SOTV Financials

Getting Ready for the Annual Meeting: Part 5 of 5

Balance

Paul Keller
Council Vice President

From a financial standpoint, SOTV isn’t that different from our own households. The Church relies on Giving to cover administrative expenses with the vision that the remaining dollars can be used to fund benevolence. Similarly, we have jobs that provide income to support our families and we have regular expenses like mortgage, car payments, gas, utilities, and just like SOTV gives back… we give to others in need. And at the end of the day, it’s all about balance – does the amount of income exceed the amount we spend? If it doesn’t, then we may be faced with tough choices. Can we afford the new phone or the new car? Should we cut the cord on cable or should we cancel the family vacation?

We don’t always think about it, but SOTV has tremendous financial obligations necessary to support a large, dynamic congregation. In fact, did you know that SOTV is one of the TOP 10 ECLA churches nationwide? This is why it is so critical for council to have a solid understanding of the giving we are blessed to receive to ensure we are being good financial stewards. Did you know that it costs about $2.5 million dollars in costs to support the worship and programs provided? These costs include our pastors, the support staff (finance, HR, facilities, communications), our adult and children’s education programs, administrative costs for mailings and so many others.

The past several years have been challenging for most congregations nationwide and SOTV has not been immune. As times have changed and family schedules have filled, the frequency of attendance… and therefore Giving… has fallen proportionately.

Unfortunately, the weekly bulletin doesn’t always tell the entire story of our financial picture. Although we are doing very well to our current budget (an approved deficit budget), we are still behind the prior year. Thankfully, our giving has been ahead of plan and so we have been fortunate to see only a small reduction in our general fund balance [see full year chart below]. We are preparing again for our annual congregational meeting this Sunday, June 7 at 12:30 p.m., where we will propose the new fiscal year budget. Please know that you are all invited, welcome and encouraged to attend this important event.

	Last Year	Budget	Actual+Forecast
Starting Balance	$953,788	$647,290	$647,290
Giving	$2,479,206	$2,340,899	$2,444,267
Fund Balance Transfer	$43,840	$30,000	$30,000
Expenses	($2,829,544)	($2,563,438)	($2,514,839)
Fund Balance Change	($306,498)	($192,539)	($40,572)
Ending Balance	$647,290	$454,751	$606,718

SOTV is a place that is always there for us. It is there for our major life celebrations like baptisms, communions, confirmations and weddings. It is there for the special holiday events like Christmas, Easter and Pentecost. It is there for the times when we need care and support for health issues, relationship issues and helping provide funeral services. No matter what, SOTV is there.

I will fully admit that our family doesn’t attend Church every week. We have crazy, busy lives with four active kids and we find ourselves sprinting from one thing to the next. But one thing we have done as a personal choice is to enroll in Simply Giving as a way to ensure that our Giving continues even when we are not there. SOTV has always been there for us… this is how we can be there for SOTV.
Blessings!

Paul Keller
Council Vice President

Endowment Fund at SOTV

Endowment Fund at SOTV

Did you know that SOTV has an Endowment Fund?  About 15 years ago the congregation established such a fund to support establishing new ministries at SOTV.  The idea was to create a fund that would provide interest income to support such activities, yet allowing the capital to increase for the future. Initially the effort experienced some success raising funds and making grants. Over the past 10 years there has been very little activity, but a balance of about $125,000 remains and is waiting to go to work!

Endowment Fund Now?
You might be thinking why are we talking about an endowment fund now, when we are in the middle of a capital campaign? An endowment fund is actually complementary to both our annual giving and a capital campaign. The idea for the endowment fund is to provide a tool for members to make bequests to the church in their wills, which can provide income to support SOTV far into the future. Current giving remains directed at the annual and capital campaigns, but when members are planning their legacy giving, the Endowment Fund is available to assist.

What Changes in the current Endowment Fund are needed?
A group of volunteers with an interest in legacy giving was appointed by the Church Council to review the current endowment fund and make recommendations to reestablish the fund. This new Endowment Committee has developed a number of recommendations which include making these changes to the charter of the Endowment Fund:

• Change the purpose of the fund to support current mission activities of SOTV

• The current charter provides that the fund only establish new missions.  By changing the mission of the fund to support current missions, the Fund can now support ongoing activities of SOTV.

• Change the charter of the fund to simplify management

• These changes include having Church Council appoint the Endowment Committee and make any future changes to the charter; reduce the number of members needed on the committee, and also changes to simplify managing assets and making grants.

•  Provide specific mission areas for donors to designate gifts

• Proposed changes provide for donors to designate gifts to three mission areas: general mission (worship, music, facilities); education (youth, adult, bible camp); and; outreach (local, domestic and foreign)

You can also read the proposed amended and restated resolutions by clicking here.
 
What needs to happen? A Congregational Vote
The original charter adopted by the SOTV Congregation requires that the Congregation make any changes to the Endowment Fund at its annual meeting. The new Endowment Committee has proposed new amended and restated resolutions re-establishing the Endowment Fund with a new charter, which will make all the changes listed above. Church Council has reviewed the changes and recommends that the Congregation vote in favor of the changes at the Congregational Meeting on June 7.
 
Questions about the Endowment Fund
Please feel free to contact me about the Endowment Fund and the work of the Endowment Committee.

Dave Kuhnau
dbkuhnau@gmail.com
952-891-1825 (home)

Visit and Be Counted!

About 300 households have responded generously to our 2015 Capital Campaign appeal with a pledge, and we are very grateful. Many more households have responded by increasing their giving to the building fund. That’s what Pastor Duane and I have heard on recent visits with members.  The faithful generosity of our members continues to inspire us. We know we can count on you…but are you being counted?

Here’s the issue: If you increase your giving before meeting with a Capital Campaign visitor, your giving will not be counted toward the Capital Campaign total. 

This makes it a challenge for our Church Council to plan our ministry over the next five years. Council needs an accurate understanding of campaign commitments in order to:

1. Plan the pay-down of SOTV’s debt 
2. Determine what funds are available for building improvements 
3. Allocate benevolence dollars for outreach 

Simply put, we need you to schedule a campaign visit today. Please reach out to me, one of the other pastors, or someone in our list of visitors that you know personally.

You can also call the church office or go to our website. When a campaign visitor calls or emails you, please respond. Visits are fun, rewarding, informative, and there is no pressure to pledge. Even if you’ve recently increased your giving, please still schedule a visit. You will be better informed and understand the plan for SOTV’s future.

As always, thank you for your partnership in this mission we share!

 -Pastor Chris Smith

Getting Ready for Our Annual Meeting

He is Risen! What a glorious time of year! Each day as the sun shines longer and the temperatures begin to rise, I feel a bounce return to my step and a lightness in my spirit. There is such hope and promise with the return of spring.

Over the past year, I have been privileged to be a part of many meetings focusing on the life and mission of Shepherd of the Valley. After each gathering, my heart soars with excitement about all the great things God is doing right here in Apple Valley.  

Our Annual Congregational Meeting will occur on Sunday, June 7th at 12:30 pm. All are invited to attend. A free lunch will be served from 11:30 am - 12:30 pm - please RSVP for lunch. Between now and then we will be writing a blog series about the state of our church. There has been a lot going on at SOTV and we want to take a little time each week to give you an update.  

Here is a list of topics we will cover before June 7th. Please follow along each week and then join us on June 7th to hear more about how God is working in and through us at Shepherd of the Valley.   

May 7:   Our Vision and Mission

May 14: Structure and Pastoral Staffing

May 21: Call Committee

May 28: Capital Campaign
June 1:  Endowment Fund

June 5:  Finances

Thank you for partnering with us as we live our vision of inviting all people to experience the welcome, transformation, and sending of Jesus Christ.

Blessings,

Jenny Buckley - Church Council President

Paul Keller - Church Council Vice President

2014-15 Budget

Many of you read last week that reduced giving is challenging the future of our ministries. Shepherd of the Valley (SOTV) is a nonprofit organization funded by charitable donations, and a decrease in giving means immediate and future cuts to SOTV’s budget, staff, and programs.

WHAT SOTV WILL DO 

Early in 2014, the Finance Committee began to raise concerns about a trend in reduced giving. To address these concerns, the Finance and Human Resources Committees have identified three steps to reduce costs for the 2014-15 budget which begins August 1, 2014.

Step 1: Reduce Program Spending 
In February, staff was directed to reduce their program budgets now and in the coming fiscal year by 15%. This is in addition to a concentrated effort that began in 2005 to reduce costs and create a more lean organization.  

Step 2: Reduce Personnel Costs
Budget reductions in staffing for 2014-15 will include:

1. Reductions to employee support and advancement. 
2. Reductions to employee benefits. 
3. A freeze in salaries. 
4. A reduction in workforce. 

The budget reductions as a result of these changes will only account for about half of the total reduced giving, if trends continue.
 
Step 3: Further Staff Reductions
The Finance and Human Resources Committees have proposed the following.

1. The 2014-2015 budget be presented to include a deficit that reflects the drop in giving that remains after the reductions to expenses proposed. 
2. Before fully implementing additional reductions to personnel costs, which will significantly affect programming and ministry, the congregation should be educated and an appeal made to seek increased giving from members to eliminate the budget deficit. 
3. Continued review and evaluation through October 31, 2014 by Finance, Human Resources, and Council will evaluate income and determine the need for further staff reductions. Once these reductions have been confirmed, they will be communicated to the congregation. 

It is the hope of the Council and supporting leadership committees that the response of the congregation will be an increase in giving to make the elimination of staff positions unnecessary.


WHAT YOU CAN DO 

Please support the church financially. 

1. Increase your current giving 
2. Make a one-time gift 
3. Consider both increasing your giving and a one-time gift 
4. Sign up for Simply Giving (electronic scheduled giving) 

Every gift counts as we seek to be a transforming community of the Gospel of Jesus Christ. As always, thank you for your generous support! For information on how to give, please visit the Welcome Center or www.sotv.org/stewardship.

Please pray for our leaders. 
Each year, staff and volunteers work very hard and carefully to complete the budgeting process. Please keep them in your prayers as they finalize their work in May and June.

Thanks for reading. If you have any questions about the reduction in our giving, and the steps we are taking, please e-mail council@sotv.org.

Our Giving Challenge

What’s Going On?
During the 2013-2014 fiscal year, Shepherd of the Valley (SOTV) experienced a significant reduction in the gifts it receives to its mission and ministry. Since the beginning of the fiscal year in August 2013, giving is down 7% or about $185,000. The Church Council, with the Finance Committee, monitors giving and expenses on a regular basis.

Why It’s Important
Giving funds our inspirational worship and array of educational offerings that shape and grow faith, including dynamic children and youth ministries. In addition, SOTV serves those in need and brings healing and wholeness to a broken and hurting world. The people of SOTV serve others in hundreds of ways locally, in our own country, and around the world.

What is Being Done?
The Council, Finance Committee, and church staff always work as a team to manage your gifts frugally and responsibly. In 2008, staff and council leadership began to work deliberately to reduce costs and maintain a “lean” staff structure for SOTV. This February, the Finance Committee directed staff to cut their program budgets by an additional 15%. There will be future implications for staffing levels if giving does not improve.

How You Can Help
The people of SOTV have a history of giving generously to make our church a welcoming, inspiring, giving, and serving community of faith. For all that to happen, consistent giving throughout the year is key.

• Consider using Simply Giving, a way to schedule gifts electronically. Sign up forms are available at the Welcome Center and online. 
• We also ask that you prayerfully consider increasing your current giving, even if only by a little bit. 
• And if you haven’t given to our mission before, please consider it. Every gift matters.

Thank you, as always, for your generous gifts!
There are many ways to give to the mission of SOTV - learn more on the stewardship page of our website.  If you have any questions about the reduction in our giving, and the steps we are taking, please e-mail council@sotv.org.