As this year will have a lot of financial impacts, I thought I’d put together a report for the Beacon.
First for the income side. The highly successful Generosity Pledge total has reached $548,072 which is fabulous, however, our budget for 2026 is $618,000. While it is possible that not everyone has reported their pledge to Nicole and some additional promises may come from new members, we are hoping everyone might take a second look to help close the gap. The easy way to increase your pledge or to make a new pledge is to email the added or new amount to Nicole Duff: [email protected].
Unfortunately, due to both space and some issues with the property tax folks our one-time rentals will be lower this year and one of our ongoing regular renters has found another space.
All of this means that we’ll have to watch things on the expense side more closely. We have changed the contractor for the RE Building’s elevator saving about $2,000 per year, however, the elevator is getting old enough that parts are no longer readily available. We’ll hope to get it back up and running again soon. We are evaluating other maintenance contracts as well.
We are in the process of finalizing a contract to replace the gas heater in the RE Building with an all electric heat pump system which will also provide air conditioning. A great improvement. This replacement will be done in conjunction with other structural changes in the building to accommodate the new leasee’s upcoming preschool. Funds will come from the Building Reserve, which, thanks to generous donations presently has a bit over $200,000. It is anticipated that regular additions will be added in future budgets in addition to periodic special donations. We are in the process of updating the large study to be sure we are setting aside appropriate numbers for all of the property’s replacement/major repairs needed.
The Endowment. As stated in its charter “The purpose of Endowment is to use and grow financial gifts for the long-term security of the church. Some reasonable portion of the annual income from these gifts as they are invested will be designated to supplement the annual budget. Donors may expect that their gifts will be prudently invested, and the value of the donation will increase over the long term.”
The fund continues to hover around $1,000,000. Funds are managed by the Green Wealth division of Charles Schwab and monitored by the Financial Stewardship Committee. There is some conversation about the name of the Endowment fund. Generally endowments are designed to keep the principal amount intact while the income is used to further the cause specified by the beneficiary. However, East Shore has also used some of the principal to cover budget shortfalls or unplanned major expenses, such as the Sanctuary beam replacement a couple of years ago. While the Building Reserve will help avoid those larger dips, we do seem to have ordinary expenses over and above income to keep everything in good repair and providing wonderful services for our members and the outside world. Perhaps we should consider a renaming to something like Sustainability Fund.
Finally an update on the Holly House property sale. Things are moving along. We received the first earnest money payment of $100,000 from Blue Fern (the buyers) last year and just deposited the second payment of $200,000 in March this year. Those funds were accounted for in the budget. Closing is still anticipated by 2027 and work is underway to sort how those funds will be allocated, including the 1/3 designated for Social Justice causes. It is anticipated that the remainder will be divided between the Building and Minister reserve funds along with addition to the Endowment (Sustainability??) fund.
If you have any questions or comments, feel free to contact me, [email protected]. Thanks for all your generosity and support for East Shore Unitarian.
Geri Kennedy
ESUC Treasurer