Unification: Summary of Alternative Futures

One of the vital reasons to consider unification is the idea that collectively we can build and achieve more together.  There is also a practical and critically important financial motivation.  As presented at the 2025 Annual Meeting, Temple Sinai will operate in fiscal 2025-26 with a budget that includes a deficit of approximately $130,000, after taking into account a significant endowment draw of approximately 5.5%, necessitating the congregation to draw on our cash reserves.   With the reality of our financial picture and operating budgets for the last 3-5 years, it is clear we need a fundamental change to our operations, either through extensive cost reductions, or alternative revenue sources.  Over the last few years, COVID-related support from the government has helped make up our shortfall; that support has now ended.  Despite the generosity of our members, and attention to cost containment, our expenses continue to grow at a rate that outpaces our revenue.

Here are some of the options that have been and will be considered:

1. Endowment or Capital Campaign

A large portion of Temple Sinai’s operating budget, as with many non-profits, comes from a draw on our endowment.  In some ways, an endowment is like a trust, or a regulated bank account, from which the temple can remove a certain amount each year to support annual operations.   Ideally, an organization will draw no more than 5% per year from an endowment, which allows the principle to grow over time from returns, creating stability for the organization.  We have been unable to stay below that threshold for several years, limiting its growth and straining the efficacy of the endowment. Temple Sinai’s endowment is currently a little under $5 million.  In order to make up for our current operating deficit, and to provide some cushion for operational and inflation driven growth, Temple Sinai would need to raise at least $6 Million in additional endowment to support annual operations and a “rainy-day-fund” for building needs and upkeep.  The primary donors for a congregational endowment campaign are the members of the congregation – us.  Our last Campaign, ending in 2013 raised approximately $3M, which was paid over time (including through planned giving such as bequests).  Currently, we have approximately 200 fewer member families than we did at that time.  (For perspective, $6M would be an average of about $10,000 per current member household.)  Given past giving trends from our congregation and reduced membership numbers, it will be a huge challenge for our congregation to complete a campaign of this magnitude in a relatively short time.

2. Mandatory Pledge Minimums

As an alternative or complement to an endowment campaign, where some congregants give a small amount, and other congregants give significant figure gifts, is to introduce something like a mandatory minimum pledge increase.  In other words, we would ask each and every member family to increase their total pledge or philanthropic contribution to Temple Sinai by either a fixed percentage or dollar amount, every year, with a number of options for how it would be implemented.  For example, if the mandatory minimum increase is set at $250 and a household currently pledges or donates a total of $2500 each year to Temple Sinai, they would be asked to increase that amount to $2,750.  However, if a household currently chooses to pledge or donate $100.00 per year to Temple Sinai, that household would have to contribute $350.00 per year.  This idea of an annual mandatory minimum increase for each and every household is contrary to many of the values Temple Sinai holds dear – the ability to welcome all regardless of capacity, the ability to include, and the pledge system itself.

3. Expense Reduction

The leadership of Temple Sinai has worked hard to maintain costs.  As one example, many members will recall a reduction from three clergy to two clergy in 2020.  Each year, our Finance Committee carefully considers the budget necessary to run Temple Sinai, and how to be able to control expenses.   The leadership has been very conservative, and there is very little flexibility in our budget.  The remaining wiggle room in our budget, apart from drastic cuts, is to reduce things like postage for ChaiLights. We can not “cut our way out of the deficit” without either a) significant personnel changes or b) a move to a much smaller rental facility.  Our clergy and professional staff are already quite small and work very hard.  Making professional changes would change the feel of our congregation.  Similarly, the cost to appropriately “build-out” a rental space that could maintain the “Sinai experience” of our functional sanctuary, kitchen, and religious school (at a minimum), would require a significant enough portion of our existing funds that it would not provide a long-term fix.