Financial Update from Scott Denning, Treasurer

 

Spring is in the air (and snow is on the lilacs!), so it’s time for an update on the financial state of the church from your intrepid treasurer.  Below, I will review the current year’s finances, as well as the outcome of our annual Stewardship campaign and highlights of next year’s proposed budget.

IMPORTANT: we will hold a Budget Hearing on Sunday May 7 from 10:40 to 11:30 AM (between second and third services). Please come to this meeting, where we will present the details of the proposed budget. This is your best opportunity to get your questions answered before we vote on the proposed budget at the annual Congregational Meeting on June 4.

Current Year’s Finances:

We are 10 months into our current church year, and we’re doing very well. Pledge collections continue at a near-record pace. We’ve now collected 80% of our annual budgeted pledge (vs 70% this time last year). Spending is exactly what we’ve budgeted: 76% of this year’s budget, compared to 73% this time last year.  We project that we will end the church year on June 30 with a balance within 0.5% of our annual budget.

One of our budget priorities this year was to augment the church’s reserve account. Think of this as our “savings” account from which we draw when expenses exceed income in a particular month, and which we pay into when expenses are less. Our written policies specify that the reserve account should be 10% of our annual budget. The reserve account was pretty much wiped out in the Great Recession, and we’ve been slowly building it back up. The reserve account will be about $50k at the end of this church year on June 30.  Our target is $76k (based on next year’s proposed budget), so we’re getting there but have a ways to go.

Until we can grow our reserve account back to the 10% level, one of the most important ways you can help the church meet its monthly bills is to pay your pledge regularly. If you haven’t already done so, please consider setting up automatic monthly payments rather than paying in unpredictable lump sums. See Carolyn at the church office for details.

Stewardship Campaign:

Thanks to all of you, and especially to our wonderful Stewardship Team who made this year’s campaign very successful. We have pledges of over $660k for the church year that begins on July 1. This is up more than 7% over last year — a very healthy increase! For the first time ever, more than 400 households pledged this year, including 336 member households as well as 78 nonmember households. This represents a total of about 750 people! You can read more details here.

Next Year’s Proposed Budget:

Considering your generous pledge plus additional revenue from plate collections, contributions, fundraisers, and various other sources, we project total income of about $760k for July 1, 2017 through June 30, 2018. Therefore we will propose a budget in that amount. Almost 94% of next year’s budget is supported by pledges and donations!

Next year’s proposed budget includes small salary increases for most of our staff as we continue toward our goal of paying everybody at the midpoint of the guidelines of the denomination for our region.

We are very excited to include a request for a part-time Membership Coordinator (a new hire) in the proposed budget!  As our Three Services Experiment has made clear, we are attracting a lot of new members and friends. Most other large UU congregations have found that the expense of hiring a Membership Coordinator literally pays for itself in a few years through growth in pledging. As more people join our community, this new staff person will ensure that all are welcome and well integrated into the Foothills UU family.

Please bring your questions, comments, and concerns about next year’s proposed budget to the Budget Hearing on Sunday May 7 at 10:40 AM. See you there!

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Budgeting Update from Scott Denning and Erik Martinson

This update is a part of a Governance Update being sent by email to all Foothills members.

Every year, the church prepares a budget in the spring for the church year starting on July 1, projecting monthly income and spending 15 months in advance. Our budgets are balanced, so we spend only what we earn.

Nearly all of our income is from the pledges of financial commitment made by members and friends of our community.

The budget for next fiscal year has been prepared by the Finance committee, affirmed by the board, and will be voted on for final approval by the members of the congregation at our annual meeting on June 4.

A hearing to introduce and discuss details of the budget will be held on May 7 at 10:40am. Highlights include an overall increase to the budget of nearly $43,000 made possible by a projected pledging increase of over 8%!

Most of the additional income will be invested in our human resources, including a new part-time coordinator position for membership, as well as salary adjustments to reflect current UUA compensation guidelines for our ministers and staff.

Please plan to attend the May 7 hearing to inform your vote as the budget presentation at the Annual Meeting will be abridged.

TWO WAYS TO SAVE TAXES WHEN PAYING YOUR PLEDGE TO THE CHURCH

If you’re planning how to pay your pledge for 2017-18, here are two ways to fulfill your pledge and SAVE ON TAXES!

  1. Give appreciated securities (stocks or mutual funds). When you transfer securities DIRECTLY to the church, you avoid capital gains tax, and you are able to give the appreciated amount as a gift. If you sell the securities yourself and give the proceeds to the church, you lose this tax benefit.
  2. Donate part or all of your RMD. If you are older than 70 ½, and you have an IRA, you must take a “required minimum distribution” from your IRA each year. This is taxable income. However, under current tax law, you are allowed to use part or all of your RMD as a charitable gift. That portion will not be taxed.

Important info about a gift from your IRA: The IRS does not allow you to avoid taxes on your RMD and also deduct the gift as a charitable donation. Only one or the other. Therefore, this option is most useful for people who do NOT itemize on their tax return. Please contact Cherry Sokoloski (below) for more information, and also consult with your CPA or other tax advisor.

If you plan to pursue one of these options, please let Cherry or the church office know so we can explain the process.

Remember, to receive the tax benefit, you must transfer securities directly to the church, instead of selling them first yourself. The church will then sell the securities. In the case of a gift from your IRA, it can be cash or securities, but again, it must be transferred directly from the IRA to the church.

Your friendly coordinator for gifted securities,

Cherry Sokoloski:  970-484-5705 or LCSoko@Q.com Church office: 970-493-5906

It’s time to Answer the Call of Love – from Kay Williams

Foothills HeartFlame logo 2.1.17 ANSWERING THE CALL O LOVE (1).jpgIt’s time. Time to help support all of the important work that Foothills is doing to unleash courageous love in Northern Colorado and beyond. It’s time to affirm what Foothills means to you and your family personally.  And, it’s time to thoughtfully consider your financial commitment and the ways that love calls each of us, and all of us together to respond to the challenges and hopes of our world today.

It’s time to answer the call of love.

We ask all friends and members to keep an eye on your snail mailbox during the next few days – you’ll find information on the ways we’ve been growing, and the ways we are all needed to respond to the needs of today – to meet the rising fear and hatred with a bolder, more courageous love.

To dive in now, be sure to check out our website to see where we have been and where we are going as we discover what it will mean to Answer the Call of Love.

Thank you for your generous support of Foothills and for making all that we do together possible – Kay Williams, Stewardship Team Chair

P.S. If you’ve been preparing your taxes, and thinking you would like to save money on them next time, click here to learn how your pledge of financial commitment to Foothills can provide you with tax advantages for next year.

2 New Ways to Save Taxes & Pay your Pledge – from Cherry & Leonard Sokoloski

TWO WAYS TO SAVE TAXES WHEN PAYING YOUR PLEDGE OF
FINANCIAL COMMITMENT TO THE CHURCH

 If you’re planning how to pay your financial commitment to Foothills for 2017-18, here are two ways to fulfill your commitment and SAVE ON TAXES!

1.      Give appreciated securities (stocks or mutual funds). When you transfer securities DIRECTLY to the church, you avoid capital gains tax, and you are able to give the appreciated amount as a gift. If you sell the securities yourself and give the proceeds to the church, you lose this tax benefit.

2.      Donate part or all of your RMD. If you are older than 70 ½, and you have an IRA, you must take a “required minimum distribution” from your IRA each year. This is taxable income. However, under current tax law, you are allowed to use part or all of your RMD as a charitable gift. That portion will not be taxed.

Important info about a gift from your IRA: The IRS does not allow you to avoid taxes on your RMD and also deduct the gift as a charitable donation. Only one or the other. Therefore, this option is most useful for people who do NOT itemize on their tax return. Please contact Cherry Sokoloski (below) for more information, and also consult with your CPA or other tax advisor.

If you plan to pursue one of these options, please let Cherry or the church office know so we can explain the process.

Remember, to receive the tax benefit, you must transfer securities directly to the church, instead of selling them first yourself. The church will then sell the securities. In the case of a gift from your IRA, it can be cash or securities, but again, it must be transferred directly from the IRA to the church.

Your friendly coordinator for gifted securities,

Cherry Sokoloski:  970-484-5705 or LCSoko@Q.com

Church office: 970-493-5906

Auction 2016 A Success!

The Rousin’ RoUndUp was quite a fun-filled event!  Our own Jennifer Powell served as emcee, entertaining the 120 folks who attended the event with her clever pantomimes.  Lenny Scovel demonstrated his bead-selling expertise, and Crispy Watkins and the Crack Willows provided great foot-tapping tunes during checkout time.
During the live auction, Carlos, the four-foot tin rooster, found a new home for this next year.  Bidding was lively, with a wonderful cabin weekend netting the largest bid!  Some auction participants will soon become belly dancers!  Others will dine on exotic food from the Philippines and Morocco.
But while the live and silent auction successfully raised $17,500, the highlight of the evening was the special appeal, which was DOUBLE last year’s amount!  Generosity was overflowing, and over $17,000 was raised!  This special appeal will be split, with half going to Faith Family Hospitality to help finance a safer playground for children.
This event could not have taken place without the help of 60 volunteers who assisted before, during, and after the RoUndUp!  Special thanks to Karen Johnese for coordinating the entire event with tireless support from Donna Mahler, Margaret Cottam, Peg MacMorris and Kay Williams plus 55 other volunteers.  And finally, the auction team would like to thank the over 50 other church members who made donations as well as those who purchased items to support our fundraising efforts.  Hats off to all!

First Quarter Financial Report 2016

Colorado State University

Scott Denning Church Treasurer

As the autumn leaves blaze in golden glory, it’s time to review the financial happenings since we started our new church year on July 1.  The first quarter news is generally good: we’re on budget for both income and expenses at this early point in the year. We have a bit of a seasonal cash crunch as we do every fall, but we’ve made some changes that will get us through more comfortably than in previous years. This seasonal dip shows how important it is to pay your pledge on a regular basis if you can.

The church budget this year is $717,110.  Nearly every dollar comes from us: 91% is in pledges and donations, with the Rummage Sale, Service Auction, and Bookstore each contributing about 2% to 3% of the budget. The vast majority  (68%) of our expenses pay for our amazing staff of 6.75 full-time equivalent employees. Like a small business, we have to make payroll, pay insurance, maintain the building, and pay our utilities every month no matter what. At the end of September, we had spent 24% of our annual budget, and collected 22% of our expected income.

There’s a distinct seasonal cycle of pledge income at the church: we collect a big surplus in December, and spend it down for the rest of the year. The graph below shows the church’s cumulative net income at the end of each month over the past five years. A lot of people pay their whole year’s pledge right before New Year’s. I used to do this myself, to make sure I could deduct it on my taxes in April. Unfortunately, this means that we are chronically short of pledge income in the fall every year, so we’ve been encouraging people to pay monthly if they can. As you can see form the graph, the seasonal cycle has been getting flatter in recent years, which is good.

In addition to our regular expenses last month, we had Buckhorn and some work on the building and grounds.  This month we pay the interest on our member notes (debt owed to our members). These expenses come at a time when we’ve paid out about $10,000 more than we’ve taken in since July 1. It would really help if more people paid their pledge every month rather than in a lump sum in December!

The church has a reserve fund to get us through the lean times that happen every fall. It was completely depleted a few years ago after the Great Recession, but we’ve been steadily building it back up again and now there’s $40,000 in the reserve. We also made some changes to the way we account for end of year expenses, so we also have over $50,000 in the bank, in addition to the reserve. So we’re in much better shape than we have been in previous autumns.

Look carefully at the lines on the graph that show our cumulative net income at the end of each church year:  they always end within a few thousand dollars of zero! This is evidence of good the stewardship of our Board and staff: we develop a budget each March following the pledge drive, then plan and execute for 15 months to hit the target within 1% or 2%.

The church budget is in good shape.  Please consider pledging monthly, preferably by automatic funds transfer from your bank. This would help a lot in managing the annual fall dip in our cash flow. Look for another one of these quarterly reports when the snow squeaks under your boots in January!

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