Financial fallout from fiascos at Willow Creek Community Church and Harvest Bible Chapel

February 15, 2020, 10:42 am

If you read this blog and haven’t yet tuned in to the disasters at Willow Creek Community Church or Harvest Bible Chapel, it would be worth your time to do so. It is painful to read of the fiascos in those high profile churches, but those of us working in or serving the Christian community need to pay attention and learn.

Bill Hybels resigned from Willow Creek in April 2018.

James MacDonald was released from Harvest in February 2019.

There has been a lot of coverage of both situations. Because there is so much here to learn, I want to write about both situations. To this point, I’ve only written a few twitter comments pointing to some of the coverage.

An article on 2/13/20 in Christianity Today provides some information from the ripple effects on finances and attendance: Willow Creek and Harvest Struggle to Move On / The departures of Bill Hybels and James MacDonald leave churches waiting for new leadership and hoping to rebuild trust.

I will try something new for this post. Following discussion was first written for Twitter. Will try bringing that into a blog post. Let’s see how it works. My comments on Twitter:

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Gettysburg Address.

February 12, 2020, 9:53 am

A tribute to the memory and legacy of Abraham Lincoln as we remember his birth on February 12, 1809.

The Gettysburg Address, presented at the Lincoln Memorial Shrine in Redlands, California on February 8, 2020.

 

 


Summary of GIK exposure draft

February 12, 2020, 8:48 am

Image courtesy of Adobe Stock.

FASB has provided an explanatory article and video for the exposure draft on gifts-in-kind disclosures.

The ED would require presenting GIK on a separate line of the statement of activity and additional disclosures in the notes. Most significant new disclosure would be the valuation techniques and inputs used for calculating value of the GIK.

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FASB releases exposure draft on presentation and disclosure for gifts-in-kind.

February 11, 2020, 11:18 am

    Image courtesy of FASB under Fair Use.

The exposure draft will require the amount of donated nonfinancial assets to be disclosed on a separate line in the statement of activities.  Some additional disclosures will be required. The main new disclosure is the technique and inputs used to value the GIK along with the principal market for the items.

The draft is titled Not-for-Profit Entities (Topic 958) / Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.

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One more sentencing in college admissions scandal and prosecutor recommendations for next three parent facing a judge.

February 7, 2020, 10:51 am

White-Gravenor Hall of Georgetown University, Washington DC, USA. Image courtesy of Adobe Stock.

Fourteenth sentence for a parent in the college admissions scandal was handed down today. Also, feds have recommendations for the next three parents already scheduled for sentencing, which will be heavier than previous cases.

The LA Times provided an update on federal recommendations on 2/4/20:  Admissions scandal:  Prosecutors seek longest prison sentences yet for four California parents.

Prosecutors assert the four worked on the scheme for 11 years, cumulatively paying $1.6M to help out nine children.

Recap of status for these four, each of whom have pleaded guilty on two felony counts:

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“Silent Monks Sing the Hallelujah Chorus”

January 15, 2020, 7:36 am

Perhaps a couple weeks late, but too good not to mention:

Credited to the South Kitsap High School vocal group in Port Orchard, Washington.

Hat tip: Behind the Black.


Cost to develop one new drug

January 13, 2020, 7:00 am

Federal Trade Commission Building in Washington, DC. Image courtesy of Adobe Stock.

How much does it cost for a pharmaceutical company to get one new drug onto the market? As with all variations of “what does it cost” questions the answer is complicated. Any such answer requires explanation of what the calculation means.

Other posts discussing this issue:

According to a 2016 study by Tufts Center for the Study of Drug Development, here is their calculation of what it takes to get one compound to the point of where it is approved for sale:

  • $1.395 billion – out-of-pocket costs – actual cash expended at the point approval is obtained to sell the compound
  • +$1.163 billion – “time costs”, in other words the capitalization of having to invest more than a billion dollars over many years – this represents the opportunity cost of having otherwise been able to invest that money in something else that would have produced a return earlier
  • =$2.558 billion – total capitalized cost at point of receiving approval to sell one compound
  • +0.312 billion – costs incurred for follow-up required by FDA as a condition of obtaining approval – this includes factors such as monitoring long-term side effects, monitoring safety, looking at new formulations or dosage strength
  • =$2.870 billion – total lifecycle costs to develop one new medicine that is approved by the FDA for sale

The study was based on a random selection of 106 drugs from 10 pharmaceutical companies. Since that is a random selection presumably the calculation would apply to all medicines.

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