Church Finances

St. Paul's Finances in Retrospect

Contributed by Harald Bohne

In the 1960's when Yorkville became a magnet and haven for "Hippie" youth, St Paul's began to provide a controversial ministry which offered spiritual and physical help to hundreds of young people who had lost their way. At the same time, however, many of the old adherents and members of St Pauls were drifting away to suburban churches, and the financial resources of the congregation began to deteriorate to the point where the monthly loss exceeded $1,500.

During the early 1970's, a planning and development committee studied various alternatives which might succeed in bridging the financial gap which had developed. Much consideration was given to the congregation s future. Should it join with any of the neighbouring churches, or should it collaborate with a developer in a way in which later St Andrew's, Little Trinity, and the Church of the Redeemer insured their future? Negotiations were carried out with developers, co-operative housing authorities and a foundation which planned the renovation of the sanctuary into a concert hall and the constructions of a new place of worship in the old Sunday School Annex.

The arrival of the Rev J Murray Maclnnes in the late sixties had brought new vigour to the congregation's determination to serve the community in as many ways as possible. The congregation had dwindled to a nucleus of no more than 35 rather stubborn and determined souls who decided that there might be a chance of survival in a plan to form a community centre which would provide space and support to several non-profit organizations dedicated to education, the arts and political action. As a result, the St Paul's Centre was founded in 1974. Rental income from the member groups and from the use of the sanctuary and Sunday School for concerts, theatre performances and assemblies supplemented contributions made by the congregation. Through hard work and tenacity, this arrangement survived for seven years. The congregation almost became an integral part of the theatrical world which had enfolded the sanctuary, and some of its members almost expected to be met on Sunday mornings by new surprises such as wildly abstract stage settings taking up most of the area normally used for worship, or leaving the organ hidden away behind banks of speakers ready for an evening rock concert. In addition, the heating system played its cruel tricks, sounding wildly dissatisfied with its state of repair during the most quiet moments of meditation and musical interlude.

Yet all efforts to make the St Paul's Centre work and maintain the deteriorating building on Avenue Road had to fail in the end, when heating bills and the cost of repairs and maintenance further skyrocketed and caused deficits of over $1,000 a month. The job of treasurer at the time required special talents involving frequent balancing acts of a precarious nature. Between collecting rents from delinquent users of the building (often "dead broke" themselves) and paying salaries to the staff on Friday afternoons, there was seldom a dull moment.

By 1980-81, St Paul's had come to the point where steps had to be taken to dispose of the building and find other quarters for the congregation and the Centre. In the meantime, Trinity United Church had founded its TRIM Committee and was looking for a co-operative venture similar to that which had been pioneered at St Paul's. Both congregations had similar interests and were dedicated to serving the community in which they were located, and so it was logical that the two churches, which had already collaborated in several joint activities and committees, would find common cause and fellowship together an attractive proposition.

Members of St Paul's carried out prolonged negotiations with the architectural firm of Robert Barnett which had expressed an interest in acquiring the building. Bob Barnett, a neighbour of Trinity's Bill Phipps, had a long and distinguished record in the field of conservation and could be relied on to respect the architectural and historical aspects which are part of St Paul's. He therefore was willing to enter into a covenant which would bind the new owners to preserve the existing building for at least twelve years. What remained to be achieved by the negotiations was a high enough price to enable St Paul's and Trinity to refurbish the building at Bloor and Robert Streets to permit the transfer of all St Paul's Centre groups to their new quarters. After many hours of negotiations and numerous drafts of legal documents, a successful deal was struck and the rest is history.

427 Bloor Street West — A Financial Summary

Contributed by Lorna Niebergall

In May, 1887, the original plans for a Methodist church at Trinity-St. Paul's location were developed, with the initial tenders plus land and interior finishes estimated at $64,000. Completion of the Sunday School and numerous "incidentals" brought the total cost to $130,000. Funds raised by the initial Building Committee and subsequent appeals were augmented by a mortgage of $83,000 (1897). Through diligent fund-raising, the mortgage was reduced to $40,000 by 1918, and to $15,000 in 1919. On May 19, 1920, the mortgage was burned to celebrate its having been paid off.

Subsequent renovations have caused further outlays, including debt arrangements but Trinity's first 50 years were celebrated in 1937 in a debt-free condition, with a property valued at that time at $273,000. In 1986, we find Trinity-St. Paul's United Church in good financial health with no debt, an endowment fund of $513,000 and a property evaluated in excess of $2.5 million.

The following table illustrates Trinity's growth from its 10th anniversary up to last year's budget, and attests to some of the changes in Trinity's environment as well as a remarkable consistency of priorities. (The numbers in the table are drawn from annual statements and budgets found in the archives, whose basis for preparation may not have been fully consistent; however the figures are indicative.)

TABLE - Comparative Financial Statements

 As is apparent from the preceding table, pew rents, an important source of income in the early years, disappeared; some highly flavoured correspondence in the 1910's and 1920's reflected a strong commitment to the pew rent system at that time, permitted in part by a high demand for seating space. The 1986 budget reflects the amalgamation of Trinity and St. Paul's congregations, and the income derived from the rental of the building to St. Paul's Centre at Trinity member groups, part-time users, and occasional renters, as well as the Tafelmusik Baroque Orchestra.

On the expense side, the proportion of total costs taken up by salaries has almost doubled from 1897 to 1986 (the choir salaries remain at a constant proportion of the budget) while the proportionate cost of utilities has almost tripled; with the mortgage repaid, not only does the church not have to make principal and interest payments now, but the investments in the endowment fund provide an additional source of income to help balance the budget. The comparative cost of insurance today seems excessive (at seven times the ratio of 1918) but the building is subject to more extensive usage than in early years and prevailing premium rates are high.

In spite of heavy local debt obligations in the early years, Trinity looked outside itself, paying out 20% of its total budget in 1918 to the General Missionary Society. Through the years, this approach has continued as in 1986,14% of the total budget (including M&S) will go to the Mission and Service Fund alone.

Where does Trinity-St. Paul's go financially from 1986?

The healthy state of our current financial situation yields the congregation a number of options in supporting the church's mission, as perceived at 427 Bloor Street West. While increased use of the building in recent years dictates higher maintenance and repair expenditures in order that the church can continue to maintain an effective presence in its neighbourhood, there is a continuing need to ensure that Trinity-St. Paul's addresses the congregation's and the Centre's goals, those goals having been identified through the appropriate processes, and supported by the committed energies of the Church and Centre as a whole. In addition, the recruitment of fresh talent and resources, in the form of new members and participants, is a critical priority to keep Trinity-St. Paul's a vibrant and outward-looking organization.

The Finance and Property Committee of the church, and the financial decision-makers of the Centre remain flexible to address the changing environment and circumstances in which our work is done. We continue to need the advice, encouragement and participation of the whole to use effectively the resources available to us: Keep those "cards and letters" coming in.

Figure 11A: The Rev. J. Robert Watt, BA, BD, and Mrs. Watt