WEBVTT 1 00:00:06.623 --> 00:00:08.423 Welcome to Mission Works 2 00:00:08.423 --> 00:00:09.923 Thanks to Donors. 3 00:00:09.923 --> 00:00:11.223 I'm Dale Meyer. 4 00:00:11.223 --> 00:00:16.623 I've said it often and I know that you believe it. Concordia Seminary 5 00:00:16.623 --> 00:00:17.923 is a mission of our Lord 6 00:00:17.923 --> 00:00:21.323 Jesus Christ. Thanks to you donors 7 00:00:21.323 --> 00:00:23.323 this mission is moving forward. 8 00:00:23.323 --> 00:00:27.823 Today, I would like to share with you the various financial ways you 9 00:00:27.823 --> 00:00:31.023 support our Seminary. With us is Mr. 10 00:00:31.023 --> 00:00:34.223 Chad Cattoor Chief Financial Officer of Concordia 11 00:00:34.223 --> 00:00:37.223 Seminary. Welcome Chad. Thank you, Dale. 12 00:00:37.223 --> 00:00:39.123 Glad to have you here at the Concordia Seminary 13 00:00:39.123 --> 00:00:39.923 Studio. 14 00:00:39.923 --> 00:00:44.123 People may not know it, but Concordia Seminary in the world of 15 00:00:44.123 --> 00:00:46.123 seminaries is a very large Seminary. 16 00:00:47.023 --> 00:00:50.523 So I assume we have a pretty good-sized budget, 17 00:00:50.523 --> 00:00:51.623 you know. What is it? 18 00:00:51.623 --> 00:00:55.223 Our budget roughly twenty-four million dollars annually. 24 million 19 00:00:55.223 --> 00:01:01.823 dollars. You brought with you a pie chart that shows where that 24 20 00:01:01.823 --> 00:01:03.323 million dollars comes from. Yes. 21 00:01:03.323 --> 00:01:07.723 Could you talk us through the big pieces of the pie? 22 00:01:07.723 --> 00:01:10.623 And we got a printed copy here in front of us. 23 00:01:10.623 --> 00:01:15.423 And then the audience can see this on the screen, but there is one big 24 00:01:15.423 --> 00:01:17.623 piece of the pie called gift income. 25 00:01:17.623 --> 00:01:18.723 What is what is that? 26 00:01:18.723 --> 00:01:19.323 Correct. 27 00:01:19.323 --> 00:01:24.423 So, if you break our total operating budget into 4 key categories, it's 28 00:01:24.423 --> 00:01:28.523 made up of gift, income tuition and academic fees, auxiliary 29 00:01:28.523 --> 00:01:31.723 enterprises and investment and trust return. 30 00:01:32.723 --> 00:01:36.823 Now, just looking at the chart, you know, roughly 53% comes from our 31 00:01:36.823 --> 00:01:41.423 gift income, which in the higher in the industry of 32 00:01:41.423 --> 00:01:45.123 higher education, it's almost unheard of because the most higher 33 00:01:45.123 --> 00:01:48.223 education institutions, they are tuition driven. 34 00:01:48.223 --> 00:01:51.323 That's a great point in and could you say it again 35 00:01:51.323 --> 00:01:56.323 because people will assume he had students pay tuition or not, we have 36 00:01:56.323 --> 00:01:59.423 guaranteed tuition but that bit tuition is a source of income, 37 00:01:59.423 --> 00:02:06.023 it's not. Not for us. You know in most higher education institutions, you have their 38 00:02:06.023 --> 00:02:09.123 tuition and academic fees that they charge and the auxiliary 39 00:02:09.123 --> 00:02:09.823 enterprises 40 00:02:09.823 --> 00:02:12.523 you know, the money that they're getting from food service and 41 00:02:12.523 --> 00:02:16.023 students living on campus and dormitories and apartments, and things 42 00:02:16.023 --> 00:02:16.223 like that. 43 00:02:16.223 --> 00:02:20.923 A very large percentage of their total income is, made up of the 44 00:02:20.923 --> 00:02:24.623 tuition and the auxiliaries and we are the exact opposite. 45 00:02:24.623 --> 00:02:28.923 So that's why during the Great Recession, a lot of schools were in 46 00:02:28.923 --> 00:02:32.623 trouble because tuition went down, enrollments went down. 47 00:02:32.623 --> 00:02:41.523 Exactly. So 53% is gift income and that that's money that comes in to every 48 00:02:41.523 --> 00:02:43.723 month every year kind of it's cash, 49 00:02:43.723 --> 00:02:44.023 right? 50 00:02:44.023 --> 00:02:44.623 Exactly. 51 00:02:44.623 --> 00:02:48.223 That's basically funds are falling into the institution from 52 00:02:48.223 --> 00:02:54.423 individuals and agencies, districts and congregations and other service 53 00:02:54.423 --> 00:02:55.623 organizations within the church. 54 00:02:55.623 --> 00:02:56.023 Okay 55 00:02:56.023 --> 00:03:00.123 the next biggest pieces of pie is investment and Trust return. 56 00:03:00.123 --> 00:03:02.123 What does that mean for a Layman 57 00:03:02.123 --> 00:03:02.523 like me? 58 00:03:02.523 --> 00:03:03.423 That's a big one. 59 00:03:03.423 --> 00:03:09.723 So when we started the Generations Campaign, our goal was to increase 60 00:03:09.723 --> 00:03:11.223 the seminaries endowment. 61 00:03:11.223 --> 00:03:16.223 And the main purpose of that was, we are anticipating knowing that we 62 00:03:16.223 --> 00:03:19.323 have an aging donor base that are gift income over time 63 00:03:19.323 --> 00:03:25.423 is most likely going to go down because you're as folks mature, and 64 00:03:25.423 --> 00:03:29.223 those estate gifts come into the institution those aren't 65 00:03:29.223 --> 00:03:30.523 going to continue to come in. 66 00:03:30.523 --> 00:03:31.823 So we're going to need to basically figure out 67 00:03:32.623 --> 00:03:35.323 how we supplement the gift income number 68 00:03:35.323 --> 00:03:38.923 going down, which means basically have to increase our 69 00:03:38.923 --> 00:03:39.323 endowment. 70 00:03:39.323 --> 00:03:42.223 So we can increase that investment and 71 00:03:42.223 --> 00:03:44.923 trust return number for the long term. And when we talk about 72 00:03:44.923 --> 00:03:49.423 endowments, we're not talking about just one endowment it's actually, a 73 00:03:49.423 --> 00:03:54.623 pool of many hundred of endowments that have been given. Correct? 74 00:03:54.623 --> 00:03:57.323 Yes. The majority of the endowments are 75 00:03:57.323 --> 00:03:59.223 used to for student aid. 76 00:03:59.223 --> 00:04:03.523 You have a variety that are for faculty chairs or program support. 77 00:04:03.523 --> 00:04:06.223 We have a food bank in town that where the income off of the 78 00:04:06.223 --> 00:04:09.923 endowment supports to go towards the operation of the food bank. 79 00:04:09.923 --> 00:04:10.423 Okay 80 00:04:10.423 --> 00:04:14.923 then the next piece of the pie as, as I'm going around, counterclockwise, 81 00:04:14.923 --> 00:04:16.823 service, fees, and other revenues. 82 00:04:16.823 --> 00:04:20.423 You said that at a normal institution of Higher Learning, that's, 83 00:04:20.423 --> 00:04:24.123 that's a big amount, dormitory fees, and so on, but what is it for us? 84 00:04:24.123 --> 00:04:25.323 I mean, it's 7%. 85 00:04:25.323 --> 00:04:27.623 How come it's so small? We have 86 00:04:28.923 --> 00:04:32.323 you know a very small number of folks, actually living on campus. 87 00:04:32.323 --> 00:04:35.623 So if you look at the population of the of the individuals in the 88 00:04:35.623 --> 00:04:40.623 dormitories, your maybe talking 40-50 guys, and for the apartments know 89 00:04:40.623 --> 00:04:42.123 that there's another another 70. 90 00:04:42.123 --> 00:04:45.823 So that's a relatively insignificant number for us. 91 00:04:45.823 --> 00:04:50.023 But that's basically that the housing and, you know, the money that 92 00:04:50.023 --> 00:04:52.823 comes into the institution for Food Service, you know, guys that are 93 00:04:52.823 --> 00:04:55.323 on the board things like that, which are really small. 94 00:04:55.323 --> 00:04:59.823 So then the last piece of pie, net, tuition and fees. 95 00:05:01.223 --> 00:05:02.523 Our students don't 96 00:05:03.423 --> 00:05:07.123 have to pay tuition themselves it comes through donors, explain that 97 00:05:07.123 --> 00:05:07.523 one to me? 98 00:05:07.523 --> 00:05:12.223 So, the 14% is basically, the net tuition, that we anticipate 99 00:05:12.223 --> 00:05:17.023 to collect from the student cuz that's what's left after we have 100 00:05:17.023 --> 00:05:22.023 applied, all the adopt a student funds outside, scholarship priority 101 00:05:22.023 --> 00:05:23.423 endowments, things like that. 102 00:05:23.423 --> 00:05:28.123 And basically, that 14% is actually being covered, by mostly districts and 103 00:05:28.123 --> 00:05:32.323 congregations or it's offset by funds being sent to the student 104 00:05:32.323 --> 00:05:35.923 directly and they use that those funds are applied to the 105 00:05:35.923 --> 00:05:37.223 student account. Okay 106 00:05:37.223 --> 00:05:39.723 my nose is sniffing something. 107 00:05:39.723 --> 00:05:45.923 So, that means that when we look at this pie, a big part of the pie 108 00:05:45.923 --> 00:05:47.923 including net tuition 109 00:05:49.123 --> 00:05:53.923 is really donor given over 90%. Over 90%. 110 00:05:53.923 --> 00:05:54.323 Wow. 111 00:05:54.323 --> 00:05:58.323 Over 90% of that 24 million dollars 112 00:05:58.323 --> 00:06:01.923 we need each year comes from our faithful donors. 113 00:06:01.923 --> 00:06:02.723 That's correct. 114 00:06:02.723 --> 00:06:05.523 You know Chad this is interesting. 115 00:06:07.523 --> 00:06:11.123 Could I impose upon you to come back for another episode of 116 00:06:11.123 --> 00:06:11.723 Mission Works? 117 00:06:11.723 --> 00:06:18.723 Absolutely. I hate to give up my star status to you but but I think 118 00:06:18.723 --> 00:06:22.623 you've heard it so I invite you to join us for our next episode of 119 00:06:22.623 --> 00:06:23.223 Mission Works 120 00:06:23.223 --> 00:06:26.723 Thanks to Donors. And then we'll get more information about how your 121 00:06:26.723 --> 00:06:30.823 gifts come in to Concordia Seminary and help move the mission of our 122 00:06:30.823 --> 00:06:32.023 Lord, Jesus forward. 123 00:06:32.023 --> 00:06:33.723 Thanks for being with us today. 124 00:06:33.723 --> 00:06:36.523 Mission Works, Thanks to Donors.