FINANCIAL CONSULTATIONS 2010 Registration and

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FINANCIAL CONSULTATIONS

2010

Registration and

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Welcome

Domestic Arrangements

Opening Prayers

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Introduction

Brian Newey

Chairman of the Board of Finance

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Where we thought we were before the economic

downturn• Average share increases near

inflation till 2010 (3.5% indicated)• Limited use of reserves to assist this

– possible because parish share so reliably paid that we could work with a smaller reserve

• We responded in 2009 and this year with lower average increases

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The impact of the recession on you, me, and our

congregations• How people have been affected – pay, job loss,

low returns on savings, minimal pension increases• Some of you report decline in church income

(others up)• Some report smaller congregations (others also

up)• Use of reserves to pay the Share quite widespread• Is there a link between 40% of parishes with no

‘stewardship person’ and the 40% with lower income?

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The impact of the recession on the Church of England

• Overall income holding up well• Outstrips performance of all charities

– as does its Gift Aid• Some dioceses had early-year

problems in collecting Share…..• ……but nearly all report the year to

August nearly at target increase on last year

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The financial position of our diocese

• Good general position but some immediate budget problems – cost of uniquely low number of clergy vacancies since autumn 2009!

• Stringent cost control in response – some permanent

• 3% average Share increase indicated next year• Main cost of clergy pay and housing, and of

training new clergy cannot be quickly changed

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The financial position of our diocese contd…..

• Hope of further improved investment income but can’t count chickens by budgeting based on hope

• Other key considerations – re-investing for the future?; new challenges that need attention?

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The future of the church in our three counties

• Need to replace old (1990s) pastoral plans? (40% of C of E clergy will retire in next ten years)

• New housing will need new ministry• Encouraging clergy morale as they

need, embrace and lead change

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Conclusion

• Challenges on which we need to work together.

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Forecast 2010,

Draft Budget 2011 and beyond

Nigel WearneDirector of Finance

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Current Key Assumptions 2009 2010 2011

% % %

Stipends increase 3.5% 1.5% 1.0%

Other staff salaries increase 3.0% 0.0% 1.0%

Clergy pensions contribution rates 39.7% 45.0% 42.0%

ODBF Staff pension contribution rates (old scheme) 35.6% 35.6% 35.6%

ODBF Staff pension contribution rates (new scheme) 12.0% 12.0% 12.0%

Diocesan planned cost increase 2.0% 0.0% 0.0%

Buildings repairs and maintenance cost increase 6.7% 2.4% 2.7%

Diocesan average share increase 3.5% 2.5% 3.0%

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Spending 20102009 2010

Actual Forecast % £'000 £'000 Inc/ (Dec)

8,776 Stipends including NIC 9,175 4.5

2,810 Pension Contributions 3,394 20.8

11,586 Total clergy pay costs 12,569 8.5

3,704 Clergy housing costs 4,133 11.6

1,702 Other parish related costs 1,167 (31.4)

701 Central Fund for Training 721 2.9

17,693 Total Parochial Ministry (Head 1) 18,590 5.1

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Spending 2010

2009 2010

Actual Forecast % £'000 £'000 Inc/ (Dec)

17,693 Head 1 - Parochial Ministry 18,590 5.1

728 Head 2 - Administration and Finance 880 20.9

2,798 Head 3 - Mission in the Diocese 2,728 (2.5)

965 Head 4 - National Church 988 2.4

424Mission & Ministry Support balanced by Church Commissioners' Grants 443

22,608 Total 23,629 4.5

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Funding 20102009 2010Actual Forecast %

£'000 £'000 Inc/ (Dec)

2,467 Glebe 2,394 (3.0)

1,826 Investment and other income 1,822 (0.2)

994 Parochial and Chaplaincy Fees 962 (3.2)

485 Church Commissioners' Grants 525 8.2

5,772 Total external funding 5,703 (1.2)

16,518 Parish Share (net) 17,098 3.5

22,290 Total funding 22,801 2.3

(318) (Deficit) (828) 160.4

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The Current Scene – Spending

Actual Forecast Budget2009 2010 2011£'000 £'000 £'000

11,586 Parochial stipends and oncosts 12,569 12,567

6,107 Housing and all other Head 1 costs 6,021 6,161

17,693 Head 1 - Parochial Ministry 18,590 18,728

728 Head 2 - Administration 880 874

2,798 Head 3 - Mission in the Diocese 2,728 2,750

965 Head 4 - National Church contribution 988 985

424 Mission & Ministry support 443 136

22,608 Total 23,629 23,473

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The Current Scene - FundingActual Forecast Budget

2009 2009 2011£'000 £'000 £'000

16,518 Parish Share (net) 17,098 17,672

485 Church Commissioners' Grants 525 136

2,467 Glebe Income 2,394 2,465

994 Parochial and Chaplaincy Fees 962 996

1,826 Investment and Other Income 1,822 1,800

22,290 22,801 23,069

(318) Transfer to (from) Reserves (Head 5) (828) (404)

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Draft Budget 2011Forecast

2010Budget

2011

Net "costs"

inc/ (dec)

Inc/ (dec) in

spending / income

Contribution to increase

in Parish Share

Proportion of overall

cost

£'000 £'000 £'000 % % %SPENDING

Parochial ministry 18,590 18,728 138 0.7 0.8 79.8

Administration 880 874 (6) (0.7) (0.0) 3.7

Mission in the diocese 2,728 2,750 22 0.8 0.1 11.8

National church expenditure 988 985 (3) (0.3) (0.0) 4.2

Mission & Ministry support 443 136 (307) (69.3) (1.8) 0.6

23,629 23,473 (156) (0.7) (0.9) 100.0

INCOME other than share 5,703 5,397 306 5.4 1.8 23.0

(Deficit) from reserves (828) (404) (424) 51.2 (2.5) (1.7)

Parish share (net) 17,098 17,672 (574) (3.4) (3.4) 75.3

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Questions and Comments

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Treasurers’ Discussion

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Questions and Comments

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Share Allocation to Deaneries

Possible Changes

Brian Newey

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Questions and Comments

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Parish Giving

Robin Brunner-Ellis

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Parish Giving

Opening a New Chapter

Robin Brunner-EllisChristian Giving and Funding Adviser

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Healthy Stewardship Audit

11 There is a regular pattern of prayer for financial resources.

11 There is a regular approach to teaching and preaching about stewardship of money and of our ‘time and talents’.

11 There is an individual or group responsible for promoting stewardship within the parish.

11 There is an annual budgetary process connected with a renewal of planned giving needs.

11 Requests for money are led by the parish vision and future plans, rather than ‘what can we afford?’

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Healthy Stewardship Audit6. Planned givers receive regular letters of

thanks for their contributions.

11 The parish gives away 10% or more of its general funds to external organizations.

11 The ‘giving profile’ (ie. how many give how much, eg. 5% give £1-£5 per week; 20% give £5-£10 per week) is reviewed regularly by the PCC.

11 Full stewardship programmes occur regularly, ie. at least every 5 years, eg.

Mission-shaped Giving, Giving in Grace or others.

10. Our PCC has promoted giving of legacies in the last 5 years.

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Will Aid 2010Legacy packs have arrived!

• 1 letter explaining to your church how to use the pack

• 1 large poster

• 1 small poster

• 1 booklet about Will Aid

• 1 leaflet to prepare legators prior to meeting a solicitor

These packs will be mailed to you.

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Critical Steps to Growing Generosity

Giving for Life

• Preaching and teaching generous giving

• Link giving to mission and ministry

• Annual review of giving

• Thanking givers on an annual basis

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Does It Work?(a) Evaluating levels of

engagement

1. “Resourcing God’s Mission” giving leaflet

2. PLUS Christian Giving Parish Pack

3. PLUS “Mission-shaped Giving” PCC learning

4. PLUS a Stewardship Planning Group

OR an individual who promotes stewardship

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Does It Work?(b) Evaluating resources against giving patterns:

1. Resourcing God’s Mission

– 40% of churches saw 1-10% giving increase

– 30% saw 11-20% giving increase

– 30% saw 21-30% giving increase

2. PLUS Christian Giving Parish Pack

– 33% saw 1-10% giving increase

– 33% saw 11-21% giving increase

– 18% saw 21-30% giving increase

– 6% saw 31+% giving increase

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Does It Work?(b) Evaluating resources against giving patterns:

3. PLUS Mission-shaped Giving learning exercise

– 46% saw of churches giving increased by 11-20%

– 17% saw 21-30% giving increase

– 17% saw 31+% giving increase

4.PLUS a Stewardship Group OR individual – In 15% saw 1-10% giving increase

– In 29% saw 11-20% giving increase

– AND… 43% saw 31%+ giving increase

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Sharing Good Giving PracticeDiocesan resources

• Resources (new ones constantly being designed)

• Training

• Public presentations

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Sharing Good Giving Practice

The “Wales” problem

Our local challenge

A real and lasting difference

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Parish Stewardship PromotersWhat is this network about?

• Identifying who promotes stewardship

• Connecting them with others

• Supporting this network

• Providing training opportunities

• Helping to discern people to take up some of the less technical aspects

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Parish Stewardship PromotersChallenging current problems

• A communications gap

• False perceptions

Filling the communications gap

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Parish Stewardship PromotersProgress Report

• Berkshire Archdeaconry

Launched in July 2010, network being grown

• Oxford Archdeaconry

Launch on 18 NovemberBenson Church

7 December Woodstock Church

• Buckinghamshire Archdeaconry

Launch in late February 2011

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Treasurers: Next Steps?• Who is undertaking some /all of your

stewardship activities (Gift Aid, Planned Giving, stewardship group chair)?

• Support and encourage your PSP.

• If it is you, is there someone who could take on some of these tasks?

• Do I have your and/or their details?

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One Urgent News Flash!!!6 April 2011

• Tax rates Ordinary Rate Higher Rate

2000-2008 22% 18%

2008-2011 20% 20%

PLUS additional 3p for every £1

2011 onwards 20% 20%

LOSS of additional 3p for every £1

For every £100 Gift Aided by church members

You will lose £3

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Growing a Healthy Stewp Cycle

Growing a

Healthy

Stewardship

Cycle

FORWARD

PLANNING

• Mission &

Ministry

priorities

• Goals for year

• Parish Plan

• Resourcing the

Plan

THANKSGIVING

Celebrating

Success

COMMUNICATING THE VISION & PLAN

Engaging with church membership

Asking members to share in the vision

Encouraging them to live life more

generously

VISION & PURPOSE

Evaluating &

discerning

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One Last Request

Please….

Help to cascade information down to and around your church!

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Questions and Comments

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Prayers and Close

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