Village Missions NEGATIVE NET WORTH
Summary
Village Missions ("VM") provides full-time, qualified, spiritual leadership primarily to rural areas in the United States and Canada where there exists a definite need to win and disciple people to Jesus Christ through the proclamation and demonstration of the Gospel and to continue such leadership as long as requested. Village Missions conducts a missionary ministry in a local church context by placing leadership in rural communities of North America. Each missionary is appointed for an unspecified period of time, ministering in a given location as the Lord directs. Wives are an important part of the missionary team, but must balance their ministry with family responsibilities. The objective is to reach the entire community; therefore, denominational issues are avoided. Missionaries are encouraged to extend their ministries beyond the community of their residence through visitation, home Bible studies, and wherever other opportunities exist. Rev. Walter Duff founded VM in 1948. This organization is a nonprofit organization. Contributions to it are fully deductible to the extent allowed by law. It is a member of the Evangelical Council for Financial Accountability (ECFA).
Contact information
Mailing address:
PO Box 197
Dallas, OR 97338-0197
Website: www.village-missions.org/
Phone: (503) 623-4107
Email: feedback@villagemissions.org
Organization details
EIN: 436043847
CEO/President: Rev. Brian S. Wechsler
Chairman: Mr. Glen Hansen
Board size: 10
Founder: Rev. Walter Duff
Year founded: 1948
Tax deductible: Yes
Fiscal year end: 06/30
Member of ECFA: Yes
Member of ECFA since: 1994
Purpose
Village Missions ("VM") provides full-time, qualified, spiritual leadership primarily to rural areas in the United States and Canada, where there exists a definite need to win and disciple people to Jesus Christ through the proclamation and demonstration of the Gospel, and to continue such leadership as long as requested.
Village Missions conducts a missionary ministry in a local church context by placing leadership in rural communities of North America. Each missionary is appointed for an unspecified period of time, ministering in a given location as the Lord directs. Wives are an important part of the missionary team, but must balance their ministry with family responsibilities. The objective is to reach the entire community; therefore, denominational issues are avoided. Missionaries are encouraged to extend their ministries beyond the community of their residence through visitation, home Bible studies, and wherever other opportunities exist. Rev. Walter Duff founded VM in 1948.
This organization is a nonprofit organization. Contributions to it are fully deductible to the extent allowed by law. It is a member of the Evangelical Council for Financial Accountability (ECFA).
Mission statement
Village Missions uses the following to express its mission:
It is the aim of the dedicated leaders of Village Missions to provide a Christ-centered community church program capable of involving the entire population.
Statement of faith
Village Missions uses the following to express its Statement of Faith:
- The supernatural and plenary inspiration of the Scriptures - that they are inerrant and that their teaching and authority are absolute, supreme, final and complete;
- The trinity of the Godhead - God, the Father; God, the Son; and God, the Holy Spirit;
- The personality of God - the personality and deity of Jesus Christ, begotten of the Holy Spirit, born of the Virgin Mary, very God and very Man; the personality of the Holy Spirit;
- The resurrection of Jesus Christ - that His body was raised from the dead according to the Scriptures, and that He ascended into Heaven and sitteth on the right hand of God as the believer's Advocate;
- The sinfulness of man - that all human beings are born with a sinful nature, are totally depraved and need a Savior from sin;
- The Atonement - that Jesus Christ became the sinner's sacrifice before God and died as the propitiation for the sins of the whole world;
- The necessity of the new birth - salvation is by grace through faith and not of works; saving faith will maintain good works in the life of the believer;
- The literal resurrection of the body, both of the just and of the unjust;
- The everlasting blessedness of the saved, and the everlasting punishment of the lost;
- The evangelization of the world - the supreme mission of the church in this age is to preach the gospel to every creature;
- The second coming of Christ according to Scripture.
Financial efficiency ratings
Sector: Evangelism
| Category | Rating | Overall rank | Sector rank |
| Overall efficiency rating | NEGATIVE NET WORTH | 128 of 430 | 12 of 34 |
| Fund acquisition rating |  | 152 of 430 | 15 of 34 |
| Resource allocation rating | | 175 of 430 | 15 of 34 |
| Asset utilization rating | | 165 of 430 | 14 of 34 |
Click here to read Village Missions' response to our ratings
Financial ratios
| Funding ratios | Median % for all ministries in MW database | 2017 | 2016 | 2015 | 2014 | 2013 |
Return on fundraising efforts Return on fundraising efforts = Fundraising expense / Total contributions | 7% | 5% | 4% | 3% | 3% | 3% |
Fundraising cost ratio Fundraising cost ratio = Fundraising expense / Total revenue | 6% | 5% | 4% | 3% | 3% | 3% |
Contributions reliance Contributions reliance = Total contributions / Total revenue | 95% | 97% | 96% | 97% | 99% | 97% |
Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses | 6% | 5% | 4% | 3% | 3% | 3% |
Other revenue reliance Other revenue reliance = Total other revenue / Total revenue | 5% | 3% | 4% | 3% | 1% | 3% |
| Operating ratios | Median % for all ministries in MW database | 2017 | 2016 | 2015 | 2014 | 2013 |
Program expense ratio Program expense ratio = Program services / Total expenses | 82% | 84% | 85% | 88% | 87% | 87% |
Spending ratio Spending ratio = Total expenses / Total revenue | 99% | 107% | 103% | 101% | 97% | 102% |
Program output ratio Program output ratio = Program services / Total revenue | 81% | 90% | 87% | 88% | 84% | 89% |
Savings ratio Savings ratio = Surplus (deficit) / Total revenue | 1% | -7% | -3% | -1% | 3% | -2% |
Reserve accumulation rate Reserve accumulation rate = Surplus (deficit) / Net assets | 3% | 45% | 15% | -10% | 23% | -23% |
General and admin ratio General and admin ratio = Management and general expense / Total expenses | 10% | 12% | 11% | 9% | 10% | 10% |
| Investing ratios | Median measure for all ministries in MW database | 2017 | 2016 | 2015 | 2014 | 2013 |
Total asset turnover Total asset turnover = Total expenses / Total assets | 1.32 | 1.70 | 1.43 | 1.37 | 1.43 | 1.53 |
Degree of long-term investment Degree of long-term investment = Total assets / Total current assets | 1.53 | 1.56 | 1.50 | 1.53 | 1.41 | 1.50 |
Current asset turnover Current asset turnover = Total expenses / Total current assets | 2.53 | 2.65 | 2.14 | 2.09 | 2.03 | 2.30 |
| Liquidity ratios | Median measure for all ministries in MW database | 2017 | 2016 | 2015 | 2014 | 2013 |
Current ratio Current ratio = Total current assets / Total current liabilities | 9.10 | 0.51 | 0.55 | 0.77 | 0.90 | 0.75 |
Current liabilities ratio Current liabilities ratio = Total current liabilities / Total current assets | 0.10 | 1.94 | 1.80 | 1.31 | 1.11 | 1.33 |
Liquid reserve level Liquid reserve level = (Total current assets - Total current liabilities) / (Total expenses / 12) | 4.06 | -4.27 | -4.49 | -1.76 | -0.64 | -1.74 |
| Solvency ratios | Median % for all ministries in MW database | 2017 | 2016 | 2015 | 2014 | 2013 |
Liabilities ratio Liabilities ratio = Total liabilities / Total assets | 10% | 125% | 124% | 92% | 78% | 89% |
Debt ratio Debt ratio = Debt / Total assets | 0% | 0% | 0% | 0% | 0% | 0% |
Reserve coverage ratio Reserve coverage ratio = Net assets / Total expenses | 64% | -14% | -17% | 6% | 15% | 7% |
Financials
| Balance sheet | |||||
| Assets | 2017 | 2016 | 2015 | 2014 | 2013 |
| Cash | $1,570,260 | $1,749,488 | $1,597,196 | $1,575,456 | $1,371,775 |
| Receivables, inventories, prepaids | $130,785 | $82,917 | $120,782 | $363,667 | $83,205 |
| Short-term investments | $894,859 | $1,125,645 | $1,170,794 | $904,506 | $954,337 |
| Other current assets | $0 | $0 | $0 | $0 | $0 |
| Total current assets | $2,595,904 | $2,958,050 | $2,888,772 | $2,843,629 | $2,409,317 |
| Long-term investments | $0 | $0 | $0 | $0 | $0 |
| Fixed assets | $1,440,542 | $1,311,103 | $1,362,934 | $1,096,731 | $1,200,454 |
| Other long-term assets | $11,200 | $160,001 | $165,001 | $81,001 | $0 |
| Total long-term assets | $1,451,742 | $1,471,104 | $1,527,935 | $1,177,732 | $1,200,454 |
| Total assets | $4,047,646 | $4,429,154 | $4,416,707 | $4,021,361 | $3,609,771 |
| Liabilities | 2017 | 2016 | 2015 | 2014 | 2013 |
| Payables and accrued expenses | $4,953,886 | $5,235,678 | $3,684,061 | $3,060,678 | $3,212,812 |
| Other current liabilities | $89,862 | $97,017 | $90,141 | $91,519 | $0 |
| Total current liabilities | $5,043,748 | $5,332,695 | $3,774,202 | $3,152,197 | $3,212,812 |
| Debt | $0 | $0 | $0 | $0 | $0 |
| Due to (from) affiliates | $0 | $0 | $0 | $0 | $0 |
| Other long-term liabilities | $0 | $173,727 | $295,104 | $0 | $0 |
| Total long-term liabilities | $0 | $173,727 | $295,104 | $0 | $0 |
| Total liabilities | $5,043,748 | $5,506,422 | $4,069,306 | $3,152,197 | $3,212,812 |
| Net assets | 2017 | 2016 | 2015 | 2014 | 2013 |
| Unrestricted | ($1,256,292) | ($1,351,532) | ($23,804) | $617,698 | $224,414 |
| Temporarily restricted | $225,075 | $239,149 | $336,090 | $216,351 | $137,572 |
| Permanently restricted | $35,115 | $35,115 | $35,115 | $35,115 | $34,973 |
| Net assets | ($996,102) | ($1,077,268) | $347,401 | $869,164 | $396,959 |
| Revenues and expenses | |||||
| Revenue | 2017 | 2016 | 2015 | 2014 | 2013 |
| Total contributions | $6,207,831 | $5,923,698 | $5,859,353 | $5,870,313 | $5,310,848 |
| Program service revenue | $0 | $0 | $0 | $0 | $0 |
| Membership dues | $0 | $0 | $0 | $0 | $0 |
| Investment income | $47,423 | $53,016 | $53,260 | $36,455 | ($33,107) |
| Other revenue | $175,081 | $202,811 | $101,864 | $51,117 | $173,118 |
| Total other revenue | $222,504 | $255,827 | $155,124 | $87,572 | $140,011 |
| Total revenue | $6,430,335 | $6,179,525 | $6,014,477 | $5,957,885 | $5,450,859 |
| Expenses | 2017 | 2016 | 2015 | 2014 | 2013 |
| Program services | $5,769,418 | $5,382,514 | $5,305,328 | $4,994,475 | $4,841,519 |
| Management and general | $793,312 | $713,601 | $563,128 | $565,991 | $554,455 |
| Fundraising | $316,428 | $245,785 | $180,897 | $200,790 | $144,373 |
| Total expenses | $6,879,158 | $6,341,900 | $6,049,353 | $5,761,256 | $5,540,347 |
| Change in net assets | 2017 | 2016 | 2015 | 2014 | 2013 |
| Surplus (deficit) | ($448,823) | ($162,375) | ($34,876) | $196,629 | ($89,488) |
| Other changes in net assets | $529,989 | ($1,262,294) | $0 | $0 | $0 |
| Total change in net assets | $81,166 | ($1,424,669) | ($34,876) | $196,629 | ($89,488) |
Response from ministry
Village Missions appreciates the work of Ministry Watch and endorses its goals. Village Missions lives by the values of openness and transparency in our relationship to all our constituents and the public at large. We operate efficiently as demonstrated by the metrics displayed here and compared to other ministries. We operate effectively as demonstrated our program outcomes - the lives impacted by the faithful and consistent preaching of the Good News of Jesus Christ.
Village Missions takes exception to the presentation of our deficit position with the phrase "negative net worth" at the top of this page. We do not believe that the sum of our work as a ministry is fairly reflected in one number. Ministry Watch would seem to agree, as they say themselves:
"Even though there is not a "bottom line" net profit measurement of success or failure in the nonprofit world, there are a variety of methods of gaining understanding about how efficiently and effectively donations are utilized."Ministry Watch encourages donors to look beyond the red flag at the top of the page.
Village Missions is in a negative net worth position due to the impact of our pension plan. As a part of our longstanding commitment to honor missionaries in retirement, Village Missions has had a defined benefit pension plan since 1974. Like many pension plans, we have been affected by increased life spans, lower interest rates, and low investment returns.
Despite the magnitude of this liability on paper, our daily ministry continues unhindered. The pension obligation can be likened to a home mortgage, where a large debt is retired over a long period of time. In 2018, we stopped accepting contributions to the defined benefit pension plan and opened a new 403(b) contributory retirement plan. We have seen a 12% reduction the actuarial loss carried on our balance sheet and look forward to a steady reduction of this long-term obligation.
Village Missions is blessed with adequate resources to meet our ongoing ministry needs and is expanding our direct service to field missionaries to further increase ministry effectiveness.
For more information, see our full financial statement at villagemissions.org/annual-report, or call our CFO, Jim Cross at 800-617-9905 x 120
History
VM was founded in 1948 as an outgrowth of the work being done by Mrs. Helen Duff Baugh and Miss Mary Clark in their formation of Christian Women's Clubs. As they traveled around they saw the tremendous number of churches that were closed or without a pastor. God led them, along with Mrs. Baugh's brother, to organize VM. The Mission was launched on September 9th, 1948 at Cannon Beach, Oregon with the Rev. Walter Duff, Jr. as National Director.
From that time until his death in 1993 Rev. Duff was the guiding hand that shaped and directed the mission. VM is what it is today because he was the type of man that he was. It was his strong faith and deep concern for the unsaved people in rural communities that defined the call for the entire mission. Through his efforts many churches have received pastors and thousands have come to know the savior through the work of village missionaries.
In 1968 VM began providing missionaries in Canada as well as the United States. There are now more than 30 Canadian communities have received full-time missionary pastors through VM.
In 1993, with the passing of Rev. Duff, the mission entered a new phase. It was now too large for one man to personally oversee all the missionaries. The leadership passed to Dr. Jack Canady, who is assisted by Regional Administrators for the Western U.S., the Eastern U.S. and Canada. Under them there are District Representatives who are constantly involved in supporting and advising the missionaries in their districts.
The Gospel of Jesus Christ does not change, but the world around us changes constantly. As the culture evolves the mission has stood fast on the Gospel while attempting to grow and adapt so as to most effectively reach the unsaved people throughout rural North America. The testimony of how well that job is being done is found in the over 190 fields in the U.S. and over 30 in Canada that Village Missions is serving.