ELCA NEWS SERVICE

March 16, 2004

ELCA Bishops Plan to Maintain Mission Support Funds for Two Years
04-040-JB

     WOODLAND HILLS, Calif. (ELCA) -- The Conference of Bishops
of the Evangelical Lutheran Church in America (ELCA) agreed to
"encourage" each of the church's synods to maintain or increase
their current giving percentage of mission support funds to the
churchwide organization for fiscal 2004 and 2005.
     The ELCA Conference of Bishops took the action when it met
here March 4-10. The ELCA's 10,716 congregations are organized
into 65 synods, each synod headed by a bishop. The ELCA
Conference of Bishops is an advisory body to the church,
consisting of the church's synod bishops, presiding bishop and
secretary.
     Mission support funds make up a significant portion of the
churchwide organization's budget.  Congregations send funds to
their respective synods, which the knowledge that a percentage of
that income will be shared with the ELCA churchwide organization
based in Chicago.
     The bishops will discuss mission support with their synod
councils and report back to the ELCA treasurer.
     The bishops took the action following reports from the Rev.
Lowell G. Almen, ELCA secretary, Christina Jackson-Skelton, ELCA
treasurer, and the Rev. Mark S. Hanson, ELCA presiding bishop.
Each expressed concerns about a decline in mission support
giving to the churchwide organization.
     In recent years, there has been "insufficient consultation"
between many synods and the churchwide organization about changes
in mission support giving to the churchwide organization, and
some churchwide units have set directions without consulting
affected synods, Almen said.
     Both actions conflict with a policy set by the 1995 ELCA
Churchwide Assembly, which called for synods and the churchwide
organization to engage in "mutual consultation, mutual agreement
and mutual affirmation," he said.  When synod assemblies consider
the percentage of funds shared annually with the churchwide
organization, attempts to change the percentage unilaterally
should be considered out of order, Almen added.
     In a review of the church's preliminary and unaudited
financial results for the 2003 fiscal year that ended Jan. 31,
2004, Jackson-Skelton noted that mission support funds sent to
the churchwide organization were $66.5 million -- down $2.3
million from $68.8 million in 2002.
     Income and spending plans for the churchwide organization
were hampered by an unanticipated fall in mission support funds
to 91.4 percent of what synods said they would share, Jackson-
Skelton said.  As a result, spending authorizations for the
churchwide organization were reduced several times in 2003, she
said.  Spending reductions involved some personnel layoffs.
     Mission support estimates must be more accurate, Jackson-
Skelton said. "What we don't want to do in the coming year is to
be in a situation of being reactive," she said.
     Hanson followed Jackson-Skelton's remarks by asking that
synods "not change a churchwide [giving] percentage once we're
into a fiscal year."
     The Church Council will act on a churchwide spending
authorization at its meeting next month in Chicago.  Already,
2004 spending authorizations for churchwide units are being
reduced, based on income forecasts, using a priority system,
Jackson-Skelton said.  In some cases, personnel affected have
already been notified.
     In fiscal year 2003 the ELCA churchwide organization spent
$201,000 less than income in current operating funds, despite
declines in mission support funds and investment income.
     While reporting that overall financial results for 2003
"were well below expectations," Jackson-Skelton said the ELCA
churchwide organization was able to achieve the small surplus in
its operating funds only by adjusting its spending plans "several
times."
     Total operating fund receipts for fiscal 2003 were down from
$82.9 million in 2002 to $79.6 million, a decrease of $3.3
million, Jackson-Skelton said.  As well as a drop in mission
support, investment income was off nearly 60 percent to $700,000
because of declines in interest rates, account balances and
investment value, she said.
     The churchwide organization reduced its expenses to keep up
with revenue declines.  It reduced its expenses to $79.4 million
-- a cut of $2.7 million from fiscal 2002.
     One bright spot in the church's 2003 financial results was
the ELCA World Hunger Appeal, which took in $18 million, Jackson-
Skelton reported.  About $16.5 million was collected for the
general Hunger Appeal -- up from $16 million one year ago.
Designated gifts amounted to $1.5 million, with most of it going
to "Stand With Africa" -- a campaign aimed at providing funding
specifically for education and relief programs in Africa.  ELCA
members also contributed $1.9 million to the disaster response
fund, similar to what was contributed in 2002.
     "It was a good year for the World Hunger Appeal," Jackson-
Skelton told the Conference of Bishops.  "We're really pleased
about that.  Thank you for your help in this area as we continue
to work toward our goal of $25 million."

Hanson Seeks to Improve Finances with Specific Proposals
     Following the financial report, Hanson told the Conference
of Bishops he will make a series of proposals to the ELCA Church
Council next month aimed at building up the church's finances.
     "I think we're down to cutting things that people would not
want cut," he said.  "We have no fat left.  We are into an area
now of cutting the heart of this churchwide organization in which
you have called us to serve."
     "We are all tired of hearing these financial reports,"
Hanson said.  "We are tired of the cuts.  We want to talk about
ways to turn it around."
     Hanson said he will propose or take immediate action to
respond to the funding challenges of the churchwide organization
by:
     + Creating an "integrated development services unit" that
will combine the fundraising efforts of the ELCA Foundation, Fund
for Leaders in Mission, Mission Partners, Mission Founders,
missionary sponsorships, world hunger and disaster appeals,
Vision for Mission and a development services desk position.
Other fundraising efforts, such as Lutheran Vespers, Davey and
Goliath and ministries in the Middle East will have a reporting
relationship with the new unit.  The proposal calls for hiring an
executive director and a support staff member and appointing an
advisory panel to serve the unit.
     + The Lutheran, the magazine of the ELCA, plans to focus its
May 2004 issue on churchwide ministries and will include an
envelope for financial gifts to the Vision for Mission fund set
up to support churchwide ministries.
     + Identifying a churchwide staff member to focus directly on
building relationships with the ELCA's largest congregations and
its most financially generous congregations.
     + Coordinating churchwide units' mission support functions
more closely, and, in partnership with the Conference of Bishops,
studying the "protocols, processes and policies" synods use to
determine their mission support levels.
     + Organizing monthly meetings of a mission-funding core team
chaired by the presiding bishop. The team will be made up of key
churchwide leaders.  A leadership-stewardship council of 100
"influencers" may be formed, too.
     + Developing a comprehensive communication and marketing
strategy that will include a "tag line and case statement as its
first elements." The ELCA Church Council will review these
proposals next month.

For information contact:
John Brooks, Director (773) 380-2958 or [log in to unmask]
http://www.elca.org/news