How do we calculate our Total Operating Expenses?

Your congregation's certified Total Operating Expenses equal the total operating expenses incurred by your congregation during your mostly recently completed fiscal year, less the congregation's contributions to the district and the UUA's Annual Program Fund.

Operating expenses may include:

• Personnel expenses (salaries, amounts paid to contract employees, wages, housing allowances for ordained ministers)
• Benefits (medical, dental, disability, life insurance, pension, employer retirement savings contributions, employer portion of Social Security and Medicare)
• Rent
• Mortgage interest expense
• Utilities (electric, gas, telephone, internet, water/sewer, municipal waste fees, heating oil)
• Other costs of operating and maintaining the property (ongoing non-capital expenses such as lawn maintenance, annual contributions to major maintenance or restoration fund, repair of normal wear and tear)
• Program expenses (religious education supplies and materials, social action programming)
• Fundraising and administration expenses

What about capital expenses?

If your congregation accounts for expenses on an accrual basis (that is, if you depreciate capital assets over their useful lives), do not include the actual expenditure on the asset, just the depreciation expense. Congregations using cash basis accounting that do not charge depreciation should include capital expenditures in their Total Operating Expenses.

What if we operate a nursery school, food bank, or used clothing exchange?

If you operate a business enterprise that is not a program of the congregation, count the net proceeds of the activity (income minus related expenses) as expenses.