Church of St. Martin-in-the-Fields

Governance and Parish Finances

The governance of the parish is typical, with two wardens and a Vestry of 16, elected annually in classes of four for four-year terms. A conventional nominating committee process is used, though there have rarely been contested elections. Standing committees of the Vestry are currently: Finance (including Buildings & Grounds), Investment, Christian Formation, Outreach, and Stewardship. The bylaws received a complete overhaul in 1990.

Prior to current economic conditions, St. Martin-in-the-Fields had annual operating revenues of approximately $935,000. For the fiscal year ending December 31, 2009, the Vestry originally forecast revenue of $883,000 with a deficit of roughly $42,000. This deficit was reduced significantly during the year through one-time pledges by parishioners to help cover the shortfall, and we ended 2009 with only a $14,000 deficit. The initial operating budget for 2010 shows a deficit of $74,000. Strategies to reduce the deficit have been solicited from the parish and are being implemented.

Congregational giving has held to an average of $549,000 over the last four years, and is roughly 60% of total revenue. The number of signed pledge cards has declined by 10% over this period, however, and is down nearly 20% from ten years ago. Giving income for 2010 is estimated at $526,000.

Endowment income provides 30-35% of revenue for the parish. This includes investment returns from restricted and unrestricted endowments with a fair market value of approximately $2,530,000 and income from an irrevocable trust, The Woodward Trust, in which the church is a beneficiary. Combined annual income from these two sources averaged $305,000 in 2006-2008 but dropped to $263,000 in 2009 due to the recession.

Compensation and benefits for full-time and part-time clergy and staff are our most significant expense. For 2009 this category amounted to $483,000, about 45% of revenue. Buildings and grounds expenses —utilities, maintenance and real estate taxes — account for the next largest category of expense, which in 2009 was $124,000 or 14% of revenue.

The parish has traditionally been a strong supporter of the Diocese of Pennsylvania. Including our annual assessment, St. Martin’s total contribution to the Diocese was $88,000 last year; it will be $67,000 in 2010.St. Martin’s has provided between $108,000 and $68,000 from its operating funds in each of the last three years for parish outreach projects.

From an asset perspective, St. Martin’s is fortunate to own its land and buildings without corresponding debt, and is debt-free in all other respects as well. Within the last decade, the church building underwent $3.5 million in renovations that restored the interior, including stained glass windows, to its late-19th-century Gothic Revival roots. A significant refurbishment and upgrade of the pipe organ was also part of the project.

In January 2010, the Vestry closed on the sale of the former rectory. Net proceeds of about $675,000 will be used primarily to increase the endowment, and secondly to supplement the capital-improvements budget.

Repair and renovations of infrastructure are a continual process. The Vestry has striven to allocate a sizable portion of endowment income to capital improvements each year; however, the allocation has favored the operating budget in recent years. Major capital improvements that must be undertaken in 2010 include upgrades for fire safety in the Parish House and Hilary House, which are required by the city. St. Martin’s is committed to keeping its buildings in good repair.