October 29 2020 Update

10.29.20 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 October 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 September 30th has been within projections with actual contributions being just slightly above budget.
  • Personnel costs have been better than the projected annual reduction of 7.5% with actual expenses 8.7% below year-to-date budgeted expenses.
  • Actual ministry expenses have been better than the projected reduction of 10% with year to date actual expenses being below budgeted expenses by 31%.

 

2020 Debt Budget & Balance

  • Ending debt balance as of September 30, 2020 was $3,222,000 which is the lowest balance since moving to the Madison campus.
  • Currently, budgeted debt reduction spending is limited to interest-only payments on our long-term debt through October 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.