Red-ink report approved
By Parker T. Williamson, The Layman Online, February 23, 2006
PORTO ALEGRE, BRAZIL – The 9th Assembly of the World Council of Churches adopted a financial report Wednesday that acknowledges a 30-percent decrease in income since the last assembly meeting ($15.3 million) and massive losses in its reserve funds, from approximately $8 million in 1999 to approximately $1.6 million by the end of 2003.
The WCC report acknowledges that the ecumenical organization suffered huge deficits in 2001 and 2002 ($17.6 million), but says that 2003-2005 reports show a close to break even situation. However, a closer look at those more positive years reveals what appears to be a significant drain on reserves. The report warns that the WCC cannot continue the practice of drawing down restricted program fund balances. In the future, it will be allowed to spend no more than it receives.
The report states that the finance committee “hopes” it will be able to increase its dangerously diminished unrestricted fund by $4.8 million in 2005 and 2006. However, it admits that at the present time, it anticipates a budget deficit in 2006 of almost $5 million. How a deficit budget can produce reserve fund revenue was not explained.
No increase from member churches
When the 8th Assembly met in 1999 in Harare, Zimbabwe, delegates were warned that difficult times loomed on the horizon. That assembly established a goal of increasing member church contributions by $8 million. But the finance committee reported in Porto Alegre that this goal was not met. Member church contributions have not moved above the $4.8 million level that was reported in Harare, seven years ago.
This reality has led the 9th assembly to keep its $8 million goal as “a long-term target,” but to reduce its “short-term target” (2006 and 2007) to $5.64 million.
For the WCC’s “income development strategy” to be achieved, even at this reduced level, the finance committee says that it must continue working on “maintaining relationships with the principle funding partners.” Although the WCC claims 348 member churches, 90 percent of its annual income to programmatic work comes from only 20 churches, of which the Presbyterian Church (USA) and the United Methodist Church (USA) are major contributors.
Even in its short-term goal, the WCC faces a formidable problem. Its most generous member churches are themselves in financial trouble. The Presbyterian Church (USA) for example, is facing huge budget deficits. A special meeting of the General Assembly Council in April will focus on the budget problems to prepare recommendations for the 217th General Assembly. While they haven’t made public income estimates, the denomination’s budget-makers have projected record membership losses of 65,000 in 2005 and 85,000 in 2006.
One can anticipate that Stated Clerk Clifton Kirkpatrick, a passionate supporter WCC, will use whatever influence he can muster to protect his denomination’s contribution, but as Presbyterian headquarters makes increasingly deep staff and program cuts, including withering reductions in its missionary personnel, Kirkpatrick faces an uphill battle on behalf of the WCC.
During a press conference following the assembly’s adoption of its financial report, I asked Dr. Anders Gadegaard, WCC Finance Committee moderator, if when his committee made its income projections, it had taken into consideration the financial situation of churches like the Presbyterian Church (USA). He assured me that “the WCC is in constant communication with our major funding partners, and we appreciate their situation.”
Gadegaard said that although the WCC was disappointed that member church contributions had not increased since 1999, he felt that the fact that it did not decrease during this period of financial difficulty indicated strong support and was a good sign for the future.