November 2012
Financial Framework The Financial team was asked to: Explore a variety of different options regarding future of Church Match feedback from Ali Kans workshops Test options for long term sustainable future for WPC Financial Models Analysed: Using all current assets to fund earthquake strengthening Using fundraising from community to fund strengthening Selling assets to raise funds - manse vs church vs hall Selling everything, moving to shared premises model & investing funds to generate income
Financial Realities Operating at a small deficit for the last 3 years. Giving stagnant over 5 years, not matching inflation. Dramatic increase in insurance costs increased deficit. Significant funding now required for earthquake strengthening. Interest on capital vital to fund current annual deficit Need to increase giving by at least $10,000 (10%) to breakeven now Increase funds by 25% if existing capital used to fund earthquake strengthening costs.
Revenue is a critical factor Sources of Revenue: Giving $93,000 Interest on Capital - 4.5% on $495K (Funds maintenance and deficit) $22,300 Fundraising (Usually for ministry specific items) $9,000 Grants (Subject to specific needs) $36,000 Rent from Manse (Pays housing allowance) $26,000 Rent from Hall $7,000
Fundraising $500k 0Giving 25% Giving Vs. Fundraising
WPC – What it should be like God centred Worship Teaching Spiritual guidance Christian community reflecting Gods love Service style that meets a range of people Range of service times to meet changing times A model community Flexible space Connected to Community Wadestown location Welcoming & contemporary Future focused Flexible internal spaces Accessible Safe space Share with community Open all hours Not hung up on buildings A hub Community outreach Caring, outwardly focused Community gatherings Partnerships/ joint ventures Visible Well known in its community Wadestown is home Local community gives it flavour Open, warm welcoming Rocking but not a rock concert Sense of intimacy and support Creating a vibrant place for youth; a place to meet and socialise Use of technology Enabling growth Financially sustainable
Options to discuss Option 1 Option 2 Option 3 Future focused Keep church as is Earthquake strengthen to minimum Funded by raising $60k, spending capital and 20% increase in giving Earthquake strengthen and redesign spaces to suit ministry and community needs Fundraise $500,000 or increase giving by 25% Two options – discuss with WCC sharing Library. discuss with QMC converting old gym into multiuse Hall/Chapel. Sell existing site, invest funds for return to build Ministry, reach out to community etc
Option God Centred Flexible Space Community Wadestown Contemporary Future focus Financial 1 ?2 ? 3QM ? ? 3Lib ?
Challenges with each option Option 1 Option 2 Option 3 Future focused Requires both fundraising and increase in giving. Fundraise $60,000 and increase in giving by 20% Status quo No opportunities for earning adequate revenue from assets No money for ministry Quick solution Spend $500,000 minimum Need to fundraise or increase giving 25% Need volunteer to lead fundraising effort Meets future needs Opportunities to earn revenue from assets. Money for ministry from fundraising Many unknowns + will take time Will be some costs but revenue can be generated from investing capital Sharing reduces overheads, lower giving more ministry Prominent presence in a community – QMC/Wadestown Much discussion - PCANZ, WCC, QMC, Wadestown Community
No simple answer We recommend taking time – There is still a long way to go