Download STUDY GUIDE: THE WORLDWIDE NATURE

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?
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*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)?