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NEC Financial Difficulties

2010-04-19 09:44 (comments: 12)

Jeff Nicholson, NEC Communications & Stewardship Director

Red Pound Sign

UPDATE: PLEASE READ THE UPDATE TO THIS ARTICLE, 'FOLLOW UP ON NEC FINANCES'

At the workers meeting held Wednesday, 7th April in Stoke on Trent, the NEC president Pastor Ian Sweeney reported to the attendees that the last Audit report highlighted the fact that the Conference was in a state of financial crisis. He stated that as in a family, if income and expenditure are out of balance, this situation if not addressed would in the long term lead to financial ruin for that family.

Why are we in this situation? Several reasons were given;

  1. Historically only about 40% of the church membership has supported the church finances consistently.
  2. The financial downturn has affected the earning power of those who have traditionally been faithful tithe payers thereby decreasing their giving.
  3. Increase in the operating costs of the Conference.
  4. Decrease in the enrolment of our schools.
  5. Decrease in the interest payments from cash held in the bank.

What can we do to help? Five suggestions were made.

  1. To those who have been faithful supporters of the church, please continue in this regard.
  2. All members are being asked to give a minimum of an additional £10 on top of their tithe for the next 18 months. If this is done by the 4000 members currently returning tithe, we will see an annual increase of £480,000 which would go a long way towards eliminating the financial deficit and begin building our reserves. This special contribution could be added to the tithe or given under the heading of Conference Wide Development in the tithe envelopes.
  3. Those who are not returning a faithful tithe will be targeted to come on board. If we get the majority of those who historically have not been very supportive (over 50 per cent of our membership) we will be put on a much firmer foundation going forward.
  4. Promote Christian education and increase the enrolment in our schools.
  5. Pray for the President and his team.
  6. The NEC administration will also look at the necessary steps that need to be taken to reduce expenditure.

This new situation is a real opportunity for us all to work as a team to take the necessary steps to put the finances of the church on a proper footing for the long term. We are managing to go forward presently by depending on Gift Aid returns but this is a discretionary allowance from the Government which could be withdrawn at any time. Groups in Parliament hostile to religion have tried in recent times to remove this dispensation from religious bodies hence it is very unwise to put our financial survival at risk by depending on the Gift Aid returns to prop up our budget over the long term.

For too long many have been enjoying the privileges, the benefits, and the fellowship of the church but have not been supporting it according to their proportionate ability. Responsible Christians follow Biblical principles in providing for their church. The crucial question is “How much do I love?” Let us learn to listen to the voice of God in preference to the voice of men.

“How much should I give?” Listen, as God tells you; “For if the readiness is there, it is acceptable according to what a man has, not according to what he has not.” 1 Corinthians 8:12. (RSV).

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Comment by Ore Wong | 2010-04-19

If the conference has no money how come they can send workers on a trip to Israel and have 2 pastors at one church like Camp Hill?

Comment by Murielle G | 2010-04-19

Encourage members to give the 2nd tithe. For two years it should go to the Conference and the 3rd year it is used for the poor. It is a biblical principle well explained in the 51st chapter of patriarchs and prophets. Faithful members will want to know about it and will start applying it.

Comment by Ken Burt | 2010-04-20

I have a large number of serious questions that really need answering relating to the above points.

1. If historically only 40% of the membership are faithful financial supporters of the church and it is still 40% today, then nothing has changed and there should have been no surprises on how much income there is from the membership.
2. The recession has been going on for some time now so surely there should be some understanding that this would affect the income of the membership and hence the tithe income. The figures published by the BUC seem to show that there has been an INCREASE in tithe giving in the NEC no matter how you compare it.
3. What are the increased costs of the Conference? This is a bit of a throw away statement without supporting info.
4. Granted that there has been a decrease in the enrolment in our schools, but how much and how much has this financially impacted on the Conference?
5. Has the Conference only now realised that they are not getting as much interest payments from cash held in the bank? Interest payments have been low for years now. Also, you only get interest if there is capital in the bank. No or low capital then no or low interest. Surely we cannot be depending upon bank interest payments to run the church either in the past and especially not now?

Why did the problem only come about after the last Audit? Are trends not looked at on a regular basis and reacted upon when required? It would be poor for any family not to look ahead and plan but wait until financial ruin is staring it in the face.

No matter what is said, all of this looks very bad coming so close after a well publicised NEC Workers and Office Staff Meeting in Israel paid for how? Pastors I have asked the same question to say that it was out of/in lieu of part of their Equipment Budgets. If that is the case then the allocation should have been cut to help with the savings the members are now being asked to contribute to. It also looks bad (no matter what the reason) that the Area 4-6 Inter-Session Town Hall Meeting that should have been a few weeks ago has been cancelled. If the thought is legitimate or not it looks like the Conference Leadership did not want head-on challenges to the bad news.

All of this gives me no confidence that the solutions stated will clear the situation

Almost every Conference Department seems to asking for the members to support their programs by paying up to £160+ to attend weekend seminars in high quality hotels for good, spiritual fellowship and learning that can be achieved elsewhere. Members now have to pay £1 to go to hear the word of God on Sabbath mornings (more if it is in a nice hotel) or attend Rally days because we no longer seem to have sufficient competent secretaries working in the Conference Offices.

Remember, faithfulness is not just measured in what the membership put in the offering plate and send to conference. It also includes the unmeasurable gifts of time, energy, petrol, kindness and giving that no receipts can be written for by any local, conference or Department Treasurer.

Please tell me that I am wrong or the letter was badly written or I don’t understand or have got the wrong end of the stick. Please show me reason to have confidence that our Conference leadership knows what it is doing with the finances that they receive without making the faithful Family feel they are guilty of being without faith.

Please take for granted my prayers for the NEC leadership team.

Comment by Clive Ferguson | 2010-04-21

It seems prudent to me that step(s) 5 should be addressed and demonstrated as a first action.

What has contributed to the increase in operating costs? A financial statement should be published to justify this unprecedented request.

How does an increase of £10/month by a tithe paying membership of 4000 members over 18months equate to only £480,000? 4000 x 10 x 18 = £720,000 - am I missing something?

Comment by Jeff Nicholson | 2010-04-21

Thanks Muriel for your suggestion. The Stewardship department will study further into this topic.

Comment by Jeff Nicholson | 2010-04-21

We are very appreciative of the comments received because it is indicative of the commitment and love of our readers for the mission of the church. The intent of the NEC president’s letter and the communication in the Newsletter was not to make people feel guilty but to be transparent and to challenge our membership to greater spiritual loyalty in their giving to support the mission of the church.
As a leader of long standing in the church, Ken I am sure you are well aware that only a small section of our membership demonstrate their loyalty and stewardship of the kingdom by supporting the mission of the church whether financially or by systematic service. This is something that local and Conference leadership must address seriously if we are to fulfil the mission to which Christ has called us, because “the harvest truly is great but the labourers are few.” With respect to the apparent increase in tithe, it is evident that the increase in conference membership is not reflected in a corresponding increase in tithes and offering. It is more likely that the tithe increase is simply due to inflation.
With respect to the increase in conference expenditure we must keep in mind that our primary expenditure is in manpower. The decisions of the constituency can often have significant budgetary implications in that the last session voted three new administrative salary budgets and the conference had to add to it by providing secretarial support for these new officers.
With respect to our schools, educational provision is not money making venture but a part of our mission to nurture and keep our children in the church and hopefully win to Christ many of those who are not of the faith. The operation of our schools is not without cost to the Conference. In 2009 the subsidy to our schools was £150,000, plus the 25% subsidy to all Adventist students and a further £40,000 in capital expenditure. The conference also in 2009 wrote off a total of £170,000 in unrecoverable debts built up over several years, owed to our schools. These all affect our bottom line. With respect to bank interests, in 2008 we earned £70,000 in interests on funds held by the conference but now with interests rates as low as they are the benefit is negligible.
The conference is always looking for ways to deliver training in the most cost effective way and will continue to do so.
The £1 service charge levied for online booking is not a money making but a crowd control measure to ensure that no one church or group will monopolise the booking process and that tickets taken will be used. The parlour state of Conference finances is not a new realisation; we have simply been surviving by reliance on the Gift Aid returns. The Administration has made the decision that this cannot continue as reliance on a discretionary allowance from the Government no matter how beneficial is unsafe and unwise, hence the open disclosure to the church family. If we mean to operate successfully we need to be in a situation where the tithes and other freewill offerings given by our membership are adequate to cover our operating costs.
We look forward to your continued prayerful support and encouragement.

Comment by Jeff Nicholson | 2010-04-21

Thanks Ore, for your comments. This is not the first time that the North England Conference has faced a challenge like this and on the previous two occasions that I have been aware of with careful planning and the support of the membership we came through succesfully. The steps taken then, were essentially fire fighting, but now we are saying that more fundamental things need to be done to address the apparent spiritual and financial issues highlighted by this situation.

With respect to the workers meeting in Israel, it is part of the General Conference policy for workers to travel to sites like the Holy Land as part of their continuing education programme and for personal spiritual development. While in Israel we met a team of 200 ministerial workers from the Inter American Division on a similar tour as we were. The Conference holds regular events in this country where the worker force gets together for encouragement and in service training. Quoting from the correspondence sent to the churches by Pastor Sweeney, “In the past these residential meetings have been hosted at retreat centres around the UK, however, the pastoral Team voted to self fund this meeting so they are foregoing a number of personal annual allowances and entitlements. Accompanying spouses have had to fund their own airfares.” It must be said that the wider educational value and spiritual benefit of the trip was incalculable for those taking part. With respect to your second comment; the size of the Camp Hill Membership (nearly 700) does demand more ministerial input. I trust that this has proven helpful.

Comment by M Thyoka | 2010-04-22

I am not surprised at the financial handicap. Any organisation relying on faithfulness and benevolence of its members is at high risk of failure. More so when financial prudence is not observed.

I suggest these plans:

Suspend ALL non-urgent expenditures, especially the ones on conference events or courses or retreats, while a stable financial prudency is being adopted.

Pastors to be given even larger numbers of congregations or territory to manage (it works in Africa, where one pastor overseas at least 20 or more, with limited transport systems)

The Israel trip should not have left the conference offices closed anyway, as this just shows that it was not planned well. Not all ministers and departmental leaders should have gone on this trip, if we were serious enough (and had prior knowlegde of the financial situtation)

Asking members to contribute £10 monthly is not a viable option in my book, mainly because members are already stretched with finacial resources through systematic giving.

Lay men/women, who have not been on conference payroll have always been the ones spreading the gospel, without financial rewards/salary.Even in our churches today, it is the same lay men who actually contibute more to the finaces of the church at the local level.

Can we learn any lessons from sister groups like SEC, Scottish Mission, Welsh Mission?

Comment by A Carbone | 2010-05-01

With leadership comes responsibility. It is not enough to ask members to be faithful stewards when the money we faithfully return is not being managed properly - what evidence of stewardship is this? God will also require of the conference.

The NEC needs to lead by example. If the majority of the expenditure is salaries there should be a pay-freeze for the next financial year as in keeping with other organisations including the public sector.

With regard to continuing professional development as a professional myself, I have to pay for any conferences or courses I attend. I do not have the luxury of bringing my spouse, for even if they do pay their own airfare who is paying for the accommodation and food? There are usually a set of objectives to be attained by the end of the conference - I don't understand the objectives of the trip to Israel.

The NEC and its pastors are not only accountable to God but to its members and it appears at present that pastors feel that they are above the laitity in their day to day activities, not giving an account and therefore not truly providing the service they are employed ( for not all are called). However, not all of the pastors are hirelings and some are doing the work that is required of them, I thank God for your ministry.

Comment by Amos Liburd | 2010-05-17

Dear Pastor Jeff, Please could you tell me what the single most significant cause of our present financial difficulties is? Secondly, how often are we as a church audited publicly and when did this calamity first come to light. Finally, Haggai 1:7 urges God's people to consider their ways. Haggai had just finished detailing how unfruitful God's people were and would continue to be - if they stayed their hand from building the Lord a temple. Haggai mentioned earning money and putting it into a bag with holes. My question is this: If the conference treasury is that bag of holes WHAT IS IT that we as a body of people are so glaringly neglecting to do? That being rectified, should we not expect to see an upturn in our fortunes?

Instead of asking for £10 a head, should we not have a national day of prayer and fasting for the conference, churches and individual members. Just like the city of Niniveh. God is indeed merciful and He will hear us!

Blessings
Amos & Pauline Liburd (Nottingham)

Comment by Jeff Nicholson | 2010-05-18

Amos, In my personal opinion because Stewardship is a spiritual issue we would be barking up the wrong tree if we simply look at our present difficulties as one of lack of people supporting the finances of the church. Personally my answer to your question is that our problems is simply an indication of the fact that many of our members are not as spiritually committed as they should be to the mission and purpose of the church and until that changes the purpose of God in completing the gospel commission will be delayed. Our church books are audited annually and as has been said in the past, page 47 of the last NEC Session report highlighted the longstanding issues of lack of compliance to TED financial policy which the Administration is seeking to address at this time.

As to your reference to Haggai 1:6, (not verse 7 as you referenced), the context does not suggest that the tithe given to God is being put into a bag with holes but rather that their wages are being put into a bag with holes because they and all their resources are not being blessed because they are with-holding from God that which is rightfully his. That indeed is a salutary warning to us all.

Comment by Sqwali | 2010-05-19

Ken, Sqwali here. What's up my brother? I am asumimg you are the Ken Burt who worked with VSO back in late 70's-early 80's in the West Indies.