SUM Finance Update
At the time I’m writing this article, I don’t have September numbers yet, so I wanted to take this opportunity to send a big thank you to Little Lambs and Ivy (LLI). I’m not sure everyone knows how well-respected LLI is in the community and how much they contribute to SUM’s bottom line.
LLI started as a community outreach program while Rev. Larry Snow was the senior pastor here. His vision was to provide affordable daycare for the people of Simsbury. LLI has grown into a hugely respected facility, and they have over 15 families on the waiting list. Current parents will reach out to our LLI director as soon as they know they’re expecting another addition to their family to hold a spot!
Jo Douglas, the current director of LLI, took over from Joanne Maurer a few years ago and has brought her own leadership and management style to the position. She has expanded into all of the available space in the main building and manages over 30 employees, both full and part-time. She works closely with Melissa Fearrington and a small advisory board to set tuition rates and make high-level decisions. John Thomson was instrumental in updating the LLI budget and rate schedule to bring them up to current area rates.
LLI has historically helped us balance our church budget by contributing to cover our monthly expenses based on a formula allowing for additional utilities and cleaning. We are in conversations with them to consider additional donations from LLI to the church’s operating budget. We are all thankful for Jo’s efficient management and generosity, in addition to being so easy to work with!
If we throw 2020 numbers out as COVID outliers, you can see from the chart below that we were in pretty good shape until the past couple of years. You can also see how much LLI has contributed to help make up our shortfall.
Here are a few things to note regarding this chart:
· Our expenses (red line) have been higher than our giving (green line) for quite some time.
· Giving hasn’t returned to pre-covid levels.
· Until two years ago, LLI has allowed us to have a balanced budget (with the exception of 2020 which was a bad year for everyone due to the pandemic).
· Our expenses increased significantly in 2022, mostly due to facilities maintenance and bringing Deacon Deb up to ¾ time.
We work closely with Trustees to manage the facilities and maintenance expenses, but these are largely beyond our control. We have often said we are a two-pastor church that only donates enough to cover one. However, Pastor Gene will be the first one to tell you that he could not keep SUM the amazing and dynamic organization that it is without Deacon Deb. The Finance Team considers our amazing staff and their salaries to be non-discretionary which means that we don’t consider cutting salaries or positions. We have made adjustments to keep up with the US Social Security cost of living rates, but our current 2025 budget does not allow for any salary increases based on present giving levels. Even without increasing salaries, I’m not able to project a balanced budget for next year.
We have seen an uptick in giving, so a huge thank you to all of you who have been able to answer the call! As of August 31st, we are reflecting a $10,000 loss which is better than we’ve experienced the past couple of months. Hopefully, our fall and holiday giving will be as strong as it has been in past years, so we can finish 2024 close to net-zero. If we end 2024 better than expected, and 2025 pledging is strong, I’d love to put a cost of living salary increase back in the budget for next year. LLI will continue contributing what they can, but we can’t rely on them to make up our shortfall.
Our 2025 Stewardship campaign kicks off in a few weeks, so please consider how generously you can pledge. Remember, all giving is welcome, but pledging what you believe you can give next year helps my finance team know what we will have to work with. We try hard to leave our worries in the hands of God, but we finance people get really nervous when we don’t know if we’ll collect enough money to cover our bills.
Jennifer Acheson and the Finance Team