I want to interrupt my discussion of the 5 “R’s” to talk about a critical issue. This E-news blog will be a little longer than usual. As of today we are $114,000 behind budget. We operate on a ministry year from July 1 to June 30 each year. Here’s a chart that compares our budget overage/shortage for last year (top blue line) and our current year budget (bottom red line).
I’ve been hesitant to talk about this. Not that I’m afraid to talk about money. Jesus talks a ton about money. But listen to this part very carefully. I never want anyone who follows Jesus to give to a church budget. Yes, our church has a huge need. But our giving MUST always be to God first. That’s what we have consistently taught for the 8 years I’ve been here.
So how or why have we gotten to this place? There’s no pure science here. But I do have some ideas. We are living out what we say we stand for. Our focus is not on serving ourselves but reaching out to others. We put the Kingdom of God first, even above our own church’s needs. Here are just a few examples:
- We gave Tim and Sandy Coop a wonderful and well deserved gift in January.
- We gave a generous offering at Christmas to send Okongo to the Hausa unreached peoples in Northern Ghana.
- Members of our church are providing most of the support of our new mission couple to Mexico. We’ve helped build a medical clinic and purchased a bus and much more. This was money given directly to these needs. Yes Pantano!
- Pantano folks personally support many missions and missionaries here and around the world.
- We started Vail Christian Church a year ago – giving over $200,000 to start it. We sent many mature givers to VCC
- People have given generous gifts for the Towne Hall Extreme Makeover project to make more room for our youth, children and Celebrate Recovery.
- From July ‘06 to now we’ve given $365,000 over and above our tithes and offerings to designated projects and missions.
Pantano, YOU GET IT! I love it. We are externally focused and generous to those outside our organization. I never want to see these things diminish in any way. But in order to continue to do the incredible things we are doing in Tucson and around the world, we need a healthy, strong launching pad. We love watching the space shuttle launch, but it takes an effective organization to even get the shuttle to the pad for a launch.
Here are some basic facts or realities:
- Last year our shortage at this time was $6,000. This year it is $114,000.
- We are short $3,270 each week with 17 weeks remaining in our ministry (fiscal) year.
- We have under spent our existing budget by $47,000 and already begun eliminating expenses. We will not increase our debt. We will not spend more than we collect. That is my promise.
- If we continue on this trend we’ll end up $170,000 short of our budget on June 30th. Last year we ended just a few thousand above budget.
Here are our 5 major areas of expenses. We have very little room to make adjustments in the first 3 areas (84% of our budget):
- Mortgage debt (15% of our budget)
- Personnel costs (59%)
- Utilities and fixed administrative costs like insurance, etc. (10%)
- Ministry expenses (6%)
- Missions & benevolence (10%)
Today we are not in crisis but IF the trend continues it will lead to a crisis. Here are the consequences if the downward trend continues:
- Our staff, in comparison to others churches, is on the low end of the pay scale. There may have to be personnel cuts. This would be incredibly painful. We are running a lean operation in terms of staff and already utilize several volunteer staff members.
- We may have to delay repairs and improvements and limit the use of our campus to cut back on utilities, etc.
- We may have to cut back on ministry activities and services.
- We may not be able to move ahead with expansion to reach some unreached segments of our culture as planned (like the young adults and singles) and to launch new sites in Southern Arizona.
- We base our next budget on what we actually collect this year. So if we are down $170,000 this year, we have $170,000 less next year to build a budget.
I have been praying about this for months but the trend continues down. To be honest, I’m perplexed by this. Attendance is about the same as last year (that’s not bad considering we sent around 200 people to start VCC). We have a great spirit in our church. Morale is great. The stories of people experiencing transformation are so incredible.
I wanted to just trust God and ride this out. But after wise counsel, I realized I shouldn’t wait any longer to tell you about this. If we get to the point of having to make cuts that affected you and those you love, then you might say “Why didn’t you tell us sooner!” And that is right. We are a family and we need to talk about these things.
Our available cash (cash flow) is okay today. We are a fiscally conservative church. But it has shrunk from $110,000 in July ’06 to $49,000. If this trend continues we could get to the point of having to start juggling what bills to pay when, especially the larger ones.
I’m asking 3 things of all of us:
- I’m asking us to pray about this situation.
- I asking you to give in three ways: sacrificially, generously and consistently. Your giving is an act of worship and obedience first to the Lord.
- I’m asking you to continue to trust us. By giving to your church you are trusting your leadership to invest it to accomplish God’s Kingdom purposes.
Together to make the world different,
Glen