interim report of st johns challenge committee

8/9/2019 Interim Report of St Johns Challenge Committee

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INTERIM REPORT OF ST.

JOHNS CHALLENGECOMMITTEE

June 27, 2010


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Agenda

a. Setting the Stage

b. Research and Lessons Learned

c. Interim Recommendations and Next Steps

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Setting the Stage: Annual Meeting

Budget out of Balance: $146,000 (expenses larger thanrevenues)

Strongly divided opinions in congregation about what todo

Result:

Split vote to approve a 3 year plan to balance revenue andexpense

Approved creation of data and Challenge committees andreport back to Council and Congregation

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Setting the Stage: Financials4

Summary Financial Report 5/31/2010

Y-T-D

Budget

Y-T-D

Annual

Budget

Total Income $ 379,693 $ 406,782 $ 976,276

Total Operating Expenses 312,185 333,980 812,944

Mortgage Expense 68,055 68,055 163,332

Total Expenses $ 380,241 $ 402,035 $ 976,276

Net Surplus (Deficit) ($ 547) $ 4,747 -

Budget assumes $94,276 in reserves use; plus $46,000 in challenge

revenue. Through May, no reserves have been used. No challenge revenue request

yet made.


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Total Income

By Month

January Feb. March April May Total

2009 $ 50,203 $ 57,318 $ 99,464 $ 75,003 $ 98,130 $ 380,118

2010 $ 91,650 $ 67,748 $ 74,067 $ 64,424 $ 81,964 $ 379,853

Decrease ($ 265)

Offerings

By Month

January Feb. March April May Total

2009 $ 47,540 $ 52,540 $ 75,578 $ 55,214 $ 80,981 $ 311,853

2010 $ 87,945 $ 62,082 $ 61,150 $ 56,255 $ 69,585 $ 337,017

Increase $ 25,164

Monthly Update on Giving 2010


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Setting the Stage6

Expenses 5/31/2010

Y-T-D

Budget

Y-T-D

Annual

Budget

Benevolence & Social Concerns $ 44,990 $ 45,388 $ 119,230

Total Personnel 203,997 218,349 524,038

Property & Grounds 32,041 31,648 77,076

Debt Service 68,055 68,055 163,332

Adult Ministry & Education 6,505 9,678 19,420

Business Management 10,278 11,126 26,620

Children's Ministry & Education 3,253 3,637 9,550

Evangelism & Communications 2,111 3,375 8,100

Faith & Health 626 1,356 3,125

Stewardship 435 720 2,800

Worship & Arts 5,416 5,296 12,660

Youth Ministry & Education 2,507 3,063 9,050

Mutual Ministry 26 344 1,275

Total Operating Expenses $ 380,241 $402,035 $976,276

Of the Benevolence: $33,000 is pass-through: Food Shelf/World Hunger/LWR/Missions.Largest of rest: $55,000 ELCA

91% in

these

4 areas


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Setting the Stage

Cash Status:

Unrestricted funds: $360,559

Approximately 4.5 months cashflow

Outstanding Debt Status: May 31, 2010

$1,662,018

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Setting the Stage: Charge

Approved by St. Johns Congregation Council April 27, 2010

The Challenge Team in coordination with church staff and appropriate boards and subcommittees, ischarged with the following by the St. Johns Congregation Council:

Charge: Charge Goal Current Status/Goal

1. Gather information on Congregation: May 31, 2010. COMPLETE

2. Review Membership rolls and Trends: April 30, 2010. COMPLETE

3. Develop Strategic Plan: April 30, 2010. SUMMER/FALL

4. Strategies to increase attendance May 31, 2010. SUMMER/FALL

5. Strategies for increased giving May 31, 2010. SUMMER/FALL

6. Routine updates on Progress on-going IN-PROGRESS

7. Final Report to Council/Congregation Sept.30, 2010. IN-PROGRESS

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Why not just cut or ask for money now?

1. Concerns at Annual meeting went beyond just finances (e.g.membership trends, staffing levels, etc.)

2. Many different assumptions about congregations finances,membership, and programs ---but not based on facts

3. People want to contribute to something they believe in. We need aclearer plan for St. Johns both programmatically and financiallybefore asking for more money.

4. Long-term problem needs a long-term plan.

5. Current finances on track and reserves allow thoughtful but timelyprocess.

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Setting the Stage: Workplan

March: Gather, develop and understand the Charge

April/May: Gather Informationto understand congregation history and current status

June: Interim Report to Congregation: lessons learned, interim recommendations and next steps.

July/August: Review and focus congregation mission, strategies, programs, resources

September/October: Make recommendations to Council and Congregation for Long-term workplan

Launch implementation groups based on the workplan (both on giving and program sides).

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Research and Lessons Learned

Giving

Financial History

Current Finances

Membership

Congregational comparisons

Survey

Program summary Staff time study

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2009 Giving12

St. Johns has many members that do not give $

723 Households in last annual report

279 or 39% give $0

Most of St. Johns budget comes from small number ofmembers

444 households with recorded giving: of these

11% gave 41% of funds




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Financial History:

Giving and spending growth over 15 years has been relatively stable,though with spending growing slightly over giving.

Financial challenge began in 2003 with the building addition.

Several attempts to address the challenge (campaigns)

Decision to direct some of campaign dollars to debt interest vs.principal.delayed financial challenge

Congregation faces financial challenge that can be defined in 2 ways

$146,000 recurring annual gap (expense over giving)

$1.6 million outstanding debt

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Financial History: General Fund

$(100,000)

$(80,000)

$(60,000)

$(40,000)

$(20,000)

$-

$20,000

$40,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Net (loss) or gain in General Fund14

Addition

Began 2002

Debt Service

Paid from Campaign

2007-2008


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Financial History: Capital Campaigns

DESCRIPTION

Cost of New Building construction (2002-2003) $3,262,185.55

FINANCING OF BUILDING-

FROM "GWG (Growing with Grace) $1,287,522.83

FROM LONG-TERM DEBT (2003) $1,974,662.72

$3,262,185.55

Cumulative Fund Drive Activity-

Sources of funds:

Allocation of special gifts $18,000.00

Contributions (both SOG and GWG) $2,546,249.19

Interest income $16,460.13

Total Income $2,580,709.32

Uses of funds:

Fund raising costs & consulting ($94,721.89)

Benevolence ($160,158.21)

Building project costs funded ($1,287,522.83)

Debt service (both principal and interest) ($1,038,306.39)

Total ($2,580,709.32)

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Where the Money Comes From:

Pledged Offering,$619,934 , 67%

UnpledgedOffering,

$171,921 , 19%

Rental, $7,579 ,1%

Designated/Appeals, $38,839

, 4%

Reserves,Used for legal costs

$72,797 , 8%

Interest Income,

$12,455 , 1%

Other, $3,763 ,0%

2009 General Fund Revenues: $927,28616


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Where the Money Goes

Pastoral Ministry,$188,020 , 20%

Support StaffMinistry,

$307,326 , 34%

Benevololence,$124,475 , 14%

Debt Service,

$139,932 , 15%

Business Mgmt.,$30,292 , 3%

Boards andProgram Costs,$52,658 , 6%

Property,

$75,033 , 8%

2009 General Fund Expenses: $917,73617


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Membership Trends

543487 489 504 502 499 512 475 483 495

508 517 526542 576 554 512

449 459 434 425 405

1704 1725 17251738

17991834 1859 1852

16201659

16951745

18141858

18941965 1948 1960

1981

1812 18231836

1358 1357 1362 13531393 1452 1427 1420

1343 13591376 1406 1446 1449

14711526 1498 1506 1523 1522

15331546

831767 772 737 763 767 730

809

727 734 729 750 721 721778 792 771

685 710738 738 723

285211 216 226 234 234

254 251219 194

240283

223 223 200 195 209 207 215 191 187 186

0

500

1000

1500

000

500

Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Avg. Sunday School Aged (grades 3-8)

Confirmed Membership

Avg. sunday Attendance

Baptized Members

# Households

St. John's Lutheran, Northfield Congregation Numbers 1988 to 200918


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Membership Trends

Have not actively managed active vs. inactive membership.

Overall Membership has grown on books since 1988 Baptized by 132 to 1,836 in 2009

Confirmed by 188 to 1,546 in 2009

Northfield Population has grown 5,000

Participation (measured by Sunday attendance) In 1988: 543

Peaked: 576 in 2002

Low:405 in 2009

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Congregational Comparisons

Members Regular

Baptized Worship Attendance Regular Giving/ Operating Total Debt

Membership 1990 2001 2008 Giving Worshiper Expenses Benevolence Payments

St. John's 1,836 489 542 425 $ 899,500 $1,918 $648,761 $121,797 $163,332

St. Peter 1,527 300 400 400 $ 444,903 $1,112 $430,579 $94,648 $20,149

Bethel 1,048 226 441 490 $ 709,937 $1,449 $573,175 $115,804 $65,880

Minnesota Peer Average (4) 1,645 366 422 414 $ 626,803 $1,584 $519,448 $70,413 $108,149

National Cohort Average (3) 1,207 379 387 372 $ 704,729 $1,925 $555,631 $83,044 $152,359

* Unless Noted: All information from 2008

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Survey Results

412 completed surveys

Demographics: 103 Members with Children (18 and under)

309 Members without Children

Worship Frequency More than once per week 29

Weekly or nearly every week 298

6-12 times in the last year 53

1-5 times in the last year 24

Not in the last year 8

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Survey Results

Would You Recommend St. Johns to a Friend:

377 Yes

35 No

Is St. Johns in your will?

28 Yes

293 No 91 Prefer not to answer

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Survey Results: Overall Satisfaction

SATISFACTION LEVEL

NUMBER OF

RESPONSES

PERCENT OF

RESPONSES

Extremely Satisfied 80 19%

Very Satisfied 206 50%

Somewhat Satisfied 75 18%

Neutral 16 4%

Somewhat Un-Satisfied 28 7%

Very Un-Satisfied 7 2%

Extremely Un-Satisfied 0 0%

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87%

Satisfied to

ExtremelySatisfied!


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Program Summary &

Staff Time Study

Works in Progress

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Interim Recommendations:

Communications

Improve and expand communications

Need multiple delivery communication approach

Cable; Newsletters; newspaper; radio; email; in-church

communications; facebook, etc.

Enhance and Improve web site (in-progress)

Maintain and utilize Email (in-progress)

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Interim Recommendations: Membership

and Attendance

Conduct a broad review and adjustment of membership rolls,database and bylaws (underway: complete by September)

Develop Active Membership Recruitment /Retention Plan

Exit interviews Personal contact for visitors

Search out and call on prospective new members.

Pastors & selected assigned committee members to call and followup on members who DO NOT attend worship services on a regular

basis and document reasons.

Targets: Improve worship attendance by 20% (100) in the next 1 year and

40% in next 2 years.

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Interim Recommendations:

Congregational Care

Enhance efforts to personalize congregational care

Grow our capacity for membership visits to St. Johns members who are

in retirement centers or homeboundin addition to visitation pastor

calls.

Improve our follow up with families who have lost a family memberwithin three/six months.

Identify additional supports to members who have needs.

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Interim Recommendations: Finances

Improve Financial Transparency and Communication

Add routine updates: weekly bulletin; monthly newsletter;announcements by Pastor; and other communications.

Annual Giving Continue personal statements for pledge status

Develop targeted asks based on interests and participation

Build Asking Teams

Advertise and Seek automatic donations

Planned Giving Need to build a strong planned giving plan

Target: Increase number of members including St. Johns in their

wills to 50% by 2015

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Interim Recommendations: Finances

Spending/Debt: Defer payment of $25,000 of ELCA benevolence pledge until we

have met our challenge metric for the year (no more than $94,000of reserves utilized by December 2010). Beginning 2011 reduceELCA benevolence by 10% ($5,500) until budget balanced

(subject to review).

Target: By 2012, the congregation will reduce the percent of totalrevenue budgeted for Personnel to 50% (currently 54%).

Debt Reduction Plan: September/October envelope will include option to contribute

directly to debt reduction

Target: Reduce mortgage payments to below $1 million by Fall2012

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Interim Recommendations: Program31

Increase Focus of Programming Complete program review

Routinely monitor participation (in development: PersonnelCommittee and staff)

Seek out feedback for every program (in development) Review other daily tasks that could be done by others.

Targets;

Pastors and Staff to review and re-evaluate all programs andfind ways to end 10-15 present programs to give Pastors andstaff time to concentrate on higher priorities or critical areas.


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Next Steps

Hold Focus Groups (July) Staff

Past Members

Effort to review and focus mission and strategies (July/Aug) Review findings from surveys and focus groups

Engage Congregation in setting direction and priorities

Complete recommendations and present to Congregation

Council with specific dates, tasks, assignments and metrics.(September/October): Programmatic Plan

Financial Plan

Fundraising Plan

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Summary33

Concern: Will we be out of money soon? Response: Have 4.5 months of cash reserves and have not

utilized any of these reserves yet this year.

Concern: Missing specific plans. Raise $ or Cut? Response: We began our effort in March. We are working

through our plan.

What is our Plan?

Research: Who we are, our history, . Roadmap: What are our strategic efforts for congregation

Hit the Road: Implement


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The End - of Phase I34


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Setting the Stage35

Balance Sheet Summary

Assets May 31, 2010December 31,

2009

Cash & Cash Equivalents -- Unrestricted $ 360,559 $ 320,457

Cash & Cash Equivalents -- Restricted 25,000 83,615

Land, Building & Equipment 4,866,760 4,866,760

Other Current Assets 1,618 802

Total Assets $ 5,253,937 $ 5,271,634

Liabilities

Accounts Payable $ 10,729 $ 27,420

Mortgages 1,662,018 1,688,901

Other Current Liabilities 6,326 4,875

Total Liabilities $ 1,679,073 $ 1,721,196

Fund Balance & Property Equity $ 3,574,864 $ 3,550,438

Total Liabilities & Fund Balance $ 5,253,937 $ 5,271,634


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Approved by St. Johns Congregation Council April 27, 2010

The Challenge Team in coordination with church staff and appropriate boards and subcommittees, ischarged with the following by the St. Johns Congregation Council:

1. See that data and information is gathered to help the Congregation and its leadershipunderstand the state of the congregation relative to member needs, participation and interestsby May 31, 2010. COMPLETE

2. Understand and describe the various characteristics of the membership rolls of St. Johns by April30, 2010. COMPLETE

3. Develop a strategy for communicating strengths, weaknesses, opportunities and threats of St.Johns to the congregation by April 30, 2010. SUMMER/FALL

4. Define and propose strategies for increasing attendance at St. Johns events, with particularemphasis on Sunday worship services by May 31, 2010. SUMMER/FALL

5. Define and propose strategies for increasing financial giving from members of the congregationby May 31, 2010. SUMMER/FALL

6. Provide monthly updates and progress reports to the Congregation Council. IN-PROGRESS

7. Complete work by August 31. 2010 and submit final report and any relevant recommendations tothe Congregational Council by September 30, 2010. IN-PROGRESS

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Financial History: Long-Term Debt History 1994-2008

DESCRIPTION AMOUNT

Debt balance 12/31/93 $430,000.00

New debt-2003 (building project) $1,974,662.72

Tuck pointing refinancing, 2006 $148,109.79

Total long-term-debt to retire $2,552,772.51

Long-Term debt balance, 12/31/08 $1,744,330.46

Net long-term debt retired , principal (through 2008) $808,442.05

Debt service recap-

From general fund (1994-2006) $712,530.96

From "GWG (Growing

with Grace) $231,831.82

From "SOG (Stewards of Grace) $776,074.77

Total debt service $1,720,437.55

- Principle, per above ($808,442.05)

- Interest, computed ($911,995.50)

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Outstanding Debt12-31-09

$1,685,000


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Congregational Comparisons38

Bethel: Giving units who actually give: 340

Average weekly attendance, 2009: 494

Personnel budget: $499,455

Percentage of entire budget, 2010: 60%

FTEs:

Pastors: 2, FT

Program staff: Director of children's ministry, .6; Director of youth ministry, 1.0; Director of worshipand music, .75 Administration: church accountant, .5; office administrator, 1.0; parish secretary, .4Custodial: janitor, .5; set-up, .25

Emmaus

Giving units who actually give: 225

Average weekly attendance, 2009: 450

Personnel budget: $290,000

Percentage of entire budget, 2010: 49.2%

FTEs: Pastor: 1 FT

Program staff: student ministries, 1.0; worship, 1.0 Administration: office management, 1.0.

994 2009


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Financial History: Long-Term Debt History 1994-2009

DESCRIPTION AMOUNT

Debt balance 12/31/93 $430,000

New debt-2003 (building project) $1,974,662

Tuck pointing refinancing, 2006 $148,109

Total long-term-debt to retire $2,552,772

Long-Term debt balance, 12/31/09 $1,685,000

Net long-term debt retired , principal (through 2009) $867,772

Debt service recap- Through 2008

From general fund (1994-2006) $712,530

From "GWG (Growing with Grace) $231,831

From "SOG (Stewards of Grace) $776,074

Total debt service $1,720,437

- Principle, per above ($808,442)

- Interest, computed ($911,995)

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interim report of st johns challenge committee

Documents