FMW Financial Priorities Queries - June 2020

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FMW Financial Priorities - June 2020

The draft budget for FY 2021 projects a deficit of about $330,000. That can be reduced or eliminated by drawing on our investments in Friends Fiduciary, raising additional funds, cutting expenses, or some combination of the above.  We seek Friends’ input in setting Meeting’s financial priorities.

QUERY 1.  HOW DO FRIENDS VIEW OUR INVESTMENTS IN FRIENDS FIDUCIARY?  ARE THESE FUNDS A CUSHION TO BE TAPPED IN TIMES OF NEED SUCH AS THE CURRENT PANDEMIC, OR SHOULD THEY BE PROTECTED AS INCOME-PRODUCING INVESTMENTS FOR FUTURE GENERATIONS?

Our current assets in Friends Fiduciary (“FF”) are about $1,700,000, of which approximately $515,000 is restricted.  Note that any withdrawal of those assets will decrease our future income.  

QUERY 2.  WHICH OF THE FOLLOWING EXPENSES ARE FRIENDS WILLING TO REDUCE OR ELIMINATE?

 

Expense

Possible Annual Savings

Defer 3 months’ mortgage payments[i]

$55,368

Furlough staff (Property Manager, Administrative Secretary, Rental Manager)

    1 day/week

    2 days/week

 

 

$30,000

$60,000

Reduce support to BYM

    By 20%

    By 40%

 

$13,400

$26,800

Donations to Others

 (AFSC, BYM camping, FCNL, Wilderness Center,

  Council of Churches, Friends Historical Library

 

 

$11,950

Grounds Maintenance

   25% reduction

 

$10,000

Maintenance and Repairs[ii]

????

Possible sources of additional income:

Additional donations (are you able to increase your contributions?)

????

Additional rental income (for example, might you consider charging for memorial services for persons not connected to FMW?)

 

????

PPP loan becomes a grant[iii]

$42,523

 

[i] Deferring payments would result in more interest expense over the term of the mortgage.

[ii] This is primarily wages to for our independent contractor Jon DeWitt.

[iii] Although the income would not be booked until FY 2021, FMW has already received these funds.