October 21, 2021
Members and Friends of Faith,
Below is a communication from your Finance Committee, and approved by your Session, regarding the state of finances at Faith through the end of the third quarter. Thank you for your continued support of the mission and ministries of Faith.
Question: Where do the church finances stand at the end of the 3rd Qtr (30 September)
Answer: At the end of the 3rd quarter, the church realized a net operating loss of $82K. An operating loss at this time of the year is normal. However, the loss would have been much greater if not for the $142k Paycheck Protection Program grant. Over the last three years (2018-2020) the church realized an average loss of $165K at the end of the 3rd qtr.
Question: Can expenses be reduced to offset the operating losses?
Answer: The staff and moderators of the committees have done a great job of holding costs down during the year. At the end of the 3rd quarter, expenses were $136K (11%) under budget. We will continue to examine the budget and to look for ways to keep expenses down without sacrificing our mission.
Question: What’s the projected outcome for the end of the year?
Answer: Assuming that the current level of Congregational Giving (10% lower than 2020) continues through the rest of the year and expenses remain below the budget, a $110K loss is projected for the year.
Question: What happens to the church if a loss of $110K is realized? Does it become insolvent?
Answer: No! The church has adequate financial reserves to continue operations and pay its bills. However, a loss of that magnitude could result in the church going into debt in future years. The reserve is needed to get us through the summer months. Without it, we would have to take out loans to get us through the summer. It’s also in place to cover catastrophic losses that are not covered by insurance or to pay our deductible. Our goal is to remain debt free!
Question: What can I do to help?
Answer: Continue your generosity! We greatly appreciate the Congregation's generosity! Without your giving the church would not remain solvent. We recognize that this year has witnessed a great level of uncertainty and angst at FPC. The single most important thing you can do is to hang with us as we work through a multitude of issues. God has a plan for the church and the congregation. Through thoughtful prayer and patience, the plan will be revealed and we will move expeditiously to realize it.
Question: Is the Family of Faith Preschool and Daycare impacted by the church’s finances?
Answer: No. The FoF Preschool and Daycare, Inc. is its own 501(c)(3) corporation separate from Faith Presbyterian Church. Currently, 217 students are enrolled at the Family of Faith and it is in excellent financial shape through the end of the third quarter.
If you have any questions/concerns for your financial leaders, please contact Andrea Tefft, Finance Administrator, at andrea@fpcfl.org or 239-542-2858 ext 230.
