2026 Revised Proposed Budget Information

Dear FBC Members,

We are writing to share an important update on our financial position and to invite your partnership in planning for the year ahead.

For many years, the church has operated with a simple and effective approach: if we received pledges equal to or greater than 80% of the upcoming year’s contributed revenue budget line item, we would move forward and adopt that budget. This worked well when our revenues consistently met or exceeded expectations and when we were able to build carryover reserves.

Over the past two years, however, our financial picture has changed. With a full staff in place, rising costs for insurance and utilities, and the realities of maintaining an aging facility while expanding our work in the community, our expenses have increased meaningfully. While giving has increased slightly in recent years, it has not kept pace with the growth in expenses. As a result, we have operated at a deficit and have needed to draw from our carryover funds. Please see the graphs following this letter.

This year, pledges declined significantly to $1,057,042, which further highlighted the growing gap between our budget and the level of committed support. The trend is clear when looking at recent years: budgets have steadily increased, while pledges have remained relatively flat. This gap means that the long-standing 80% pledge threshold is no longer a reliable indicator of financial sustainability. Instead, prior year actual income appears to be a more dependable guide as we plan ahead. It also explains why we have not yet adopted the current year’s budget.

Given this reality, we believe it is necessary to adjust our approach. In the short term, we asked committees and councils to review and reduce their individual budgets. The Finance Committee has reviewed and endorsed the revisions. Although the committee did not mandate specified cuts, the result includes no increases in personnel, reductions in denominational and other mission support, as well as reductions across areas such as youth, children, and music.  Please click here to view the Revised Proposed Budget alongside the Proposed Budget.

Looking ahead, we are committed to a deeper evaluation of our overall budget to establish a more sustainable path forward, one that does not depend on the use of carryover funds. Based on our current trajectory, this year’s budget will likely end in a deficit, requiring us to again draw from those reserves.

We hope the church will respond with increased giving throughout 2026 to help us meet this Revised Proposed Budget. Your continued generosity is essential as we work to align our resources with our mission in a responsible and sustainable way.

Our goal is to ensure the long-term health of the church while continuing to serve our congregation and community faithfully.

The Church will vote on adopting the Revised Proposed Budget at the Church  Conference on April 29 at 6:15 pm, in person and by ZOOM.  Use this link to connect by ZOOM.  This letter and supporting documents are posted in the Members Only Section of the FBCR website.

Thank you for your continued commitment to the FBC Raleigh. We are grateful for your faithfulness and partnership.

Faithfully,
The Finance Committee