Beshara News

The Chisholme Institute:
Financial Announcement – October 2007

On September 4th the remaining £14,322 of the mortgage on the property at Chisholme was repaid  through gifts given during the Gathering on the August bank holiday weekend.  It was an extraordinary final removal of a long-standing

Debt and our gratitude is unbounded for all that has been given so very generously by so many over the years!  Many have expressed the wish for further understanding of how Chisholme's finances work and this is designed to give a brief over-view.

There are two principal aspects, the day-to-day running costs of the School and the expenses incurred by the provision and upkeep of the property.  These are reflected in two separate bank accounts, one managed by staff at Chisholme and the other by the Chisholme Institute.

  • The School's running costs are managed through the Household Account. There is no charge for the education at Chisholme, course fees are designed to cover a student's living expenses. Outgoings on food, heating and energy, maintenance of machinery, garden, office and household are in theory balanced by income from course fees and donations from guests.

  • The provision and maintenance of the place, Chisholme House and Estate, is managed through the Institute Account.

The Institute is responsible for the mortgage, provision of equipment: electricity generators, boilers, machinery, building and large maintenance costs, together with costs such as insurance, council tax, the payment of essential staff, publicity and administrative costs.

The Institute's income is entirely through covenants and gifts and the Covenant Plan is completely invaluable in allowing it to do its job. Because the Institute is a charity, tax is reclaimed on any covenants made by UK taxpayers thereby increasing the value of the covenant by 22%!

Over the past year the total of all essential costs (including the mortgage payments) was £52,300, some £6,300 more than the Covenant income, and this, thank God, has been covered by gifts of money. Further gifts have covered all building expenditure – not only repairs but also new works – as well as essential estate expenditure such as rebuilding walls. In short, all these expenses plus the paying of the mortgage, as well as all the refurbishments that have taken place over these years have been met by Covenants and other gifts! Pure generosity, in other words, in a regular stream.

Now that there is no longer a monthly mortgage payment some £14,000+ per year of covenant income will be free to contribute towards the ever present requirements of maintaining and improving the property.

The thanks that are due to all those who have given money and faithfully covenanted over the years are immense. Annual covenant income at present is approximately £46,000 (including tax reclaimed) from 94 Covenants, made either by individuals or couples and ranging from £8 to £200 per month.  The average Covenant is around £20-£25.  Many small sums put together form a very strong and effective whole.

The covenant scheme is simple and vastly effective.  If you would like to help by making a covenant please get in touch with the office. Added together the covenants are like an ever-moving river, a constant flow of support from which great good can come. We start this winter, from a financial position of no debt whatsoever. There are indeed requirements, and they will continue: however, this is a hugely memorable time and our thanks and gratitude are boundless.

October 26th, 2007