Dear Northway Church,
We, your Finance Team and Lead Ministry Team, would like to thank you for your giving over these last several months during the COVID pandemic. In March of 2020, a financial panic gripped our nation. We were unsure of what the next weeks and months would hold for our economy, and thus immediately approved a financial plan which dramatically cut spending. Thankfully, most of the financial cuts were not necessary. Because of your faithfulness, we were able to continue to fully support our missions giving, our ministries, our operations, and to pay our personnel. We ended our fiscal year (June 30) with offerings nearly equal to our previous fiscal year. Again, we are grateful to be serving a church who believes in generously supporting the Lord’s work.
Additionally, we want you to know about a recent decision we’ve made in light of your giving. In March, due to the economic crisis, we ceased funding our Faith for the Future account from our operating budget. Last year’s budget called for an additional $17,000 to be paid each month toward our loan from the FFF account. With the uncertainty regarding the economy and giving, we paused these additional loan payments.
As well, our 2020-21 fiscal year budget (beginning July 1, 2020) planned for additional principal payments to begin in January of 2021, with no additional payments budgeted for the first six months of the fiscal year. Like last year, the amount allotted for these payments was $17,000 per month.
However, after watching the faithful giving of our congregation over these last several months, we have made several decisions regarding these loan reduction payments:
1 — To “make up” for payments missed from April – September of 2020 by paying $102,000 from our Faith for the Future budgeted line item toward reduction of our loan balance (6 x $17,000 = $102,000)
2 — To begin in October of this year making regular monthly additional principal payments of $17,000.
3 — To use $87,000 from gifts designated to the FFF account toward reducing the loan balance. Over the past couple of years, when the balance of this account reaches a certain point, the Finance Team and Lead Ministry Team have voted to use a portion of these funds to reduce debt. Thanks to the giving of so many to FFF, we are again able to make a significant payment toward reducing our loan balance.
As you can deduce from the above information, we will be making an initial payment of $189,000 toward debt reduction, as well as an additional $51,000 before the end of 2020. While at this point there are no future construction plans, we do believe another building phase is in our future. Debt reduction will allow this to become a reality sooner rather than later.
As we enter into the last quarter of our calendar year, we would like to encourage you to be a part of reducing our debt and enabling us to look toward future plans. Financial gifts designated to our “Faith for the Future Fund” will be used toward additional loan payments. If everyone will participate in some way, through giving some amount, we will be able to significantly reduce our debt as we look toward ministry plans for the future. Please prayerfully consider what the Lord would have you to give.
(FYI: Included in the CARES act passed by Congress a few months ago are certain tax advantages in giving to charitable causes that will expire at the end of this year. Please consult your tax advisor to see if they apply to you).
This Sunday, October 4, Pastor Kevin will devote his Sunday message to updating our congregation on the plans for our ministry next year. We strongly encourage you to either be present with us or watch online. We are excited about all that God is doing in our church and the wonderful future He has for us. Thank you for doing your part to make this a reality!
Your Finance and Lead Ministry Teams
Kevin Franks, chair
Lead Ministry Team
Kevin Mills, chair