Five-Year Financial Plan

Transcription

1 Five-Year Financial Plan PART ONE: INTRODUCTION & BACKGROUND 1

2 Introduction A key goal of Synod 2018: Delegates understand and approve a realistic financial plan that includes a substantial fundraising component. This is that plan. It needs to be read and understood in conjunction with the updates on overall Vision spending over the past three years, as well as the Transforming Futures proposal. It also may benefit from a short history lesson. 3 Background: How Did We Get Here? 1. Synods in 2010 and 2012 agree that, as part of diocesan reorganization, a portion of the funds realized should be set aside for new forms of ministry (as yet unspecified). 4 2

3 Background cont d 2. Synod 2014 endorses DIOCESAN VISION: Renewed Hearts, Renewed Spirits, Renewed People Developed through broad consultation. Three pillars / eleven petals: FAITH IN ACTION FAITH IN FORMATION FAITH IN FOUNDATION Engaging God s World, Reconciliation and Beyond, Emerging Communities Youth and Family Life, Lay Ministry and Leadership Formation, Worship Resources Current Ministries, Shared and Remote Ministries, Effective Communication, Financial Resources, Asset Management 5 Background cont d 3. To bring the DIOCESAN VISION to life, Synod 2015 votes to use some of the funds previously set aside, so that this work can begin. $1.5M over three years ($500K per year). One-time money to faithfully seed local, regional and diocese-wide initiatives that give tangible expression to the Diocesan Vision. In anticipation of a future fund-raising campaign to enable the work to continue permanently. 6 3

4 Background cont d Elements of the overall implementation plan for the DIOCESAN VISION include: Vision Fund (juried grants). Special purpose discretionary funds: First Nations, Youth & Family, Engaging God s World. Vision Implementation Teams to animate and co-ordinate work across the diocese. Engagement of Diocesan Communications Officer and Mission & Ministry (or Stewardship) Officer; funding their offices and work. 7 Background cont d 4. Synod 2016 receives a report on one possible fund-raising approach, and decides not to proceed at that time. A motion to encourage pilot joint fund-raising projects is tabled. 5. Now, at Synod 2018, the three-year interim period is coming to an end. The success of initiatives to date can be assessed. We need to decide whether to fund their continuation and expansion, or close them down. The Recommended Five-Year Financial Plan shows a way forward in conjunction with an ambitious fund-raising initiative ($7M / 7 years). 8 4

5 PART TWO: RECOMMENDED FINANCIAL PLAN Recommended Plan Goals 1. Support the continued funding of the DIOCESAN VISION, begun over the past three years with one-time, interim money (see above). 2. Reverse the historic trend of annual diocesan deficits (totalling ~$2.8M since 2005). 3. Launch a new joint fund-raising initiative between the diocese and the parishes (coming forward separately for approval). 10 5

6 Fund-Raising Plan Current target (subject to approval): Total of ~$7M over five years. 7-8 years for all pledges to be received. Current model (subject to approval): ~60% (~$4.2M) retained in parishes. ~40% (~$2.8M) shared with diocese most of which flows back to parishes. 11 Recommended Plan Highlights (1) A balanced plan over five years: Shortfalls in early years, while financial campaign ramps up, offset by anticipated surpluses in later years. Requires $335K redirected from Vision funds. $235K of this amount was already implicit in previous DC decisions. No further draw-down from reserve funds. 12 6

7 Recommended Plan Highlights (2) Diocesan portion of financial campaign clearly used to fund Vision priorities: Faith in Action (~50%) Faith in Formation (~25%) Faith in Foundation (~25%) Can point to specific program items which would not otherwise be possible. Plus minimum of $100K set aside for ongoing Vision Fund grants in each year of the plan. 13 Recommended Plan Highlights (3) Efficiencies: Diocese protecting funds that flow to parishes. Synod Office making significant efficiencies in its own administrative costs (<15%). Assessments: No diocesan assessment on parish portion of financial campaign. National assessment on diocesan portion of financial campaign = 10% (vs. 21% for normal). Plus 5% set aside for First Nations initiatives. 14 7

8 PART THREE: WHAT HAPPENS IF WE DON T MOVE FORWARD WITH THE PLAN? Status Quo Scenario Highlights Assumes no joint fund-raising campaign. No means to continue funding Diocesan Vision. No source of funds for Vision Fund grants. No ability for diocese to assist parishes with their own fund-raising. $275K less redirected from Vision reserves. Cumulative five-year shortfall of >$1M. Leaves only ~$500K in unrestricted cash reserves. Virtually all of which would be gone by

9 Status Quo Scenario cont d This scenario is clearly not a plan. Nor is it a course we would ever recommend. However, it does illustrate the truth of what was said back at Synod 2010 and 2012: THE STATUS QUO IS NOT AN OPTION! Even if the fund-raising plan is approved, we will need to monitor carefully its performance against our expectations, and conduct midcourse corrections as required. This recommended Five-Year Plan is simply a road map. 17 Five-Year Financial Plan 9