NYC: Flagship Episcopal Church in Deep Financial Trouble

The vestry warned that for the past 50 years, St. Thomas Church has balanced its budget by drawing what was needed from invested funds and spending bequests as they came in, but successive treasurers have warned that this practice was unsustainable.

The church’s music program accounts for almost half of their operating budget, and 89% of the cost of running the school comes from invested funds and the annual appeal.

Despite church assets of $138 million, the vestry said it was not enough to sustain an operating budget of $14 million in 2024. “We have already cut the budget by $800,000, canceled the choir tour to the UK that was to cost $250,000, and put off nearly $4 million of capital works to the Church and Choir School building. Even with those savings, we will have to overdraw from the general endowment fund. Most of our invested funds are restricted to particular uses and to a 5% draw. Putting it simply, the money is running out and the Vestry has a responsibility to take action now rather than see the general fund completely expended.”

“We need to raise at least an additional $50 million in endowed funds or an extra $2.5 million in annual revenue to continue to operate the school in its current form. This extra revenue would need to be combined with substantial budget cuts to close the operating shortfall of $3-4 million per year.”

TEC observers note that hundreds of small churches across the country are threatened with closure as aging and dying Episcopalians fill columbarium’s and withering endowments can no longer support budgets of churches.

Several dioceses are in merger talks, with the trend seeming likely to continue.

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NYC: Flagship Episcopal Church in Deep Financial Trouble
St. Thomas, Fifth Avenue plans closure of school music program as money drains from plate, pledge and endowments

By David W. Virtue, DD
www.virtueonline.org
March 18, 2024

An ominous report put out by the vestry of the flagship St. Thomas Episcopal Church on New York city’s illustrious 5th avenue, reveals a church in long-term decline both in numbers and income, erupting in closure of its choir school and a down grading of its historic programs.

St. Thomas Fifth Avenue, built on “millionaires Row” because of its ostentatious mansions, now finds its general fund has depleted to a point of critical concern and the Vestry has advised the School Board of Trustees that the current Choir School is at risk of closure.