Financial Update | February 2026

The Big Picture

Over the last year, we have seen a steady decline in giving, leading to a significant budget gap. Currently, DRCC is running 20-25% behind the needed monthly contributions to meet the approved budget for the fiscal year. We are grateful that, because of surplus from prior fiscal years, we have funds on hand to help cover this gap in the short term. This is a clear reminder of God’s provision and the wisdom of faithful stewardship in past seasons. At the same time, we recognize that ongoing deficit spending is not a long-term solution.

If current giving trends continue, we are projecting a $500k–$600k+ budget deficit by the end of the fiscal year. Currently, our budget is divided into three primary categories:

• Personnel: 66% 

• Operations: 17%

• Ministry: 17%

  
  

Because of this reality, we are making significant expense reductions across all areas of the budget. As part of our annual mid-year budget review, a budget reduction plan was prayerfully reviewed and approved by the Human Capital Committee (HCC), Financial Oversight Committee (FOC), and the Trustee Board.

Budget Reduction Plan

The approved plan will reduce our deficit for the remainder of this fiscal year (through June 30th) by approximately $150k-$200k, resulting in a projected deficit of $300k-$450k. Long-term, this budget reduction represents a 15% overall decrease, including a 10% decrease in ministry budgets and an 18% reduction in the personnel budget, affecting seven roles.

 

All open roles will be placed on a hiring freeze, impacting four roles: Central Services Director, Communications Director, Adult Discipleship Coordinator, and Connections Coordinator. In addition to the hiring freeze, the personnel budget will be reduced by three roles: Database Administrator, Haven Director, and Youth Admin. 

***A note about Haven: DRCC remains strongly committed to the Haven Ministry and to serving kids and families impacted by differing abilities. A plan is in place to continue supporting and resourcing the Haven Ministry through this transition and into the future. We deeply value the presence and participation of the Haven Community at DRCC, and we are committed to seeing Haven grow and thrive. 

FAQs:

Why are we reducing staff roles?

Because personnel accounts for 66% of our total budget, this is where the most significant expense reductions can be made. In context, most churches operate with personnel budgets closer to 45–55% of the overall budget.

These decisions were not made lightly. This was a last resort, and after prayerful discernment, we believe this is the next right step to meaningfully reduce expenses.

With seven role freezes or reductions, every team is impacted, and many staff members are taking on additional responsibilities. We will continue to evaluate what activities need to pause and where we can better empower high-capacity volunteer leaders.

We are deeply grateful for our staff and volunteer teams and their flexibility, faith, and commitment. We hope that once monthly giving consistently covers expenses, we will be able to add back necessary staff roles in the future.

Did the AVL enhancement in the auditorium cause this deficit?

No. In 2021, DRCC adopted a multi-year plan that included fully replacing the auditorium AVL system, which was over 13 years old and increasingly unreliable. With more than 300 unique devices engaging with our services each weekend, DRCC Online has become a primary front door for ministry. This upgrade allows us to better serve both in-person and online experiences.

The contract for this work was signed more than 18 months ago, before we entered our current deficit situation. This was a $1.5M investment, funded entirely through the 2018–2020 ALL IN campaign, and is completely separate from our operating budget.

What funds are we using to cover the deficit?

We currently have approximately $1.7M in unrestricted cash on hand, accumulated through multiple years of operating surpluses and the ALL IN generosity campaign. These funds are invested in conservative money markets and government treasuries and generate approximately $100k in annual interest.

While we are grateful for these resources and see them as God’s provision for this season, we also recognize that relying on them long-term is not sustainable. That is why we are proactively reducing expenses.

Why has giving declined?

There are several contributing factors. On a positive note, first-time givers have doubled, which is encouraging. However, overall average monthly givings are down 6% compared to this time last year.

External pressures like the government shutdown and the rising cost of living have likely played a role. Additionally, we’ve experienced congregational turnover following recent leadership changes, and about 30 givers did not migrate to our new giving platform for a variety of reasons.

How did Double December go?

Double December was an answer to prayer; this year, we raised $467k! Thank you, DRCC. Because of your generosity, we did not fall further behind in needed contributions. However, with current monthly giving trends, we are still facing a sizable deficit unless expenses are reduced.

As in past years, we gave a 10% “first fruits” offering from gifts received between December 23rd and 31st to Mt. Airy Net and Helping Hands, Caring Hearts, totaling $25,500. Even in a season of deficit spending, we believe it’s important to honor God with generosity that looks beyond ourselves.

How will the congregation be kept informed?

We’ve been sharing budget updates during worship services throughout the fall and will provide another update on Sunday, February 8. We are also exploring additional ways to communicate, including the website, town halls, and other forums as needed.

We are committed to transparency, prayerful leadership, and trusting God as we navigate this season together.

Have additional questions? Please reach out to damascus@damascus.com