Introduction and Summary

In February 2023, Emerson Unitarian Universalist Church of Houston Board of Trustees President Michael Bloom initiated formation of a task force (Long-Range Planning Task Force [LRPTF) to study and provide solutions to the deteriorating financial issues of the church. In March 2023 LRPTF members were appointed and began regular meetings to begin the task force’s work.

The Charter for the Long-Range Planning Task force was developed in February 2023. Members of this writing are Troy Rocket (Chair), Ann May (Vice-Chair), Trisha Hinojosa (Secretary), Nancy Lipp (member), Linda Lord (member).

Several areas for improvement to approach sustainability are increased membership, income from use of our assets such as increased rental income, and professional guidance for our on-line presence.  Increased rental can be done by cosmetic improvements to Westwood Hall for event use or, along with use of the Sanctuary, can be used as a wedding venue.

Sale of the church property has been raised as the ultimate solution to our problem as a large sum would result.  However, the LRPTF view this as the least desirable solution as it could lead to dissolution of membership. If insufficient income is raised by rental of Westwood Hall and other fund-raising efforts, it may be worth investigating the sale of Westwood Hall and retain the main building for church use.

Financial Considerations

By the time the 2023 church budget was developed, it was apparent that a big problem existed. The budget for 2023 had a deficit of $70,000 and 2022 results showed a deficit of $82,000.  No matter the help we had to cover the costs, such as the PPP forgiven loan, we couldn’t continue on the financial path that developed.

So, how did the church get to this point? A number of situations can be cited to be causes such as the Covid pandemic and shut down of most facilities including the church, working with a new, interim minister during the pandemic period that members could not meet in person, general overall drop in church membership and support country wide as well as within Emerson, and so on.  It is useful to look at our historical results over recent years to see how this problem has grown.

As a brief indication of historical changes in the “health” of the church, presented below are two graphs of yearly membership and Income and Expenses. Over recent years, membership has steadily decreased.  Serious deficits started occurring about 2020 at the same time the pandemic was rampant.  The actual deficit for 2022 was -$81,832.  A loan 0f $75,000 from the endowment for 2023 budget year was arranged as 2023 budget had -$70,000 deficit. Clearly, the church could not continue without addressing sustainability–

Two events happened in 2023 that provided relief in the budget. First, our long-term Business Manager retired, and work was subsequently covered a bookkeeper and Congregational Administrator.  Second, our Religious Education Director left the church mid-2023 to move out of state.  To date, an RE Director has not been hired although the 2024 budget has RE covered half-time. The result of the two staff changes resulted in a reduction of administrative costs by approximately $34,000 and RE costs by about $33,000.  In effect, possibly eliminating the deficit – all other things being equal.

However, without increased income, eliminating the full deficit is not expected given inflation in facilities and other costs and the fact that raises will be needed for staff.  Indeed, we may press on with smaller deficits, but full sustainability is not reached.

To continue the evaluation of long-term sustainability, three five-year economic cases are being developed – pessimistic, realistic, and optimistic.  Early evaluation shows it is important to retain membership and, if possible, grow membership.  Also, additional income through pledges and fund-raising, such as using Westwood Hall rentals, is important for sustainability.

 

We need your ideas! Watch for ways to send us your ideas to reduce expenses or increase income. We have a new online form for your ideas as well as in-person and Zoom brainstorming sessions.

Or just send an email to LRPTF@emersonhouston.org