September 2 2020 Update

9.2.20 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.

If you would like more details on how the year is progressing, please see the metrics below.

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 4% below budgeted expenses.
Actual ministry expenses have been better than the projected reduction of 10% with actual expenses being below budgeted expenses by 17.8%.

2020 Debt Budget & Balance

Ending debt balance as of July 31, 2020 was $3,276,000 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 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.