The audited financial statements for fiscal year 2015 were posted on the Sovereign Grace website last week. Here are some comparisons between the 2011 statement and the 2015 statement. The financial fall, that followed the ethical fall, has been ever so great.
Total Assets Sharply Reduced
- The end of fiscal year 2011, Sovereign Grace Ministries had total assets of $6,234,757. That is the year The Documents came out and C.J. Mahaney angrily left Covenant Life Church never to return.
- The end of fiscal year 2015, Sovereign Grace Churches, Inc. (its new name) had total assets of $2,583,506.
- That is a loss of $3,651,251 in four years. These assets had to be liquated in order to remain solvent.
The Sovereign Grace Facility Sits Empty
- In 2002, SGM moved into a brand new state of the art 17,125 square foot facility in the 90,000 square foot expansion of Covenant Life Church. SGM paid CLC 1.9 million to lease this facility for 99 consecutive years.
- $1,506,363 of the $2,583,506 in total assets mentioned above are tied up in this facility and equipment.
- The facility has sat empty since SGM abruptly relocated their office to Louisville, KY in August 2012 citing a lower cost of living as the primary reason for the move. This was a deceitful misrepresentation.
Deficit Spending Continues Though Budgets Have Been Slashed
- 2011 surplus of $138,605. Budget of $6,623.168.
- 2012 deficit of $1,231,370. Budget of $5,933.929.
- 2013 deficit of $1,637,772. Budget of $4,558,398
- 2014 deficit of $372,142. Budget of $2,910,648.
- 2015 deficit of $213,979. Budget of $2,554,693.
- They have cut the budget for 2016 by $117,993. It is down to $2,436,700. The budget is found here on the last page of the Council of Elders Meeting Minutes
Total Deficit and Budget Cuts from 2011 to 2015
- Over the past 4 years, deficit spending has totaled $3,455,263.
- Over the past 4 years, the budget has been slashed by 61% or $4,068,475
Giving Continues to Decline
- Contributions in 2011 totaled $4,766,259
- Contributions in 2015 totaled $1,567,945.
- That is a reduction of $3,198,314 or 67%.
- Over the last four years, approximately 100 pastors, 40 churches and half the people in Sovereign Grace churches have left the denomination. So have millions of dollars in annual giving.
Cash on Hand
- As of August 31, 2011, SGM had cash, cash equivalents and investments of $2,542,367.
- As of August 31, 2015, SGC had cash, cash equivalents and investments of $755,749.
- That means $1,7866.18 in reserves have been used up over the past 4 years.
Sources of Revenue
- 76% of all revenues come from Sovereign Grace churches and 24% from individual contributions.
- The key to raising revenues is adopting churches. That is the main reason, Mark Prater, the Executive Committee and the Leadership Team are in hot pursuit of adopting new churches.
- All churches joining SGCI must commit to giving 10% of their annual general fund as stated in their Book of Church Order, p. 84.
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