Last Week's Sermon
UPC Financial UPdate for 2015
from Bob Bridge, UPC Assistant Treasurer
Due to the generosity of those who came before us, UPC is in a solid financial position. We have been blessed by many gifts from members’ estates, and by the Student ministry endowment raised under the guidance of former pastor Dr. Tom Farmer.
This note gives you a short summary of the financial status of UPC.
UPC currently has a little over $2,100,000 in cash and investments, plus about $500,000 in debt resulting from our most recent building renovation.
The largest part of the cash and investments is allocated for specific uses and not used to fund the day-to-day operations of the church as explained below.
Endowments: Endowments are legally regulated, and by law only a small percentage (typically 5% per year) of the funds can be used every year, and only for the designated purpose. The Resource and Planning Committee works to make sure UPC follows both the letter and spirit of the law. Our endowments total nearly $1,400,000 and make up the largest portion of our cash and investments.
- Campus Ministry Endowment – approximately $1,200,000. This endowment funds a major portion of our campus ministry program
- Mission Endowment – approximately $110,000
- The Julian Montgomery Endowment, which can be used only to help congregational members in financial need – approximately $70,000
Designated Funds: These funds were given or allocated for a specific purpose, such as supporting UPLift, and may be used in their entirety at any time but only for their designated purpose. These funds total approximately $280,000. Major designations include:
- Tax reserve – $120,000 (being held to pay for any retroactive tax obligations resulting from the commercial use of the Bevo lot by the University Coop)
- Capital Campaign gifts – $50,000 (being used to pay principal and interest during 2015 on our $500,000 construction debt)
- Congo (Luebo church) fund – $38,000
- Building reserve – $25,000 (to be used for major , unbudgeted repairs to our building)
- UPLift – $24,000
- About 30 additional categories
Estate Gifts: These gifts have come former members’ estate, and were not designated in the giver’s will for a specific purpose. The church has historically preserved these funds to provide a financial cushion for UPC, and has used these funds only very selectively and for very significant needs. Any use of these funds requires Session approval. The current total of these funds is approximately $430,000. This “rainy day” fund equals about 45% our annual budget, a prudent amount to keep in reserve.
Non-designated cash: Of the total $2,100,000 in cash and investments, about $100,000 is not included in the Endowments, Designated Funds and Estate Gifts above. A good analogy for the funds is the cash balance that you maintain in your personal checking account.
Summary: Because most of UPC’s cash and investments are somehow restricted, UPC works to have a balanced budget each year where expenses match income. For 2015, the Session approved a budget that plans for a slight deficient (currently estimated at $22,000), and the Resource and Planning committee has certified to the Session that UPC will be able to cover that deficit. In 2016, UPC will need to add another expense line item to our budget, of approximately $50,000 per year (for 15 years) to pay down our construction debt.
If you would like to receive more information, please contact Bob Bridge, member of the Resource and Planning Committee and Assistant Treasurer of UPC.