Plymouth Congregational Church’s Financial Picture

To review a report of Plymouth’s 2022 income and expenses in comparison to budget
and the Preferred and Proposed 2023 Budgets
being presented for congregational consideration, click here.
To see a picture of pledging at Plymouth Church, click here.

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Some Questions and Answers

How did we do financially in 2022? Help me understand the 2022 report.

We did remarkably well! At our Feb 2022 Annual Meeting and facing a very tough financial picture we adopted a budget that included two big gaps adding up to a budget shortfall of $115,635. These two gaps were:

• We budgeted as “Misc Income” a $72,829 draw from the Undesignated General Reserve fund, representing half of its balance. This of course was not actually income, but a fallback option to use our own assets to fund operations.
• The overall budget (even with this draw from Reserves) ended with a deficit of $42,806.

We not only DID NOT draw from the Undesignated General Reserve fund, but we ended the year with a deficit of only $24,473. Overall, this means we gained over $91,000 against budget: Beginning with a total shortfall of $115,600 vs. a year-end result of $24,500 net expense.

If we didn’t draw money from our Undesignated General Reserve Fund to meet our 2022 Operating deficit, what is the $80,568 in Misc Income in the 2022 report?

Plymouth Gives Day generated $77,307 in new income. Income from cashing out credit card rewards points and a few others items are also included as “Misc Income."

Where does the 2023 Pledge figure come from?
 
We ask that all pledges be submitted in writing to assure accuracy in our record keeping. Through January 23, 2023, we received $760,184 in written pledges. We then added amounts from a few regulars who did not respond to our requests, yet continue to give. Stewardship Committee follow-up phone calls resulted in 3 pledgers verbally stating their intention. Adding it all up, we get a “Pledges Received” total of $768,444. Because additional pledges typically come in through the year, $40,000 in “Pledges Expected” is added to this figure.

How does the PREFERRED Budget option estimate costs?
 
The Budget and Finance Committee received information from each board and committee on their plans for the year and their estimate of costs. The Committee then compared those “asking” figures to actual expenditures for 2022, and in almost all cases, sought to trim as much as possible to accommodate a very tight budget picture.

• After significant research into national, regional, and local economic trends and conditions, the Personnel Committee recommended a reasonable cost of living adjustment to core staff wages. Staff benefits (health and dental insurance, etc.) were budgeted at actual cost.
• Our Church’s Wider Mission, our annual support of the regional and national UCC and to its mission in the world, has been $44,000 for the past 6 years. The PREFERRED budget includes $35,000 for OCWM, a reduction of a little more than 20%.
• Funding to grow the Building and Grounds Reserve fund, included in budgets through 2021, was eliminated.
• Continuing Education funding for most professional staff was cut significantly from the levels budgeted in previous years.
• Administrative costs are estimated with the intention of squeezing as much savings as possible out of office functions by encouraging electronic instead of printed materials, and in-house instead of outsourced production.

What further reductions are represented in the PROPOSED option?

• The recommended cost of living adjustment in wages was cut in half for core staff except for the Senior Minister, for whom it was eliminated at his request.
  
• Our contribution to the UCC through Our Church’s Wider Mission was further reduced to $30,800, a reduction of 30% from the $44,000 we have given annually since 2017.
• The Christian Formation budget was cut an additional $3,000, with the intent that the CF Board could draw on the Children and Youth Ministry Reserve Fund (formerly Youth Mission Trip Fund) to pay for certain activities.
• Our Outreach and Missions grants budget was cut from $15,000 to $5,000, in recognition that Share the Plate now also generates significant mission funds.

Why is there no Funeral/Wedding Income in the 2023 Income Budget?
 
This income line consists of fee payments for Personnel for these special services: Ministers, Music Director, AV Tech, Service Coordinator, Custodian, etc. Fees received are paid out in the same amounts to these personnel, and so this income has no effect on our overall budget. In 2022 we included Funeral/Wedding Income but neglected to include the corresponding Personnel expense. We have corrected that in the 2023 Budget: neither the income nor expense is budgeted; whatever comes in will go out in the same amount as expense.

Who do I talk to if I have additional questions?
 
You may contact Treasurer George Theodore or Assistant Treasurer Judy Barth.