Addressing New York Yearly Meeting's

Current Financial Condition

November 2013

As is the case for many non-profit organizations, New York Yearly Meeting is experiencing financial strain as a result of the worldwide economic crisis. In the case of NYYM this strain has taken the form of a reduction in Covenant Donations from Monthly Meetings. Prior to the economic crisis, Covenant Donations had composed 90%+ of the Yearly Meeting's annual revenue. Covenant Donations grew steadily from 2005 through 2008 when they reached $479,000 and represented 92% of revenue. Since 2009 Covenant Donations have steadily decreased to $431,000 for 2014, a decrease of 10%.
During the same time period NYYM expenditures have remained relatively constant, from $510,000 in 2005 to $515,000 in 2013. Applying an inflation rate of 2% to expenditures from 2005 to 2013 results in projected 2013 expenditures of more than $600,000. The 2013 expenditures are as low as they are because NYYM has controlled expenditures during the last nine years. Controlling expenditures has taken many forms, from renting less expensive office space to eliminating pay raises for the Yearly Meeting staff.
From this analysis it is clear that the best near-term response to the financial strain is to focus the energies of the Yearly Meeting on increasing revenue instead of cutting expenditures further. It’s the judgment of Friends gathered at Yearly Meeting Summer Sessions, Budget Saturday, and Fall Sessions that this is the best approach. Some of the 2014 expenditures can be paid from funds available to the Yearly Meeting trustees, thereby providing time for this approach to bear fruit.
After nine years of controlling expenditures, further expenditure reductions are likely to result in structural changes to the Yearly Meeting. The most damaging of these changes would be expenditure reductions that then result in reduced revenue. For example, one monthly meeting made their commitment to a 2014 Covenant Donation with reservations because of expenditure reductions to one of the key programs of the Yearly Meeting. Further expenditure reductions could very well result in lower revenue. Expenditure reductions in an organization such as New York Yearly Meeting, that is heavily dependent on the work of volunteers, can cripple morale and the willingness of volunteers to continue their participation. Lower morale and participation typically result in lower revenue.
The work of the Priorities Working Group is creating a platform to rethink the vision of the Yearly Meeting, thereby providing more commitment and energy. The Development Committee is appealing to individual Friends to increase their financial commitment to the work of the Yearly Meeting. Both of these initiatives would be undermined by further expenditure reductions.

Matt Scanlon, clerk, NYYM Financial Services