My last written update on the Cathedral’s finances occurred in February.

There is some positive news. Since February, it is good to report that our pledged amount of congregational support for 2010 has just risen to the level for 2009.  I am grateful to everyone who has responded to the many appeals we have made to assist in the support of the Cathedral’s ministries and programs.

However, it has taken us nine months to reach this point, and, as you know, the markets have been unstable in recent weeks.  Last year, for the first time since my arrival in 2005, we experienced a serious decrease in pledge income (what you and I give: a 19% shortfall) with (thankfully) no significant change in Sunday attendance.  At the same time, many of you (and my family, too) have experienced a net loss in disposable household income.  Many of you have spoken with me about your individual circumstances.

I am enclosing a summary of the Cathedral’s income and expense projections for 2010.
 
The sobering message is that only 30% of the Cathedral’s total operating income is derived from parishioner contributions.  And parishioner contributions are paying for only about 66% of the ministry and program costs (excluding administrative and office expenses).  In many other churches, ministry and program expenses are covered by at least 75% in parishioner contributions.

The message is that in general we, as a worshipping community, are, for the most part, living off what can only be called “other people’s money”.  Some of you will remember that my  predecessor was forced to make significant, and unpopular, reductions in staff. This decades-old problem also contributed to the closing of the Cathedral schools in 1992 and the subsequent bankruptcy from which we have recovered several years ago. 

However, if we meet the 100% amount  pledged for this year (which, I believe, will be a challenge), we are still at least $170,000 short of what we need to balance our budget and to stop the draw on diminishing unrestricted funds.

It is still good to report that we are debt-free, in stark contrast to the $600,000+ deficit which confronted us in the Fall of 2005.  However, the Bishop, the Chapter, and I also realize that certain additional economies must be undertaken if we are to protect the Cathedral’s financial health.

CHANGES
Recent mailings have indicated that our new Canon for Pastoral Care and Liturgy will be a member of the Cathedral staff for 50% of his work week.  While he will assist me with liturgy and preaching and the pastoral care of the sick and shut-in, he will not be engaged in Christian Formation, Youth Work, or Community  Outreach/Relations as his predecessor was. 

The new Coordinator for Christian Education, Formation and Youth Ministry will be a .4 position (2 days per week, reduced from 5 days per week) with primary emphasis on Church School, Rite 13/J2A, and the adult scripture class.  She will not be engaged in providing Vacation Bible School, Lenten or Advent programs or other special programs/ministries. 

Our operating budget can no longer sustain these programs as we have known them.  You will miss these opportunities, and we will miss offering them.  But the Church is not exempted from the economic challenges which effect government, public transportation, school districts, and other charitable/social service institutions.  As I have noted in the past, we can provide ministries and programs only as congregational support allows.

THANKS
I am grateful to many of you who give consistently, sacrificially, and gladly for the work of our Cathedral and the larger Church.  The most current list of those who have made a financial commitment is attached.  If you don’t see your name there and you believe that you have made a commitment, please contact us as soon as possible.  You can still make a pledge at www.incarnationgc.org or by paper form, available in the Cathedral or the office.

I must also add a note of thanks to the members of our Cathedral staff, both present and past, for the sacrifices they have made individually and collectively during my tenure as Dean.  They have received minor Cost of Living Allowances for four of the last six budget years with most salaries well-below what their (and my) counterparts receive in other Cathedral churches.   We have all done more with less as have many of you in your homes and places of work.  We are indebted to our excellent volunteers who assist us in a variety of areas to help lower or reduce expenses.  Without the devotion of so many, our programs would be severely curtailed, even more than the present reductions require.

As needed, we will keep you apprised of any significant changes in our ministries and services. 

Please enjoy a safe summer.

July 12, 2010                        The Very Rev.  Theodore W. Bean, Jr.