Enhancing Missional & Operational Vitality Best Practices, Targets & Outcomes

Mission Expansion Targets Summer and Seasonal Camps Based on Conversations with Two Professional Consultant s About Consistent Vitality 4,000-5,000 Camper - Guest Days (camper/guest day= one overnight and three meals) 800-1,000 Camper Weeks (5 days) Guides 80% of Budget from Fees - $280,000 20% from other sources - $70,000 Capacity: beds (more for staff) Ball Park of $350,000 + Annual Budget moves to greater vitality (operational only - capital development done through fund development) If Guest/Camper Day is $60 for example – fees would generate ministry resources of $240,000 - $300,000

Mission Expansion Targets Year Round Centers Based on Conversations with Two Professional Consultant s About Consistent Vitality 6,000-7,500 Camper - Guest Days (1overnight/3meals) Typically 800-1,000 Summer Guest - Camper Weeks (5 days) Remainder Mid-Week and Weekend Guides 80% of Budget from Fees $360,000-$450, % from other sources $100,000 Ball Park of $460,000 + for Annual Budget moves to greater vitality (operational only - capital development through fund development) If Guest/Camper Day is $60 for example – 6,000- 7,500 guest/camper days would generate ministry resources of $360,000 - $450,000 Baseline recommended income streams for adult center $520,000 and grows stronger at $600,000 and beyond

Mission Expansion Data - Mechuwana 366 beds – 293 summer only, 73 beds in heated facilities 892 Summer Campers (525 UMC Campers) – Reach target of Camper Weeks Served 2300 persons beyond summer camp with Average group size % of groups under 25 persons. Need more data about number of overnights and meals taken to calculate guest days. A very rough estimate can be calculated by taking the guest fee revenue in 2014 beyond summer camp of $157,000 and divide it by estimated cost of an overnight and three meals at $60 equals 2,616 guest days Camper Days (assuming 5 day, 15 meals) Rough Estimate of Guest Days – 2616 Total - 6,876 Currently booked 5% more than in 2014 at this time (groups, individuals or guest days?) Ministry income resources for 2014 $327,353 guest/camper revenue, 2,000 resource grant, plus approximately $100,000 Director Compensation Grant - Total of $429,353 Around100 UM churches represented in summer camp and 50 churches in other seasons. 7 Partnerships with other nonprofits. Mechuwana team visits more than 50 churches per year

Observations Enhanced Vitality Targets - Mechuwana Reached Summer Camper Week (892) and Total Camper and Guest Days (6876) Examine rates to determine if on target with costs, since camper/guest revenue lower than expected with volume of camper/guest days. Revenue $327,547 - Target is $360,000 from camper/guest revenue Target Annual Budget $460,000+, so enhanced vitality goal to increase camper/guest days and other funding sources for an additional $33,000 Revenue/Donation-Grant Ratio $327,547 : $102,000 or 76% : 24% Recommend diversifying donor base – large portion from single source Are there other annual fund raising, endowment, revenue streams helping cover annual operating costs? Cost cutting and stewardship strategies helping?

Mission Expansion Data – Covenant Hills beds 224 Summer Campers (74 UMC Campers) Summer Camper Days 1120 camper days. (assuming full 5 day camp with 15 meals) Other Guests – UM 50, Other religious 51, nonprofit 202 – Lengths of stay were not provided but a rough calculation of guest days can be made by comparing the Camper day income to the Retreat Guest income. The retreat guest income was on 3.25% of the Camper day income, 1120 camper days times.0325 = 36 full Guest Days Total Camper and Guest Days – 1120 Camper days plus 36 Guest Days – Total 1156 Camper/Guest Days Currently only 1 guest group listed as booked for 2015 beyond summer camp $184, Income: Camper/Guest Revenue $87,388 (include gov’t per camper subsidy & Store income), Director Compensation Grant $40,000, Donations, grants and additional sources $57,404

Observations Enhanced Vitality Targets – Covenant Hills 60 beds, 20 beds in heated facilities shoulder season (below recommended # beds needed if all are usable) 224 Summer Camper Weeks (74 UMC Campers) far under recommended 800-1,000. Long-term vitality hinges on significant mission expansion. Summer Camper/Guest Days 1156 compared to vitality targets of 4,000-5,000 camper/guest days for a summer camp Camper/Guest Revenue of $87,388 compared to $280,000 recommended for consistent vitality for a summer camp. Mission expansion again essential. Ratio of Revenue to Donations/grants and other sources of income 47% : 53% Total Annual Ministry Resource Funding $184,792 compared to vitality target for summer camp of $350,000

Mission Expansion Data – Rolling Ridge 71 beds (however normally utilize 42 beds in double or single occupancy) There is a loft room with 15 beds rarely used by adults (primarily adult center). Professional consultants recommend at least 48 beds with 60 beds or more (double or single occupancy) making it easier to reach vitality. 9,950 guests served. 348 groups. 136 groups were residential Rolling Ridge program guests 1150, Additional UM related guests 1355, religiously affiliated 1425, nonprofits 4895, other guests 1125 Total Number of Guest Days – 5,475 Annual Revenue, Donations, Grants and Other Income $671,160 in 2013 (includes $100,000 Director Compensation Grant) and $749,212 in 2014 (includes $100,000 Director Compensation Grant) Based on 2015 Budget Plan for 2015 – $600,150 Guest Revenue, $142,800 Donations, Grants, Other Income (includes $100,000 Director Compensation Grant) Overnight groups booked for 2015 – 83 (136 in 2014) - Non Residential groups booked for 2015 – 78 (212 in 2014) –

Observations Enhanced Vitality Targets – Rolling Ridge Expanding number of adult appropriate beds to 48 or more would help. (including adequate meeting space for multiple groups) Total Number of Guest Days – 5,475 (Getting close to 6,000-7,500 guest day target for year round center) Keep moving intentionally to reach at least 6,000 guest days. Very notable that in both 2013 and 2014 Rolling Ridge Guest Revenue surpassed the baseline target of $450,000 for a year round center. It would be very valuable to have expert assistance in analyzing the budget to see if adjustments can be made to create budgets that provide ongoing cushion to avoid deficits. The funding appears to be there for balanced budgets. Ratio of Guest Revenue to Donations-Grants based on 2015 budget 81% : 19% Overnight groups booked for 2015 – 83 (136 in 2014) - Non Residential groups booked for 2015 – 78 (212 in 2014) – Vital to move now very intentionally to reach new groups for Most groups book 6 months or more ahead. Recommend diversifying donor-grant sources. $109,000 coming from single source. Establish strong donor involvement and larger annual fund development.

Mission Expansion Data – Wanakee 205 beds for participants and guests – additional 38 beds for staff and volunteers (only 20 beds winterized) 391 Summer Campers: 262 UM, 70 other churches, 59 without church designation Retreat Guests: UM – 12 groups, 187 overnight guests (mostly 2 nights), 60 day use Religiously Affiliated – 2 groups, 30 guests Nonprofit and Family – 3 groups, 30 overnight and 45 day use Camper and Guest Days (assuming summer camp week of 5 days, 15 meals) Summer Camper Days – 1975 Retreat Guests Days – 221 Total – 2196 Camper-Guest Days Based on 2014 Total Income - $162,942 plus $100,000 Director Compensation Grant = $262,942 Annual Income Camper/Guest Day Revenue - $141,336Donation, Grant, Other - $121,606

Observations Enhanced Vitality Targets - Wanakee 2196 Camper/Guest Days about half way to target of 4,000-5,000 About ½ of summer camper weeks, also. Essential to achieve mission expansion. Total Annual Operating Budget $262,942 based on 2014 actuals and including Director Compensation Grant. Enhanced vitality target for summer camp $350,000+ and Year round center $450,000+ Ratio of Camper-Guest Revenue to Donations, Grants and Other 54% : 46% Again, mission expansion is crucial. Establish strong donor involvement and annual fund development. May be a place to focus to reach the target of $70,000-$100,000 annually and diversify donor base because currently one source accounts for $102,000

Mission Expansion Data – Aldersgate 202 beds in summer – 146 winterized 836 Summer Camper Weeks (approximately 250 were Day Campers) Retreat Guests: UM Center and Conf. Programs 521 UMC Additional 748 Religiously Affiliated 3120Nonprofit and Family 2273Other Camper Days (with Day Campers calculated as portion of Resident Camper Week at $395.00) 5457 Guest Days 8865 Total Camper and Guest Days Total Operating Income $565,460 (includes Director Compensation Grant)

Observations Enhanced Vitality Targets - Aldersgate 2015 Budget projecting increase of $48,000 in income – Great goal that will require intentional, concerted effort to reach. Examine rates assigned to buildings to determine if on target with costs, since revenue lower than expected with excellent volume of camper-guest days shown Having some expert help with budget analysis might be beneficial. (Granting scholarships out of operational budget without corresponding income source?) Total Operating Income reaches vitality target range of $500,000+ for a year round center - $565,460 Based on 2015 Budget Ratio of Camper Guest Revenue of $434,200 to Donations, Grants and Other income $130,960 (includes Director Compensation Grant) 77% : 23% Establish strong donor involvement and annual fund development. May be a place to focus to reach the target of $100,000 annually to diversify. $102,000 of 131,000 from single source right now.

Best Practice: Ministry Operating Reserves Operating reserves are funds a ministry can use to support operations in the event of an unanticipated loss of revenue or increase in expenses. (not chronic deficits) These are monies not designated for anything else by a donor or the organization. Operating reserves are not “cash on hand.” Operating reserves are essential to give nonprofits and their boards breathing room and the ability to respond to a rapidly changing environment without lurching from one financial crisis to the next. Adapted from article by Rick Moyers article on Philanthropy.com Also recommended in “How to Afford the Ministry We Cannot Afford to Lose”

Reserve Fund Targets Based on recommended minimum of 3 months of operational budget of current $1,780,000 Operating Budget $450, Year Target $100,000 Initial Target