Church Finances – Financial Review & Gift Day

Financial ReviewDownload a printer friendly copy of this letter

Dear Friends

I write to give you an update on our finances following the appeal and Gift Day we had in October and also to tell you the result of The Count this year.

Firstly, the count. In total we counted an average of 490 adults and 122 children attending services each week in October 2015. This is the same average as in 2014. However, within this, there were changes in attendance at particular services with increased attendance at the 6:30 service, a reduction in the 11:00 service with the 9:15 service remaining broadly unchanged.

So turning now to the finances, I say thank you to everyone who has returned their financial pledge for 2016.

Income 2016

Gift Pledge 2015 frontslider imageThe result of the pledges received so far is that the committed giving plus the tax refund for 2016 shows a decrease of nearly £20,000 over 2015 to £653,000. This is the lowest figure for some years and the first time we have not seen an increase following an appeal.

There are a number of reasons for this in that some people stopped giving having moved away, some have reduced their giving, some have increased but there have been only 5 brand new covenants. The net effect is an overall reduction year on year and with 270 active pledges we have the lowest number of regular givers in over 10 years.

If you have not yet been able to respond it is not too late for a one off gift, to review your giving or to start giving for the first time.   A Finance Pack, (entitled Gift Pledge 2015) available at the welcome desk, will give details of how to do that.

Costs 2016

This decrease in income however comes at a time when costs are set to increase. These cost increases include;

  • Repair of Church roof £20k.
  • Refurbishment of upper room kitchen £12.5k.
  • Replacement of server supporting the web and IT activities £6k.
  • A number of ministry areas seeking to increase their activities.
  • Living Stones – the commitment to increase the budget to 25% of committed giving (including tax refund).

The result of this decreased income and increased costs would be an overall deficit of £118,000 in 2016. This is not sustainable as it is too large a deficit to be able to cover from existing cash reserves. Accordingly, we have to take some action.

The Way Forward

The PCC have discussed the options and have agreed the following way forward for the coming months.

  1. All the major items of expenditure including the increase for Living Stones have been deferred. This reduces annual costs by £49,000.
  2. Ministry costs will be maintained at the 2015 level.

The remaining 2016 budget has been split in to 2 with only the first 6 months (January to June) being signed off at the November PCC. This results in a forecast deficit of circa £27,000 at the end of June.

We plan to make a further financial appeal in April/May and, based on the overall response, a cost budget will be set by the PCC for July to December.

When we look back over previous years we can see God’s goodness to us in providing for our financial needs. I want to praise him for that provision and asking you all to pray for the remainder of 2015 and 2016 that he would meet our need and enable us to do all that he is asking us to do in this place and in the world beyond.

David Harvey

2nd December 2015

David HarveyIf you have any questions please contact David Harvey on treasurer@stjohns-church.co.uk

 

 

 

 

3rd Dec 2015 Posted in: Hidden Posts by Stella Jennings 1

One Response

  1. Chris Dinsdale says:

    Thanks for this excellent summary David. As I type I pray that Jesus works in hearts and minds to bring in the finances He knows St John’s needs.

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