Over the past year, United Methodist financial leaders have faced the conundrum of trying to figure out what a potential church split means for the denomination’s bottom line.
General Conference, the denomination’s top lawmaking assembly, faces multiple proposals to resolve the church’s longtime debate which will cause the denomination to split. The big question mark: How many congregations would leave the denomination if General Conference approves a formal separation?
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While there is still no definitive answer, the General Council on Finance and Administration board got an idea of where to begin its calculations during its Nov. 19 online meeting.
Based on a survey of the 54 U.S. conferences, the finance agency now estimates the denomination stands to lose about 20% of U.S. local church net expenditures between 2021 and 2024. Forty-seven conferences responded to the agency’s survey.
The survey results do not mean conferences are forecasting that 20% of U.S. United Methodist churches will depart or close during the next four years. Net expenditures can vary widely by congregation.
What the results do mean is that the agency expects church departures and closures to result in a 20% decline in one of the key factors in determining the budget for denomination-wide ministries.
GCFA requests apportionments — shares of church giving — from each U.S. conference based on a formula that includes its local church spending, local church costs, the economic strength of the conference and a base percentage approved by General Conference.
The giving in the U.S. also helps determine the apportionments GCFA requests from central conferences, church regions in Europe, Africa and the Philippines. U.S. apportionments provide 99% of the funding for denomination-wide ministries such as general agencies and bishops.
Planning for the next four-year budget remains ongoing. The COVID-19 pandemic resulted in the postponement of General Conference from May this year to Aug. 29-Sept. 7, 2021. The GCFA board plans to take up budget adjustments at least twice before the postponed General Conference.
For the time being, the board unanimously approved 2021 spending plans for agencies and other ministries supported by general-church apportionments.
Almost all are based on a 50% apportionment collection rate— not only because of expected church departures but also because of the still-untold toll of the COVID-19 pandemic.
GCFA recommended that agencies and other ministries use the dramatically reduced collection rates in developing their spending plans.
If more money comes in, Rick King, the agency’s chief financial officer said, the additional funds will be distributed to ministries by the proportions determined by General Conference.
“GCFA’s real responsibility here is to make sure agencies do not spend money they don’t have,” King said.
Ministries across the denomination are already facing financial strain.
As of the end of October, U.S. apportionment receipts were down $11.6 million compared with the same time last year. At this point, GCFA is projecting a 70% collection rate for 2020 — significantly lower than during the worst of the 2008-2010 global recession.
excerpt from a story by Heather Hahn, multimedia news reporter, UMNS
One of seven apportioned giving opportunities of The United Methodist Church, the General Administration Fund implements trustworthy administrative oversight, supports the legislative processes of the church and curates The United Methodist Church’s rich history. Please encourage your leaders and congregations to support the General Administration Fund apportionment at 100 percent.
