Posted Nov. 30, 2021.
By UUCF Treasurer Darryl Branting.
So, what does the near future hold for UUCF, financially speaking, that is? This is a question the Board of Directors has been asking for some time, and with all the changes brought about by the pandemic, it has become ever more urgent. To wit, are we on a financially sustainable path?
To address this question, the board created the Financial Sustainability Team (FST). The purpose of the FST is to generate concrete ideas and plans for ensuring UUCF is financially sustainable. The team, which has met and discussed many interesting and credible ideas, comprises board members and members of the congregation.
Before discussing the FST further, let’s review UUCF’s current budget year (July 2021 through June 2022). We will meet our basic budget needs this year because of last year’s federal Paycheck Protection Program (PPP) loan of $142,100, which was entirely forgiven. The PPP loan got UUCF through the last congregational year and provided a surplus for this year (see the figures below). Also, the Siena School will increase its weekday presence on campus, which will add considerable revenue. However, we will still need to access the Operational Reserve for about $100,000 this year. While it was prudent and necessary to access the Operational Reserve this year, it is not sustainable to continue to do so.
So, UUCF will be OK in the short term, but in the long term, the congregation could be headed for financial trouble. There are three main reasons for this situation: membership, pledging and capital investment.
First, let’s look at congregational membership. For the last 20 years or more, overall church attendance and membership have been declining across almost all denominations. UUCF has not been immune to this decline. In 2012, UUCF had roughly 700 members. Today, we have about 560. And of course, fewer people engaged in congregational life means lower pledge revenue.
Second, let’s consider pledging itself. Overall charitable giving in the U.S. has also been declining for the last 20 years or so, and that applies to church pledging, too. Happily, UUCF has bucked this trend to a degree. In our most recent Annual Giving Campaign, nearly 60 members increased their annual pledges by 10% or more. However, UUCF’s total annual pledge amount is still down 20% from its peak in 2014.
So, when you consider declining attendance and giving, it’s reasonable to anticipate reduced pledge revenue in the future, and pledge revenue is about 80 percent of the operating budget (the other 20% comes from building rentals, the annual auction and the offering). See the figures below.
The third reason for concern about UUCF’s financial future is inadequate resources to budget for capital expenditures. Capital needs tend to build up to a critical point and then we scramble to find the money. In the past UUCF has held capital campaigns, like Roofapalooza, to meet these needs. The current capital needs include replacing all of UUCF’s 19 HVAC units now or in the near future. The current Capital Reserve of $62,800 would be exhausted after replacing 3-4 HVAC units. And there are other capital needs.
Despite this sobering assessment, UUCF can achieve financial sustainability through collective action. The Financial Sustainability Team is now considering options to sustainably increase revenue by leveraging buildings, grounds and human potential. The FST will present recommendations to the board next spring. The board will then filter through the ideas and present them to the congregation. When they are presented, the board will welcome a conversation to facilitate a shared understanding of our way forward.
In the meantime, the board welcomes your ideas, comments and suggestions. Please contact the board at board@uucf.org.