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STUDY GUIDE: THE WORLDWIDE NATURE OF THE UNITED METHODIST CHURCH Section VII: Finances & Apportionments Finances are a recurring problem. 99% of UMC expenses are paid by the churches in the United States, but as these churches decline in membership, financing is increasingly challenged. Also, churches in Africa and the Philippines long to be greater economic contributors to the support of the church’s mission. Currently, Central Conferences (regionsoutside the US, similar to Jurisdictions) are not required to pay any funds (apportionments) toward the general budget of The UMC. However, as of 2008 the Central Conferences have been asked to try to pay 10% of their Episcopal costs. How can the global church help to increase the economic wellbeing of Africa and the Philippines so that the churches there can participate more fully in funding the mission and ministry of The United Methodist Church? *Consider this about apportionments: - The apportionment formula is explained by the General Council on Finance and Administration this way:A = E x (P + i) where A represents an annual conference’s general church apportionment, E represents the annualconference’s “Net Expenditures” (as an estimate of local church income available to meet local churchexpenses), P represents the “Base Percentage,” and irepresents the annual conference’s “PercentageAdjustment.” - The “Percentage Adjustment”orifactor in the formula represents an adjustment based on the affluence of each individual Annual Conference‘s geographical region. - The end result of the ifactor on Annual Conferences is twofold: 1) those representing more expensive markets, where higher salaries and costs are prevalent, pay more. Unfortunately, the formula doesn’t take into account that local ministry in these regions cost more and therefore church budgets (the basis for apportionments) are driven higher. 2) Another area of impact is how these supposedly more affluent regions might be adversely impacted in terms of their ability to do ministry for and with the poor (one of the UMC’s 4 focus areas). *When an Annual Conference and their local church’s costs are higher, are they forced to seek members and participants more on the basis of ministry funding rather than on local ministry needs? - *Finally, the “Percentage Adjustment”orifactor has resulted in the Western, Northeastern and North Central Jurisdictions of the US paying the highest amount per person in apportionments to the UMC (in that order), while the South Central and Southeastern pay the lowest rates per person (also, in that order). This is the reverse order of where The UMC is most populace and often considered strongest. *How can the global church become more equitable in cost sharing when the formulas we currently use appear to lack equality? Is there a better way to fund United Methodism while recognizing that the growing gaps between the wealthy and poor might be pushing us toward a funding system that needs to be mission-focused both within and outside the United States? Can this be done while not undermining the economic wellbeing of the poorest and most vulnerable regions where United Methodism is located (primarily central Africa and the Philippines)?