State of the Church: Part II
No matter what Washington tells us about a recovery, it still feels as though we are in the midst of a deep recession. But grim news from national economic front not withstanding, the parish enjoyed a reasonably successful financial 2012.
Pledged, unpledged and plate income—officially classed as ordinary income – went up by $12,413 to $280,281—an increase of some 4.6 percent. And, largely thanks to a hefty reduction in overheads, the parish ended the year in the black to the tune of $26,873.
That’s the good news. The less happy news is that overall income was down by 16.2 percent primarily because of an 83 percent decline in contributions to the endowment fund and a 92 percent fall off in financial gifts from parishioners.
A substantial decline in contributions to the endowment fund was to be expected. Giving to such funds usually tails off in the year after the initial appeal. The size of last year’s decline, however, took us somewhat by surprise.
The fall off of individual financial gifts from parishioners was by no means quite so surprising. Certainly, the continuing recession or exceedingly sluggish recovery (whichever you prefer) played a role in the decline.
Another factor, however, was a measurable drop in number and size of bequests. This is not something about which to complain. After all, it is decidedly unchristian to grouse about a decline in the number funerals.
The deciding factor in this year’s financial outcome, however, was a substantial “across the board” reduction in overheads.
For example, banking and finance costs (primarily mortgage interest, etc.) were cut by 18.5 percent. This was attributable almost entirely to the renegotiation of our mortgage by Rector’s Warden John Cobb.
Spending on buildings and grounds went down by a staggering 31 percent. This was due in part to the mild winter which substantially reduced the need for snow plowing.
A primary reason for the savings, however, is that responsibility for maintaining the buildings and grounds has been assumed by a group of enthusiastic and hard working volunteers.
Overheads for operations and administration fell back by 10.4 percent, and even personnel costs were down—albeit by a very modest 0.7 percent. (After all, they’ve gotta eat!). Advertising expenditure was down by 13.7 percent and the cost of the music program went down by 15.8 percent.
Savings on this magnitude are the fruit of a major effort on the part of your vestry to keep cost in check. However, it is unlikely that we will be able to repeat this performance in the coming year.
Costs are bound to rise. Inflationary trends have been noted in many of the essential services provided by outside suppliers, and there is nothing we can do about this but pay up and look pleasant. But be assured, we shall hold down the lid on costs as tightly as possible.
Meanwhile, remember that cash flow is a perennial headache for the poor treasurer. Things aren’t too bad in the spring, but, come summer, the Cash Flow Monster, like his cousin in Loch Ness, rears his ugly head.
Please help keep the Cash Flow Monster at bay by paying your pledge for your vacation weeks before you go away rather than sometime after you get back. My ulcers will thank you for it. BILL HAWKINS
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