So far in my life, which has included service not only to our church but to other organizations in which I have served as an executive member, such as the now defunct Home and School Association, my long-ago bowling league, and Let There be Music Choir, I have always managed to steer very clear of anything to do with looking after other people’s money. Taking care of money and making financial decisions just wasn’t happening, no matter in what other position I served. Until now, that is.
Throughout Grace, Hillview and Graceview’s history, financial concerns have, to one degree or another, always been present. To be sure, they have ebbed and flowed – at times the financial outlook has been fairly rosy, at other times more dire. Today, Graceview is operating at a considerable deficit, which if ignored will only get worse next year and worse still the year after that, and so on until we run out of money. To address this situation, Session has established a Finance Review Committee – on which, by virtue of being co-chair of our Music and Worship Committee, I find myself serving.
Members are: Al Bishop (chair), Rachael Chen, Helen Cuthbertson, Janet Ottewell, Jim Pirie, Maureen Screen, Jackie Taylor, Robin Telfer, Bob Twynam, Kathy Twynam. The congregation, as you can see, is well represented.
These are the facts:
- Graceview has experienced a deficit in the past few years. In 2024 the deficit was $42,126.
- The deficit is projected to increase to approximately $72,000 in 2025 and continue to increase unless something is changed.
- This situation is not sustainable.
We have a significant reserve fund, which is prudently invested to provide part of the income needed to meet annual expenses. In recent years we have had to withdraw some of the principal to balance the budget (i.e. to meet expenses). This is a short-term solution to a longer-term problem, as it decreases the future income from investments. Session has committed itself to the goal of achieving a balanced budget without compromising the worship experience. The mandate of the Finance Review Committee is to develop a plan to achieve that goal. We are meeting regularly and brainstorming possible ways to mitigate our financial woes and reduce, if not immediately eliminate, our deficit. That is a tall order. When we are ready to share our recommendations, we will report to Session.
How does Graceview get revenue? Well, looking at the financial pie charts in our Annual Reports going back to 2021, we can easily see where it comes from. The largest proportion comes from envelope giving, but that represents only about half of our needed income, give or take a few percentage points. The next largest share comes from investment income – money made through interest, which, as noted above, lessens as we continue to take money out of our investments. In 2021 and 2022, withdrawal from the invested reserve fund was our third largest source of revenue. In 2023, because we employed a minister for only half that year, we were able to meet our expenses without withdrawing from investments. It should be noted that in order to meet our obligations to Graceview, we now contribute absolutely nothing to Presbyterians Sharing. That is an obligation we have been unable to meet for the past few years.
There is another category, however, called “other income.” This comes from a variety of sources, some of which are rental income, some are restricted funds that are raised by groups such as Outreach and Mission which do not contribute to the operational costs of the church, and some are bequests.
Let’s think for a moment about bequests. I know this is a sensitive subject that people often don’t like to talk about, finding it hard to face and contemplate their own mortality. But wills and legacy giving are essential components of estate planning – the process of managing your assets and determining what legacy you will leave through them, including your legacy of faith. Making a gift as a bequest to your church gives you control of your assets during your lifetime and the secure knowledge that your legacy reflects your faith and stewardship values. This is what the Presbyterian Church’s Guide to Individual Estate Planning has to say:
“You are living a life informed by the tenets of the Reformed tradition…You believe that material possessions are gifts from God to be used for advancing the work of the church and perfecting the kingdom of God on Earth…Estate planning is an act of both finance and faith, a joyful act of worshipping God and one of creating a legacy through the final disposition of your earthly possessions.”
“Stewardship is a fundamental act of worship for Christians. (The) Christian approach to estate planning… making faith-based decisions about your final act of stewardship – can be fraught with emotion, fear and anxiety. But it can – and should – be a time of reflection, joy and purpose.”
The Presbyterian Church in Canada, and the Presbyterian Foundation, offer many resources to help you make important decisions regarding legacy giving. They can easily be accessed online. Perhaps this is something we all should think about, as a way to make an enduring statement of faith and make a lasting impact on the life of our church.