A UMNS Report By Joretta Purdue*

Giving during 2003 by United Methodists was down but only slightly, as contributions lagged behind an improving U.S. economy.

The denomination's seven apportioned mission and administrative funds, which had a combined income of $112.4 million, experienced a decrease of less than 0.6 percent compared to 2002, when their total dipped 1.4 percent. Those funds represent the bulk of the general church's budget.

Six special Sunday offerings, totaling $6.2 million, ended down only 0.2 percent from the year before. Earlier during 2003, the dollar decline had been almost 6 percent for the special Sunday offerings and apportioned funds combined.

"The economy appears to be turning around," observed Sandra Kelley Lackore, treasurer of the denomination and top staff executive of the church's General Council on Finance and Administration in Evanston, Ill. "As demonstrated in the past, there appears to be a lag in church giving patterns reflecting economic improvement."

The finance agency received a total of $148.7 million in churchwide funds last year. That figure represents the apportioned giving, special Sunday collections and other amounts, including appeals for disaster relief. Because the appeals for disaster relief vary from year to year, the finance agency doesn't use the total giving figure for comparison purposes.

Church giving to the apportioned funds and special Sunday offerings had increased 2.1 percent in 2001, despite the downward skid already present in the U.S. economy.

Lackore finds that the expectation of recovery is especially important as the denomination approaches General Conference, April 27- May 7. Gathering in Pittsburgh, the church's highest legislative assembly will make budget decisions for the coming four-year period.

"After extensive consultation across the church, the council in their budget deliberations made a faith decision to propose a 7 percent increase in connectional ministry funding at a time when the economic recovery had just begun," she said. "This step, along with immediate and long-range actions by our agencies and bishops to cut institutional administrative costs, will free more funding for ministry."

She noted that in approaching the current year, the bishops had asked that the 8 percent salary increase contained in the church's formula be cut in half. Bishops, spouses and retirees have taken on a portion of the cost of health insurance premiums in 2004. The allowance for the bishops' offices has been held down, and church agencies are looking at collaboration of ministries and consolidation of staff functions and offices.

"The income report for 2003 demonstrates continued support for connectional ministries in the face of local church financial challenges," Lackore said.

In 2003, World Service, the largest of the churchwide funds, received $60.4 million, a decline of 2 percent. This fund supports the church's worldwide mission and ministry.

World Service and six other funds are apportioned by formula to the annual (regional) conferences to support the denomination's work and administration. The six funds include designated support for Africa University, $2.2 million in 2003; black colleges related to the denomination, $9.5 million; and ministerial education, almost $18 million. These amounts had declined 2, 1 and 0.6 percent, respectively, from 2002.

Giving to the apportioned administrative funds grew during 2003. Year-end totals were up 2.4 percent, at $14.8 million, for the Episcopal Fund, used by the Council of Bishops; 8.3 percent, at nearly $5.6 million, for the General Administration Fund; and 2.7 percent, to almost $1.9 million, for the Interdenominational Cooperation Fund.

Half of the churchwide special Sunday offerings returned more money in 2003 than in 2002. Peace with Justice Sunday, traditionally the smallest of the six offerings, received $267,589, an increase of 10.1 percent. Human Relations Day increased 4 percent to $631,726. The One Great Hour of Sharing, which supports the work of the denomination's relief and development agency, received almost $3.4 million, up 2.2 percent from the preceding year.

Giving to Native American Ministries Sunday ($328,106) and to United Methodist Student Day ($538,613) declined 9.7 percent each. World Communion Sunday netted almost $1.1 million, a drop of $38,818 or 3.5 percent.

The total churchwide giving also included slightly more than $29 million in general Advance Special gifts. This area includes the Council of Bishops' appeals, mission program Advance Specials and specials administered by the United Methodist Committee on Relief. Administrative costs associated with these programs are borne by other parts of the church structure, so 100 percent of the contributions go to the designated project or program.

In addition, the World Service Special Gifts and the Youth Service Fund together received almost $1 million. Like the Advance Specials, these funds are not compared year to year by the agency because contributions can vary widely.

In recent years, the total amount received for distribution by the finance agency has represented about 4 percent of the giving at the congregational level, according to agency officials. Much of that congregational giving supports local churches' ministries and operating expenses.

However, in the United Methodist system, each annual conference is apportioned by formula an amount it is asked to contribute to the churchwide efforts. Each annual conference apportions various amounts to its congregations for the support of the annual conference ministries as well as general church programs and administration.

Last year, 11 of the 63 annual conferences in the United States gave 100 percent of their apportionments to support the churchwide budget, as did the Puerto Rican Methodist Church, which voluntarily contributes to the denominational ministry of the parent church. That number was two more than the previous year.

Over the past 10 years, the number of conferences that gave 100 percent of their apportionment rose from just six in 1994, 1995 and 1996 to 17 conferences in 1999. In 2000 and 2001, 16 conferences met this goal.

Conferences that contributed 100 percent of their apportionment in 2003 were Baltimore-Washington, Central Pennsylvania, Desert Southwest, Detroit, Illinois Great Rivers, Minnesota, Oklahoma Indian Missionary, Peninsula-Delaware, Red Bird Missionary, West Michigan and Wisconsin.

In addition, three more conferences paid 100 percent of their apportionment for World Service in 2003. Those were Troy, Wyoming and Rio Grande, a Spanish-language conference that overlaps several geographic conferences.

Giving 100 percent of its apportionment is an accomplishment for an annual conference, but the Rev. Robert Fishel, an executive with the General Council on Finance and Administration, notes that of the about 35,000 United Methodist churches in the United States, 26,000 paid 90 percent or more of their conference apportionment in 2002. In fact, that same year - the latest for which all congregation figures are available and a bad period for the U.S. economy - more than two-thirds, or 24,000, paid the full 100 percent of apportionments.

*Purdue, a retired news director for United Methodist News Service, is a freelance writer residing in Colorado.

News media contact: Tim Tanton 615-742-5470 or newsdesk@umcom.org

Suggested Articles Councils support agencies' budget increases for 2005-08 Agency proposes cutting number of bishops Church finance agency seeks new level of efficiency

Suggested Resources General Council on Finance and Administration