Mid-Year Review of UUFR Finances

Paul Groves, Treasurer

Hello, this is Paul Groves, your Treasurer at UUFR. As you probably know, I always publish a brief review of our church finances on a quarterly basis in the UUFR Chalice. Since we passed the midpoint in our church fiscal year in December 2021, I now want to use the Board’s blog posting to give a more detailed review of our year-to-date finances.

Income:

First, let’s look at the revenue side of our finances. Of course, “revenue” means all the money coming into the church from pledges, cash donations, fundraising, rentals, and other sources of income. Pledge income is our biggest source of revenue. For the first half of our fiscal year, July 1 through December 31, our actual pledge income was almost $338,000, 1% below our planned budget.

Our next line item in revenue is trackable donations. These are donations which are from people who have not made a pledge. Through the 1st half of the fiscal year, we had trackable donations of almost $23,000, against a budget of $10,000.

Another part of revenue is cash donations. Because of the pandemic, in-person attendance at UUFR has been reduced, so, understandably, our cash donations of about $3,000 are half of what was budgeted.

A significant part of our revenue comes from fundraising events. However, because of the pandemic, our only fundraiser this fiscal year has been the church auction, which was held in November. The auction brought in over $33,000, well over the $25,000 that was budgeted. With auction expenses of about $2,000, the auction netted over $31,000.

The last significant source of revenue is rental Income. Although the pandemic has significantly reduced our rental income, in the first half of this fiscal year we had over $12,000 in rental income against a budget of $9,000.

Our total revenue for the first half of Fiscal Year 2022 was over $411,000, which is 3% more than budgeted.

Expenditures:

Let’s look at the expenditures side of our finances. Obviously, “expenditures” are what the church spends to operate. This includes paying our staff, maintaining the facilities, paying utilities like electric, water, and gas, providing office supplies, covering phone and copier costs, conducting worship services, and many other items.

Staff costs were pretty much right on budget at $230,000.

Facilities costs were 21% over budget at $41,000, due mainly to unexpected repairs and contract services. We had a capital expenditure during the first half of the fiscal year of $22,000 to replace an air conditioner that stopped working. This capital expenditure was paid out of the reserve fund and is not included in the operating expenses.

Office/administrative expenses were on budget at about $19,000. There were some large variances within this category. Office supplies, postage, telephone, copier, and bank charges were lower than budgeted. Cloud services costs were greater than budgeted because of an overlap of software expense as we switch our church software from ICON/CMO to QuickBooks. In addition, credit card processing fees (that is, the fee the church pays to enable people to pay with credit card) was about $3,000, although the budget planned for $0. The use of credit cards to make donations to the church has been much greater than expected because of the pandemic.

Our insurance/legal costs are right on budget. Also right on budget are our worship costs and our social justice costs. Several other categories of expense are below budget, including caring community, family ministry, and denominational support.

Our music costs are higher than budgeted, because, with the pandemic, our choir cannot perform as they did prior to pandemic. This has led to increased use of outside, contract musicians. Our actual cost for contract musicians was about $4,000, more than twice the budget.

Our total actual expenditures for the first half of Fiscal Year 2022 was $327,000, which is 10% under budget.

Conclusion:

Overall, our church finances are good. We can’t know for sure where our finances will end up in June at the end of the fiscal year, especially because revenue in the 2nd half of the fiscal year tends to be less than in the first half. But we are in a good place now.

That’s it for my blog review of the church finances through the first six months of the fiscal year. I will publish a summary of our finances in the Chalice in April. By the annual Congregational meeting in June, I will be able to make a better estimate of how our finances will finish up the fiscal year.

Email the Board: All Board members will see email addressed to [email protected]

Feedback: Click here to submit a question, comment, or suggestion for your Board of Directors.

See all Fellowship Matters posts here