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Hoosier United Methodist News Archives
| Hoosier United Methodists together |
April 2005 |
2004: tough financial year for Indiana
By Daniel R. Gangler
This past year of 2004 was a tough year for finances in both North and South Indiana Conference of The United Methodist Church, according to each of the conference's treasurer. Both conferences received 80 percent or less of what was apportioned.
Each conference provides for the administration of a conference center and nine district offices which support the mission and ministry of local churches through appointment of pastors; pastor's pensions and health care benefits; lay and clergy education; camps, seminars and conferences; public social witness; as well as an apportionment to the worldwide outreach of the denomination.
North Conference giving
North Indiana Conference Treasurer Brent Williams in Marion reported that the final percentage received of North Indiana's churches in total dollars was 80 percent of what was apportioned or $8.5 million of the $10.6 million budgeted for apportionment income in 2004.
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Both conferences received 80 percent or less of what was apportioned. |
"In June 2004, we estimated that we would have another lower than desirable year with receipts between 82 and 84 percent," Williams said. In a way to stabilize expenses during the year, the North Conference Council on Finance and Administration (CFA) then informed in July all recipients of apportioned funds (such as boards, commissions, committees and church supported agencies) that they would only be receiving 90 percent of what was budgeted to them.
"In December, when receipts came in at 80 percent, we were surprised, however, due to the earlier planning and the great work of our agencies in keeping their budget expenditures within the 90 percent target, we ended the year with only a minimal use of reserves." Williams said.
This year those same groups received a 90 percent income notice in January. When Together asked Williams why this 10 percent cut in budget income came in January, he said that in prior years the North Conference had the expectation early in the year that it would see 85 percent plus receipts. "As we began 2005, the North Conference had just finished its lowest receipt year in history, therefore, CFA thought it better to take the action earlier (than it did in the last two years), thereby allowing groups to make better plans," he said.
When asked if he were pessimistic about apportionment income this year, Williams replied, "Not pessimistic, realistic. In prior years, we waited until after the annual conference session in June. This year even annual conference session expenditures will be reduced to help meet the budget guidelines."
Williams further commented, "There is not a lack of funds in Indiana. Even in the midst of lower apportionment receipts, our churches gave more than $300,000 to Tsunami relief. At the same time, United Methodists as a denomination gave one of the lowest average percentage of personal income - recently reported as 1.5 percent of gross income - to the church. We have some education to do, theological education, if you will, about giving and the ministry of money, in which Jesus so strongly believed."
When asked what dollar amount he wished to receive from North Conference churches in this year, Williams responded, "Every dollar that God challenges our local churches to give. Every dollar that our people want to see used for Our Shared Ministry across Indiana and around the world. Every dollar that our members need to give to strengthen their relationship with our Lord."
South Conference giving
Together also asked Jennifer Gallagher, interim treasurer of the South Indiana Conference, similar questions about finances in South Indiana.
Gallagher reported that the final percentage received of South Indiana's churches in total dollars was 76.8 percent of what was apportioned or $9.3 million of the $12.1 million budgeted for apportionment income in 2004.
Gallagher further reported that the South Indiana Conference has put spending restrictions in place for 2005 not to exceed $9.3 million, which is what the South Conference received in 2004. She said, "We certainly do not want to be in a deficit situation again this year."
When asked if reserve funds were tapped, Gallagher said, "We still hold $450,000 in reserves as of the end of 2004, but this is not a comfortable level considering we are working from a $10 million plus budget."
South Conference also is beginning to look at new ways of figuring apportionments. Gallagher told Together, "We are exploring Bishop Coyner's initiative on tithing and the CFA has approved action to declare 2006 the year of the tithe - in hopes of providing education to the local church about the concept, encouraging individuals to tithe to their local church in 2005 and moving forward into 2006.
"As part of the plan, there is consideration in the long-run to do away with the apportionment formula (in present use) in 2007 and possibly go to a tithe or some hybrid of apportionments and tithing."
To improve apportionment giving in the South Indiana Conference, Gallagher said, "Our hope is to provide better interpretation to the local church so that they can see where their money is going from apportionments."
So what's the bottom line for 2005 expected apportionments in the South Conference? "We are apportioning $12,208,000."
For more information about the North Indiana Conference, log on to www.nicumc.org or call 800-783-5138. For more information about the South Indiana Conference, log on to www.sicumc.org or call 800-919-8160. For assistance in interpreting the ministry of The United Methodist Church, log on to www.umcgiving.org.
Last updated on 25 Apr 2008