THE ANNUAL MEETING OF ST. MARTIN’S EPISCOPAL CHURCH WELCOME

Treasurer’s Presentation January 26, 2014 St. Martin’s Episcopal Church Treasurer’s Presentation January 26, 2014

History and Context Historically, the church could call on a few wealthy members of the congregation to cover deficits; This is no longer an option. Total endowment, $2.9 million in 2005, fell to $1.9 million in 2008, now $2.5 (inc. Memorial Funds and Rector’s Discretionary Fund); preservation of spending power mandates reducing annual draw on endowment. Location affects contributions; RI has one of the lowest general philanthropy contribution rates in the country. Our pledges: 2014 goal: $340,000 from 190 families and individuals. Actual so far: $304,000 from 139 givers.

Liabilities & Net Assets 2013 Balance Sheet Assets • Property $ 8,100,000 • Major Rep & Maint 100,000 • Endowment 2,522,000 • Cash 34,000 $ 10,756,000 Liabilities & Net Assets • Liabilities (Loan from Diocese) $ 100,000 • Net Assets _10,656,000 $ 10,756,000

2013 Budget / Actual (in thousands) RECEIPTS BUDGET ACTUAL VARIANCE Pledges 360 320 (40) Other Offerings 46 52 6 Investment Income 94 95 1 Other Income 26 28 2 TOTAL RECEIPTS 526 495 (31) DISBURSEMENTS BUDGET ACTUAL VARIANCE Personnel 324 312 12 Outreach 89 89 (0) Operations 49 49 (0) Property 69 83 (14) TOTAL DISBURSMENTS 531 533 (2) SURPLUS / (DEFICIT) (5) (38) (33)

2014 Budget / 2013 Actual (in thousands) RECEIPTS BUDGET ACTUAL VARIANCE Pledges 340 320 (20) Other Offerings 48 52 4 Investment Income 97 95 (2) Other Income 29 28 (1) TOTAL RECEIPTS 514 495 (19) DISBURSEMENTS BUDGET ACTUAL VARIANCE Personnel 304 312 (8) Outreach 87 89 (2) Operations 68 49 19 Property 93 83 10 TOTAL DISBURSED 552 533 19 SURPLUS / (DEFICIT) (38) (38) (0)

Apportionment to Our Diocese and National Church Our National Church The Diocese of Rhode Island St. Martin’s & all RI parishes 19% of Total Diocesan Income 17% of Parish Income:

What is The Endowment? Market value 12/31: 2013 - $2.5 million (inc. $.2 Mem Funds and $.2 Rector’s Discretionary Fund). Unrestricted $.3 million. 2012 - $2.2; 2011 - $2.0 The Endowment represents legacy gifts from the past. Responsible stewardship for coming generations requires that we reduce the “draw” below 7-8% toward a more sustainable 4-6%. In 2006 the Vestry made a deliberate decision to draw up to 7% to fund a 3-year growth plan; we continued for 5 years! 2013 actual draw (including deficit) was 8.4%. • 2014 budget draw (including deficit) is 8.3%.

Capital Improvements We borrowed $100,000 for five years @ 1.5% interest to fund new hot water heating system for church and repairs & maintenance to parish house. Repayment $20,800 in 2014 and for next four years.

St. Martin’s Pledge Facts 2011 2012 2013 2014 Total $364,000 $363,000 $338,000 $304,000 # pledges 197 182 163 139 Avg Pledge $1,848 $2,000 $2,074 $2,188 % <$1,500 55 54 40 Net new 23 15 19 24 *Average 2011 Pledging Statistics:  RI $1,479; CT $2,160; MA $1,862; New England $1,856; Deep South $2,727; TX, AK, OK, & KA $3,246

Your Pledge Dollars 55 cents: Personnel 16 cents: Apportionment/Outreach 12 cents: Program / Operations 17 cents: Property Maintenance

Summary Net Growth in Endowment $ 234,000 Improvements to Plant & Equip 100,000 Debt Outstanding 100,000 __________________ 2013 Operating Deficit 38,000 2013 Pledges Not Yet Paid 28,000 ___________________ 2014 Operating Deficit @ 6% Draw 38,000 • 2014 Budgeted Pledges Not Yet Made 36,000 2014 Possible Deficit 74,000 Additional Deficit @ 5% Draw 15,000

St. Martin’s Episcopal Church Credits: Missy Bennett: All Data Fla Lewis: Financial Judgement Heather Annis & Paul Langmuir: Art Work David Brookhart: New Design Dennis Stark: Executive Producer

St. Martin’s Episcopal Church Thanks for listening!