1. Sustainable First Parish First Parish in Cohasset Financial Update  Developed by the Finance Committee  DRAFT FOR MARCH 2008 MEETING Draft v3

2. Sustainable First Parish 2 Agenda  Organizational Changes  New Initiatives  Update on Long Term Plan  The Fiscal 2008-09 Stewardship Drive  Discussion

3. Sustainable First Parish 3 All Financial Elements Under One Committee Parish Committee Representation Financial Custodian / Endowment Sub- Committee Stewardship Committee Sub-Committee Planned Giving Sub-Committee Fund Raising Events Analysis Treasurer Finance Committee Long Range Planning

4. Sustainable First Parish 4 New Programs – New Approaches  The Legacy Program: A new major gifts program is being designed to leave a legacy of a financially stable church. Donors may elect to have their gifts directed towards:  Eliminating the mortgage and its ~30K/yr interest penalty  Building an endowment to provide long term financial security  Endowing the minister’s salary and benefits  Planned Giving: A series of seminars on Planned Giving will be conducted in the Fall.  First Parish in Your Will: A 5 year outreach program to meet with all Parish members regarding the inclusion of First Parish in their will.  Creating a Trust: Working with a finance professional to create a trust that benefits First Parish.  Giving appreciated assets: Using this approach will benefit First Parish and yield tax advantages to the donor.

5. Sustainable First Parish 5 New Programs – New Approaches  Friends of First Parish Meeting House Program: A program that will reach beyond the immediate parish members to others Cohasset residents and businesses who value the iconic Meeting House on Cohasset Common and want to support its continued preservation.  New and Old Fund Raising Activities  EBay Sales for Members Unused Valuables  Gingerbread Sale  ReUUsable Sale  Valentine Chocolate Auction  Lobster Sale  Other Auctions  More Wedding & Building Uses  Direct our volunteer fund raising activities to highest yielding ones

6. Sustainable First Parish 6 Update on the Long Term Plan  Task Force Conclusions from Feb 2005:  Need to increase revenue or decrease expenses by ~$65,000 per year  Decreasing expenses by $65K would require significant reductions in programs and/or staff –Only as a last resort  Increased Pledging is our most likely source of revenue. –Healthy congregations average 72% of total revenue from pledges –We will continue to look for other revenue sources  There are only two ways to increase pledge revenue –Increase membership (then at 110 pledging households) –Increase household pledge levels (then at average $1,489 year)

7. Sustainable First Parish 7 UUA Congregation Growth Statistics  The overall growth rate of 1,050 UUA congregations throughout the world has been ~1% per year over the last 10-12 years.  The 1% overall growth came from:  20% of the UU congregations growing at a rate of 6.5% –Less than 3% had growth rates greater than 6.5%  A similar proportion declining at an equivalent pace  With the vast majority of congregations in the middle  With some optimism we set a target growth rate of 3%.

8. Sustainable First Parish 8 3 Cornerstones of Financial Stability (2005) Financially Stable Church (72% income from pledges) Membership Growth (3% per yr) Pledge Growth (5% per yr*) Capital Campaign (Payoff Mortgage ) * 15% in 1 st year

9. Sustainable First Parish 9 2005 Financial Plan Summary This plan projected a balanced budget in 6 years if: Use of funds:  Expenses increased 3% per year  And an additional 5K$ each year was spent on programs Source of funds:  Pledging households increased by 3%  Average pledge amounts increased by 5%  Other income increased by 3%  We withdrew 5% from the endowment each year

10. Sustainable First Parish 10 Progress against goals at 3 years Financially Stable Church (72% income from pledges) Membership Growth (3% per yr) Pledge Growth (5% per yr*) Capital Campaign Actual: ~1% per year to 120 pledging households Actual: Average gift Increased by 5%per year from $ ~1,500 to $~1,750 Actual: Committee formed and worked with a UUA consultant, reached conclusion the time was not right Overall pledge income grew from $164,000 to $208,000 (from 53% to 63% of budget)

11. Sustainable First Parish 11 1% Growth with Mortgage Payoff IncomeG.R.F 2005 FY 2006 FY 2007FY 2008FY 2009FY 2010FY 2011 # Pledging Households1%110121125120121122124 Average Pledge Amount5%$1,4891,5491,5131,7331,8201,9112,006 Pledge & Gift Income$163,790$187,429$189,125$207,960$220,542$233,884$248,034 Rental & Nursery School3%$27,55032,43035,60634,40035,43236,49537,590 Fundraisers Budget3%$15,00012,00017,00010,70011,02111,35211,692 Plate & Misc. Budget3%$3,4004,4006,4009,0009,2709,5489,835 Endowment 5 % withdraw $34,960$30,949$28,174$26,049$24,281$23,887$23,626 Total$244,700$267,208$276,305$288,109$300,545$315,167$330,777 Expenses Budgeted Salaries & Benefits3.0%$185,115173,834172,775179,251184,629190,167195,872 Office & Property3.0%$63,44079,03888,76492,46795,24198,098101,041 Programs3.0%$20,14826,34538,57029,37330,25431,16232,097 Mortgage$41,866 $0 Total$310,569$321,083$341,975$342,957$351,990$319,427$329,010 Surplus (Shortfall)($65,869)($53,875)($65,670)($54,848)($51,444)($4,261)$1,767

12. Sustainable First Parish 12 Increase Average Pledge to $2,100 IncomeG.R.F 2005 FY 2006 FY 2007FY 2008FY 2009FY 2010FY 2011 # Pledging Households1%110121125120121122124 Average Pledge Amount5%$1,4891,5491,5131,7332,1002,2052,315 Pledge & Gift Income$163,790$187,429$189,125$207,960$254,520$269,918$286,249 Rental & Nursery School3%$27,55032,43035,60634,40035,43236,49537,590 Fundraisers Budget3%$15,00012,00017,00010,70011,02111,35211,692 Plate & Misc. Budget3%$3,4004,4006,4009,0009,2709,5489,835 Endowment 5 % withdraw $34,960$30,949$28,174$26,049$24,281$23,887$24,193 Total$244,700$267,208$276,305$288,109$334,524$351,201$369,558 Expenses Budgeted Salaries & Benefits3.0%$185,115173,834172,775179,251184,629190,167195,872 Office & Property3.0%$63,44079,03888,76492,46795,24198,098101,041 Programs3.0%$20,14826,34538,57029,37330,25431,16232,097 Mortgage$41,866 Total$310,569$321,083$341,975$342,957$351,990$361,293$370,876 Surplus (Shortfall)($65,869)($53,875)($65,670)($54,848)($17,466)($10,093)($1,319)

13. Sustainable First Parish First Parish in Cohasset 2008-09 Stewardship Drive  Developed by the Finance Committee  DRAFT FOR MARCH 2008 MEETING

14. Sustainable First Parish 14 What it means to be “Sustainable” Care Circle Social Justice Green Sanctuary Circle Ministry Home share Angel Tree

15. Sustainable First Parish 15 Where does the Money go? What Our Annual Pledges Support:  Circle Ministry  Religious Education  2 historic buildings on Cohasset Common  Choir and Music  Programs for all ages  Outreach  Social Justice Proposed Budget = $350,000

16. Sustainable First Parish 16 Where does the Money Come From  Pledges and Gifts from 120 households of Members and Friends  Healthy congregations should have 72% of income from pledges  Endowment withdrawal rate is too high. Proposed FY09 Budget = $350,000

17. Sustainable First Parish 17 We are of counting on YOU  You are charitable people, but look at the impact you have on First Parish compared to other charitable organizations  The United Way –$4100M Budget –12M Contributors  Trustees of Reservations –$16M Budget –100,000 Members  First Parish in Cohasset –$252,000 Pledge Budget * –120 Pledging Households  Clearly the impact of one member not pledging to TTOR or The United Way is hardly noticeable, but at First Parish it makes a world of difference. $342 per contributor $160 per member $2100 per household * $350,000 Total Budget

18. Sustainable First Parish 18 First Parish Giving 2008 60% of pledge dollars come from 25% of households 25% of pledge dollars come from 25% of households 15% of the pledge dollars come from 50% of households Greater than $2500 $1000 $100 $

19. Sustainable First Parish 19 Let’s change the shape of our giving to look like this  If every pledging household could give $2100 we would make our budget  We acknowledge the generous support of those on fixed incomes  And we encourage everyone to increase their pledge if possible  Remember $1400 in 1997 needs to be $2100 today $2100 350,000 x.72 = $252,000/120 = $2100

20. Sustainable First Parish 20 It’s your choice Think about what we have said and make a pledge today – the Stewardship Treasurer is ready to accept your pledge Go home and consult with your spouse and make a pledge in the next 2 weeks Request a visiting steward to call or visit Request info about planning giving

21. Sustainable First Parish 21 Thank You

22. Sustainable First Parish 22 Moderate Growth with Mortgage Payoff (Feb 2005)* Income F 2005 F 2006 F 2007F 2008F 2009F 2010F 2011 # Pledging Households * 3%104107110114117121124 Pledge Amount5%$1,5771,8141,9041,9992,0992,2042,315 Pledge Income$164,010$194,267$210,100$227,223$245,742$265,770$287,430 Rental & Nursery School3%$27,55028,37729,22830,10531,00831,93832,896 Fundraisers3%$15,00015,45015,91416,39116,88317,38917,911 Plate & Misc.3%$3,4003,5023,6073,7153,8273,9424,060 Endowment 5 % withdrawal $34,960$28,060$25,888$23,709$20,983$19,017$17,923 Total$244,920$269,656$284,737$301,144$318,442$338,056$360,220 Expenses Salaries & Benefits3%$185,115190,668196,389202,280208,349214,599221,037 Office & Property3%$63,44065,34367,30369,32371,40273,54475,751 Programs3%$20,14820,75221,37522,01622,67723,35724,058 Mortgage $41,866 Building Maint. Reserve $10,000 RE Program Additions$5,000$10,000$15,000$20,000$25,00025,750 Total$310,569$333,630$346,933$360,485$332,428$346,500$356,595 Surplus (Shortfall)($65,649)($63,974)($62,196)($59,341)($13,985)($8,445)$3,625 Cumulative Shortfall($65,649)($129,623)($191,819)($251,160)($265,146)($273,590)($269,965) *Note: household count did not include friends of FP