A Note from the Finance Committee
A quick primer on church finances
The Solon United Methodist church relies on financial support of its members to function. There is no other money source. Just like any entity that has a budget, the church receives income (donations) that pay expenses such as salaries, heat, lights, snow removal etc…
SUMC income comes in two forms, pledges and faith giving:
Pledges are based off monies that the congregation indicates to the church they will be able to contribute for the following year. This allows the church to plan a budget for the upcoming year, assuming pledges turn into donations and that promise to the church is fulfilled.
Faith giving is the difference between what is pledged for the upcoming year versus last year’s actual expenses. It is required when pledged dollars do not equal planned expenses.
Most churches have members of their congregation that do not submit a formal pledge, but continue to give money each year. For the SUMC, this faith giving is a significant amount of money, nearly $13,000/month. That can be compared to pledged giving of just over $15,000/month. Another way to state this is nearly 50% of SUMC income is not pledged, but assumed will be provided each year. As I mentioned, faith giving has always been a part of the budget and most every year this money is provided and we are able to meet our financial obligations. This allows us to gather in faith at the SUMC each week.
Our required income for each month in order to cover all financial obligations averages roughly $29,500/month.
What is concerning for this year’s budget is that faith giving is at a higher level than normal as our pledged contributions are down significantly. Roughly 40 more SUMC families did not submit a pledge card this year versus the previous year. In 2016, pledges were $18000/month, in 2015 they were $19,000 (see table)
SUMC is not off to a strong start fiscal start for 2018. Both the months of January and February have been over budget. Expenses have been under budget for both months, however, we are yet to pay a significant insurance bill (March) that will bring us back to our average monthly expense.
BOTTOM LINE, if you pledged to the church this year, please keep current with your pledges and on behalf of SUMC and the finance committee, thank you very much. If you have not pledged, please consider a financial contribution to the church so financial planning can be more feasible and stable and bills can be paid. If you don’t pledge but give money yearly, now is a good time to contribute and on behalf of the SUMC finance committee, we thank you too!!
If you have any questions regarding church finances, please contact Dave Weetman, Chair, SUMC Finance Committee at 319-530-4987.