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Financial Stewardship: Property, Staffing, & Budgets, Oh My!. Celebration and Faith Lutheran Churches October 5 th , 6 th , and 7 th , 2008. Ground Rules. Stay on topic. Speak in a way that reflects Christ. Please keep comments brief and focused. Ask one question at a time. Facilities. - PowerPoint PPT Presentation
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Financial Stewardship: Property, Staffing, & Budgets,
Oh My!
Celebration and Faith Lutheran ChurchesOctober 5th, 6th, and 7th, 2008
1. Stay on topic.2. Speak in a way that reflects Christ.
3. Please keep comments brief and focused.4. Ask one question at a time.
Ground Rules
Facilities
CelebrationPresent Facilities
– 27,000 square feet/ 17 acres– Sancta-gymnasium, 12
classrooms, full kitchen, lunchroom/common area, church, school, and childcare office spaces, parking lot
Condition of Facilities– No outstanding major
problems– Regular maintenance work +
initial catch-up work
FaithPresent Facilities
– 47,000 square feet/ 3.5 acres– 500 seat sanctuary, 37
classrooms, kitchen, office area, youth room, childcare area, parking lot
Condition of Facilities– No outstanding major
problems– Regular maintenance work
Capital Campaign
• Not for first 1-2 years– Post-merger ministry planning needed– Allows time to adjust, study, and be creative
• Expected during 3-5 years post-merger– Ministry needs will drive the content– Usually 2-3 times operating budget or less
• Physical expansion more likely at the Celebration site
Present Staffing
Faith• Pastors (3)• DCE – Children’s Ministry• DCE – Youth• Director of Worship & Music
(calling FT– interim PT)• Music Coordinator (PT)• Business Director• Office Staff (2 FT, 1 PT)• Custodial Staff (2 FT, 1 PT)• Other
Celebration• Pastor (PT- 20 hrs, interim)• Executive Ministry Director
(Extended FT- 30 hrs)• Director of Music (PT)• Office Staff (3 PT)• Accountant (1 PT)• Custodial Staff (2 or 3 PT)
Proposed Merger Staffing
2009• All current staff retained• Duties merged – reassigned• Very important for
pastoral/secretarial presence and support to remain at both sites
• Post-merger ministry planning will include staffing
2010 and beyond• More staff will be needed,
budget will be impacted• Type of staff will be
determined by merged ministry needs and growth patterns
Due Diligence Procedure
• Faith• Celebration–Church–School (CLS)–Childcare (CCC)
• What about Faith Childcare?
Faith Church
• One entity – One budget• Receives funds through offerings and
designated gifts.• Operating expenses historically under yearly
budget • Experienced 11% offering growth two years
ago • Traditionally expects a 2-4% yearly growth rate
Celebration Church
• Board of Directors approves budgets for church, school & childcare
• Receives funds through offerings, designated gifts, and school/childcare facility fee
• Celebration’s giving has varied with transitions – Sabbatical– Staffing: Pastor 1¾ FT -> 1 PT DCE FT to-> 0
• Mortgage payments
Celebration School
• Board of Directors approves budgets for school
• Funding from (largest to smallest source): – Tuition– Gifts and their corporate matches– Grants– Fundraising
Celebration Childcare
• Board of Directors approves budget for childcare
• Funding from: – Tuition– Gifts and their corporate matches– Grants– Fundraising
• Self-supporting
Separate Incorporation
MergedMinistry
Lutheran Day School
CelebrationChildcare
FaithChildcare
Mortgage Going Forward
• All ministry debt rolled into one mortgage for approximately $2.5 million
• Offered to refinance– Forgiveness of $60,000– Annual subsidy of $37,500 for 1st 5 years– $247,500 in total subsidies– Interest rate fixed at 6.25% for 5 years– Payments over 25 to 30 years
Merged Budget
Church – School(s) Finances
• The Church owns the facilities • Childcares and School use Church
facilities• Childcares and School pay Church for
facility usage• Facility usage charge determined by
Church Administrative Board.• Ministry flows both ways
Due Diligence Conclusion
• Based on assumptions, financial conditions – full financial support of both congregation members, it is financially feasible
• 1.25% overall financial growth needed for the first year
Risks and Rewards- Financials
Risks• If members don’t support
the merger or economics change we could have a larger deficit
• Matching program rules may change decreasing revenue
• Changes in the economy negatively impact tuition
Rewards• Reaching more people
means growth and the potential for increased giving
• More people could take advantage of matching increasing revenue
• More families know about school potentially increasing revenues
Risks and Rewards- Property
Risks• The facilities will be too
small to support the ministry
Rewards• Facility use will be
maximized to make the best use of resources
• If we grow and have the need for space would have a larger pool of people to support changes
Risks and Rewards- Staffing
Risks• Current staff is
overwhelmed by ministry needs post merger
• Future staffing needs outpace revenues
Rewards• Current staff energized by
the process- team assesses needs and restructures responsibilities to make better use of time and talents
• Church growth necessitates and allows for increased staffing
Considering property, staffing, and financials is merger feasible?
Working together, yes!
Questions?
Next Week…
Being a Blessing:Inreach and Outreach
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