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Channing Memorial Church |
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Inasmuch as neither a return to a 50 member congregation,
nor a near term growth to a highly desirable 350 members, appear likely
to occur during the next few years, the following discussion will focus
only on Channing's present financial resources and challenges.
Channing's current year revenues and expenses, including capital and
major renovation expenses, are reflected in the Operating Budget. In
addition, Channing has several non-operating funds, as a result of major
gifts/bequests from members and friends in the past.
Channing's non-operating resources include an Endowment Fund ($120,000),
a Margit Baum Fund for use in supporting worthwhile community projects
($175,000), and an Arthur Barrows Steeple Fund ($110,000) to be used
for the renovation of the steeple. All of the funds are restricted and
require Congregational approval to be utilized beyond narrow limits.
The Endowment Fund and a portion of the Margit Baum Fund are invested
in mutual funds, while the remainder of the Margit Baum Fund and the
Arthur Barrows Fund are invested in Money Market accounts.
Channing also has a variety of small Operating Budget reserve funds which
are invested in money market accounts along with the Operating Budget's
cash balances. These balances fluctuate on a seasonal basis.
The Church normally strives for and has achieved a balanced Operating
Budget, with revenues roughly equal to outlays, in part by deferring
needed repair expenditures. As a result, the congregation is facing a
substantial financing challenge over the next few years in order to bring
our properties into more stable condition. A combination of urgent maintenance
and repair projects for which further deferral would be counter-productive,
(see Property Committee) plus the implementation of the new Newport Fire
Code requiring a one time expenditure of $45,000 or more in the next
Fiscal Year (July 1, 2007-June 30, 2008) to remain legal and insurable
means that there will be a Operating Budget revenue shortfall next year
currently estimated at approximately $80,000, and lesser shortfalls in
subsequent years.. These shortfalls will almost certainly require Channing
to borrow in order to meet its obligations. Options include borrowing
from one or more of the Funds listed above or from a commercial bank
or some combination of the two. At present, Channing's only other debt
besides normal payables is approximately $120,000 of bank debt incurred
in the renovation of Channing House, plus $36,000 borrowed from the funds
(to be repaid shortly from the sale of tax credits).
In addition to the deferred maintenance/repair and Fire Code projects,
Channing is involved in other major renovation projects. The most urgent
project is one which includes masonry work to stop leaks on the north
and east sides of the Sanctuary, rebuilding of the small pinnacle, and
restoration of five stained glass windows (estimated total cost of the
project is $150,000-200,00). Fortunately, four Aquidnick Island foundations
have generously elected to give Channing a total of $272,000 in grants
for that project, and even allowing for possible overruns, project funding
should be more than adequate.
A second major project will involve restoring several additional stained
glass windows, including the La Farge windows. This project could also
involve the expenditure of $150,000 to $200,000. It is considered likely
that this project can also be funded through local grants.
Finally, we must begin planning for financing the repair of the steeple.
This will require a variety of potential fund sources including: local
grants, possibly a Preservation of Historic Sites grant or grants, a
challenge grant from a major foundation, a Channing Capital Campaign,
use of the Arthur Barrows Steeple Fund and possibly one or more gifts
from Channing members and or Friends. There are many possible fund sources;
often, all one has to do is ask.