2014 Financial Report
Chief Financial Officer Ron Thigpenn’s financial report showed increases of more than $400,000 in extension tithes, nearly $600,000 in net operating income, and $12.9 million in net assets.
“2013 was a very good year as we saw an increase in net income and a reduction of troubled assets, which has us well positioned for 2014 and beyond,” said Ron in a video report on the final day of the 2014 convention.
The upswing in tithes from $38.1 million in 2012 to $38.5 million last year marked the third consecutive increase after two years of decline.
In addition, net assets rose from $5.6 million to $18.5 million, including Foursquare Foundation holdings more than doubling from $8 million to $16.8 million.
Investment income remained strong in 2013, rising from $20.4 million to $22.7 million.
The investment portfolio dipped from $187 million to $179 million, which Ron said reflected several investments. Among them were a senior living center in Portland, Ore., and a $6 million reduction in its credit line that was later restored.
One of the most encouraging fiscal developments came from a significant reduction in problem loans. Ron credited that to Foursquare Financial Solutions (FFS) helping churches develop comprehensive plans to address financial issues.
The outstanding amount of delinquent loans shrank last year from $25.4 million, or 28.3 percent of the portfolio, to $5.8 million, or 6.7 percent of the portfolio. Outside loans were also reduced from $16.8 million to $14.3 million.
Core operations—National Church Office (NCO), Foursquare Missions International (FMI) and administration—and aligned businesses (primary loan and insurance departments) declined slightly in 2013, but the $2.4 million of net income was only $100,000 lower than 2012.
Core ministry expenses rose from $39.5 million in 2011 to $41.7 million last year, but Ron said that reflects investments in such items as Hispanic ministries, Life Pacific College (also known as LIFE Bible college), local districts and church planting.
Net operating income rose from $238,199 to $825,560 last year, although Ron said the increase reflects the sale of property to satisfy an outstanding loan balance.