Photo Illustration by Mike DuBose, UMNS
Collection plate
A United Methodist Insight Interpretive Analysis
(c) 2018 United Methodist Insight
Of all the readers’ questions submitted in the aftermath of recent personnel cutbacks at Discipleship Ministries, the question asked most often was: If United Methodist giving rose during 2017, how can Discipleship Ministries claim that its layoffs were the result of shortfalls in its allocation from the church-wide account that funds general agencies?
The question seems simple, but the answer is complex, and requires researching and understanding the booklet “The Financial Commitment of The United Methodist Church 2017-2020.” United Methodist Insight posed its questions about how the system works to the General Council on Finance and Administration, but staff repeatedly referred us back to the financial aid booklet to do our own interpretation (and math!).
Here’s roughly how the system that funds Discipleship Ministries and all other denominational agencies works from a layperson’s perspective.
From the collection plate
The money that goes into United Methodist offering plates each Sunday pays for the ministry and mission of the worldwide church. Each church is assessed a portion of this cost in a fair-share formula known as an “apportionment.” These proceeds are collected from local congregations by each annual (regional) conference and forwarded to the General Council on Finance and Administration, the denomination’s treasury.
Proceeds are then divided into seven accounts known as “general funds.” These funds are General Administration, Episcopal, World Service, Ministerial Education, Black College, Interdenominational Cooperation and Africa University. Like all church-wide program agencies, Discipleship Ministries gets its revenue through the World Service Fund. The budget for all these funds is set by the General Conference, the top legislative body.
For the 2017-2020 term, General Conference set the total annual budget at about $151 million. However, as with household and business financial plans, what is budgeted may not always be received in revenue. Financial records show that the church-wide United Methodist budget hasn’t been fully funded at any time in the 21st century. In most years, the payout ratio has ranged from 89 to 91 percent. (GCFA typically recommends that boards and agencies receiving church-wide funds set their spending plans at the same percentages as payout records).
‘Fixed costs’ paid first
When it comes to parceling out United Methodist proceeds, “fixed costs” are fully funded before everything else, with the rest of the receipts divided among the remaining five general funds according to a ratio. The “fixed cost” accounts are the General Administration Fund and the Episcopal Fund. General Administration covers the General Council on Finance and Administration, General Conference, the Connectional Table, the Judicial Council, the General Commission on Archives and History, and salary and pension aid. The Episcopal Fund pays salaries, benefits and expenses of bishops and for the operations of the Office of Christian Unity and Interreligious Concerns.
Once General Administration and the Episcopal Fund get 100 percent of their budgets, the remaining proceeds are divided among the other five funds. The World Service Fund gets roughly 65 percent of available proceeds. For 2017-2020, Discipleship Ministries’ portion of World Service is 11.66 percent after “fixed costs” are paid. For 2017-2020, Discipleship Ministries’ budget is $8,738,042 each year.
So even though, as the financial booklet says, the World Service Fund is supposed to be considered “each congregation’s first benevolent responsibility,” its funding comes after the denomination’s administration – much like local congregations spending their money to keep the power on before stocking the food pantry or funding a youth group field trip.
Thus, when the General Council on Finance and Administration announces that church-wide giving has increased for the fourth straight year, it doesn’t mean that revenues equaled or exceeded the total budget. What it means is that more annual conferences paid 100 percent of their “fair share” contributions to running the worldwide church. In 2017, some 29 out of 56 U.S. regional conferences paid 100 percent, meaning that about half of U.S. regional units failed to give the full amount assigned to them.
Using the percentage of 2017 giving quoted in a United Methodist News Service report, United Methodists worldwide contributed about $133.2 million to support the denomination’s national and international ministries — some $1.8 million more than the previous year, but still less than the budgeted $151 million.
By the numbers
The 2018 budget for Discipleship Ministries is $8,738,042, about 11.66 percent of the “On-Ratio” portion of the World Service Fund of $74,945,832 after fixed costs. Assuming a 90 percent payout for 2018 giving, this year’s proceeds could be $7,864,238, a reduction of $873,804 from budget.
The last year for which the financial booklet gives complete figures is 2015 (2016 revenue was estimated). Assuming the same “On-Ratio” percentage, in 2015 Discipleship received $7,828,378, which was a 91.8 percent payout. In 2018 Discipleship could expect $35,860 more than it received in 2015.
That’s how Discipleship Ministries can claim that World Service Fund shortfalls in recent years have reduced its revenue. The program agency chose to deal with these shortfalls by laying off staff and restructuring its priorities.
Future strategy
Beyond the financial inquiry, United Methodist Insight readers posted questions about the future strategy of Discipleship Ministries. Steve Horswill-Johnston, communications director for Discipleship Ministries, provided the agency’s responses to readers’ questions given in bold below.
So in terms of the Discipleship Ministries article, has anyone made a request of the DM board (or Junius or Cynthia) for a clarification of the VISION of DM for providing resources for small and medium-sized churches and their pastors? Decimating the Worship Section seems to indicate that this resource is likely to be done away with, yet those people have driven more traffic to the DM website than any other resource.
Discipleship Ministries mission and vision have not changed. Our task is to equip annual conference and local church leaders to make disciples. The worship section of our website will remain of highest importance.
Is there a plan for new hires in worship? What will the position titles be?
When any staff position opens, not just in worship, the portfolio of that position is evaluated as it relates to our ministry priorities, and we ask if we can bring innovation to this position or adjust as necessary.
We plan to replace most of the staff who were working remotely and chose not to return, including the worship area staff. It is important to note that the remote staffing decision had absolutely nothing to do with the recent staff reduction which were triggered because of budgetary reasons.
Is everything going to be done by contract? If so, what measures have been in place to ensure consistency and quality of resources?
Everything is not done, or will it be done, by contractors. However, as has always been the case in all agencies, contractors play an important role for offering gifts and talents to the church that are not often available through staff positions.
Will there be a Wesleyan Heritage tour this year? What about the Wesleyan Leadership Conference? What about Covenant Discipleship?
Yes, we plan to have the Wesley Pilgrimage this year, with Rev. Manskar leading that ministry as he has done for many years. Before staff reductions, we had not planned to have a 2018 Wesleyan Leadership Conference, we’ve not done that event since 2016.
The area of Covenant Discipleship will continue as always.
What's going to happen to Worship Resources and Older Adult Ministries now? Our church has relied on these resources!
Worship resources will continue to be an important focus of the agency.
As far as Older Adult Ministries, Discipleship Ministries will be continuing our work with this important group. It has been and will continue to be an important aspect of what we offer The United Methodist Church.
Discipleship Ministries has a strategic priority in this quadrennium to engage with people outside the church, and this includes older adults. The whole agency will also continue to provide training that includes an emphasis on intentional discipleship and engaging older adults as part of this strategy approved by our board of directors.
Here's what I don't understand: If United Methodist giving is UP for the fourth year in a row, how can Discipleship Ministries claim that shortfalls in World Service are the reason for personnel cutbacks? Has anybody outside the board – say GCFA for instance – even seen a copy of the DM budget?
We are grateful for all financial resources for Discipleship Ministries receives. However, our allocation remains the same for the quadrennium. Recent gains do not change that allocation. The last ten years of audited financials are always available to the public and are posted to our website: https://www.umcdiscipleship.org/press-center/audited-financials
Associate Editor John Astle contributed to this report.