Washington, DC, November 19, 2008
Washington National Cathedral Reorganizes to Weather Economy, Moves into Next Century of Serving as Nation’s Church
Back to Press Releases »The leadership of Washington National Cathedral announced today several major steps it is taking including program adjustments and staff reductions to meet the challenges of these extraordinary times.
The Very Rev. Samuel T. Lloyd III, dean of the Cathedral, outlined a wide variety of steps to be taken immediately that affects both budget and programs.
To ensure the Cathedral’s continued financial health during this global economic crisis and to provide responsible stewardship, Dean Lloyd reported to Cathedral employees, volunteers, supporters, and members of the congregation that the Cathedral Chapter (Board of Directors) has approved a new fiscal year 2009 budget reflecting a significant reduction in expenses, while adopting a conservative stance on anticipated revenues from donations, endowment draws, retail income, and other programs.
The new budget will reflect a reduced and reconfigured staff. In addition it will require the Cathedral to reach out into the community to attract new volunteers to ensure the continuation and strengthening of its mission. Referring to the Cathedral’s tradition over the last century of relying on volunteers in carrying out much of its program and ministries, Dean Lloyd emphasized that “we are enhancing a rich heritage of community spirit and service at this Cathedral.” He stated, “We are, of course, distressed that these actions have to be taken, and are deeply saddened by the personal dislocations that will result from the necessary reductions in staff. However, the Chapter and the leadership of the Cathedral have a responsibility to be financially prudent. This is a vital institution, and we will do what is necessary to protect our important work in the city and the nation.
“Like many other institutions around the world, Washington National Cathedral has been affected by the current downturn in the financial market,” said Dean Lloyd. “And this is having a serious impact on invested funds that we have used to support our mission. In addition, in recent years the Cathedral has also invested in significant capital improvement projects and mission-related programs that are essential foundations for its future work. These projects will bear substantial fruit in the years to come.
“We believe the future support, dedication, and engagement of our many friends, as well as potential new volunteers and supporters in Washington and from across the nation, will enable us to rise above these challenges,” stated Dean Lloyd. “Serving as the nation’s church and as a place of prayer and spiritual renewal is a significant responsibility. And we are committed to being conscientious stewards of this revered Cathedral building,” he added.
Actions to address financial realities began earlier this year. As part of a re-evaluation of financial forecasts, a skilled “kitchen cabinet” was convened in September 2008 to provide additional financial expertise to the then on-going extensive review of the Cathedral’s finances. As part of that review, scrutiny was given to accounting processes, contractual obligations, infrastructure projects, alignment of program-to-mission, and fundraising activities. In addition, Dean Lloyd named Kathleen Cox as the Cathedral’s new chief operating officer in July 2008. Ms. Cox previously was the chief executive officer for the Corporation for Public Broadcasting.
The Cathedral has revised its FY09 budget to reflect the highly uncertain nature of the U.S. economy over the next 12 months and beyond. The Cathedral Chapter has approved several recommendations to support implementation of the year-to-date 2009 budget, which was adopted by both the Chapter and the Protestant Episcopal Cathedral Foundation’s Board of Trustees:
- Retail operations in the Cathedral’s Museum Store have been outsourced to Event Network, Inc., a third-party vendor. This has brought substantial savings in operating costs and provided contractual guarantees of income significantly greater than have been earned in recent years. The Cathedral expects that half of the 24 employees working in the Museum Store will have the opportunity to stay on with Event Network.
- Approximately 30 additional staff positions and all vacant positions across the entire organization will be eliminated over the course of the next several months. Included in this number will be several senior administrative positions.
- The Cathedral will be discontinuing the Cathedral College residential course offerings effective March 31, 2009. Other College programs will be scaled back consistent with currently available funding.
- In the near future an Office for Cathedral Volunteers will be established.
Cox explained, “These efforts, along with a range of other reductions, will ensure the Cathedral’s financial strength in the immediate future and maintain a strong foundation for new growth as the economic picture improves.” Cox went on to say, “We will be able to move forward in strength, despite sharply reduced resources, through harnessing the efforts of our employees and volunteers.”
Dean Lloyd also announced the appointment of a Strategic Advisory Committee. Former Missouri Senator John Danforth; David Abshire, former presidential advisor and current president of the Center for the Study of the Presidency; and David Maxwell, widely credited with the turnaround of Federal National Mortgage Association. Dean Lloyd explained that this panel of highly skilled individuals will provide advice and counsel to the dean and the Chapter as the Cathedral manages its current challenges and plans for its future. “I have asked the members of the new committee to review the Cathedral’s past operations and current programs, and provide their judgment and expertise in assisting the Chapter to establish healthy and sustainable programs going forward,” said Dean Lloyd. “We believe their wealth of experience and outside perspective will be of great value in our planning.”
Dean Lloyd concluded his remarks by saying, “This is a critical time for the Cathedral. But the Chapter and I believe that this institution will meet these challenges, and with a renewed commitment to our mission in service to the nation, come out stronger than ever.”
SOURCE: Washington National Cathedral