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Hoosier United Methodist News Archives
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February 2004 |
Indiana churches take financial dip in 2003
Brighter days expected in 2004 with rebounding economy
By Daniel R. Gangler
The dismal economy across Indiana in 2003 was reflected financially in both the Indiana North and Indiana South Annual Conferences of The United Methodist Church. Both annual conference treasurers expect a better 2004.
Last year, the North Conference received 83.9 percent of the funds expected through conference apportionments, the amount assigned to congregations by the conference. The South Conference received only 80.5 percent.
The United Methodist Church Treasurer Sandy Lackore reported a similar decline in income nationally. The 2003 year-end figures of what was received were not available at press time, but Lackore reported that year end giving would be about 85 percent of apportionments asked.
Indiana need not feel alone; the story is similar across the country. More than 90 percent of annual conferences have experienced a similar downturn in giving. North Conference Treasurer Brent Williams told Together most annual conference treasurers with whom he has contact experienced a downturn from one to seven percent of receipts compared to 2002.
In May 2003 the economy began to turn around, according to Don House, a Texas economist and member of the General Council on Finance and Administration. He said then, "the numbers show we are out of the recession and in a period of growth, but church records don't yet show that, and they shouldn't." He went on to explain, "our apportionment payments suffered from the impact of the recent recession that began in early 2001." Church giving closely follows the ups and downs of the secular economy.
Williams said, "North Indiana churches really rallied in the last three months of the year (2003) to get us close to last year's (2002) level (of 84.4 percent)."
There were many reasons for the shortfall all related to a sagging economy. Williams said in Indiana high unemployment, several pastors reporting church members loosing jobs, business closings, low return on church and personal investments, and a dim view of the economic future contributed to a sharp decline in giving.
He said, "We had some churches who struggled this year financially, both large and small. They struggled with making decisions about keeping staff, funding new and vital programs, supporting their connectional obligations and meeting a variety of local and community needs.
"I know these pastors and their hearts. They wanted to do it all, but, along with other church leaders, they had to make some hard choices. I pray that God will reward their diligence and stewardship in 2004, and they will be able to return to full financial health."
To stabilize a sagging budget, in July 2003, Williams wrote to North Indiana Conference boards, committees and commissions asking them to cut their spending to 90 percent of their budgets. Did they? "Absolutely, all groups together reduced their spending by the targeted amounts and we kept our expenditures within the receipts anticipated." Williams said final 2003 numbers are still being ascertained.
Williams anticipates church income to improve this year. He said he already saw improvements in the last half of 2003. "Interest rates are returning and spending and donations should follow," he said. "We do not anticipate at this time a repeat of 2003 this year. However, (the North Indiana Conference) CF&A will keep a watchful eye on church giving and make prudent decisions in a timely manner if necessary."
Brent Wilson, treasurer of the South Indiana Conference said the 2003 receipts of 80.65 percent was a decrease from 84.02 percent received in 2002. In January 2003, the South Conference implemented a reduced spending plan based upon 2002 receipts. Wilson anticipated a year-end budgetary deficit.
In addition to regular conference expenses, the South Indiana Conference is completing a new conference center building in Bloomington. Wilson said the conference office anticipates moving the weekend of Feb. 21-22. A service of dedication is scheduled for Friday, March 19 at 3 p.m.
The new headquarters facility is located in the Bloomington Technology Park on the west side of the city on Liberty Drive. Construction began on the $2.8 million, 21,000-sq.-foot building in December 2002. The new center includes more than 4,000 sq. feet of meeting space and will include the Bloomington District office.
More good news -- Wilson also reports that the current building, constructed in 1963, on Second Street has been sold for $662,500 with a anticipated closing on March 10.
Last updated on February 09, 2004