Financial Accountability and Last Call for 2008

On Sunday, we concluded our two-week series, Generous. We studied two chapters in 2 Corinthians, gave an exhaustive year-end explanation of where we’re at as a church, and learned some valuable lessons along the way (if you were among the many who couldn’t make it out due to the snow, the sermon is now posted online). Once again I joined Pastor Mark (and Pastor Tim Beltz) on stage at the end of the sermon to explain some family business, including the state of our finances. We’re planning on scaling back in ‘09 (see below), but in the meantime we’re still praying for the $530,000 we need to finish the year on budget. If you’d like to make a year-end gift to help the cause, please visit our secure giving website. Last week I summarized Four Big Questions about Mars Hill and Money. To cap off the Generous series, I’d like to add three more questions to the list:

How do we ensure godly stewardship of money at Mars Hill?

• Financial Controls. From the Sunday giving to the annual budget, multiple checks and balances at every turn serve to maintain our financial integrity.
• Salary Determinations. We use outside data to establish an objective pay scale that ensures everyone receives fair and reasonable compensation. Nobody at Mars Hill sets their own salary, and the salaries of the executive elders are determined by the audit committee of the Board of Directors of Mars Hill Church.
• Annual External Audit. Every year we voluntarily undergo an organization-wide audit by third-party CPAs. And every year thus far we have received a sterling report.
• Staff/Attendance Ratio. We operate with a lower-than-average overhead. The national church average is one staff per every 45 members of the congregation. The ratio at Mars Hill is about 1:85. This means that our staff works really hard, and we’re reliant on many faithful volunteers.

What are we doing with proceeds form the sale of The City?

Last month, we were excited to announce that Zondervan purchased The City. Specifically, here's how we will be using The City funds, which total $4 million:

• Escrow & potential taxes = $1.6 million. At this time we do not know for certain how much (if any) of the proceeds will be taxable. Therefore, we’re saving a large portion of the money to guard against any unexpected fees.
• Cash reserves for safety = $800,000. Giving fluctuates throughout the year, which is to be expected. We don’t want seasonal dips in giving to inhibit our ministry, however, so our plan is to increase our cash reserves to over $1 million to increase stability within the church.
• Shoreline Campus building fund = $500,000. The Shoreline Campus has been operating out of a rented facility since its launch in January 2006, and is now in need of a more permanent location. These funds will be a lead gift to the Shoreline Campus building as further funds are raised and a new location is sought.
• Ministry, technology, and capital needs = $500,000. There are various crucial projects that we have delayed but are now able to fund. These include replacing some outdated pieces of technical gear, improving our satellite reliability, and increasing some staff office space.
• Church & campus planning = $400,000. We want to start a lot of new campuses and plant a lot of new churches. In order to accomplish this goal, we need to build up our leadership training infrastructure.
• Generous campaign = $200,000. Pastor Mark debuted the Generous Campaign a few days ago here on this blog. With $200,000 from the sale of The City, we’ll be providing small grants for community groups and campuses to serve their neighborhoods and meet needs within the community. More details to come soon.

What is our economic plan for 2009?

• Praying to finish 2008 on budget. This month’s crazy weather makes this a particularly difficult goal, but we’re asking you to join us in prayer that 2008 finishes strong: $530,000 in one week. You can help.
• Reducing budget and scaling back. While cuts are taking place across the organization, the Ballard campus, with its large deficit, will bear the brunt. Last week, six staff members at the campus lost their jobs, and a few more were transitioned to other parts of the organization. Please pray for Pastor Bubba and the rest of Ballard’s remaining staff, who will assume the extra work without replacing any of the lost positions.
• Budgeted giving = $210,000/week. In order to live within our means, we are reducing our fiscal year budget to match recent giving trends. This giving target will require the church to operate with a very lean staff and budget.
• Continue to fund church planting and Vision Nationals. As a church, we always have and always will give away a portion of our money to help start new churches and to help fund faithful ministries such as Vision Nationals (an orphanage, school, and seminary in India).

For a more detailed explanation of money at Mars Hill Church, please download this month’s Stewardship Update.