March 25, 2009

World Ministries Budget Reduction Announcement

Friends,

All of us have been following the global economic recession, reading and hearing about its effect on banks and financial institutions, small businesses and corporations, schools and universities, families and church members. The economic recession is also negatively impacting the church’s ability to respond to mission opportunities today and in the future.

Since last fall, church leaders have been closely monitoring income from World Ministries Mission Tithes, investment earnings, endowments, and other earning assets. All income sources have decreased.

To minimize the impact of these decreases, church leaders took measures to curtail spending, which included a hiring slowdown, postponing major international gatherings such as the 2009 International Women’s Gathering, cancelling the 2009 World Church Leader’s Meeting and the Order of Bishops meeting, decreasing funding for ministerial travel by ten percent, and renegotiating contracts resulting in lower fees for services. All portions of the budget are being evaluated to respect and protect the significant contributions of staff in the field and at International Headquarters.

Despite these and other cost-reducing efforts, more reductions will be necessary in programming, events, and staffing, which may occur before the end of the year.

Leaders are making every effort to lessen the downsizing impact, knowing that the church’s mission is strengthened by the ministry, support, and leadership of those who serve in the field and at International Headquarters.

Starting Monday, March 30, “Monday Messages,” will be provided to you and to the church every two weeks.

We ask for your prayerful support, believing in a faithful God who brings peace and assurance in challenging times. We lift up our enduring principles, recognizing that during this uncertain time it is important that we become vulnerable to God’s grace and each other.

Linda L. Booth
Director of Communications


Q: Why have all church revenues declined?
A: The global economic crisis which is affecting much of the world has had an effect on the two major revenue categories of the World Ministries budget.

• World Ministries Mission Tithes is 36 percent of the overall budget at $10.5 million. Leaders now anticipate that by June 30 the church will have received $9.6 million, down 9 percent.

• Investment earnings on endowments and other funds is 42 percent of our overall budget. In 2008, our investments (stocks and bonds) were down 28 percent. Fortunately, the long-term investment approach adopted by the Investment Committee resulted in a smaller decline than the overall stock market. However, it still means the amount available to support the budget will be significantly less in FY 2010.

Q: How many employee positions will need to be reduced in the FY 2010 budget?
A: We are in the midst of the budget process to determine an answer to that question, which will be shared when the information is available. In a systematic and discerning way, leaders are carefully considering the church’s mission priorities and the significance of the ministry and support of those who serve in the field and at International Headquarters. Please be assured that all possibilities to minimize the number of position reductions are being considered.