Under the diocesan guidelines, parish pledges are based on net operating income, otherwise known as normal operating income or (NOI).
So what is NOI? Simply put, it’s all income that is used to pay operating expenses, and it includes items that are funded off-budget, like music programs, the altar guild, and EYC mission trips.
The diocese of Newark provides a good definition:
In other words, NOI is pretty easy to calculate. If you spend it for day-to-day operations, versus capital improvements, it’s NOI. (It’s also worth noting that the Newark definition includes the church school. Just imagine if Grace School were actually included.)
With that in mind, here’s what the Virginia Plan proscribes for parish giving:
Grace church, however, has consistently pledged at roughly 10% of pledge income. That excludes:
- Plate and loose giving
- Reimbursements from the school.
- Altar guild program operating revenue.
- Music program operating revenue.
- Income from the trust used to pay operating expenses.
In closing, it’s worth noting that I repeatedly cautioned Bob, beginning in 2014, about the looming budget debacle, warning that absent major cutbacks the church was on a trajectory to become insolvent as early as the summer of 2016. In most cases, in true Bob Malm fashion, I didn’t even get the courtesy of a response.
Things are now at a state where the church may need to consider taking on mission status, accepting help from the diocese, and rebuilding from the ground up.
Grace church is in serious trouble.