Metropolitan Community Churches

Board of Administration Conference Call

May 25, 2007

 

In Attendance:                                                              Absent:

 

Rev Jeff Miner (Chair)                                                    Stephen Harte

Marsha Warren (Treasurer and Vice-Chair)

Julie Krueger (Secretary)

John Vespa

Barb Crabtree

Marvin Bagwell

 

In Attendance:

 

Rev Dr Cindi Love, Executive Director

Rev Elder Nancy Wilson, Moderator (for part of the call)

Connie Meadows, Assistant to the Moderator

 

1.                  Opening Prayers and Sharing

 

The meeting was opened in prayer followed by a brief time of sharing.

 

2.                  Minutes of Last Meeting

 

The minutes of the last Board meetings will be circulated for approval.

 

3.                  Resource Development Report

 

The Board discussed a report it had requested from Rev. Elder Lillie Brock regarding resource development.  The report focused on: a) Creating a Life That Matters, b) TAP Online and c) other certifications.  The Board concluded that good progress is being made and expressed its thanks.

 

4.                  Financial Review

 

Financial reports were emailed out earlier in the week.  Cash flow is extremely tight do to the upfront costs incurred for General Conference.  The Executive Director indicated that good progress was being made on the JOPC tax returns, but that an extension would be needed because we still are gathering various required data.  

 

We now have confirmation that Martina Navratilova will be the honored guest at a donor development reception hosted by Merrill Lynch on our behalf at the US Open (August 27-September 7, 2007).  She has agreed to donate a lesson, conduct a tennis clinic and sit with key donors in a celebrity box.  Mitchell Gold plans to donate a weekend of shopping at his new store in New York for the winners of a drawing that we will have—the drawing will include the celebrity events with Martina and the weekend of shopping ($7500 value), two American airline tickets and a hotel room.  Rfamilyvacations has donated a cruise.  Conference Direct has donated a spa session and the Fairmont in Acapulco has donated a three day stay.  Rev. Elder Diane Fisher and her partner have donated a trip to their home in Provincetown.

 

5.                  Board of Pensions Meeting

 

Rev Elder Nancy Wilson, Barb Crabtree, Steve Marlowe, Bill Hooper and Rev. Dr. Cindi Love participated in a Board of Pensions meeting.  The reported their observations and a time of discussion followed. 

 

6.                  Key Funding Initiatives

 

The net proceeds from the building sale were 4,475,956, less $600,000 in repayment of loans, less $40,000 in repayments to operating expenses, leaving $3,835,956 for investment or other uses.  This exceeds the goal set by the Board by $383,956.   After much discussion, the Board agreed to the following strategy for disbursement of funds:

 

1) The Board has been researching various investment scenarios for the approximate $3.8 million proceeds received from the sale of the Los Angeles property.  The Board unanimously approved the investment strategy proposed by Merrill Lynch, dated 5/15/07, with the one change of reallocating $415,000 proportionally from: a) Fixed Income Mutual Funds, b) Equities Mutual Funds, and c) Alternative Investments to the 7-day Paper cash account.

 

2) The Board unanimously authorized the Executive Director to repay MCC’s loans from Circle of Light MCC and Rev. Charlie Arehart.  The Board wishes to express its deepest gratitude to Circle of Light and Rev. Arehart for their generosity in supporting MCC prior to sell of the West Hollywood property.   The Board also unanimously approved a $5,000 donation to Pacific School of Religion as part of our ongoing partnership with them.

 

3) In order to lay a solid foundation for future financial growth, the Board unanimously agreed to fund the following from the cash account over a 24 month period:

-          $60K for resource development.

-          $240K for fund development.

-          $100K for staff support for Executive Director and Fund Development Director.

-          Up to $115K to restore and reset cash flow to a proper balance now that the West Hollywood property is sold and all long-term debt is being repaid.  

In the long-term, the Board wants to have reserves equal to three months of operating at all times.

 

7.                  Tithing Discussion

 

A lengthy discussion was held regarding whether to withdraw the proposed extension of the freeze on the 14% tithe level paid by MCC member congregations.  If the freeze is allowed to lapse, the tithe amount would move to 13% in 2008.  The Board voted 5 to 1 to withdraw the proposal to extend and go to 13% beginning in 2008, with the dissenting vote belonging to Barb Crabtree.  Although the Board recognizes that the MCC Movement needs significantly more revenue than a 13% tithe would generate, the Board believes that the voluntary generosity of MCC congregations will more than compensate for any shortfall in mandatory tithes.  We are taking a step of faith in an effort to cultivate a culture of abundance, trust, and generosity.

 

8.                  Senior Housing Agreement

 

The Executive Director reported on the comments generated by legal counsel’s review of the Affirmative Equities contract.  Consistent with those comments, the Board authorized the Executive Director to tell Affirmative Equities that we are inclined to move to the next step with them, provided they agree to our conditions regarding completing only one project, then assessing the success of this project before committing to a second project.  The Board asked them to submit a revised set of agreements for our approval.  Meanwhile, the Board concluded that they wanted a second legal review, at a more detailed level.  The Board authorized the Executive Director to have our regular counsel (Daily and Heft) review of the contract.  The Board asked that counsel review the contract with a view toward ensuring there cannot be any piercing of the corporate veil and that MCC corporate is insulated from financially responsibility for the transaction.

 

9.                  Budget Discussion

 

Jeff reported on his observations from attending the Elder’s Meeting earlier in May in Abilene, Texas.  He indicated that the Elders have been working hard on their 2008 Work Plans, with the goal of creating greater synergies and of moving toward an “outcome based” approach.  This is a challenging, cumbersome process because it is a new way of working for them.  Over time, this will cause the Elder’s work for MCC to be much more productive and aligned. 

 

Jeff indicated that he led a discussion at the Elders Meeting about budget strategy.  The Elders were unanimous in their willingness to move toward a more strategic approach to budgeting in which priority areas would receive more funding, even though this means other areas would receive less.  Although they still need some time to develop their thoughts more fully, preliminarily the Elders would suggest that we focus on three strategic emphases in the 2008 budget:

 

-Helping our local churches develop more focused, intentional strategies for spiritual formation (on the theory that this is the engine that drives our three key objectives: growth, generosity, and justice).

-Hiring fund development staff, so that more resources will be available in future budget cycles.

-Leadership development (especially strategies for expanding the pool of qualified clergy).

 

The Board will meet with the Elders in September to work on the next phase of the budget.

 

10.        Meeting Adjourned

 

The meeting was closed in prayer and adjourned.