As we move into the second half of the year, we would like to provide a brief update on the financial status of our church. We are pleased to report that we are at a healthy net positive after the first six months of the year. Overall operating revenue is slightly above our budgeted amount. Pledge contributions are on track, and non-pledge contributions and plate offerings are significantly ahead of budget, for which we are most grateful.
Total operational expenses are also better than budgeted, but we expect them to catch up over the next six months. At our annual parish meeting in January, we mentioned that we hoped to fill several key positions in our church staff, and we are blessed by the new team members that have joined us this year. This fall, as we begin paying the full complement of our staff salaries, and as we move into the building and continue to build up our programming, we expect our expenses will pick up and close the gap that we are currently seeing.
Trust & Endowment
The Trust has five components: the Endowment, which supports the building; the COT Fund, which is used at the discretion of the clergy; the Christian Ed Fund, which supports Christian education; the Rectory Fund, which helps clergy to purchase homes; and the Tucker Operating Fund, which provides financial support to the church during extraordinary times or to assist in establishing a new ministry. These funds are managed by Bank of America, and distributions (calculated annually) are based upon a rolling12-quarter average of 1% quarterly, or 4% annually. We utilize a balanced portfolio methodology which somewhat insulates the Trust and its distributions to the church from large fluctuations in the market.
The Trust’s low point over the past three years was at quarter end, September 30, 2022. Since then, the balances have grown, aided in part, as CSL has not yet taken any distributions for 2023. We anticipate that these distributions will be made in the fourth quarter of this year. The Endowment has been supporting the Capital Campaign throughout the building project. As of June 30, 2023, Trust assets totaled $3,116,822.
The Capital Campaign continues to have enough cash on hand to cover ongoing expenditures. The current cash balance is $1,918,623,which includes $1,395,600 in 2022 Historic Tax Credits that we recently received. So long as pledge payments remain consistent, we do not anticipate needing to borrow from our line of credit in the near future. Current outstanding capital pledge balances total only $750,000, thanks to everyone faithfully paying towards their pledges.
We are grateful for your generous support that allows us to continue to meet our financial obligations, and maintain and expand the ministries of our church. Thank you in advance for keeping your pledge payments up to date. We are excited about the second half of 2023, as we look forward to completing the renovations, moving back into our buildings, and starting work on the Lychgate Garden – the final phase of our capital project – as well as launching another program year in the fall with a full staff and even fuller church.
If you have any questions or would like more detailed information about the finances of the church, you are welcome to contact Maria Booth at firstname.lastname@example.org.
Maria Booth, Treasurer
and The Christ & St. Luke’s Finance Committee