SC financial update
A special message from President Mark Schroeder
The Synodical Council (SC) has decided not to make any changes to its budget proposal submitted for the synod convention's consideration at the end of the month. The decision follows teleconferences held by the SC's Finance Committee on July 2 and by the full council on Thursday night to discuss concerns that a shortfall in Congregation Mission Offerings (CMO) and a further reduction in the grant from the Schwan Foundation could require deeper cuts in ministry than those already required by the proposed budget.
In early June, the SC learned of two developments that appeared to be cause for genuine concern about the support forecast for 2009-11, on which the proposed budget is built. Through May, CMO were 7.5 percent less than they had been a year earlier and significantly below what congregations had committed. CMO for May had shown a marked improvement from the month earlier, but they were still falling short of subscriptions and what is planned for in the first six months of the next biennium. In addition to the CMO performance, the Schwan Foundation informed us that the 2010 grant would be about $800,000 less than what was previously expected.
By the time that the Finance Committee met on July 2, we received the good news that CMO had again improved in June. As of the end of June, they were only trailing those of the previous year by 3.6 percent. The committee also learned that this improved CMO performance, along with the balancing strategies adopted earlier by the SC, should enable us to end 2008-09 with a balanced budget.
The Finance Committee addressed two main questions: Can we assume that, by the end of the year, congregations will submit CMO at levels that are at or near what was committed? How does the decrease in Schwan support affect the budget that has been proposed for the next two years?
The Finance Committee agreed that we should have confidence that congregations will be able to meet their CMO commitments by the end of the year, in spite of the difficult economic times. If congregations do that, it means that no additional reductions would be required in the first year of the recommended budget. In regard to the reduced Schwan grant, the Finance Committee recognized that the new Financial Stabilization Fund (FSF) will delay any impact of this reduction to the second year of the biennium. The design of the FSF will provide time—either for carefully planned additional reductions, or for this shortfall to be covered by gifts from other sources (bequests, gifts from individuals, or increased CMO).
The full SC received the report of the Finance Committee and arrived at the following decisions:
1. The SC will not make any changes to the proposed budget already submitted for the convention's consideration.
2. The convention will be informed of the clear need for 2009 CMO performance to be at or very near to what was committed, otherwise additional reductions will need to be made by the SC in early fall. Reductions would be made in consultation with all areas of ministry.
3. The convention will be informed that the reduction in the Schwan gift has the potential to require additional reductions in the second year of the biennium, but that this shortfall could possibly be covered by increased support from other sources.
It should be noted that the Conference of Presidents has been informed of these developments and has expressed its support for the decision to expect congregations to meet—or come close to meeting—their CMO commitments.
Much of our attention and discussion in recent months has been focused on financial matters. We dare not allow these financial challenges—and the planning they require—to distract us from keeping our eyes of faith focused on our Savior and on the mission he has given us to do. May God move us to plan wisely, to consider the costs, and then to move forward in faith and trust. I ask that you join the SC in praying for God's blessing on our efforts, and that you continue to keep your congregation informed about these important matters in the weeks ahead.
Serving in Christ,
Mark Schroeder
Filed Under: Budget, CMO, Conference of Presidents, congregation mission offerings, COP, donation, Finance, finances, gift, giving, Offering, SC, support, Synod Convention, Synod Finances, Synodical Council
