wfn.org | WCC Asks Members for Help as Financial Crisis Continues

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23-July-96 
 
 
96256    WCC Asks Members for Help as Financial Crisis Continues 
 
                         by Edmund Doogue 
                  Ecumenical News International 
 
GENEVA--The World Council of Churches is facing a "serious financial 
situation," and "drastic action" is needed to achieve a balanced budget for 
1997, according to the organization's general secretary, Konrad Raiser. 
 
     The financial crisis has already resulted in some job cuts at the 
WCC's headquarters in Geneva and may affect the programs and services of 
the WCC, which is the world's biggest ecumenical organization, with a wide 
range of dialogue, development and aid programs and services. 
 
     Raiser, a German theologian and WCC general secretary since 1993, has 
expressed deep concern about the organization's financial position, and has 
made "a specific request" to the WCC's 330 member churches around the world 
to provide cash to help solve the crisis and to pay for severance packages 
for staff who have to leave the Council because of the crisis. 
 
     At the beginning of this year, the WCC had 276 staff members.  Because 
of the financial crisis, ... about 42 staff positions are being cut. 
 
     In a letter released to member churches with the WCC's 1995 financial 
report today, Raiser states: "Income is no longer sufficient to pay for the 
present activities in which the Council is engaged." 
 
     Pointing out that the WCC's Finance Committee and its governing body, 
the Central Committee, require balanced budgets for 1997 and subsequent 
years,  Raiser says: "I am taking active steps to review both the programs 
and services of the Council, and to bring them into line with anticipated 
resources." Sadly, he says, more staff cuts -- beyond the 20 percent 
reduction in 1991/2 -- are needed. 
 
     A 1995 financial report shows the WCC's total income in 1995 was 80.4 
million Swiss francs ($63.8 million), 9.3 million less than in 1994. 
Expenditure for 1995 was 101 million Swiss francs, compared to 114 million 
in 1994. 
 
     "We are seeking contributions immediately for our Staff Restructuring 
Fund to help us meet the cost of providing a proper separation package for 
staff who are having to leave, ..."  Raiser says in his letter. About 2 
million Swiss francs ($1.58 million) are needed, he says. 
 
     "Secondly, we are asking all member churches and supporting 
organizations to make a very special effort to increase their regular, 
general (undesignated) contributions to the Council [for] this current 
year." 
 
     One of the WCC's sources of income -- membership contributions by 
churches -- amounted to only 6.27 million Swiss francs in 1995.  The 
contributions -- which fund the WCC's administration and services -- need 
to reach at least 10 million a year "if the Council is to be able to 
maintain anything like the services the churches and agencies have come to 
expect of it," Raiser says.  "The level of support has remained static for 
many years. ... Sad to say, there [is] a large number of churches [that], 
despite the decisions of the Central Committee last year regarding criteria 
for membership, do not so far make even a minimum contribution in support 
of our work." 
 
     In 1995, only 156 member churches paid membership contributions.  Many 
churches, including some of the biggest churches, do not pay any membership 
contributions. 
 
     Explaining the financial causes of the WCC's problems, Raiser says 
that after "encouraging results" in the early 1990s, the Council, like many 
other organizations, suffered a reversal of its financial situation in 
1994. This was largely a result of general economic conditions, a very 
strong Swiss franc and because some funding partners were themselves 
"finding times difficult" financially and had to freeze or even reduce 
their support. 
 
     "A year ago, we thought that we were in one of those periodic 
fluctuations [that] would correct itself before long. We believed that our 
reserves were sufficient to tide us over the difficulty.  You will see from 
the enclosed report that such a belief was overoptimistic; the decline in 
income has been great and lasted longer than anticipated, and shows no sign 
of improvement. By the end of this year, despite strict expenditure control 
and savings, the general funds and reserves available will have been used 
up." 

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