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Fall 2012: Annual Board Meeting

Treasurer Presents New Board with Budget, Giving Remains Strong

By Leigh Rogers

Treasurer Martha Knight oriented new directors with the processes and procedures of United Methodist Women’s finances as well as presented them with a recap of the 2012 treasurer’s report.

The basics of the orientation included financial information such as assets, operating revenues, operating expenses, and the breakdown in sources of revenue.

Assets at end of 2011 were $97 million:

  • Endowments: $41 million
  • Missionary/DHM fund: $34 million
  • General Fund: $15 million
  • Church Center for the United Nations, Alma Mathews House and other funds: $7 million

Operating revenues: $25 million
Operating expenses: $32 million (contained $1.5 million pension not cashed)

Sources of Revenue:

  • Mission Giving: 84%
  • Earnings on Endowments: 9.4%
  • Rental/Service fees income: 2.9%
  • Direct sources of other income: 1.4%

Revenue includes endowments applied to specific programs released from restriction (Scholarships, grants).

2012 Report

In her remarks to the directors, Treasurer Martha Knight noted that revenue is down due to the economy. Less Mission Giving is happening, but overall, giving has remained high in comparison to other non-profit organizations. 

“United Methodist Women members around the country give generously to all mission that is United Methodist Women,” said Ms. Knight.

Giving has declined by 2 to 3 percent each year since 2008, she said, and United Methodist Women’s national office is making plans to resource women in local units, districts and conferences to collect money for mission.

To make that happen, soon treasurers will be able to submit financials directly through a secure treasurer's portal. Ms. Knight hopes this will provide more timely information to treasurers and make it easier for them to report the giving they receive.

Leadership Development Days, formerly Leadership Training Event (LTE), will offer training of this new system to conference treasurers starting in November, and will unroll it for district treasurers next year.

“I am looking forward to these advancements in giving possibilities,” said Ms. Knight. 

Operating Revenues

The August 31, 2012 total operating revenue was down by $849,000 at $12.1 million when compared to August 31, 2011. The decrease was the result of:

  • Mission Giving is down $114,000 compared to August 2011.
  • Designated Giving is down $132,000.
  • Bequests, Gifts and Contributions was down $105,500.
  • Publication, Rental and Other Revenues increased by $163,000.
  • Brooks Howell Home Receipts decreased by $257,000.

Mission Giving

Total Mission Giving is down from $5.3 million in August 2011 to $5.2 million in August 2012. 

  • Pledge to Mission is down $100,000 to 4.3 million.
  • Special Mission Recognition is the same as 2011, at $330,000.
  • Gift to Mission is the same as 2011, at $200,000.
  • Gift in Memory decreased from $140,000 to $130,000 in 2012.
  • World Thank Offering increased to $250,000 in 2012 from $240,000 in 2011.

Three of the 5 categories remained consistent with last year while Pledge to Mission is lower than last year. The summary of these channels account for a total decrease in Mission Giving of $114,000 compared to the same period last year. “Given the present financial condition of our economy, we are grateful that our members stay committed to our Purpose,” Ms. Knight said. 

Designated Giving

Overall, Designated Giving decreased by $132,000, primarily due to a decrease in A Call to Prayer and Self-Denial.

  • A Brighter Future for Children and Youth and the Assembly Offering remained relatively flat compared to 2011. A Brighter Future accounted for $10,000 of Designated Giving and Assembly Offering accounted for zero, which is common in non-Assembly years.
  • A Call to Prayer and Self-Denial decreased by $78,000, to $540,000 when compared to last year, at $620,000. 

Operating Expenditures

Operating Expenditures for the period of August 31, 2012 increased by $1,177,000 compared to August 31, 2011. This is primarily the result of:

  • Mission Programs increased by $867,000.
  • Grants to National and International Projects increased by $519,000.
  • Pension and Post-retirement costs for Retired Deaconesses decreased by $119,000.
  • Brooks Howell Home expenses increased by $223,000.
  • Property Maintenance, Insurance decreased by $153,000.
  • Mission Resource Center, Response and CCUN decreased by $427,000.
  • Administration and Fundraising Expenses increased by $221,000.

Effects on Net Assets

Overall, the operating expenditures of $20.9 million for the period ending August 31, 2012 exceeded the Operating Income of $12.1 million, creating an operating deficit of $8.8 million.

  • Investments increased in value to $4,489,000 due to the positive change in the stock market.
  • Endowment, Sale of Properties, etc. decreased by $1,600,000.

Net Assets

Total Net Assets for August 31, 2012 decreased over August 31, 2011 by $4.9 million. The following summaries explain the decrease:

  • Total Unrestricted Assets decreased by $7.33 million due to depreciation of our investment portfolios and actuarial adjustments.
  • Total Temporary Restricted Assets increased by $2.54 million over the August 2011 level.
  • Total Permanently Restricted Assets remained relatively constant when compared to August 2011.
     

Leigh Rogers is the web content and public relations associate for United Methodist Women.

Last Updated: 04/07/2014
 
 

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