30
Financial Update Village Bible Church 1
Financial UpdateVillage Bible Church
1
All Church Stats
364416
2015 2016
Households
$1,585,653 $1,747,274
2015 2016
Contributions
14%10%
1,23
9 pe
ople
14%: Overall, Village Bible Church impacted 14% more families in 2016!1,239: There are currently 1,239 people who regularly attend VBC.
10%: Overall, financial contributions increased 10%.
2
4 Campuses:
89
118
2015 2016
AuroraHouseholds
10 10
2015 2016
El CaminoHouseholds
249267
2015 2016
Sugar GroveHouseholds
16
21
2015 2016
Indian CreekHouseholds
867
peop
le
24 p
eopl
e
292
peop
le
56 p
eopl
e
3
Contributions v. Expenses
$1,735,865
$1,747,275
Expenditures
Contributions
*Excluding short-term missions & benevolence assistance.
4
2. Kingdom Investments
Multiplier$262,249
14%
Catalyst$291,039
16%
Benevolence$50,430
Campus Ministry
$1,226,05667%
Actual 2016
5
2. Kingdom Investments
18% Multiplier Fund
10% Worldwide Missions; 5% Resurgence; 8% Local OutreachWe are committed to Acts 1:8 reproduction – to be Jesus witnesses in towns (Jerusalem), in our Fox Valley region (Judea) and in our world (end of the earth).
With multiple locations, it can be challenging to remain missional about ministry outside the walls of our church with so many worthwhile interests competing for resources inside. By allocating 18% of all offerings to the multiplier fund, we keep this a priority.
17% Catalyst OperationsCatalyst operations include creative arts, business administration, and ministry visioning, collaboration and alignment. Operating the Catalyst at 17% of all offerings requires us to continually refine our operations and ensure fiscal responsibility.
65% Local Campus Ministry40% Staff; 25% Campus Programs & FacilitiesEach campus operates on 65% of its collective annual offerings, which are used for staffing, facility, capital savings and ministry operations. Operating at 65% takes the guesswork out of future staffing, facility usage and other expenditures.
TARGET %
6
2. Multiplier (Missions & Outreach)
Multiplier$262,249
14%
7
Our Missionaries: $170,140
1. Richard and Geraldine Akers, ZEMA, Mozambique & South Africa2. Sean and Laura Boyd, Transworld Radio, Eastern Europe3. Tom Dechert, Tanalian Bible Camp, Port Alsworth, Alaska4. Karney and Lydia Dunah, ULICAF, Ganta, Liberia5. Jon and Lauren Emanuelson, ZEMA, Mozambique & South Africa6. Paul and Linda Erickson, SIM, Global7. Chris and Marilyn Hartwick, ABWE, Kowloon, Hong Kong8. Ben and Missy Hatton, New Tribes, Paupa New Guinea9. Jennie and Leighton Helwig, Teach Beyond, Manila, Philippines10. Steve and Brenda Hostetter, Oak Hills Bible College, Bemidji, Minnesota11. Clyde and Edith Murphy, Camino Global, Guatemala12. Phil and Sara Nickels, Rafiki Foundation, Moshi, Tanzania13. Lisa O'Brien, Juna Amagara, Mbarara, Uganda
8
Our Missionaries: $170,140
14. Chad and Julie Reeser, World Venture, Madrid, Spain15. Victor & Amanda Rodriguez, CrossRoads Missions, Piedras Negras, Mexico16. Andrew and Megan Rowland, Tanalian Bible Camp, Port Alsworth, Alaska17. Jonathan and Becky Shuster, Greater Europe Miss., Dublin, Ireland18. Bruce and Linda Thomas, World Venture, Lubin, Poland19. Unlisted, Reach Global, Middle East20. Unlisted, OM, Middle East21. Jessie Van Schepen, Crossworld, Cork Eire, Ireland22. Cori Wittman, Servantworks, Thailand23. Juna Amagara, Uganda24. Reaching Indians Ministries International, India25. TEAM, Global26. Annoor Sanatorium, Jordan
9
Short-Term Missions: $43,481
adults served on mission teams to support our missionaries in UgandaMexicoPhilippinesPolandAs well as ministering to inmates at Danville Prison
teens served with our ministry partners in Aurora – Urban Youth MinistryWaxhaw, NC – JAARS (A division of Wycliffe Bible Translators)
(Short-term missions are self-funded, not paid out of general fund giving.)
10
Outreach Partners: $19,500
1.Anne Miller, Intervarsity, Aurora University2.Aurora World Relief3.Michelle Gerken, Pregnancy Information Center4.Robin Sterkel, Urban Youth Ministry, Aurora5.Brent and Stephanie Batiste, Athletes In Action,
NIU, DeKalb6.Omar and Rose Southerland, CRU, Cary, IL
11
Direct Outreach : $26,130Aurora
General $2,021
Soccer Camp $193
Friendship Gardens $670
T-Shirts $1,091
Friendship Fest $3,253
Easter $2,726
Trunk or Treat $459
Refugees $1,044
Sugar Grove
General $1,247
Easter $6,253
Kids Hope USA $50
Operation Our Town $176
Christmas Eve/Day $554
Indian Creek
General/Ads $1,133
Board Game Night $287
Easter Egg Hunt $128
Easter $2,548
Movie Nights $1,011
Parents' Night Out $43
Parade $53
El Camino
General $500
Easter $690
12
2. Kingdom Investments
Benevolence$50,430
3%
Actual 2016
13
Benevolence: $50,430
$36,107
$50,430
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Contributions Support Provided
ALL CAMPUS 2016 Benevolence Support
14
Benevolence: $50,430
$5,578 $5,489
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Contributions Support Provided
Aurora 2016 Benevolence
$26,079
$40,216
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Contributions Support Provided
Sugar Grove 2016 Benevolence
$4,400 $4,675
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
Contributions Support Provided
Indian Creek 2016 Benevolence
15
2. Kingdom Investments
Catalyst$291,039
16%
Actual 2016
16
Catalyst: $291,039•Communication Tools: Web Site, Email, Text•Printing Equipment: Color Copiers•Church Management Software:Financial, Contributions, Care Tools, Directory•Accountability:Legal & Auditing•All Campus Staff:Leadership, accounting, data, design (print & web)
17
2. Kingdom Investments
Campus Ministry
$1,226,05667%
Actual 2016
18
Campus Ministry: $1,226,056
Actual 2016
Programs9%
Facilities26%
Administration3%
Staff62%
19
3. 2017 Budget
Multiplier$214,030
Catalyst$305,079
Campus Ministry
$1,243,163
20
3. 2017 Budget Plan
Improved process= Improved accuracy & evaluation
Philosophy:• Plan for conservative growth of 2017 contributions• Plan expenses not to exceed 2016 contributions= creates some natural margin and reserves
21
2017 Contribution Plan$1
,282
,407
$1,3
33,6
11
$1,4
37,9
29
$1,4
76,4
02
$1,5
85,6
53
$1,7
47,2
74
$1,8
95,0
00
-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
2011 2012 2013 2014 2015 2016 2017
All Campus Contributions
22
2017 Expense Budget
Expense Budget $1,762,272
$1,8
95,0
00
2017 Planned Contributions
Multiplier$214,030
Catalyst$305,079
Campus Ministry
$1,243,163
23
Financial Reserves The purpose of building and maintaining financial reserves is to ensure the stability of the mission, programs, employment, and
ongoing operations of the organization and to provide a source of internal funds for organizational priorities such as building
repair and improvement, program opportunity, and capacity building.
Operating reserve
The operating reserve is intended to provide an internal source of funds for situations such as a sudden increase in expenses, one‐
time unbudgeted expenses, unanticipated loss in funding, or uninsured losses. Operating reserves are not intended to replace a
permanent loss of funds or eliminate an ongoing budget gap. It is the intention of Village Bible Church for operating reserves to be
used and replenished within a reasonably short period of time. The target operating reserve fund is equal to six weeks of average
operating costs.
Building and capital asset reserve
The building and capital asset reserve is intended to provide a ready source of funds for repair or acquisition of buildings,
furniture, fixtures, and equipment necessary for the effective operation of the organization and programs. The target amount of
the building and capital asset reserve will be 5% of the annual budget.
$87,364
$201,608
$75,821
$202,985
0 50000 100000 150000 200000 250000
Building Reserves
General Reserves
Financial Reserves As of 1/1/2017
Actual Reserves Target Reserves
24
Financial Accountability
Accountability and transparency are important to us. We strive to be the best stewards of God’s resources that we can be and know that
having others reviewing and guiding us will help us stay on track. Scripture talks over and over again about the importance of seeking wise
counsel. We can’t imagine a place that would be any more important than in the church!
To this end, the elders of Village Bible Church have implemented the following:
VBC Non‐Staff Guiding Elders & Consensus Decision Making (Wise Counsel & Accountability)
While all elders lead and shepherd the church, the guiding elders are the actual governing board of the church. This board is intentionally
made up of a majority of non‐staff elders and operates by consensus, which means “total agreement by the elders to support a decision.” This
structure provides accountability and balance to our leadership team.
Guiding Elders (Non‐Staff): Scott Brown (Aurora Campus), Bill Griffith (Indian Creek Campus), Jon Pilkington (Sugar Grove Campus)
Additionally, two staff members serve on this team: Keith Duff (Executive Pastor) and Tim Badal (Lead Pastor).
VBC Stewardship Team (Wise Counsel & Accountability)
This advisory team is made up of church members who do not serve as staff or as elders. While they are not a decision making team, they
advise and work with the guiding elders on overall financial strategy and practice, such as: 1) budget development; 2) compensation analysis;
3) cash‐control audits; 4) monthly financial reviews; 5) financial communication; 6) generosity teaching initiatives.
Stewardship Team (Non‐Staff): Phil Beattie (Sugar Grove Campus), Sue Fair (Sugar Grove Campus), Stan Free (Sugar Grove Campus), Jeff
Hansen (Sugar Grove Campus), Chad Thompson (Aurora Campus)
Additionally, Keith Duff (Executive Pastor) and Stephanie Beattie (Finance Director) lead and advise this team.
Financial Policies and Practices (Accountability)
Our financial policies and practices include many checks and balances that include our treasurers, our stewardship team, our CPA and ECFA.
These checks and balances include cash handling (there are always at least two people involved with the handling of offerings and the process
is audited); check writing and electronic payments (at least two people are always involved in this process); monthly financial reconciliation;
year‐end financials and expense allocations.
Vanderbloemen Research Group Compensation Analysis (Wise Counsel)
Vanderbloemen Research Group provides our compensation team (non‐staff guiding elders + non‐staff
stewardship team) objective analysis of the different leadership roles at VBC as well as compensation practices
of similar churches and nonprofit organizations. This analysis guides our actual compensation policy.
25
Evangelical Council for Financial Accountability ECFA (Wise Counsel & Accountability)
We voluntarily submit to the oversight and accountability of the Evangelical Council for Financial Accountability (ECFA) who conducts a full
review of our church on an annual basis. We have passed their review and been an accredited member each year since first applying in 2010.
ECFA enhances trust in Christ‐centered churches and ministries by establishing and applying Seven Standards of
Responsible Stewardship to accredited organizations. Founded in 1979, ECFA provides accreditation to leading
Christian nonprofit organizations that faithfully demonstrate compliance with established standards for financial
accountability, transparency, fundraising, and board governance. The Christ‐centered ministries accredited by
ECFA include churches, denominations, educational institutions and mission agencies.
ECFA’s Seven Standards of Responsible Stewardship, drawn from Scripture, are fundamental to operating with
integrity. Accountability to God is vital, but people form their impressions of both people and organizations by
looking at the outward appearances (1 Samuel 16:7). The basis for establishing ECFA is stated clearly by the
Apostle Paul in 2 Corinthians 8:21: "For we are taking pains to do what is right, not only in the eyes of the Lord but
also in the eyes of men." The seven standards include 1) Doctrinal Issues, 2) Governance, 3) Financial Oversight, 4)
Use of Resources and Compliance with Laws, 5) Transparency, 6) Compensation‐Setting and Related‐Party Transactions and 7) Stewardship of
Charitable Gifts.
Our church listing on ECFA: www.ecfa.org/MemberProfile.aspx?ID=28535
CapinCrouse CPA (Wise Counsel & Accountability)
We voluntarily submit to the oversight and accountability of CapinCrouse who conducts a full review of our
church financials on an annual basis. We have passed their review since first engaging with them in 2010.
CapinCrouse is a national full‐service CPA and consulting firm who, since 1972, has served Christ‐centered,
mission‐focused not‐for‐profit organizations, churches, and higher education institutions by providing support in
the key areas of financial integrity and security. As a result of this extensive experience, CapinCrouse has a deep
understanding of ministry operations and knows the ever‐changing needs and the importance of financial
accountability in our unique environment.
Village Bible Church engages CapinCrouse to perform an annual review of our financial statements. A review includes primarily applying
analytical procedures to leadership’s financial data and making inquiries of our organization management. The review is conducted in
accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.
Those standards require CapinCrouse to perform procedures to obtain limited assurance that there are no material modifications that should
be made to the financial statements.
26
2015 Compensation Analysis
Determining financial compensation is a challenging task. Village Bible Church has grown exponentially over the past decade.
Based on the responsibilities and demands of pastoring in our church, are our staff members being compensated fairly? How
does our current compensation practice align with other churches and organizations? Is adequate compensation provided for
raising a family in the Fox Valley area? 1 Timothy 5:17‐18 states “Let the elders who rule well be considered worthy of double
honor, especially those who labor in preaching and teaching. For the Scripture says, “You shall not muzzle an ox when it treads
out the grain,” and, “The laborer deserves his wages.” The elders of Village Bible Church desire to provide fair compensation for
staff pastors; to ensure their families are cared for and their work is properly rewarded. We desire staff pastors to be free to
serve faithfully and effectively and be able to model solid financial stewardship for all of us.
To accomplish this task, in the fall of 2015, the non‐staff Guiding Elders hired the Vanderbloemen Research Group to provide an
objective analysis of the different leadership roles at VBC as well as compensation practices of similar churches and nonprofit
organizations. In November and December of 2015, the VBC Stewardship Team and the four non‐staff Guiding Elders met to
review the findings. This financial team carefully examined six different church compensation models, examined cost of living
needs, developed a range of salary scales for the varied pastoral roles at VBC, set objective staff salary increase policies,
recommended staff evaluation protocols, reviewed staff retirement compensation and initiated a strategic compensation audit
cycle for the future. The 2016 staff compensation budget is a reflection of this work. The model reflects a balance of providing
wages our laborers deserve and faithful stewardship of the finances God has entrusted to us.
The Village Bible Church Stewardship Team should be commended for their faithful and objective work in this endeavor.
Respectfully submitted,
Jon Pilkington, Chairman On behalf of the Guiding Elder Board
Guiding Elders (Non‐Staff): Scott Brown (Aurora Campus), Bill Griffith (Indian Creek Campus), Jon Pilkington (Sugar Grove
Campus)
Stewardship Team (Non‐Staff): Phil Beattie (Sugar Grove Campus), Sue Fair (Sugar Grove Campus), Stan Free (Sugar Grove
Campus), Jeff Hansen (Sugar Grove Campus), Chad Thompson (Aurora Campus)
VBC STAFF, Jan 1, 2017 Aurora Campus Full‐Time Staff: (2) Travis Fleming, David Wood El Camino Campus Full‐Time Staff: (1) Josue Valdez Sugar Grove Campus Full‐Time Staff: (4) Jeremy Anderson, Mario Arindaeng, Steve Lombardo, Monica Williams Sugar Grove Campus Part‐Time Staff: (2) Tim Badal, McGuire Indian Creek Campus Full‐Time Staff: (1) Phil Chapman Catalyst / All Campus Leadership & Support: (3) Keith Duff, Missy Kirkland, Stephanie Beattie
27
Why Multi Site? What is a multi‐site church?
It is one church in multiple locations or sites. There are many different ways to do this. The main idea is that all locations share a
common mission, leadership, budget and governing board.
How is a multi‐site church different from a church plant?
If the new location has a mission, budget, leadership or governing board that is different from the original location, then that is a
new church plant. A multi‐site church is one church in different locations; a church plant is a brand new church (i.e., two churches
in two different locations).
Why not a church plant?
Both approaches are good and are in line with the biblical value of multiplication (the function). The form that this function takes
changes from time to time and location to location.
Because the biblical value is multiplication or reaching more people with the gospel, evangelism should be the dominant
motivating factor in either launching a new site or planting a new church (see the book of Acts).
Here are some advantages of taking a multi‐site approach:
Shared leadership: the strength of the first site in terms of mission, leadership, and culture makes the new site stronger from day
one. Shared resources: the processes for message planning, leadership training, communication, budget, etc., give the new
location a jump start.
Shared commitment: the commitment of an established congregation in prayer, financial resources and relationships provides a
mature base that is not as available to a smaller, independent church plant.
Strong reputation: those considering church may have some knowledge of Village Bible Church that gives them some confidence
in checking out the site near them.
Why is Village Bible Church launching sites?
Our mission has kept us continually addressing ways to reach our community. Throughout the expansion of our SG Campus there
has been a sense that we don’t want to simply build a larger and larger campus. We want to reach people where they live, not
necessarily bring them all to one large campus. We want to reach our friends and neighbors. One way many churches are
expanding their reach is by opening new locations or sites in specific neighborhoods or areas. We think this is a wise way to reach
more people and are starting to move toward becoming one church with multiple locations.
What’s the connection between sites?
The sites share staff, resources, teaching, and ministries. Each campus will develop its unique identity over time, but will be
directed by Village Bible Church’s mission, values and leadership.
What about other churches?
Our desire to move into different communities is not meant to compete with local churches. We have enjoyed a positive
relationship with many churches and plan on that continuing. We celebrate what God is already doing in local churches and don’t
want to detract from that in any way. Our campuses will simply create other avenues to reach people and impact the city.
Ultimately, we want to reach folks who are not already enfolded into a community of faith.
28
History to VBC Multi Site The Adoption Model:
In 2008 VBC Sugar Grove was approached by two churches in our area seeking direction for their collective futures. After long
discussions and prayer it was determined that the best direction moving forward was to adopt these two independent churches
into the Village Bible Church Family. Adoption was a word that carried great significance and meaning. As the adoptive parent,
Village Bible Church Sugar Grove assumed the role and responsibility of bringing health and vitality to these two struggling
congregations. This has been seen over these last several years in the following ways.
Staff Resources
Leadership oversight
Ministry collaboration
Seeding campuses with ministry materials and personnel
Financial support
Over the years we have seen our family of campuses grow closer together than we could have imagined. It seems like in a family
adoption of a child that the campuses we adopted in the past are “just like one of our own”. To that end the elders see the need
to strengthen the idea of one church in four campuses. This will involve continuing all that we are doing already, but also finding
greater ways to communicate and minister in a way that will strengthen our unity in the days to come.
29
The Bible talks a lot about something called “first fruits.” If something is important, we should do it first. Some of you may have
your priority financial items taken right out of your paycheck – maybe 401(k), savings, income tax…. You automate them because
they are important – you want to make sure that they are taken care of right away.
Here at Village Bible Church, we’re so grateful for the generosity of so many people who financially support the mission and vision
of the church. This idea of making the important automatic applies to giving as well. We want to be generous as well as be wise,
so in addition to saving for a 401(k) automatically, I would like to encourage you to give automatically also.
We’ve set up our website in such a way that you can create a profile and set up regular, recurring contributions. Online giving is
safe, secure and free. It’s a great way to be intentional about honoring God and being generous. Many of you give via the offering
boxes in the sanctuary and that’s great – you can keep doing that. But I want to challenge you to automate it because it’s important.
Would you be willing to set up an online giving profile at villagebible.org/give and automate the important? Not only will you not
have to bring a checkbook to church, you’ll help us maintain ministries for your family during all seasons of the year.
Jump in. Automate what’s important.
Your Pastor and Friend,
p.s. To sign up, visit www.villagebible.org/give
30
