As we begin 2024, look back on 2023, and look ahead to 2025 we want to take the opportunity to update you, our brothers and sisters of CMPC, on the current financial situation of the congregation. This will be a very important year for the financial health of the church as we wrap up our third capital campaign and near the time when we transition from using previous capital campaign funds to pay the mortgage to the time when we must pay the mortgage out of our annual operating budget.
Though we certainly face some challenges in the months and years ahead, we also believe we have numerous reasons to take heart and be encouraged. We trust that God has given us the means to continue to support and even grow the vital ministries of CMPC both within and without these walls.
We also want to share this information ahead of the Annual Meeting of the congregation scheduled for Sunday, February 4th following worship. All members are strongly encouraged to attend the meeting to receive the report of the 2024 budget (and more financial information) and to vote on Pastor Scott’s Terms of Call. We hope this communication may well address any questions you may have but we will also be ready to answer any questions brought to the meeting as well.
Please see below for updates on a number of facets of the overall financial picture of CMPC:
Update on Third Ministry Expansion Campaign
- In late 2021, $1.39 million was pledged to the third capital campaign.
- Through December 2023, with 2/3 of the campaign time elapsed, $1,000,465 was contributed to capital campaign 3, or 72% of the total pledged.
- As discussed previously with the congregation, all contributions to the third capital campaign are being used to reduce the principal on the mortgage and payments to our lender are being made monthly.
Update on the 2023 budget
- The initial budget for 2023 included revenue of $465,484 and expenses of $570,431, yielding a deficit of $89,547. This excludes the mortgage which was paid out of funds from capital campaign 2.
- The final actual numbers ended up with revenue of $503,595 and expenses of $553,930, leaving a deficit of $49,812—we closed the gap, but not entirely.
Highlights of 2024 budget
- The initial budget presented to the Session at their December meeting showed a larger deficit than 2023.
- Since then, the committees have been looking at opportunities to reduce their spending for 2024 and additional pledges have been received.
- However, a significant deficit remains.
- We will have the opportunity to discuss this more fully at the congregational meeting.
Update on status of reserve and capital campaign funds
- The Finance Committee has a policy of maintaining reserves equal to approximately three months of expenses. This has been maintained at $120,000 for several years.
- Capital campaign funds grew with funds from the second capital campaign. These have been used to make mortgage payments over the last 2 years.
- As of the end of December 2023, CMPC has $400,076. That breaks down as:
- Designated funds[1]: $61,304
- Financial reserves: $120,000
- Capital campaign funds: $218,772
- For 2024, we anticipate spending $135,167 on the mortgage. Along with any deficit we incur, this will seriously deplete our capital campaign and reserve funds.
So, clearly, we have a significant gap to close in the next year or two (at the outside). The finance committee and session have engaged in significant and ongoing conversation about these challenges and will continue to do so.
It is clear that we cannot reduce expenses any more than we already have without significant impact to our ministries. Our committees have been doing very good work in managing their budgets and most committees/groups have come in under budget for the last several years.
Thus, we believe that the “answers” to these challenges lie in increasing revenue (and not in cutting expenses). To that end we have discussed the following and we ask that you (as our co-laborers in this work) consider how you might help with any of these:
- We are asking members of the congregation to prayerfully to consider whether they can increase their 2024 pledges/giving
- For members who have completed their capital campaign giving, please consider whether it is possible to continue giving some portion of your capital campaign giving toward the operating budget
- We encourage members of the congregation to invite friends in the community to join our church and grow our ministry
- We also encourage members of the congregation to help in identifying other opportunities for generating additional revenue through, example, uses of our building and property.
We look forward to presenting this information at the congregational meeting on February 4th and answering any questions you might have.
[1] Designated funds are earmarked for specific ministries such as LOGOS, Memorial Funds, special-purpose grants, etc.