New Dues Structure

April 11, 2003

Re: Update on Forthcoming Changes to Oak Park Temple Dues Structure

Dear Fellow Member,

This letter will provide you with an update on our Temple's financial situation and outlines the new approach to dues that will be introduced for the 2003-2004 fiscal year. This new approach is intended to respond to the imbalance that has emerged over the past few years between our revenue and our Temple's many financial obligations. It will better meet our current obligations and place our community on a more secure financial footing for ourselves, our children, and succeeding generations of members.

Oak Park Temple is a partnership among members who support each other and the larger community. We need every family or household to do their best to help build our community. We hope that all our members find a welcoming and comfortable Jewish home in the Temple, and find many creative ways to contribute time and energy in addition to financial contributions.

Jewish tradition has much to teach us about the ethics of finances and mutual support. The Board has adopted a set of principles, drawn directly from Jewish text, which form the basis for our dues approach and for our financial management philosophies. Here is a pdf file which contains a summary of these principles. Or read the full version of these principles, which includes many references, also as a pdf file.

Oak Park Temple Finances

Oak Park Temple will complete the 2002-2003 fiscal year with a deficit of approximately $20,000. This deficit would have been significantly larger but for the use of non-operational Temple funds ($23,000). The Temple has operated at a deficit for the past several years. The deficit has increased in recent years as operating expenses have increased faster than revenues. In particular, operating expenses have accelerated due to substantial increases in health and property insurance premiums and expenses related to operating our expanded building. In order to cover this deficit and deficits accumulated over prior years, the Temple has been forced to borrow funds from our restricted accounts. Presently, the total amount borrowed from and owed to restricted funds is approximately $100,000. (Information on the Temple's uses of financial resources is available to all members; see the regular Messenger financial update for more information.)

Although use of non-operational Temple funds and borrowing funds from our restricted accounts is “proper" (the Temple finances are regularly reviewed by an independent auditor), continued reliance on these funding sources is financially unhealthy. Further, as we move towards the 2003-2004 fiscal year, absent significant increases in member dues contributions, the Temple will be faced with an even larger deficit. Recognizing these trends, in the fall of 2002, the Temple Board created a dues subcommittee to address concerns that our current dues structure was not meeting the Temple community’s financial needs.

A New Approach to Dues

The dues subcommittee worked over several months to build a dues structure that will generate increased dues income while maintaining the culture of personal choice in financial commitment that has been an important and valuable characteristic of the Temple. At the same time, the subcommittee concluded that the Temple's current implementation of a "Fair Share" approach based on a target percentage of household income, with an implicit minimum of $600, required revision. The dues subcommittee's recommendations were carefully considered and approved by the Temple's Finance Committee, the Executive Committee and the Temple's Board of Directors.

Unlike the vast majority of congregations in the country, OPT does not have a fixed dues structure. In the Chicagoland area, member dues in other Reform congregations average more than $2,000, and also have multiple “fee for service activities.” If we were to move to a fixed dues structure with dues consistent with other area congregations, we would probably be able to solve our budget concerns. However, the Temple Board continues to believe that a more flexible method, responsive to member resources, is appropriate for our unique and diverse community. The Temple Board understands that many of our members could not afford to pay a fixed dues amount. The Temple has always been welcoming to all Jews, regardless of their financial means. We intend to uphold this vital tradition, and to do so we need your best effort.

In the budget we are working toward, it will be necessary for us to achieve the dues target of $1,800 per household. This number was arrived at by identifying those operational and program costs that should be funded through member dues, adding in a partial repayment of monies borrowed from restricted funds, and dividing by the number of households. These dues revenues are required to fund Temple operations and programs. This includes basic temple operations (more than two-thirds of our total budget goes to salaries for clergy, staff and teachers) and support for the religious school, library, social action, and all forms of programming. If we are able to meet this target we can cease using non-operational Temple resources to cover operating budget shortfalls, repay loans from restricted funds, reduce our reliance on Endowment Fund revenue and properly maintain our building.

You will each be asked to set your own dues. Although we are not moving to a fixed dues structure, it is imperative that all of our members understand that, in order to avoid future budget deficits and improve the Temple's financial well being, we must reach this target of $1,800 per household. In the past, about 80% of our members have set their dues below $1,800 and more than half of our members have set their dues below $1,200.

It is imperative that we not view ourselves as a “fee for service” community. The Board believes that a strong and vital Temple congregation benefits all of us, regardless of whether you are actively or only occasionally involved in Temple activities. All of us, collectively, must see to it that the Temple is both financially and spiritually healthy in order to provide services for the Reform Jewish community of the Western Suburbs.

Minimum and Target Dues Levels

This coming year our dues minimum is $1,200 per year, but our hope is that you can meet or exceed the target total of $1,800 per year.

We know that the dues minimum represents a large increase for many members. Still, the suggested minimum is about sixty percent of that of most other synagogues’ dues levels. We also recognize that there are Temple members who cannot afford to pay the minimum dues contribution. No member will be turned away from our Temple community because of an inability to pay the minimum dues contribution. The dues pledge form that you will be receiving in a few weeks will allow those members who cannot afford to pay the minimum dues contribution to check a box acknowledging a pledge below the minimum and contribute an amount that is appropriate given their finances. No member will be asked to “justify” a decision to contribute less than the minimum. Fortunately, throughout the history of our Temple many families and households have contributed generously in order to keep our congregation welcoming and open to all. We believe that a substantial majority of our members can exceed this minimum and that most can meet or exceed the target of $1,800 per year.

How to calculate your own dues

The pledge form you will be receiving in a few weeks (pdf file available here) allows you to declare your dues pledge for the coming year. We will be asking members to be generous within their means. Please keep in mind that a number of our members cannot contribute $1,800 and, in some instances, particularly in light of the current economic slowdown, will not be able to meet the $1,200 minimum. When you complete your pledge form, please do your best to help us meet the needs of the entire community.

Matthew Tushman
President

Brian Sher
Finance Vice President