October 1 2020 Update

10.1.20 Financial Update

In light of the potential impact of the COVID-19 pandemic, the Finance Team, Church Council and Staff created a plan to address the potential contribution shortfall due to the economic uncertainty. The assumptions and steps taken were as follows:

  • Assumed a 15% shortfall in contributions which equates to a shortfall of approximately $1.1 million.
  • Reduced spending by 10%
  • Obtained Payroll Protection Program loan in the amount of $815,000.
  • Deferred hiring open positions other than Lead Pastor until 2021 resulting in a reduction in Personnel cost of approximately 5%.
  • Reduced staff compensation by 5% from July 1, 2020 through December 31, 2020.
  • Obtained interest only payments on our long-term debt through December 31, 2020.

Thank you for your continued faithful giving. Should you have questions or concerns please feel free to contact Steve Mulhollen at smulhollen@broadmoor.org.

Estimated Budgeted Contributions by Month

 

• Approximately 1/3 of contributions come in the fourth quarter of the year. Due to the potential impact of COVID-19 on our economy, we have revised our budget to ensure that we can sustain a 15% reduction in giving in the fourth quarter of this year.

Contributions and Expenses

  • God continues to be good to Broadmoor with overall giving and spending coming within overall projections.
  • Giving through July 31st has been within projections with actual contributions being below budget by approximately 3%.
  • Personnel costs are in line with annual reduction of 7.5% with actual expenses 5% below budgeted expenses.
  • Actual ministry expenses have been better than the projected reduction of 10% with actual expenses being below budgeted expenses by 20%.

2020 Debt Budget & Balance

  • Ending debt balance as of August 31, 2020 was $3,250,000 which is the lowest balance since moving to the Madison campus.
  • Currently, budgeted debt reduction spending is limited to interest-only payments on our longterm debt through December 31, 2020.

Missions Projected Budget to Actual

  • Missions represents 10% of our annual Budget and is divided equally between Broadmoor missions and the Cooperative Program.
  • Based on our projections, we have reduced the Missions annual budget to $610,000, and $305,000 is budgeted for Broadmoor Missions and $305,000 is budgeted for the Cooperative Program.
  • We have been working with our missions partners to provide funding as their needs arise. We expect a significant disbursement of funds in the second half of the year as our missions partners assess their ministries in a post COVID world.
  • We continue to send $20,000 per month to the Cooperative Program. The remainder of the funds will be sent in January as when we determine final contributions.