Financial Resources of Diocese - Synod 2019 Overview

Financial Resources of the Diocese of New Westminster Diocesan Synod 2019 Mr. Bob Hardy, Diocesan Treasurer Archbishop Melissa Skelton

The Parishes Financial Resources Parishes and related groups have approximately $28.5 million invested in the Consolidated Trust Fund as of Dec 31, 2018 (restricted and unrestricted funds). 2

The Parishes Financial Resources Over half of parishes CTF monies come from the sale of parish properties. Use of capital restricted by Diocesan Council. Income from Restricted Parish Funds available to parishes use. 3

The Parishes Financial Resources Parishes and related groups hold at least $17.2 million in cash and investments outside the Diocesan Consolidated Trust Fund. 4

The Parishes Financial Resources This means that parishes have a total of $45.7 million in cash & investments 5

Diocesan Financial Resources The Diocese has approximately $41.6 million in the Consolidated Trust Fund as of December 31, 2018 Anglican Initiatives Fund: $ 2.1 million Restricted Diocesan Funds: $ 7.4 million General Funds: $32.1 million Each has different restrictions governing use. 6

Diocesan Financial Resources Anglican Initiatives Fund: $2.1 million Purpose of A.I.F. is to provide monies for parish development and other initiatives in the Diocese. Only income available for grants. Governed by Administrators of the Fund. 7

Diocesan Financial Resources Restricted Funds of Diocese: $7.4 million Each fund has different restrictions governing its use most set by donors. 8

Diocesan Financial Resources Funds of the Diocese (includes the Mission & Ministry Fund of the Diocese) $32.1 million. Includes the proceeds from sale of parish property from closed or merged parishes as covered by Canon #30. 9

Diocesan Financial Resources Diocesan Council has allocated monies from the Mission and Ministry Fund for specific purposes: Mission and ministry support Parish grants Parish loans 10

OUR MISSION Growing communities of faith in Jesus Christ to serve God s mission in the world. 11

OUR CURRENT PRIORITIES Building relationships Parish development Indigenous justice Engaging and increasing diversity Stewardship of our resources & culture 1. 2. 3. 4. 5. 12

2019 Diocesan Operation Budget: Income 9% Parish Fair Share Assessment 61%: $2,100,000 10% Drawn from Diocesan Accumulated Investment Income - 20%: $704,920 61% 20% Outside Contributions 10%: $325,600 Accumulated Operating Surplus 9% - $321,480 13

2019 Diocesan Operation Budget: Expenses Parish Leadership & Ministry - 45% : $1,559,500 25% Beyond the Diocese - 19% : $647,500 45% 11% Diocesan Ministry (Beyond the Parish) - 11% : $366,600 Administration - 25% : $878,400 19% 14

Parish Fair Share Assessment Comparison Showing as share of Diocesan Annual Operating Income 2015 through 2019 Parish Fair Share Assessment 2,220,000 2,200,000 66% 2,180,000 2,160,000 2,140,000 Parish Fair Share Assessment 2,120,000 61% 2,100,000 2,080,000 2,060,000 2,040,000 15 2015 2016 2017 2018 2019

Income Summary: 2019 For 2019, we have a balanced budget on the income side through: Parish Assessment Contributions Funds Drawn from Diocesan Accumulated Investment Income 16

Income Summary: 2019 Outside contributions such as fees, rent, and donor contributions From the Diocese s accumulated operating surplus 17

Expense Summary: 2019 BEYOND THE DIOCESE 31% of our assessment income is forwarded to the Anglican Church of Canada, Council of the North, Anglican Communion partnership, Provincial Synod, Anglican Foundation, the Lambeth Conference, and the Archbishop of Canterbury s global ministry through the Compass Rose Society. 18

Distribution of Parish Fair Share Assessment Of the $2.1M fair share assessment, 31% is used to fund mission beyond the Diocese. Anglican Church of Canada - 14%: $285,100 Anglican Communion Partnership - 7%: $151,300 14% Council of the North - 7%: $145,500 Provincial Synod - 2%: $52,100 7% Anglican Foundation - 0.17%: $3,500 7% 69% Lambeth Conference - 0.33% : $7,000 2% 0.17% Archbishop of Canterbury's Global Ministry - $0.13% - $3,000 0.13% 0.33% Diocese of New Westminster - 69%: $1,459,500 19

Expense Summary: 2019 PARISH LEADERSHIP & MINISTRY Includes the Archbishop and Executive Archdeacon, Mission and Ministry Development staff (parish development consultant and Christian formation), support for clergy and parishes, and synod and conferences. 20

Expense Summary: 2019 DIOCESAN MINISTRY (BEYOND THE PARISH) Includes outreach in Diocese Indigenous ministries and reconciliation, Street Outreach Initiative, Salal+Cedar ministry plant, hospital chaplaincy, Sorrento Centre, VST, Mission to Seafarers, communications, & companion relationship with the Episcopal Diocese of Northern Philippines. 21

Expense Summary: 2019 ADMINISTRATION Includes operating costs, archives, and the administration department at the Synod office (ie., payroll and general accounting, management of Pre-Authorized Donor [PAD] Program, Consolidated Trust Fund and Diocesan insurance program) 22

Looking Into the Future 2020 & 2021 23

Our Current Assessment Calculation Overall, calculated on the average 3-year rolling parish operating receipts. Capital fundraising not included in the calculation ie: new roof etc. Bequests and related investment income are not included in the assessment formula until they are used as operating income by the parish. 24

Our Current Assessment Calculation The Fair Share Assessment is calculated based on the average 3-year Parish Operating Receipts using the following three step rates: (1) First $35,000 $ 1,200 (2) $35,001 - $150,000 15.50% (3) Above $150,000 17.75% Top 50% of parishes are assessed an additional 1.61% which currently funds the Diocesan Fair Share Fund 25

Reconfiguration of some Diocesan Funds Mission and Ministry Fund (1) Diocesan Ministry Support Fund (DMSF) - the purpose is to support the operating budget of the Diocese. - As of Jan 1, 2019, DMSF has restricted capital of $15M and unrestricted capital of $1.8M. 26

Reconfiguration of some Diocesan Funds (1) Diocesan Ministry Support Fund (DMSF) - investment income of DMSF will be used to balance the operating budget in 2020 and 2021 - the amount of the support is decided by Diocesan Council 27

Reconfiguration of some Diocesan Funds Mission and Ministry Fund (2) Diocesan Mission Endowment Fund (DMEF) - the purpose is to provide for initiatives outside of the operating budget of the Diocese. - As of Jan 1, 2019, DMEF has $10M restricted capital. 28

Reconfiguration of some Diocesan Funds (2) Diocesan Mission Endowment Fund (DMEF) - Each year, up to 50% of the investment income of DMEF will be used to support: a) The Anglican Initiatives Fund b) The Parish Capital Grant Fund c) The Parish Loan Fund d) Any other Diocesan Fund except the General Fund 29

Reconfiguration of some Diocesan Funds Parish Loan Fund (PLF) The purpose is to provide loans to parishes. As of Jan 1, 2019, PLF has $6M of which half is already committed. Parish Capital Grant Fund (PCGF) The purpose is to support parish capital projects. Has $1.4M initial funds as of Jan 1, 2019. No single grant shall exceed $40,000 30