2010 ANNUAL REPORT TO THE CONGREGATION
LETTER FROM THE BISHOP
Dear People of Grace Cathedral, It seems to be a commonplace that the value of marginal experiences only shows itself in retrospect. During the wandering in the wilderness, the Children of Israel both pined for the security and comfort of Egypt and longed for the Promised Land. Our time of interim at Grace Cathedral has come to an end, and I couldn’t be more delighted in the outcome. We have called an outstanding new dean to serve here, and I have great confidence in the ministry you and she will do together. I am also grateful beyond words for the work during the interim of the trustees and of the Dean Search Committee, and for the staff of the cathedral, all of whom gave of themselves unstintingly and to excellent effect. But let me, even though the time past is still so fresh, give thanks for the life in the margin we have had. It has been productive in terms not only of desired outcome, but in terms of insight and the strengthening and building of bonds among us all. Thank you all for your willingness to undertake a course towards your new dean that was more fraught with uncertainty and anxiety than some other possible courses would have been. I believe that we will all look back with thankfulness on this time between, whether we fully see that reality now or not. And, whether I prove right and we see this, or not, still I say thank you from my heart to you all. Peace,
The Right Reverend Marc Handley Andrus
2010 ANNUAL REPORT TO THE CONGREGATION
LETTER FROM THE INTERIM DEAN
I began work among you as interim dean on October 1, 2009, and will conclude with my last Sunday on September 26, 2010. I learned quickly that the best traditions of Grace Cathedral are maintained by a loyal and effective staff and by you, members of the congregation, by your financial support and multiple volunteer ministries. Grace Cathedral is characterized by worship and service. The daily round of morning and evening prayer and the Holy Eucharist, culminating in our Sunday liturgies and evensong, are supported by clergy, vergers, lay readers, Eucharistic ministers, acolytes and ushers. Our splendid choir of men and boys is internationally known and continues to build its legacy with the leadership of Ben Bachmann. Our organ is under repair, on schedule, and should be restored to service by the Christmas concert season. Volunteers staff Camerata that is an essential ensemble in our ministry of music. We serve those who are unemployed or underemployed via GraceWorks. Our outreach ministries include Bayview Mission, Dinner with Grace, The Community Preschool, our partnership with St. Cyprian’s, and the labyrinth ministry, Grace After Hours. The Cathedral School for Boys is an integral and effective daily ministry to boys, grades K-8. I’m grateful especially to the clergy, staff, members of the Chapter and the trustees for their faithfulness and support of the cathedral. We are blessed with our new dean, The Rev. Canon Dr. Jane Shaw. I pray that Grace Cathedral will continue to flourish under her leadership. I thank God for you all and for our time together.
The Right Reverend Peter J. Lee
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LETTER FROM THE 8TH DEAN I write this from Oxford, surrounded by packing boxes and full of eager anticipation as I prepare to arrive in San Francisco in mid October to take up the post of Dean. I am delighted and honoured -- and feel enormously privileged -- that you have called me to lead Grace Cathedral. Thank you. You have been through a long interim period. I thank you all for your forbearance and patience as the Dean Search Committee did its careful work. Most especially I thank the cathedral staff and trustees for bearing a weighty load with such good grace and aplomb. I would like to add my own personal gratitude to Bishop Peter Lee for his steady interim leadership, as you say farewell to him at the end of this month. We wish him well in another important interim role, at General Theological Seminary, as that significant institution finds its way ahead in tough times. So many of you have written to me with your hopes for Grace Cathedral and its future. It has been immensely moving to learn how much you love the cathedral and its community, and how much you contribute to its life and well-being. As we pray together, listen to one another and continue to build relationships of trust, I have a strong sense that we will achieve very great things at Grace Cathedral, building on its already extraordinary legacy. It is often said today that people are ‘spiritual’ but not ‘religious’. This means that people are suspicious of institutional religion, but it does not make their longing for God any less. We at Grace Cathedral have so much to offer our world. People are hungry for a thoughtful and thinking faith: Grace Cathedral can nourish them in that, giving them food for the soul and mind. So many want to engage faith with the intellectual and cultural challenges of the day: through the Forum, our hosting of civic conversations and other initiatives, we can offer the resources by which to do that. There is a longing for mystery and beauty: the sacred space of Grace Cathedral, with its fine music and liturgy, provides glimpses of the glory of God all around. And people hunger for justice, to make the world a better place: we at Grace Cathedral can empower people to go out and put their faith into practice in all aspects of their lives. We have exciting times ahead. I am sorry not to be at your annual congregation meeting, but I look forward to joining you very soon. Every blessing,
Jane Shaw Dean of Grace Cathedral
2010 ANNUAL REPORT TO THE CONGREGATION
THE CATHEDRAL CONGREGATION Since our last annual meeting, the cathedral congregation has proven itself resilient, energized and responsive to the Word of God at work among us. During change and transition, in season and out, we are a strong local sign of Christ alive in the Risen Body of the baptized. Grace Cathedral is home to a vital and generous community. Our former Canon Pastor, the Reverend Mary E. Haddad, encouraged us to see the various elements of our life together as responses to the divine call to pray, grow and serve. Here is just a quick snapshot of the vast panorama of our shared experience since September 2009. —The Rev. Mark E. Stanger, Canon Precentor, Associate Pastor
Pray Our life-long conversation with God is rooted in our common prayer, especially the celebrations of Holy Eucharist and the Liturgy of the Hours. Each day of each week, small and large congregations assemble in the cathedral church to hear and respond to the Word of God, pray and sing, keep holy silence together, break bread and be sent into the world for service. Worship is our primary vocation, our first priority and our deepest delight. Sundays at 8:30 a.m., the Chapel of Grace Eucharist fills with visitors and congregation members. The Sunday Choral Eucharist at 11:00 a.m. welcomes a wide cross-section of our community. Evensong on Thursdays and Sundays attracts a faithful following. Daily Morning and Evening Prayer and weekday Eucharists are occasions of rich prayer for smaller groups. Our liturgies rely on a spirited group of volunteer laypersons and clergy. In the past year, guest preachers on Sunday morning have included the Rev. Canon Carol L. Wade, Canon Precentor of the Washington National Cathedral; the Very Rev. Peter Elliot, Dean and Rector of Christ Church Cathedral, Vancouver, British Columbia; the Very Rev. Ian S. Markham, Dean and President of Virginia Theological Seminary; and Archbishop Desmond Tutu who preached at a weekday Eucharist presided at by his daughter, the Rev. Mpho Tutu. photo courtesy of Stevie Alatorre
Music plays a central role in our prayer, and our choirs work to make the highest praise with our congregation. In 2010, the Men and Boys welcomed 9 new choristers and 4 new probationary members, and vacant positions in the men’s section were filled. In addition to offering Evensong every Thursday afternoon at 5:15 and Sunday morning Eucharist, the Men and Boys gave concerts at Christmastime and in the Spring. The Men sang at several additional Holy Day services. Camerata continued to grow, offering singing opportunities for adult volunteers from the wider community. They served Evensong on Sunday afternoons as well as the liturgies for Maundy Thursday and the Great Vigil of Easter. This year saw changes in Music Department staff. Ben Bachmann was installed Canon Director of Music. Robert Gurney served us well as Interim Assistant Director of Music. In addition to conducting Camerata, Robert accompanied the Men and Boys, played for weddings and services, and was of great support to the Music Department. This month we welcome Thomas Joyce as Assistant Director of Music. Also of great support and service has been Music Administrator Susan Hendrickson. It is an exciting time to be involved in making music at Grace Cathedral. In January, we hosted a Music that Makes Community workshop led by the All Saints Company, which gathered local worship leaders and university chaplains from around the country together to learn to teach and sing music by listening and responding, rather than from books. Our Contemplative Eucharist at 6 p.m. on Sunday evenings is flourishing. We welcome visitors and pilgrims from across the country, most recently a Journey to Adulthood Youth Group from Grace Episcopal Church in Traverse City, Michigan. The service music draws from the rich tradition of Taizé and from the Iona Community, as well as from our Hymnal, and often incorporates music that is taught by ear and sung by heart. 5
Besides the keeping of traditional and universal feasts and seasons in the year of worship––Advent, Christmas, Epiphany, Lent, Holy Week, Easter, Pentecost and beyond––Grace Cathedral always enjoys special additional liturgical celebrations. The beloved Advent Procession has inspired choral processions for All Saints/All Souls and the Epiphany. The Christmas Eve Lessons and Carols service was echoed in a service of Christmas Lessons and Carols during the twelve days of Christmas. The Royal British Legion Service of Remembrance in November was complemented by the annual Requiem Eucharist with choirs and orchestra. The citywide interfaith Thanksgiving Day service held this year at Calvary Presbyterian drew a good number of Grace Cathedral worshipers. In January, Bishop Lee helped us solemnly mark the 100year anniversary of the laying of the cathedral’s cornerstone. Everyone delighted in the annual visit of Lion Dancers to welcome Mardi Gras and the Lunar New Year before Lent began, as well as solemn liturgical dancers of Omega West for Palm Sunday. A short joyful service accompanied the blessing and raising of new tower banners, refurbished thanks to the generosity of Todd Hochstatt. A new additional Easter Vigil service was created for families with young children. Ben Bachmann was instituted and installed as Canon Director of Music, and Episcopal Charities Executive Director Jan Parkin likewise became the Canon for Social Ministries. In June the annual 50+ anniversary was celebrated at Evensong with a Renewal of Vows, and followed by a reception in the Chapter House. A very successful and well-attended “Liturgy Camp” in August provided support and training for lectors, acolytes and others with service roles in all our liturgies.
2010 ANNUAL REPORT TO THE CONGREGATION
The Labyrinth Guild continues to host monthly Grace After Hours events the second Friday of every month with notable musical offerings. After five years of dedicated service, Marlynn Murphy, head of the Labyrinth Guild, and faithful volunteer Ed Pryle leave to make room for new leadership and volunteers.
Grow Our congregation embraced many opportunities this past year to grow deeper in faith and understanding of our Christian vocation. As an Episcopal church, Grace Cathedral welcomes any baptized Christian to immediate membership. Many new members have formalized this welcome by confirmation or reception in the presence of the Bishop. Last year, 7 persons were confirmed or received. For those never baptized into any Christian church, Grace Cathedral prepares for and celebrates the arrival of each new adult or child into Christ’s Body through Holy Baptism. A series of formative experiences, “Our Ancient Faith, Our New Life in Christ” allows for a deep exploration of the joys and responsibilities of living as a baptized adult Christian in the modern world. In the past year, 10 adults were baptized into the life of Christ and the church. In a special setting, parents and godparents of infants and young children discover together the significance of baptism and their role in assisting their child’s growth in faith and practice. During the past twelve months, 77 families and godparents brought infants and children to the font of new life in Holy Baptism.
Our Sunday morning Conversations series included: • Congregation member Lindsey Crittenden, author of The Water Will Hold You, with painter Eva Bovenzi • Sara Miles, author of Jesus Freak • “Celebrating the Death of a Christian” with Jack Jensen, Church of the Advent, Executive Director of Cypress Lawn Funeral Home, Colma • The Ven. Anthony Turney witnessing to his walk of the Camino pilgrimage • Holy Land pilgrims sharing their impressions of visiting not only traditional holy places but modern schools and parishes in the West Bank • The Rev. Dr. Ruth Myers, CDSP Hodges-Haynes Professor of Liturgy and chair of the Standing Commission on Liturgy and Music of the Episcopal Church • The Rev. David Rider, Executive Director of the Seaman’s Church Institute • Parenting as a Spiritual Path, Karen Maezen Miller, Buddhist priest and author of Momma Zen • Storytelling as A Healing Art, with professional storyteller Olive Hackett-Shaughnessy In 2008 the clergy and staff identified a need to provide faith formation for the 6 p.m. worshipping community. After two years the 4:30 class anchors Sunday evenings at the Cathedral. We had a year of stimulating conversations. Most notably, the Erotic Word series when Bay Area scholars were invited to address issues of spirituality, sexuality and the Bible. Book studies ranged from contemplative prayer to the changing face of Christianity. In addition, assistant verger and doctoral student Elaine Belz taught a four-week class on Theological Aesthetics, to great acclaim. Our Education for Ministry program is now entering its 14th year, and is expanding to form a second group meeting on Tuesday evenings at St. Cyprian’s. Using the technique of Theologial Reflection which Education For Ministry
teaches, congregation member Roberta Sautter also led an engaging summer series Apocrypha Now, exploring littleknown corners of Scripture. A year ago, Yoga on the Labyrinth welcomed a new instructor, Darren Main. Under his teaching, the program has grown more than four-fold. Seniors with Grace gathers twice each month for fellowship, bible study, a shared meal, and guest speakers. Trained medical staff are available at these events to assist with basic health assessment and referral. Twice during the past year our Senior Retreat at the Bishops’ Ranch led this community deeper into its spiritual center. In times of illness, crisis, or death our community comes together to offer care and support. Clergy are especially called and trained to offer direct pastoral care to individuals and to collaborate with the Spirit who forms us all into a healthy community. The cathedral clergy assist especially at times of sacred unions, birth, death, illness, hospitalization, job loss, ending of relationships, and spiritual discernment. After the departure of the Rev. Mary Haddad to serve as Interim Rector of All Saints, Beverly Hills, the Rev. Christine McSpadden and the Rev. Sr. Lynne Sharp, CSF, joined the staff in part-time positions. Following St. Paul, all of us baptized into Christ’s body are called to “bear one another’s burdens” (Galatians 6:2). Through thoughtful and engaged conversation the gifts of lay leaders emerged and many congregants have become increasingly involved at the cathedral by serving in the liturgy or on Council, Deanery or as members of the Board of Trustees.
Serve The annual Mothers’ Day Baby Shower supplying useful gifts for new moms at San Francisco’s St. Luke’s Hospital and Bayview Mission, as well as an orphanage in South Africa, was sponsored by Seniors with Grace, as was the Bayview Back-to-School Backpack drive.
Spanish crucifix photo courtesy of Jordan Tabak; votive photo courtesy of Ji Sun Park; camel photo courtesy of Stephen Southern
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Dinner with Grace, a collaborative program of Grace Cathedral and Episcopal Community Services, continues to thrive. More than 50 volunteers a month cook while developing relationships with the formerly homeless residents of two Tenderloin single resident occupancy hotels (SRO’s). Four times a month, cathedral congregants and others participate in extending hospitality and deepening community on Nob Hill and in the Tenderloin. The Core Team, led by Alex Senchak and assisted by Russ McBrien, Corey Schoolland, Cora Rose, Christine Martin, Fran Rounds and many others, has been essential to this ministry. Dinner with Grace partnered with the Mark Hopkins Hotel to serve a Thanksgiving dinner to Tenderloin residents. Cathedral congregants serve two different weeks in the San Francisco Interfaith Council’s Winter Interfaith Shelter Feeding Program. Congregation member Michael Tedrick is lay missioner from the Cathedral and Diocese among the people of the Diocese of Curitiba in Brazil. GraceWorks, Grace Cathedral’s weekly program run by volunteers, continues to provide those seeking employment a space for community, education, encouragement and inspiration. Weekly speakers, including Marty Nemko and Richard Bolles, engage participants. Cathedral lay leader and theology student Robb Anderson has ably led this program for the past four years and leaves us temporarily to serve an internship at Church of the Nativity in San Rafael. Bayview Mission is currently operating for its sixth year, now with 30 dedicated volunteers who have served approximately 1900 bags of dry goods and fresh produce. Over 100 children were able to receive customized bags full of school supplies this summer. The Christmas Party at Bayview Mission served a record number of 1,200 people in the Bayview/Hunter’s Point neighborhoods. 2010 ANNUAL REPORT TO THE CONGREGATION
Once again, two weeks of Bee Busy at Bayview were led by youth and vounteers from the Cathedral School for Boys. For the first time, more than a dozen children who participated in this summer camp took field trips to the Academy of Sciences and the San Francisco Zoo. Other activities included the annual visit by the farm animals, horse and pony rides, a water slide and pool, and giving back to the community by filling 135 backpacks with school supplies for neighborhood school children. Our community also serves one another within the household of the faith. This year saw the formation of a family ministries planning team, and potluck suppers continue to gather parents with young children. We started a new middle-school program with storyteller Olive HackettShaughnessy, held a youth confirmation class, and our Godly Play groups are starting the Sunday School year in new, dedicated space. The Rev. Will Scott, Associate Pastor, serves half-time as the cathedral’s Missioner to St. Cyprian’s Episcopal Church. Grace Cathedral’s renewed historic relationship with St. Cyprian’s, a congregation rooted in the African-American/ Caribbean experience in the Western Addition/NOPA neighborhood of San Francisco has begun to bear fruit. St. Cyprian’s is becoming more and more a community hub of activity throughout the week hosting a weekly feeding program, regular support groups, and workshops on such topics as bike safety and homeless outreach. Opportunities to begin meeting the needs of the neighborhood’s many young families and artists groups will emerge this fall. Over the past year cathedral clergy and laity have gathered together as part of the North of Market Area Ministry team to learn more about the struggles and opportunities facing Episcopal Churches in San Francisco. The history of each of these 12 distinct churches have intersected in innumerable ways with Grace Cathedral through the years. Institutions like Episcopal Community Services, Ohloff Recovery Programs, the Bay School and St. Luke’s Hospital all came into being through similar intentional collaboration and relationship building.
EXPANSIVE GENEROSITY Every time we enter Grace Cathedral, we are blessed by its beauty and awed by its grandeur. As a congregation of 500+ pledging households and a thousand or so members, we could never have this kind of structure, music or worship as a regular church. The facilities, the maintenance, the utility costs would simply be too much of a burden. Thankfully, we have a variety of income sources that help sustain our buildings and our ministries. Visitors give over $100,000 every year through the donation boxes placed around the cathedral. Our endowment draw provides income for program and building maintenance. Cathedral Trustees, volunteers and staff work hard to maximize the income from these various sources. The theme for the 2010 Stewardship campaign, “Practicing Gratitude-Practicing Generosity” underscored the relationship between gratitude for all we have been given and giving generously from all that we have. The very center of Christian faith is generosity and at the heart of generosity is thanksgiving.
Community Giving also fell short of the budgeted goal, but Trustee giving remained strong. Additionally, Grace Cathedral received a generous contribution that covered 1/3 of the cost of the Dean’s residence. The Trustees are pursuing other prospects to fully pay off the residence’s purchase price. Additional special gifts have been given to support the Community Preschool, Bayview Mission, Dinners with Grace, Seniors with Grace, and building maintenance projects. In the spring of 2010, the Board of Trustees committed to the New Beginnings campaign to ensure that our new Dean would have sufficient funding to begin her tenure thoughtfully, yet boldly. With a goal of $500,000 in additional funding for FY2011, the Trustees have already secured over $230,000! Trustees, volunteers, and staff are working hard to secure pledges for the remainder by December 31, 2010. “Carnival” will be the major fund raising event for Grace Cathedral in 2011. A remarkable committee is working to make the event on Thursday, March 3, 2011 one that will be fun, exciting, and financially successful. For the first time in many years, the dinner/dance will take place inside our grand cathedral. Look for a “Save the Date” card and invitation in the coming months. We are also looking for corporate sponsors of the first major fund raising event for our new dean. Planned Giving continues to be an important part of the fund raising program for Grace Cathedral. Including the cathedral in your estate plans is one way you can ensure the future of our ministry and service. Grace received over $200,000 in bequests in FY 2010.
Stewardship continues to be a challenge for the Grace Cathedral community. During this time of transition and economic uncertainty our number of pledging members has decreased and the average pledge continues to be more than $300 below the Diocesan average. The positive news is that the Stewardship Committee, chaired by Trustee Charlotte Gaylord, has been aggressively working to ensure that 2011 results in more people pledging increased support. Each of us needs to work diligently to bring our standard of giving in line with our standard of living. The committee’s hope is that members of the congregation will grow in faith and in generosity.
Special thanks to Trustee Nicholas Elsishans for his committed leadership of the Development programs in the past and to Trustee Eliza Brown for her energetic leadership this year.
labyrinth photo courtesy of Dan Simons; gate detail photo courtesy of Stevie Alatorre
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THE CITY AND THE WORLD Our community is actively engaged in dialogue with the world and its people, here in the city and far across the globe. We do not exist for own spiritual growth alone but for the repair of the world and the healing of its wounds. The cathedral community does not shy away from difficult or controversial issues which invite us to consider our duty as “ambassadors for Christ” since God continues to call out to our world through us (2 Corinthians 5:20). In January, middle and high schools students from around the diocese gathered for Nightwatch, to reflect on the life and vision of the Rev. Dr. Martin Luther King, Jr. In March, the cathedral also hosted a moving exhibit of photographs commemorating the life and ministry of Archbishop Oscar Romero of El Salvador, as well as an interfaith service on March 27th, in observance of the 30th anniversary of his death and in honor of Romero’s leadership in the struggle for justice and the empowerment of the poor. We also welcomed a group of Jordanian immams (Muslim clergy) visiting to learn about the cathedral’s interfaith work. With the Diocese of California, representatives from our congregation marched in the San Francisco Gay Pride Parade, and attended Bishop Marc’s press conference and march following the overturning of Prop 8 on August 4th. Through art, music, and drama which may be either beautiful or challenging, we seek intersections of our faith in the incarnate Jesus and the world which God so loves. Human creativity models the dynamic mystery of the Creator’s ongoing acts of artistry and welcome. From September 21-27, 2009, we hosted Tools for Peace. This weeklong event began with Buddhist monks creating a mandala while school children created their own along side them. The week ended with a sold-out benefit on Saturday evening featuring k.d. lang followed by the dissolution ceremony on Sunday. This event gained
2010 ANNUAL REPORT TO THE CONGREGATION
wide press coverage in the Bay Area and proved to be both a significant friend and fund raiser for us. Our Christmas concert series featuring the Cathedral Choir of Men and Boys was well attended and well received. The cathedral also welcomed, during Advent, the American Bach Soloists performing Handel’s Messiah. We celebrated New Year’s Eve with classic Charlie Chaplin short silent films accompanied by organist Dorothy Papadakos. Cathedral Archivist Michael Lampen and Canon Precentor Mark Stanger participated in an interfaith evening of stained-glass inspired meditations at St. Dominic’s Roman Catholic Church, then, taking advantage of the long summer days, led a special 3-hour walking meditation on select windows at Grace Cathedral with the assistance of Michael Cooke. One Sunday each month the 6 p.m. Contemplative Eucharist is followed by the film series Raves and Faves, led by congregant Jason LeRoy. In the past year we have welcomed artists and authors from the Bay Area and across the nation. Highlights included saxophonists Joshua Redman and Pharoah Sanders, the United States Naval Academy Men’s Glee Club, the Pacific Boychoir Academy, and pianist George Winston. Theatrical performances included Terrence McNally’s play Corpus Christi and Miriam’s Well, a unique event combining dance, living music, poetry, and sacred text to tell the stories of three visionary women — Mary, Maryam, and Miriam — from the Christian, Muslim, and Jewish traditions. We also enjoyed an evening with renowned author Diarmaid MacCulloch, discussing his new book, Christianity: the First 3000 Years.
THE BUILDING WE TEND Maintaining a beautiful and historic building such as Grace Cathedral is a sacred trust. It can also be a drain on limited resources. Parts of our plumbing and electrical systems date to the late 1920s; parts of our complex were constructed or remodeled only a few years ago. Keeping the buildings clean, in good repair, and open 365 days a year is a large task. Our major project for 2010 was the repair of two small roofs over the main organ chambers. This completes an almost 30-year project of replacing failed roofs over the entire west end of the cathedral. The organ chamber roofs were left to the end of this period not because they were in least need of repair, but because repairing them involved removing or protecting the 7000+ organ pipes that sit directly below them. Since many of the pipes had to be removed for safety during the roof repair, this was also a good opportunity to clean and repair much of the organ. As you are reading this, Schoenstein Organ Builders will be in the process of returning the pipes to the chambers. The organ will then be retuned and returned to service.
We have also done some repair work on the carillon framework. The bells themselves are of very high quality, are durable and are in good condition. Unfortunately, the frame that holds the bells is not. Rust has been a continuous problem since it was first installed and continues to be the big issue today. Over the summer, we removed the beams that support several of the bells, replaced them with galvanized steel and are currently analyzing the old beams to determine the degree of rust deterioration. This will lead us to a plan for the future maintenance of the carillon structure. The Buildings and Grounds Committee of the cathedral’s Board of Trustees manages all these projects. Committee members are dedicated volunteers, both members of the Board and others who are recruited for their special skills in construction, architecture and other specialties. The committee has a long wish list of items it would like to undertake that go beyond repair and maintenance of existing structures. These include completing the vaulting over the nave and transepts, making other acoustical improvements, adding to and enhancing the Alexander organ and a complete renovation of the Chapel of Grace organ. These projects all await funding.
mandala photo courtesy of Virginia Chatham; Bufano St. Francis photo courtesy of Ross McKnight
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THE FINANCIAL OPPORTUNITIES BEFORE US ing and Grounds Committee has identified the highest and best uses of the available funds. The replacement of the roofs over the organ chambers and related organ restoration project that had been planned for was postponed until 2010, in large part because the value of the investments we would have needed to sell in order to pay for the project dropped significantly over the latter half of calendar 2008 through early 2009. In retrospect, the decision to postpone this work has been a good one, with continuing price appreciation of the securities in our investment portfolio. By this measure, the work in 2010 is less expensive from an endowment point of view than in 2009. The major cost of the project will be funded in fiscal 2011.
For our most recent fiscal year ending on June 30, 2010, Grace Cathedral experienced many of the same challenges facing the overall economy. Revenues were well below forecast, but careful financial management and belt-tightening limited our net operating loss to $137,000. Donor support for Grace Cathedral during fiscal 2010 was about $540,000 lower than was budgeted. Congregation pledges, community giving and other unrestricted gifts to the cathedral were about $2.8 million, which represented 64% of the operating costs incurred for the period. The balance of the funds required for Grace Cathedral’s operations was provided from endowment draw (18%), fee income (14%) and a one-time payment from the garage operator for prior years’ contract payments (4%). The $137,000 shortfall was funded by an additional draw from the endowment. The total endowment draw to support operations in fiscal 2010 was $805,000 or 4% of the account value as of the beginning of the year. Capital spending in fiscal 2010 amounted to $502,000, which was funded by endowment funds stipulated for Fabric-related projects. The vast majority of Grace Cathedral’s endowment is restricted for Fabric purposes and the Build-
2010 ANNUAL REPORT TO THE CONGREGATION
The endowment balance at June 30, 2010 was just over $22 million. This may appear to be a significant amount of money, but approximately $15 million of the total is restricted to Fabric needs and the remainder is permanently restricted as to distributions of principal, meaning the cathedral cannot spend this money on programs or people. Finally, estimates of capital spending requirements for the building for the near future are well in excess of the funds we have in hand for that purpose today. Looking forward to 2011, Grace Cathedral’s operating budget continues to be strained and the capital needs far outstrip the funds available for our beautiful but aging physical plant. A material increase in donor support in fiscal year 2011 is required for Grace Cathedral to maintain its worthy ministries, programs and community services at current levels of staffing and effort. However, with the arrival of our new dean, we are optimistic that we can meet these challenges.