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MENTY Conference December 15, 2016 $ustaining our Sacred - - PowerPoint PPT Presentation
MENTY Conference December 15, 2016 $ustaining our Sacred - - PowerPoint PPT Presentation
MENTY Conference December 15, 2016 $ustaining our Sacred Communities Planning? Why Bother? More likely to achieve your desired result Anticipate problems Protect against negative occurrences Makes sense How far ahead should I
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Planning? Why Bother?
- More likely to achieve your desired result
- Anticipate problems
- Protect against negative occurrences
- Makes sense
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How far ahead should I plan?
- Detailed one year budget
- Summary 3 year projection
- 5 to 7 year plan
- These should be done in reverse order
- You are thinking about things that will have a significant
financial impact
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5 to 7 Year Plan
- Your biggest asset is your facility
- Review your facility infrastructure and estimate cost and
timing of repairs, replacements, improvements and additions.
- Physical plant - roof, grounds, foundation, signage, etc.
- Mechanicals - HVAC, electrical, security, plumbing, etc.
- Equipment – computers, kitchen equipment, audio visual,
furniture, etc.
- Supplies – prayer books, scrolls, play ground equipment, etc.
- Federal and local regulations – handicap access, security for young
children, lead paint or asbestos remediation
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What else to consider in the 5 to 7 year timetable
- Your synagogue’s vision – add a preschool, add a cantor, build a new
sanctuary, create new programming, changes to dues structure
- Clergy hires and retirements
- Senior staff hires and retirements, benefits, pension
- Mortgage or loan balloon payments or significant changes in
payment structure
- Demographic changes to the surrounding neighborhood includes
declining population, urban decline, redevelopment
- Competition from other shuls, including reform & orthodox
- Competition in the preschool market
- Endowment size and performance
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Evaluate your membership
- What kind of membership do you have?
- Dues relief
- Aging population
- Average length of membership
- Fund raising
- Historical trends/acceptance
- Community involvement?
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What about a 3 year Projection
- Start with your existing budget that you are in
- Factor inflation into compensation and general expenses
- Look at contracts and factor in replacement contracts
- Clergy, equipment, custodial, landscaping, maintenance, etc.
- Overlay your membership dues structure and membership
population
- Lay out your tuition structure and student projection
- Factor in adding and dropping programs
- Add in any major issues from the 5-7 year analysis
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Next Year’s Detail Budget
- Take the 3 year budget and build next year’s budget from the
bottom up
- Look at the last 3 years membership information to forecast dues
- Look at the schools’ last 3 years student enrollment and tuition
schedule for next year to forecast revenue and teacher support
- Evaluate the revenues and expenses for the programs, high
holidays, fund raisers
- Do a detail review of the headcount required for schools
- Set a synagogue salary increase %
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Final Considerations on Next Year Budget
- Don’t just focus on breaking even, consider the long term goals
and needs
- Include cash drains (primarily capitalized expenditure) that
will not be funded by endowment money
- Be realistic, if you have never had an annual appeal that raised
- ver $50k, what makes you think you can suddenly raise $175K
- Create a culture of giving
- Annual appeal
- Long term pledges
- Bequest
- Appreciated stock donations
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Checkmate!
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