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Spending Conversation Analysis

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Spending Conversation

The following section breaks down the factors of the conference’s spending patterns. These factors include debt, capital spending, benevolences, compensation, operations, etc. Each metric is compared to the three conceptual lenses. An analysis of the conference spending patterns may provide key insights to help the conference.
Table 3 – Expenses as a Percent of total Spending (2013)

Table 3 breaks down debt and benevolent spending as they relate to total spending. For example, the average church in the conference’s total secured debt obligations represents 38% of their total budgetary spending. Kentucky has a low debt burden (29th ranked) as a percentage of its total spending in comparison to other US conferences.
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This index provides a truer version of trend line comparison as it takes into account growth through inflation. The trend line shows that, over time, the amount of staff compensation has grown to replace the total pastor compensation. The progression of staff compensation grew at the largest rate until 2002. While staff compensation is below 2005 figures, staff compensation increased since 2011.
Figure 20 – Non-Capital Spending per Attendee

Figure 20 displays church payments for all things (excluding capital projects like renovations) at the individual attendee level. As a church increases in attendance size its per person non-capital spending increases. Figure 21 – Capital Spending per Attendee

In general, the greater the average number of attendees per church, the more the church spends on capital. However, the Kentucky Annual Conference fits a different trend. Large blocks of churches are spending on capital. Particularly churches between 250 and 449 weekly attendees contain an abnormally large amount of spending per their groupings.
Table 5 – Expenses per Attendee (Data Year
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At 73% average conference payout rate, churches with fewer than 350 weekly attendees have the lowest payout rates. However, the total amount apportioned to the church has remained consistently around $8.9 Million, since 2006. All while the amount of total spending decreases. Kentucky ranks 26th in persons served in the community, 8th for program cost, and 23rd for operational cost as attendees are giving more per attendee while overall attendance declined.
Financial Conversation

The financial section provides a different take on the spending section. As the previous section gave an overview of spending, the financial section provides greater insight into the income side. As such, this section provides an alternative per attendee viewpoint of key budgetary positions. It also provides two additional viewpoints: a vantage point of both yearly incomes and a total number of donor households. A key observation may be the ability of the conference to grow their donor base and their per-attendee donations.

Table 6 – Financial Statistics per Attendee
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