Report of Financial Condition & Projections for 2021

Where We Are:

Through quite a tumultuous year, your continued generosity has allowed the church to make a significant impact by sharing God’s love and grace through worship, mission and outreach.  Please note the ministry efforts listed in “2020: A Year In Review.”

On the financial front, we share the following:

Through August of 2020, WHUMC income from contributions is down 12% from 2019.  However, contributions from those who submitted 2020 Estimates of Giving has remained high.  The decrease in contributions is mostly attributed to the inability to gather for in-person worship.

Income from the Facility Use, Pumpkins and such is less than half of what was budgeted.  Most of these losses are directly due to COVID, though our renovation also would have created some challenges in this area.  Also, our parsonage rental income ended in July, but Next Move will begin its lease arrangement for the parsonage on November 15, restoring that category of income.

Offsetting these income losses:

Total expenses have been $27,000 lower than budgeted.  Much of this is utility and office expenses that we have not incurred because our facility has been largely closed from March – August. 

We received a PPP (Cares Act) loan totaling $54,000, of which $38,000 will apply to the church operating budget and $16,000 to the preschool budget.  The PPP loan allowed us to maintain all of our much needed staff as well as offset utility costs during the spring and early summer months. 

We have withheld apportionment payments (mostly for active and retired clergy health and pension benefits) since July in order to assess our financial condition as the situation continues to unfold.  Leadership anticipates paying some portion of the remainder due by the end of the year.

Contributions toward our Stepping Out in Faith Capital Campaign have totaled over $368,757.00 to date.  This is a huge accomplishment, and we are grateful for each contribution.

Projections for 2021

Income is projected to increase as Next Move and other partners are once again able to use the facility, primarily the commercial kitchen, upon its completion.  Income from Next Move will enable us to service the remaining debt on the construction loan.

Income from the preschool is projected to remain steady, with a return to more full enrollment expected next fall.

Income from contributions (pledges from our friends and members) will be even more vital as our ability to use the facility will still be limited. 

Expenses are expected to remain lower than usual, with limited facility use.

There are a number of facility-related projects not covered by the renovation and construction loan that will have to be undertaken from late 2020 to mid-2021.  These include the replacement of parsonage fencing (backyard and stairwell), the painting of exterior trim on the parsonage, addressing the water problem at the rear of the church, and replacing sidewalks and stairs at the front of the church.  We project that we will use operating budget and memorial funds to accomplish these necessary upgrades and repairs, but we hope to minimize the impact on our savings by paying for as much of this as possible with current income. 

A Final Note:

Not knowing what lies ahead in 2021 regarding the pandemic and our related church activities, it is critical that we are able to get a good sense of our church community’s estimates of giving for 2021, which is why participation in the stewardship campaign is so important.  We are asking that everyone please respond with an estimate of giving, no matter the amount, so we can best budget and plan for what lies ahead for 2021.  If you are able, an increase in your giving for next year would offset the losses we are experiencing because of the pandemic. Your giving to the church has never been more appreciated, nor more critical.    

I will repeat a closing from a letter two years ago, and I think it still holds true today…  We are at a pivotal time in the life of our church and denomination.  Those churches who survive and thrive in this changing climate will be those who continue to reach out to the community in life-giving ways and those who continue to give sacrificially to the ministry and mission of the church in the world.  We ask that you join us in this endeavor.

In Christ’s Service,
James Mays, Finance Chair