CHURCH PLANTING AND BUILDING ENTREPRENEURIAL FUNDRAISING METHODS

Similar documents
2014 BENCHMARKS. The Episcopal Diocese of Southwest Florida 2014 Vestry Retreat

2014 Parochial Report. Report of Episcopal Congregations and Missions. Workbook. Page 3. Stewardship and Financial Information

50 th Annual Meeting of the Convention of the Diocese of Hawai i October 27, 2018

CHURCH TYPE/SALARY GRADE

REPORT OF THE TREASURER OF THE BOARD OF TRUSTEES

DIOCESE OF NEW JERSEY BISHOP'S DISCRETIONARY FUND. Financial Statements and Supplementary Information. December 31, 2017

DIOCESE OF NEW JERSEY BISHOP'S DISCRETIONARY FUND. Financial Statements and Supplementary Information. December 31, 2015

Remaining Churches to Start Endowments:

EPISCOPAL DIOCESE OF PITTSBURGH PROPOSED 2017 BUDGET

CORPORATION OF THE EPISCOPAL DIOCESE OF MISSOURI D/B/A DIOCESE OF MISSOURI

Submitted by: Charlie Chapman, Diocesan Treasurer. Diocesan Treasurer

SUMMARY PLAN DESCRIPTION FOR. Catholic Diocese of Columbus 403(b) Plan

Prepared by Budget Committee For Diocesan Council October, /2/2011 Budget Committee

2017 Compensation Guide for Clergy and Lay Employees

Episcopal Diocese of Pennsylvania Statement of Activities - Unified Budget vs. Actual

2014 Compensation Guide for Clergy and Lay Employees

The Episcopal Church in Hawai i. Financial Statements December 31, 2017 and 2016

The 2009 Financial Report of the Archdiocese of Toronto

THE EPISCOPAL BISHOP OF CALIFORNIA, A CORPORATION SOLE

The Bigger Picture of Church of England Finance. Julian Hills (Diocesan Secretary) The Diocese of Canterbury

Diocese of Southwest Florida, Inc.

Battle Hill 9,000 3,633 40% 3,600 Trustee Bookkeeeping 6,000 6, % 6,000 Miscellaneous Donations - 1,300 0% - Budget Restoration - - 0% -

Episcopal Diocese of Louisiana. Pre Convention Meeting St. Augustine s Episcopal Church, Metairie - October 9, 2018

Clergy Compensation Schedule

IDAHO CATHOLIC FOUNDATION

Christ Church Episcopal Special Vestry Meeting January 9, 2008

HUMAN RESOURCES 143AC-R05

2015 Variance REVENUES

FUNDS ADMINISTERED BY THE FINANCE COMMITTEE OF THE EPISCOPAL DIOCESE OF FORT WORTH FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2010

St. Alban s Episcopal Church. Policy for Gifts & Endowments. Final

Financial Facts. Episcopal Diocese of Eastern Michigan

Consolidated financial statements of The Incorporated Synod of the Diocese of Ottawa. December 31, 2017

2014 Approved Budget OUTLAYS. 20 The Episcopal Church 299, , , ,488

Paul Carlson, Director of Finance

THE EPISCOPAL DIOCESE OF MINNESOTA Minneapolis, Minnesota

Narrative 2019 Proposed Budget for Convention Proposed Budget $1,163,850

DRAFT DRAFT. Diocese of Pennsylvania Budget vs Actual Budget Actual Budget Budget 2018 Budget

THE EPISCOPAL DIOCESE OF WEST TEXAS CONSOLIDATING FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2012 AND with

IDAHO CATHOLIC FOUNDATION

COUNTDOWN TO. October, 2017

THE EPISCOPAL DIOCESE OF WEST TEXAS CONSOLIDATING FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2014 AND with

Diocesan Owned Property

Policy on Parish Financial Management

Diocese of Quebec Annual Report For the Year ended December 31, Please complete and return one copy to Church House by March 15, 2019

THE 2012 FINANCIAL REPORT OF THE DIOCESE OF HAMILTON

Letter from Bishop Frank J. Caggiano

The agenda for the discussion: a bit of historical data; a review of where we are as of 30 Sep for 2013 budget; some planning inputs for the 2014

2019 Compensation Guide for Clergy and Lay Employees

Diocese of Cork & Ross

Treasurer s Report to Convention

Financial statements of The Anglican Diocese of Ottawa Extension Fund Incorporated

Diocese of Cork & Ross

BISHOP AND DIOCESE OF COLORADO FINANCIAL STATEMENTS DECEMBER 31, 2017

EPISCOPAL DIOCESE OF BETHLEHEM (A Not-for-Profit Corporation) Financial Statements, Independent Auditors Report and Supplementary Information

Budget. Diocese of Central Pennsylvania. Putting First Things First

THE EPISCOPAL DIOCESE OF MINNESOTA Minneapolis, Minnesota

Diocese of Helena Deposit and Loan Fund Policy. Summary

The Diocese of Southwark

TRINITY EPISCOPAL CHURCH AUGUST 2013 YTD FINANCIAL NOTES. Primary reasons: Total income is $21K over YTD budget Total expense is $6K under YTD budget

ADMINISTRATIVE OFFICES OF THE DIOCESE OF NEW JERSEY. Financial Statements and Supplementary Information. December 31, 2017

DEPOSIT AND LOAN FUND POLICY

1 2.a 2.b 2.c a 5.b 5.c a 9.b 9.c 9.d Anderson 14, , ,

The Diocesan Budget Explained 2015

Church Urban Fund s vision is to see people and communities all over England flourish and enjoy life in all its fullness.

ST. FRANCIS OF ASSISI PARISH

Manual of Business Methods. in Church Affairs

SAINT PATRICK ROMAN CATHOLIC CHURCH Financial Statements For the Years Ended June 30, 2014 and 2013

Catholic Foundation for the Diocese of Tucson Financial Statements For the Years Ended December 31, 2016 and December 2015

The Church Society of the Diocese of Quebec. Financial Statements December 31, 2013

Diocese of Eau Claire Inc 2016 Draft Budget

Thomas Jefferson Memorial Church Unitarian Universalist

Financial Statements. The Churchwardens of the Church of Trinity East in the Diocese of Toronto ( Little Trinity ) December 31, 2018

Income Expense Report. Category Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Monthly Total Monthly Love INC 2017 Average Average Income

CONSOLIDATED FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION THE EPISCOPAL DIOCESE OF WEST VIRGINIA

Annual Report to Parishioners

MONEY MATTERS Narrative Budget

St Josephs RC Parish, Clarkston. Financial Statements. Year Ended 31 December 2009

CENTRAL ADMINISTRATIVE OFFICE OF THE DIOCESE OF CLEVELAND FINANCIAL REPORT. JUNE 30, 2017 and 2016

Financial Statements Together with Report of Independent Certified Public Accountants GREEK ORTHODOX ARCHDIOCESE OF AMERICA

50 th Annual Meeting of the Convention of the Diocese of Hawai i October 27, 2018

THE DIOCESE OF NEWARK OUR DIOCESAN COUNCIL Wednesday, October 10, 2012 Grace Episcopal Church, Nutley, NJ Draft Minutes of Meeting

Five-Year Financial Plan

All Souls Memorial Episcopal Church

BUDGET 2016 & FORECASTS 2017 & 2018

Combined Financial Statements Together With Report of Independent Certified Public Accountants

Episcopal Church Foundation

Date: May 10, 2016 Place: LCGS Room 160

St Andrew's Chesterton Annual accounts Statement of Financial Activities. Unrestricted Unrestricted Restricted Endowments

St Mark, Acton Vale. St George, Ayer's Cliff. St John, Brookbury. St Paul, Bury

THE BRIDGEPORT ROMAN CATHOLIC DIOCESAN CORPORATION

CENTRAL ADMINISTRATIVE OFFICE OF THE ROMAN CATHOLIC DIOCESE OF SAN JOSE JUNE 30, 2011 AND 2010

REPORT OF THE BISHOP S ADVISORY COMMITTEE ON HUMAN RESOURCES AND BENEFITS

THE PROTESTANT EPISCOPAL CHURCH IN THE DIOCESE OF VIRGINIA

CENTRAL ADMINISTRATIVE OFFICE OF THE ROMAN CATHOLIC DIOCESE OF SAN JOSE JUNE 30, 2013 AND 2012

Impact Funding: Catholic Private Equity Growing Catholic Cemeteries

Allocation of Parish Share to Deaneries and National Church Funding

Management Responsibility. Table of Contents

Protecting Diocesan Assets While Simultaneously Enhancing Liquidity & Financial Capacity

Management Responsibility. Table of Contents

the james f. hodges diocesan investment fund

Transcription:

CHURCH PLANTING AND BUILDING ENTREPRENEURIAL FUNDRAISING METHODS Background In the Episcopal Diocese of Washington there currently exists a wide gap between the need to plant churches and the available resources. This resource shortfall can be seen in several measures: 1. Operating Deficit. The Diocese is currently running an annual operating deficit of more than $1,000,000. 2. Drain on Operating Reserves. The Diocese is currently using the entire proceeds of the Soper Memorial Trust to make up the difference in the operating budget. 3. Limited Capital Reserves. The Phillips Fund, originally set up as a trust restricted to the funding of new church plants, has only about $850,000 remaining. 4. Limited Success in Diocesan Capital Fundraising. The "Bishop's Fund," a non-restricted fund has accumulated slightly more than $100,000. (This may be because of the inherent difficulties in fundraising for a nonspecific purpose). Meanwhile, the Bishop and his staff have identified at least five areas of the diocese which could support a new church plant, in addition to the one church (St. Nicholas) that currently needs a building. Clearly, creative and entrepreneurial ways will have to be found to finance the planting and building of new church plants if this gap is to be overcome. Options and Analysis The following are five options for fundraising or financing for new church plants: 1. Church Room Naming Table 1. Under this option, churches across the diocese would be challenged to raise a designated amount per church ($10,000 - $20,000) per church. A portion of the building would be named for the donating church. The money from similarly named churches would be pooled, and could finance larger portions. i. Moderately significant fundraising potential ($900,000 - $180,000). ii. Church's would have something tangible representing their contribution. i. Since most names are limited to a few churches, the pools of money associated with each fund would be limited, making it somewhat of a challenge to identify meaningful naming opportunities. 2. One Percent Solution (a la Theological Education) Table 2. Under this option, churches would be challenged to allocate 1% of their normal operating income (NOI) to new church planting. i. Familiar approach. ii. Targeted fundraising approaches are easier. i. Fundraising potential is limited ($350,000 max.). ii. Doesn't provide a tangible representation of contribution.

3. Gift Bricks Table 3. Under this option, individuals across the diocese would be challenged to by at least brick to be place in the new plant church currently under construction. Bricks would be inscribed with a name of the person's choice (him/herself, family members, friends). The profit would go to church construction (walkways generally). i. Significant Fundraising Potential ($3,000,000 - $4,000,000 per church). ii. Fundraising potential not strictly limited. iii. Individuals would have something tangible representing their contribution. iv. Familiar approach. Done in area schools. v. Targeted fundraising approaches are easier. vi. Opportunities to build trust between factions in the diocese (in the Metro-Washington area the local franchise is held by Brad Hutt, a board member of Washington AAC). i. Phasing of construction could limit immediate placement of bricks. 4. Land Purchase, Development, & Resale Table 4. Under this option, the diocese would seek to purchase 30-40 acre parcels in areas where new church plants are planned. 10 acres are reserved for church construction. The remaining land is subdivided into buildable lots and sold. i. Self-contained approach. Each parcel would generate more than adequate funds for the church to be constructed on it (about $10,000,000). ii. It would build presence in the community and the sales themselves might generate future parishioners. i. Longer lead time (permitting can cause delays). 5. Mission Financing with Construction Funds Built In Table 5. This option assumes a certain amount of funds already raised or the use of trust funds (e.g., Soper, Phillips, etc.). $100,000 per year would be set aside for each new mission for a period of 10 years. In addition, each of the surrounding congregations would be challenged to set aside about $5,000 (about $20,000 total). The congregation would start with about 50 pledging units. As the congregation grew and took over its support, the difference would be transferred into a building reserve fund, to be withdrawn for down-payments on th th th construction loans in the 5, 8, and 11 years, at which time the church would be fully constructed, self-sufficient, and pledging a considerable amount to the diocese. i. Self-contained approach. Each mission would be self-constructing within the support provided. ii. The investment is not excessive and could be paid back iii. The budget per mission would be stable and predictable. i. Requires a significant (though not excessive) front-end investment.

Church Room Naming Table 1 Fundraising Potential # Churches Contrib. Contrib. with @ $10K @ $20K Name Name Per Church Per Church All Faith 1 $10,000 $20,000 All Saints 2 $20,000 $40,000 All Souls 1 $10,000 $20,000 Ascension 4 $40,000 $80,000 Atonement 1 $10,000 $20,000 Calvary 1 $10,000 $20,000 Christ 10 $100,000 $200,000 Epiphany 2 $20,000 $40,000 Good Shepherd 1 $10,000 $20,000 Grace 2 $20,000 $40,000 Holy Comforter 1 $10,000 $20,000 Holy Communion 1 $10,000 $20,000 Incarnation 1 $10,000 $20,000 Nativity 1 $10,000 $20,000 Our Savior 2 $20,000 $40,000 Redeemer 2 $20,000 $40,000 St. Alban's 1 $10,000 $20,000 St. Andrew's 2 $20,000 $40,000 St. Anne's 1 $10,000 $20,000 St. Augustine's 1 $10,000 $20,000 St. Barnabas' 3 $30,000 $60,000 St. Bartholomew's 1 $10,000 $20,000 St. Christopher's 1 $10,000 $20,000 St. Columba's 1 $10,000 $20,000 St. David's 1 $10,000 $20,000 St. Dunstan's 1 $10,000 $20,000 St. Francis' 1 $10,000 $20,000 St. George's 3 $30,000 $60,000 St. James' 4 $40,000 $80,000 St. John's 7 $70,000 $140,000 St. Luke's 2 $20,000 $40,000 St. Margaret's 1 $10,000 $20,000 St. Mark's 2 $20,000 $40,000 St. Mary's 2 $20,000 $40,000 St. Matthew's 1 $10,000 $20,000 St. Michael's 1 $10,000 $20,000 St. Monica's 1 $10,000 $20,000 St. Patrick's 1 $10,000 $20,000 St. Paul's 4 $40,000 $80,000 St. Peter's 1 $10,000 $20,000 St. Philip 3 $30,000 $60,000 St. Stephen 1 $10,000 $20,000 St. Thomas 2 $20,000 $40,000 St. Timothy 1 $10,000 $20,000 Transfiguration 1 $10,000 $20,000 Trinity 5 $50,000 $100,000 Total 90 $900,000 $1,800,000 1 Churches give to church plant to name a room.

One Percent Solution Table 2 Fundraising Potential (a la Theological Education) Region NOI 1% NOI 1 $5,940,228 $59,402 2 $27,238,123 $272,381 3 $6,413,156 $64,132 4 $5,146,155 $51,462 5 $4,529,913 $45,299 6 $3,614,107 $36,141 Total $52,881,682 $528,817 - Cathedral -$17,713,464 -$177,135 TOTAL $35,168,218 $351,682 Gift Bricks Table 3 One Brick Per Person Profit Per Brick: $100 Baptized Funds Region Members Raised 1 4,862 $486,200 2 10,612 $1,061,200 3 8,126 $812,600 4 7,625 $762,500 5 5,041 $504,100 6 5,564 $556,400 Total 41,830 $4,183,000 Funds Region CIGS Raised 1 3,945 $394,500 2 8,559 $855,900 3 6,985 $698,500 4 5,748 $574,800 5 3,766 $376,600 6 3,966 $396,600 Total 32,969 $3,296,900

Purchase, Subdivide, & Resale Table 4 Fundraising Potential Purchase Undeveloped Land Price/Acre: $100,000 No. Acres: 40 Total Purchase Cost: $4,000,000 Subdivide - 1 Acre Lots Engineering & Permits: $100,000 Sell 30 Acres as Buildable 1 Acre Lots (Keep 10 Acres for Church Plant) Price/Acre: $350,000 No. Acres: 30 Total Raised for Bldg: $10,500,000

Mission Planting Draft Budget Table 5 (Income and Expenses Not Adjusted for Inflation) Operating Budget Year of Operation Line Item 1 2 3 4 5 6 7 8 9 10 11 Expense Salaries Clergy 1 $65,000 $65,000 $65,000 $65,000 $65,000 $115,000 $115,000 $115,000 $115,000 $115,000 $180,000 Secretary/PA 2 $18,000 $18,000 $18,000 $18,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 Music Director 3 $12,000 $12,000 $12,000 $12,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 Subtotal Salaries $95,000 $95,000 $95,000 $95,000 $133,000 $183,000 $183,000 $183,000 $183,000 $183,000 $248,000 Space Rental $15,000 $16,000 $17,000 $18,000 $0 $0 $0 $0 $0 $0 $0 Mortgage $0 $0 $0 $0 $100,000 $100,000 $100,000 $200,000 $200,000 $200,000 $300,000 Utilities $1,000 $1,000 $1,000 $1,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Subtotal Space $16,000 $17,000 $18,000 $19,000 $110,000 $110,000 $110,000 $210,000 $210,000 $210,000 $310,000 Salaries + Space $111,000 $112,000 $113,000 $114,000 $243,000 $293,000 $293,000 $393,000 $393,000 $393,000 $558,000 Other Operating Ministry Pgrms $15,600 $16,600 $17,600 $18,600 $35,000 $36,000 $37,000 $38,000 $39,000 $40,000 $41,000 Other Expenses $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 Diocesan Pledge $15,600 $15,600 $15,600 $20,280 $25,756 $32,014 $39,016 $58,524 $84,859 $119,227 $162,685 Subtotal Other $36,200 $38,200 $40,200 $46,880 $69,756 $78,014 $87,016 $108,524 $136,859 $173,227 $218,685 Total Expenses $147,200 $150,200 $153,200 $160,880 $312,756 $371,014 $380,016 $501,524 $529,859 $566,227 $776,685 Income Mission (Pledge) 4 $156,000 $202,800 $257,556 $320,142 $390,157 $585,236 $848,592 $1,192,272 $1,626,855 $2,160,544 $2,798,434 Diocese $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $0 Partner Cong's $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $0 Total Income $276,000 $322,800 $377,556 $440,142 $510,157 $705,236 $968,592 $1,312,272 $1,746,855 $2,280,544 $2,798,434 Net Income/Loss $128,800 $172,600 $224,356 $279,262 $197,402 $334,222 $588,576 $810,748 $1,216,995 $1,714,317 $2,021,749 Xfrs to/from Reserve 5 $128,800 $172,600 $224,356 $279,262 -$800,000 $334,222 $588,576 -$900,000 $1,216,995 $1,714,317 -$2,500,000 Cumul. Reserve $128,800 $301,400 $525,756 $805,018 $5,018 $339,240 $927,816 $27,816 $1,244,811 $2,959,128 $459,128 Growth Rate 30% 27% 24% 22% 50% 45% 41% 36% 33% 30% 27% 1 Assistant added in year 6, 2nd Assistant added in year 11 2 1/2 time to start, full time in year 6 3 1/4 time to start, full time in year 6 4 Projected income based on 30% per year growth rate pre-building 50% reducing post-building (conservative) 5 Year 5: 800K withdrawal + $200K from internal capital fund raising = $1M down payment for building phase 1 Year 8: 900K withdrawal + $400K from internal capital fund raising = $1.3M down payment for building phase 2 Year 11: 2.5M withdrawal + $500K from internal capital fund raising = $3M down payment for building phase 3