Update from Finance & Planning

November donations
drop below expectations

By Ronald Kelly

PASADENA—After several months of relatively stable donations that had averaged more than $1.7 million a month, November contributions dropped to $1.46 million. That is a decrease of some $240,000 compared to the monthly average.

Donations for November 2001 were more than $1.7 million and for 2000 just over $2.5 million. So you can see that November 2002 was a considerable decrease from just two years ago, and a 17 percent drop from last year. We hope this is not a trend and that December, traditionally our best financial month of the year, will make up some of the difference.

Total revenues for the year stand at $22.3 million. If December income follows the trend of recent years, our income for the year should come close to budgeted projections.

One of the ways we analyze our donation trends is by watching daily average mail income. The way we process and bank your contributions is based on the number of banking days in a calendar year. For our purposes that is 246 days. At the beginning of each budget cycle, we forecast what we anticipate during the coming year.

For example, regular mail income for 2002 was projected to be $81,301 per banking day. If we meet our target, mail income for the year will be $20 million. However, through November, our daily average beginning Jan. 1 has been $79,339. That is $1,962 less than projected every banking day or almost a half million dollars for the year.

In addition to mail income we have a few other sources of revenues such as co-worker donations, estate donations, rental collections, and personal and real property sales. These other sources of income will amount to about $4.8 million this year. Thus our total projected income for 2002 is $24.8 million.

However, our total operating expenses will be somewhere around $32 million. This will result in withdrawing about $7 million from reserves. I have explained several times that while drawing down reserves is something we would certainly prefer not to do, we realize these expenses are necessary in order to maintain our local church programs and ministries as well as continue our discretionary assistance program for our retired employees and to continue toward completion of the Pasadena property sales.

We are working on a budget plan that should allow us to maintain a reserve level throughout 2003 that will be equal to the reserves we currently have.

Of course the financial stability of our fellowship, more than any other factor, depends on the generous donations of our members. Because we still must maintain our centralized financial structure, the consistent donations you so willingly give make it possible for the WCG to remain financially solid as we work toward our goal of local church financial opportunities.

When we first began to plan for a new financial model, we didn’t dream it would take this long to complete the Pasadena property sale and implement the new model. However, our patience has been tested and we continue to walk in the lead of the Holy Spirit.

Perhaps when we have successfully completed the campus sale and have implemented the new financial model, we will have a greater understanding of the financial whys and wherefores we have been experiencing. In the meantime, we certainly appreciate your loyal and dedicated service to the work of our church.

Wills and trusts

Many members have requested information on how best to make a gift to the Worldwide Church of God, either during their lifetime or upon death through wills, trusts or other means.

If you want to receive information regarding such gifts, the Legal Department of the church is available to aid you in this regard without cost or obligation. Please write to Legal Office, Worldwide Church of God, Box 111, Pasadena, California, 91123.

 

Copyright © Worldwide Church of God, 2002