Holy Resurrection Monastery Financials

Year ending 12/31/15 & six months 06/30/16

Income & Expenses

Jan-June 2016 / Jan - Dec 2015
Income
Bakery Income / 14,664 / 36,317
Donations / 62,552 / 158,354
Earned Income / 4,850 / 13,578
Gift Shop / 1,104 / 4,322
Grants / 17,000 / 5,000
Guests & Retreat House / 7,394 / 25,012
Insurance Claim / 4,893
Interest Earned / 10 / 2,479
Raffle Ticket Sales
Reimbursed Expenses / 4,850 / 2,748
Social Security / 6,558 / 13,122
Speaking Engagements/Retreats / 5,502 / 8,632
Total Income / 129,377 / 269,564
Expenses
Automobile Expense / 11,953 / 13,043
Bakery Expense / 12,963 / 16,079
Building Renovation / 33,910
Charity / 2,000 / 181
Other Repairs / 7,480
Church Supplies / 4,002 / 7,591
Development / 120 / 1,986
Gift Shop Expense
Grounds Maintainence / 1,209 / 1,108
Household Supplies / 16,116 / 33,713
Guest House
Insurance (including medical) / 9,685 / 20,029
Interest Payments / 2,784 / 17,256
Office and Administration / 6,700 / 17,293
Library / 975 / 1,175
Medical & Dental / 3,079 / 23,279
Monastic Associates
Pilgrimage expense
Plant Maintainence / 3,412 / 9,129
Professional Development / 1,517 / 2,298
Professional Fees / 216
Real Estate Transactions
Rent
Miscellaneous / -697
Taxes (including payroll) / 3,334 / 9,337
Travel / 3,745 / 4,964
Utilities / 7,402 / 25,503
Total Expenses / 90,301 / 245,569
Net Income / 28,412 / 23,994

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Holy Resurrection Monastery Financials 2011-2016 (to date)

Income/Expenses

General Notes:

Although there is a line item titled “earned income” this only refers to monies earned by monks working paying jobs outside the monastery (e.g. milking cows on local farms, campus ministry position). Income obtained by monks’ investments, labors, separate from donations, consists of the aggregate of the following items:

  • Bakery income
  • Earned income
  • Gift shop
  • Guests and retreat house
  • Interest earned
  • Raffle ticket sales
  • Speaking engagements, retreats.

We have excluded the income from one monk’s social security payments as this obviously cannot be relied on indefinitely.

In their respective years these represent the following amounts and percentages of total income:

  • 2011:$19,051 8% of total income
  • 2012:$43,52226% of total income
  • 2013:$77,87730% of total income
  • 2014$83,64539% of total income
  • 2015$88,17033% of total income
  • 2016 (to date)31% of total income

The trajectory of total non-donated income is positive. The percentage drop from 2014 to 2015 reflects the fact that, due to lower donations in 2014, the self-generated income was a greater proportion of total income than in 2015.

Donations

  1. Most donations to the monastery are by private individuals and families and consist of amounts $100 or less. There are a few donors who regularly (not necessarily every year) give in amounts of $1,000 or above. In 2015, for example, out of 574 donations:

Number of donationsPercentage total donation income

366 were $100 or less10%
509 were $500 or less31%
544 were $2,000 or less61%
9 were more than $2,00039%

It should be borne in mind, of course, that donations only made up 59% of total income.

  1. Donation income over the five years shows a general trend upwards.
  1. Donations in 2015 reflect about $40,000 in restricted donations. The bulk of these were received via a GoFundMe.com campaign in order to undertake some much needed renovations to the monastery’s building.

Specific income items:

Bakery Income: refers to the small scale bakery business operated out of the monastery kitchen. Most income is from monthly bake sales, though we also have special holiday sales. Sales income has been increasing since the bake sales began in 2012. Profitability has increased accordingly (see Bakery Expense item in the Expenses section. The higher cost amount in 2015 reflects investment in new equipment.)

Gift Shop: refers to a small religious gift shop that operates from a room within the monastery.

Guests and Retreat House: refers to income received from the monastery’s guests. Some of these are individuals or groups here for a day. Others are for people making a longer retreat. The upward trend for this income is especially gratifying since one of the main reasons for purchasing this property in 2011 was to run it as a place of hospitality and retreat.

Interest Earned: refers to interest on investments held by the monastery. These are all mortgage securities held by the monastery. The largest one historically was a mortgage held over the monastery’s former property in Newberry Springs, California. The mortgagor was St. Antony’s Coptic Orthodox monastery. Principal paid on this mortgage is reflected on the monastery’s balance sheet. The income portion is noted in this statement. The mortgage was bought out by St. Antony’s monastery in 2014, hence the lower figure for that year. In future years a small amount will be entered in this item reflecting the interest the monastery has over a small house sold in 2015 to a family in the village, and over which the monastery retains a mortgage interest. (The house itself was donated to the monastery in 2014.)

Speaking Engagements/Retreats: refers to income from a monk (usually Abbot Nicholas or Father Maximos) who is contracted by a parish or other institution to give a presentation, day of recollection or longer retreat outside the monastery.

Specific Expenses items:

Building Renovation: refers to work undertaken with restricted funds for the purpose given. They are different from Other Repairs in that the latter were not made with restricted donations.

Gift Shop Expense: the Gift Shop has been managed by several different monks in the past few years. In 2013 and 2014 the then manager bought a large inventory of icons, books and other religious items. In 2015 the new manager was able to defer any more acquisitions given the large inventory on hand.

Guest House: refer to expenditure incurred for the in-house hospitality and retreat ministry. It is often difficult to account for specific items belonging to that line item. Household Supplies is meant to reflect all expenditures incurred in feeding and clothing the monastic community and cleaning the monastic building. In practice, since guests eat with the monks and their sanitary and cleaning needs are also bought in conjunction with the monks, it is often difficult to keep track of what purchase belongs in which line. This accounts for the inconsistent numbers in the Guest House section. It is also true that the number in 2012 is especially high since in that year a large number of expensive items had to be bought for the comfort and safety of guests.

Insurance (including medical): Starting in 2014 the monastery has found less expensive ways of managing these costs, especially taking advantage of the Healthcare exchanges instituted under the Affordable Care Act.

Interest Payments: are those made to creditors:

  1. A portion is paid to the sellers of our property who retainan interest under a Land Contract the provisions of which are:
  2. Principal lent, $275,000
  3. 6% per annum
  4. Amortized over 30 years
  5. Balloon payment due in five years
  1. A portion is paid to Bank First National under a mortgage:
  2. Principal lent, $75,000
  3. 6% per annum
  4. Amortized over five years
  1. Servicing Credit Card debt. At the date of writing (July 12) this totals $11630, see balance sheet in next section.

Professional Development: refers to expenses incurred in helping the intellectual and human development of the monastic community. Advertising and Promotionsare aggregated as part of the general heading of Office and Administration. Costs specifically incurred in seeking out new sources of income in person to person ways are included under the item Development.

Real Estate Transactions: refer to appraisal fees and other costs involved in selling the small house in St Nazianz that was donated to us, and which we sold in 2015 to a local family.

Rent: in 2011 we were still renting space in another monastery in Southern California. This stopped of course once we moved to Wisconsin in October.

Taxes: the monastery does not pay income tax. It does, however, pay state sales tax on gift shop sales and guest house income. In addition this item covers payments made into the Social Security program for eligible monks.

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Holy Resurrection Monastery Balance Sheets

Year ending December 31, 2015 and Period ending June 30, 2016

Dec 31 2015
ASSETS
Current Assets
Bank Accounts / 55,154
Accounts Receivable / 22,944
Other Current Assets / 2,985
Total Current Assets / 81,083
Fixed Assets
Land, buildings, fixtures / 1,727,474
Other / 556,000
Total Fixed Assets / 2,283,474
Other Assets
Automobiles / 7,500
Land Contract 222 W Main St / 47,676
55,176
Total Other Assets / 2,419,733
TOTAL ASSETS
LIABILITIES & EQUITY
Current liabilities
Accounts Payable / 85
Credit Cards / 19,983
Other Current Liabilities
Total Current Liabilities / 20,068
Long-term liabilities
Auto Loans/leases / 16,000
Bank First National mortgage / 13,278
Maria Haus LLC Land Contract / 259,800
Student loans outstanding / 6,222
Total Long-term liabilities / 295,300
Total Liabilities / 315,368
EQUITY / 2,104,365
TOTAL LIABILITIES AND EQUITY / 2,419,733
June 30 2016
Total
ASSETS
Current Assets
Bank Accounts / 43,631
Petty Cash Fund / 57
Accounts Receivable / 22,944
Undeposited Funds / 2,342
Total Current Assets / 68,974
Fixed Assets
Land, Buildings and Fixtures / 1,727,474
Other / 550,000
Total fixed assets / 2,277,474
Other Assets
Archuleta Land Contract / 46,165
Automobiles / 15,000
Total Other Assets / 61,165
TOTAL ASSETS / 2,407,613
LIABILITIES AND EQUITY
Credit Cards / 11,630
Subaru Lease / 2,342
Bank First National mortgage / 3,106
Equipment Leases / 1,474
Maria Haus LLC, Land Contract / 259,800
Student Loan Account / 6,222
Total Liabilities / 272,945
Equity
Net Income / 28,412
Total Equity / 2,134,668
TOTAL LIABILITIES AND EQUITY / 2,407,613

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Holy Resurrection Monastery Balance Sheets

Year ending December 31, 2015 and Period ending June 30, 2016

Notes

We have assigned a value to property and contents based on the amount for which these are insured. Our insurer increased the valuation when the new policy was issued in 2014.

The insured value of this property is based on replacement, not market, value. The valuations given here will, therefore, be subject to a commercial valuation, which is likely to assign a lower amount. The insured value is given, however, to at least show the general trend.

Land Contract 222 W Main Strefers to the unpaid principle owed us on the sale of the named property, which was donated to us in 2014 and which we sold in the same year to a local family. The buyers/borrowers are current in their payments.

The two loans against our St. Nazianz property are the Bank First National Mortgage and the Maria Haus LLC Land Contract. The terms of these loan instruments are given above(pages 4 and 5). The Bank First National is amortized over 5 years, which explains the much faster rate at which the principal on this loan is paid off as opposed to the Land Contract which is amortized over 30 years.

Please note, because we use the insurance valuation, we do not record an equity increase we might note as we pay down these two secured loans.

The Student Loan liability refers to the amount borrowed to enable a monk to obtain a Theology Degree enabling him to be ordained a Priest to serve the monastery. This loan will be paid off completely by the end of 2016.

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