St. Paul’s Friends
I wish to provide to you a mid-year update on the financial health of our parish based on the June 2025 month-end information. In short, we are behind in receiving pledges year-to-date and, as a result, needed to make another significant transfer from our Operating Endowment, which is not sustainable in the long-term. The following provides additional insights regarding our current situation.
The Financial Details
During the annual meeting in February, we discussed that the parish made three unanticipated withdrawals from our Operating Endowment totaling $120,000 to meet 2024 cash flow requirements. Last month, Vestry transferred an additional unanticipated $90,000 from the Operating Endowment to make payroll and cover cash flow. This continued unanticipated spending from our Operating Endowment is not sustainable.
At the half year, we expected receipt of approximately $169,115 in pledge payments. Instead, we actually received only $127,521. That put the parish at a deficit in that revenue line alone of $41,600 – requiring us to make the additional, unbudgeted draw against the endowment.
“What does this mean?” A typical annual spending policy for an endowment is in the range of 3 – 5% of the prior-year balance. This is considered a sustainable way to grow the endowment and protect against the fluctuations of the market. The Operating Endowment’s opening balance in January was $456,276. The anticipated 2025 withdrawal from this endowment, at 5% of prior-year balance, would be $22,800. The unanticipated $90,000 withdrawal represents 19.7% of the prior-year balance, or approx. $67,200 more than is prudent. The balance six months later, with the unscheduled $90,000 withdrawal, is now $396,657.
Stewardship – Your Help Needed
Your support through the annual Stewardship Campaign is essential and the Vestry deeply appreciates your pledge. Please consider mailing your pledge payment in its envelope to the parish office or make a payment via the parish website. We also know that circumstances can change in our lives. If your current pledge will be substantially different, please let me know by sending an email at treasurer@stpaulsmaumee.org.
Stewardship Campaign planning is beginning as we speak. To move closer to a financially stable position in 2026 and avoid unscheduled withdrawals from our endowment beyond what we might plan on with an endowment spending policy as I’ve described, our pledge and gift contributions need to be much closer to $450,000 than the current $338,000.
I am happy to be in conversation with you to answer any questions you might have about our parish finances. Feel free to tap me at church or email me at treasurer@stpaulsmaumee.org.
Grateful to serve with you,
Ken Robinson
Treasure