ELCA Assembly Hears Finances Remain Positive

MINNEAPOLIS (ELCA) – The Evangelical Lutheran Church in America’s (ELCA) treasurer told the ELCA churchwide assembly Aug. 19 that while the overall financial picture for the churchwide organization has been positive in the last two years, the economic downturn has lately meant adjustments to the national church’s budget.
Treasurer Christina Jackson-Skelton also reported that in the same period, there has been “significant growth” in the ELCA Mission Investment Fund (MIF). Individuals and congregations invest in the MIF, which provides loans for church building and projects, and for land purchases for new church starts.
The churchwide assembly, the chief legislative authority of the ELCA, is meeting here Aug. 17-23 at the Minneapolis Convention Center. About 2,000 people are participating, including 1,045 ELCA voting members. The theme for the biennial assembly is “God’s work. Our hands.”
Jackson-Skelton reported that revenue exceeded expenses for budgeted operations during the 2007 and 2008 fiscal years, but also that, “it’s important to note that our congregations, synods and the churchwide organization were not immune to the impact of the economic downturn.”
Revenue available for churchwide operations increased from $83.3 million in 2007 to $83.4 million in 2008 -- “the fifth consecutive year of increases in total operating revenue,” she said, adding that operating expenses of about $80.2 million in 2008 show a decreases of $600,000 from 2007. “These expenses were favorable to the operating budget in both years,” she explained, “meaning expenses were kept within the approved spending level.”
She added that unrestricted mission-support income from congregations -- funds passed along to the churchwide organization through synods -- declined from $66.1 million in 2007 to $65.3 million in 2008. Reflecting a decrease of $842,000 (or 1.3 percent), “this was the first decrease in mission support income since 2005,” she said.
“Mission support income continues to be the core component for funding churchwide ministries,” Jackson-Skelton noted. Mission support income for 2007 was higher than that for the three previous years, with growth continuing into 2008. But income decreased in the final quarter of fiscal year 2008, which experienced a decline of more than $800,000 in mission support income from 2007.
Jackson-Skelton added that although mission support income in 2008 was essentially the same as for 1989, the value of such income since 1989, adjusted for inflation, has decreased about 42 percent.
She said that over the past four years, the ELCA World Hunger Appeal has experienced “record income levels.” That fund is built from designated gifts that reached $21.3 million in 2007 (up $2.1 million from 2006), and $21.4 million in 2008. In addition, $1 million was received in the two-year period for the Stand with Africa campaign for relief work on that continent.
The economic downturn’s effect on the churchwide organization’s finances became most noticeable in the final two months of the 2008 fiscal year, according to Jackson-Skelton.
But because of the high levels of World Hunger income and “through spending controls on the current income side, deficit spending was avoided,” she said. “However, income projections were necessarily adjusted, resulting in a reduction in budget plans for 2009 and 2010.”
She added that for the first five months of 2009, “we have continued to experience the impact of the economy on giving,” with a decrease by $2.7 million from the same period last year in total revenue to cover current budgeted expenses.
“Expenses are within budget,” she concluded, “resulting in a modest seasonal deficit that is favorable to budget expectations.”
Jackson-Skelton outlined “significant growth” in the past two years for the ELCA’s Mission Investment Fund. Its total assets have grown from $491 million in 2006 to $617 million at the end of 2008.
The fund’s portfolio at the end of 2008 had 797 loans in place, totaling $489 million to congregations and other ELCA ministries. That is a net increase of 89 loans and $105 million in the two years since December 2006.
“I want to thank the many individuals and ministries ... participating in the Fund for your confidence and support, and to invite those who haven’t yet joined us in this ministry to participate,” Jackson-Skelton said.
---
Information about the 2009 ELCA Churchwide Assembly can be found at http://www.elca.org/assembly/ on the Web.

For information contact:
John Brooks, Director (773) 380-2958 or news@elca.org
http://www.elca.org/news
ELCA News Blog: http://www.elca.org/news/blog