GLENN RELATIONSHIP • Both founded by the Methodist Church. • Candler family donated land for the present campus. • Glenn Church originally founded in 1920 on Emory Campus as the Emory University Methodist Church. • Glenn and Candler families donated funds to build the Sanctuary and the CSB. • Donors’ intent: • Sanctuary = For worship and assembly. • CSB = For Christian Education and administrations.

19. EMORY-GLENN RELATIONSHIP – cont. • Legal title to land and buildings with Emory. • Shared use of Sanctuary continues. • Shared use of CSB continued until approximately 2010 when Emory significantly reduced its use of CSB. • No written lease from Emory to Glenn. • Since 1955 there have been 4 agreements concerning use and sharing of expenses. None is very detailed.

20. 1955 MAINTENANCE AND USE AGREEMENT • Listed “normal maintenance and operating” costs, to be shared by both Glenn and Emory. • Listed “extraordinary maintenance, repairs and alterations” paid primarily by entity benefitted. • Year by year adjustment to amount Glenn contributed to “normal maintenance and operating” costs. • Over years, based primarily on actual percentage utilization of buildings.

21. 1995 COVENANT • Not a financial agreement, but a re-affirmation of Glenn’s and Emory’s complementary missions, to be accomplished in part by sharing space. 2005 LETTER • Continue charges based on utilization. • Provide Glenn a $25,000 credit against its portion of expenses to assist Glenn in its service to community and reduced use of Sanctuary with opening of Schwartz Center.

22. 2013 AGREEMENT • Effective Jan. 1, 2014. • Changed from percentage of actual usage to allocate expenses, to whichever entity primarily uses a building will bear that building’s expenses with minor qualifications. • Sanctuary: Emory Pays: • All maintenance and capital expenses. • All operating expenses. • Landscaping and security. • Building insurance. • Maintenance and replacement of organ. • CSB: Glenn Pays: • All maintenance and capital expense. • All operating costs. Emory Pays: • Landscaping and security. • Building insurance. • Maintenance and replacement Little Chapel Organ.

23. RESULTS FOR GLENN • Glenn had engineering firm inspect CSB and YAAB before new agreement with Emory. No anticipated expense in next 10 years that should be a problem for Glenn. • Relieved Glenn of possible liability of $500,000 plus for needed replacement of Sanctuary roof and other major repairs. • Glenn will have more freedom to adapt CSB to its specific needs.

24. QUESTIONS AND FOLLOW UP