1. Sustainable First Parish First Parish in Cohasset Financial Update  Developed by the Finance Committee  DRAFT FOR MARCH 2008 MEETING Draft v2

2. Sustainable First Parish 2 Agenda  Organizational Changes  New Initiatives  Update on Long Term Plan  The Fiscal 2008-09 Stewardship Drive

3. Sustainable First Parish 3 All Financial Elements Under One Committee Parish Committee Representation Financial Custodian / Endowment Sub-Committee Stewardship Committee Sub-Committee Planned Giving Sub-Committee Fund Raising Events Analysis Treasurer Finance Committee Long Range Planning

4. Sustainable First Parish 4 New Programs – New Approaches  The Legacy Program: A new major gifts program designed to leave a legacy of a financially stable church. Donor may elect to have their gift directed towards:  Building the endowment (MHPH & Parsonage Reserves)  Reducing the mortgage  Endowing the minister’s salary  Planned Giving: A series of seminars on Planned Giving will be conducted in the Fall.  First Parish in Your Will: A 5 year outreach program to meet with all Parish members regarding the inclusion of First Parish in their will.  Creating a Trust: Work with a finance professional to create a trust that benefits First Parish  Giving appreciated assets: Using this approach will benefit First Parish and yield tax advantages. Need the rights words here

5. Sustainable First Parish 5 New Programs – New Approaches  Friends of First Parish Meeting House Program: A program that reaches beyond the immediate parish members to others Cohasset residents and business who care about the Meeting House on Cohasset Common and its preservation.  New and Old Fund Raising Activities  EBay Initiative based on cameras  Gingerbread  ReUUsable  Valentine Chocolate Auction  Lobster Sale  More Wedding & Building Use  Continue to make the best use of fund raising resources

6. Sustainable First Parish 6 Update on the Long Term Plan  Task Force Conclusions (Feb 2005):  To be on a sustainable path we need to increase total revenue by ~$65,000 per year.  We could also balance the budget by decreasing expenses by this amount, however this would mean significant reductions in programs and/or staff. We believe this should be considered only as a last resort.  Pledge revenue is our most likely source to close the budget gap. We will make every effort to increase other types of revenue, however pledge revenue is the primary driver of the revenue model. 70% for a healthy congregation  There are only two ways to increase pledge revenue  Increase membership (then at 104 pledging households)  Increase household pledge levels (then at average $1,550 year)

7. Sustainable First Parish 7 UUA Congregation Growth Statistics  The overall growth rate of 1,050 UUA congregations throughout the world has been ~1% per year over the last 10-12 years.  The 1% overall growth is comprised of a small number of congregations growing at a fast pace, balanced by an equal number declining at a similar pace, with the vast majority of congregations in the middle  Over the past 10 years only 200 congregations have sustained a year- to-year growth rate of 6.5%. Less than 30 have a growth rate exceeding 6.5% over the past year.  With some optimism we set a target growth rate of 3%.

8. Sustainable First Parish 8 3 Cornerstones of Financial Stability (2005) Financially Stable Church (72% income from pledges) Membership Growth (3% per yr) Pledge Growth (5% per yr*) Capital Campaign (Payoff Mortgage ) * 15% in 1 st year

9. Sustainable First Parish 9 Progress against goals at 3 years Financially Stable Church (72% income from pledges) Membership Growth (3% per yr) Pledge Growth (5% per yr*) Capital Campaign Actual: Some gains, some losses, Overall relatively flat – like most UUA congregations Actual: Progress. Average gift Increased by x%/year to $ Actual: Committee formed and worked a UUA consultant, reached conclusion the time was not right

10. Sustainable First Parish 10 Moderate Growth Scenario (Feb 2005) Income F 2005 F 2006 F 2007F 2008F 2009F 2010F 2011 # Pledging Households3%104107110114117121124 Pledge Amount5%$1,5771,8141,9041,9992,0992,2042,315 Pledge Income$164,010$194,267$210,100$227,223$245,742$265,770$287,430 Rental & Nursery School3%$27,55028,37729,22830,10531,00831,93832,896 Fundraisers3%$15,00015,45015,91416,39116,88317,38917,911 Plate & Misc.3%$3,4003,5023,6073,7153,8273,9424,060 Endowment 5 % withdrawal $34,960$28,060$25,888$23,709$20,983$18,319$15,781 Total$244,920$269,656$284,737$301,144$318,442$337,358$358,078 Expenses Salaries & Benefits3%$185,115190,668196,389202,280208,349214,599221,037 Office & Property3%$63,44065,34367,30369,32371,40273,54475,751 Programs3%$20,14820,75221,37522,01622,67723,35724,058 Mortgage $41,866 Building Maint. Reserve $10,000 RE Program Additions$5,000$10,000$15,000$20,000$25,00025,750 Total$310,569$333,630$346,933$360,485$374,294$388,366$398,461 Surplus (Shortfall)($65,649)($63,974)($62,196)($59,341)($55,851)($51,009)($40,383) Cumulative Shortfall($65,649)($129,623)($191,819)($251,160)($307,012)($358,020)($398,403)

11. Sustainable First Parish 11 Moderate Growth with Mortgage Payoff (Feb 2005) Income F 2005 F 2006 F 2007F 2008F 2009F 2010F 2011 # Pledging Households3%104107110114117121124 Pledge Amount5%$1,5771,8141,9041,9992,0992,2042,315 Pledge Income$164,010$194,267$210,100$227,223$245,742$265,770$287,430 Rental & Nursery School3%$27,55028,37729,22830,10531,00831,93832,896 Fundraisers3%$15,00015,45015,91416,39116,88317,38917,911 Plate & Misc.3%$3,4003,5023,6073,7153,8273,9424,060 Endowment 5 % withdrawal $34,960$28,060$25,888$23,709$20,983$19,017$17,923 Total$244,920$269,656$284,737$301,144$318,442$338,056$360,220 Expenses Salaries & Benefits3%$185,115190,668196,389202,280208,349214,599221,037 Office & Property3%$63,44065,34367,30369,32371,40273,54475,751 Programs3%$20,14820,75221,37522,01622,67723,35724,058 Mortgage $41,866 Building Maint. Reserve $10,000 RE Program Additions$5,000$10,000$15,000$20,000$25,00025,750 Total$310,569$333,630$346,933$360,485$332,428$346,500$356,595 Surplus (Shortfall)($65,649)($63,974)($62,196)($59,341)($13,985)($8,445)$3,625 Cumulative Shortfall($65,649)($129,623)($191,819)($251,160)($265,146)($273,590)($269,965)

12. Sustainable First Parish First Parish in Cohasset 2008-09 Stewardship Drive  Developed by the Finance Committee  DRAFT FOR MARCH 2008 MEETING

13. Sustainable First Parish 13 What it means to be “Sustainable” Care Circle Social Justice Green Sanctuary Welcoming Congregation Home share Angel Tree

14. Sustainable First Parish 14 Where does the Money go? What Our Annual Pledges Support:  Circle Ministry  Religious Education  2 historic buildings on Cohasset Common  Choir and Music  Programs for all ages  Outreach  Social Justice Proposed Budget = $350,000

15. Sustainable First Parish 15 Where does the Money Come From  Pledges and Gifts from 120 households of Members and Friends  Healthily congregations should have 70% of income from pledges  Endowment withdrawal rate is too high. Proposed Budget = $350,000

16. Sustainable First Parish 16 First Parish Giving Tree 60% of pledge dollars come from 25% of households 25% 50% 25% of pledge dollars come from 25% of households 15% of the pledge dollars come from 50% of households $2500 $1000 $100

17. Sustainable First Parish 17 We are of counting on YOU  You are charitable people, but look at the impact you have on First Parish compared to other charitable organizations  The United Way –$4100M Budget –12M Contributors  Trustees of Reservations –$16M Budget –100,000 Members  First Parish in Cohasset –$252,000 Pledge Budget * –120 Pledging Households  Clearly the impact of one member not pledging to TTOR or The United Way is hardly noticeable, but at First Parish it makes a world of difference. $342 per contributor $160 per member $2100 per household * $350,000 Total Budget

18. Sustainable First Parish 18 Imagine if all the people  We have been faced with financial challenges in the past few years  If we don’t make First Parish Sustainable someday in the not too distant future, First Parish as we know it will crease to exist.  It does not have to be this way: Let’s change the shape of the “Giving Tree” to look like this $2100 350,000 x.72 = $252,000/120 = $2100  Let’s look at the math:  Not everyone will be in a position to pledge this amount, but imagine if everyone did.  Some will give more and some less – this is our goal  Remember $1000 in 1997 is $1500 today

19. Sustainable First Parish 19 It’s your choice Think about what we have said and make a pledge today – the Stewardship Treasurer is ready to accept your pledge Go home and consult with your spouse and make a pledge in the next 2 weeks Request a visiting steward to call or visit Request info about planning giving

20. Sustainable First Parish 20 Thank You