TO: UUCL Members
FROM: Board of Trustees
RE: 2020-2021 Budget
Each year in January, the Financial Advisory Committee (FAC) commences the annual budget process by first preparing a forecast of how the current year will end. The forecast is one measure of how the church is performing on the current year budget, and it serves as the starting point for developing a budget proposal for the next fiscal year.
Our January forecast projected a modest surplus of $6,400 for the current fiscal year. Since then, the COVID-19 pandemic has dramatically affected church operations, and it becomes more likely that we will struggle to break even on the budget, and may experience a modest loss for the year.
In response to these rapidly changing events, we have been able to eliminate or reduce certain operating expenses including parking lot rent, cleaning service, operating supplies, and utility cost. On the other hand, we have had very limited income from “the plate” and from facility rentals. It was necessary to cancel the choir’s Cabaret, our annual spring fund raiser. Moreover, we don’t know to what extent pledge commitments, this year and in the future, will be affected by a changing economy.
The 2020-2021 operating budget was developed assuming normal operations, and has not been changed to reflect a “new normal”, whatever and whenever that may be. Nevertheless, it is safe to say that it remains a blueprint for the future, if not an immediate action plan. The Board will continue to carefully monitor our financial health, and make adjustments as necessary in the coming weeks and months.
As we embark on a new ministry with Rev. Israel, this budget contemplates future growth but not without considerable risk. The following matters are noteworthy:
- The revenue budget includes financial commitments of $300,000 as compared to our current level of giving of approximately $275,000.
- The revenue budget also includes $22,214 of non-recurring income, consisting of a prior year’s surplus of $16,972 and $5,242 to be drawn from our operating reserve fund.
- It includes an Operations Manager starting at midyear at an annual cost of approximately $50,000 ($25,000 in FY 2020-2021).
- The church will establish a Sabbatical Fund with an annual provision of $3,500 to provide for guest speakers and pastoral care during the minister’s future sabbatical.
The church has continued to pay its minister and staff at 100% of their regular pay and benefits. Through the exceptional efforts of Board Member Darcy Pollock, the church obtained a $46,000 loan from our bank which is funded through the CARES Act. We expect that most of this loan will be forgiven as a result of maintaining payrolls and paying utilities over a specified period of time. These additional funds, which are not included in the budget, should serve as somewhat of a cushion for the uncertainties noted above.
The Minister and the Board of Trustees are very grateful for your continuing support during these uncertain times.
Here is the budget as a pdf file:
Here is the budget as a spreadsheet: