Treasurer’s Report
Women's Division
Treasurer's Report to the Board of Directors
October 6, 2006
Treasurer Andrea Hatcher
This evening I will review with you the financial performance for the Women's Division for 2005 as well as the first eight months of 2006. The rightmost three columns show the annual figures for the years 2005, 2004 and 2003. The shaded columns reflect the numbers for the first eight months of 2006 and the comparative period in 2005.
In 2005, Mission Giving was lower than 2004 by 7% or $1.4 million. Total Operating Revenue decreased by about half that amount or 3% due primarily to the increase in investment income. As we look at the first eight months of 2006 there is a significant change of 34% in Total Operating Revenue attributed to increases in designated giving, interest and investment income and other revenues. The positive change in interest and investment income reflects the impact of the new investment managers and the overall buoyancy of the market. Other revenues include the $1.4 million sale of the Wesley San Antonio property to Methodist Healthcare Ministries which had leased the facility for several years.
By looking at the individual channels of mission giving, it is clear that every channel of giving was down from in 2005 in comparison to 2004. The decrease was most dramatic in Pledge to Mission by $1.1 million. The eight month comparative picture is relatively flat. The efforts at Assembly through the World Thank Offering opportunity during focus groups and the Walk for Mission added to the 2006 revenues by $25,919.24 and $29,817.46 respectively. Our time proven revenue patterns record the lion share of receipts in December of each year. Assuming that our receipt patterns remain relatively stable, it is projected that overall mission giving will exceed that of 2005, but still be less than 2004.
Designated giving in 2005 declined by $0.07 million or 5% compared with 2004. For the first time the amount received for the Call to Prayer and Self-Denial emphasis were less than one million dollars. In comparing the eight month amounts, the increase in other designated gifts is driven by initiatives such as Repairers of the Breach which received $39,030 in 2005.
Operating Expenditures were up by a little more than $450,000 reflecting an increase in the support of mission programs and pension and post-retirement costs and decreases in property maintenance and insurance, administration and fundraising and support of Service Center, Response and CCUN. In reviewing the eight month comparative figures we see an increase of $1.63 million or 7% between 2006 and 2005. The overall increase is driven by the significant increase in mission programs related to Assembly and the reduction in administrative expenses and property maintenance.
Our Operating Deficit in 2005 was higher than that of 2004 by $1.23 million or 19%. Coupled with the decline in appreciation of investments and endowment/sale of properties resulted in a significant decrease in net assets. In comparing the eight month data, while we still reflect an operating deficit, it is significantly less in 2006 than a year ago. This change is related to efforts at more closely monitoring expenses.
The Net Assets come in three flavors - Unrestricted, Temporarily Restricted and Permanently Restricted. Unrestricted is further segmented into Undesignated Funds and Board Designated Funds.
The Undesignated Fund consists primarily of the General Fund which is the operating fund of the Women's Division. Revenue sources for the fund are the five channels of mission giving, some investment and miscellaneous income. Expenditures for appropriations are paid from this Fund. The balance of Undesignated Funds was $3.37 million at the close of 2005 down from 2004 by $2.4 million or 42%. At the end of August 2006, the Undesignated Fund shows a deficit of $1.55 million. Again as mission giving receipts are concentrated in the fourth quarter of the year, it is anticipated that the deficit will be covered.
The intent of this table is to give a clear picture of how the assets of the Division have changed during the past five years. Total Net Assets of the Division have declined to $64.11 million or $64.1 million of by $16.5 million since 2001. 82% of this decline or $13.63 million, is in Unrestricted Assets.
In 2005, we came to a fuller realization of our income and expense patterns and their effect on our net assets. Once recognized, we set the goal to revamp our budget process and replenish our undesignated assets. It is anticipated that when we close out 2006, we will have a smaller deficit that we did at the end of 2005. The 2007 budget that you will receive on Sunday will project an even smaller deficit.
What a fantastic programming experience was had by all as a result of the 2006 Assembly in Anaheim, California. We used this gathering to offer the opportunity to give to mission.
We encouraged women to participate in a Walk for Mission - an intergenerational undertaking. An activity that allowed you to be active or passive, in California or at home as best suited your needs. We received close to $30,000 at Assembly raised for this endeavor and funds continue to come in. In fact this week there is a story on our web site referencing the Walk for Mission at the Western North Carolina UMW Annual Meeting including some of the residents from Brooks Howell Home. They raised $8,100.
By placing offering receptacles around the exhibit hall and in the focus groups almost $26,000 was received. We sold Gift to Mission cards and Special Mission Recognitions in the exhibit hall raising almost $3,900 without any advertising or advance notice.
Repairers of the Breach provided the vehicle to engender sisterly support across the organization. We asked and you responded with gifts that allowed the organization to minister to our sisters in Christ in the Gulf Coast region after Hurricanes 2005.
Through your generosity we have been able to assist two conferences - Louisiana and Mississippi - to continue their work among the women of the Gulf Coast. They were able to attend regional school and provide scholarships for schools of Christian mission and an annual meeting. In addition assistance was provided to one of the mission institutions so that trailers could be removed from the property to provide a more permanent structure for housing volunteers.
A learning from this endeavor is how difficult it is to accept mission giving - that's something we need to work on.
As I am sure you are aware, the cost for precious metals is on the increase. This has resulted in an increased cost to purchase the pins meaning that less goes to mission giving. By increasing the purchase price of the pins, we will restore the margin for mission.
Did you know that the $1 that you gave to mission in 2002 would need to be $1.19 to have the same purchasing power in 2006. We'll be using that fact in our training and interpretation materials in the future helping us to understand not only where the money goes - but how far it can go.
The search for a Director of Development continues. Though the job has been posted for more than six months, we have only received resumes of two people who have any experience. Those resumes were received in the last two weeks. I would again ask if you know of anyone with experience in fund development, please let me know and I will contact them personally.
Last but not least, you will be able to see a demonstration of the online giving software that has been developed. Online giving is an adjunct to the Online Community and offers an opportunity to give for those who may not be associated with a local unit.
Envisioning the future includes the challenge to remain strong in mission outreach even as future budgets are reduced. Envisioning the future means helping women across the organization affirm anew their vision for mission with women, children and youth.