wfn.org | Over USD 64 Million for 2003 LWF Budget

["Frank Imhoff" <FRANKI@elca.org>]

USD 2.4 Million for Tenth Assembly, Increased Income in Endowment
Fund

GENEVA, 24 September 2002 (LWI) - A total of USD 64,800,461 has
been approved for programs and activities of the Lutheran World
Federation (LWF) in 2003. This amount does not include emergency
funding. A summary of needs (SON) based on the work of the
organization's departments and offices puts the 2004 figure at USD
60,634,529 with a projection of USD 58,053,107 for 2005.

The LWF Council approved the estimates at its September 10-17
meeting in Wittenberg, Germany, based on recommendations by its
Program Committee for Finance and Administration, chaired by the
LWF Treasurer, Ms. Inger J. Wremer (Church of Norway). The
49-member LWF governing body, comprising representatives from LWF
member churches meets annually.

A combined total of SON amounting to USD 915,200 for 2003 was
approved for the General Secretariat which includes the Offices
for Finance and Administration, Personnel, International Affairs
and Human Rights, Ecumenical Affairs and Communication Services.
The expenditure foreseen for 2004 is USD 915,220 with a projection
of USD 982,140 for 2005.

Some USD 192,000 was approved for the Department for Theology and
Studies for 2003, USD 313,800 for 2004 and USD 296,000 is
projected for 2005. The Department for Mission and Development
programs and projects amount to USD 7.78 million for 2003, USD 5.7
million for 2004, and USD 5.65 million for 2005. The Council
approved program expenditure for the Department for World Service
to the tune of USD 55,521,841 in 2003, USD 53,227,959 in 2004 and
USD 50,728,997 for 2005. The budget for the Lutheran Foundation
for Inter-confessional Research - Strasbourg Institute is USD
390,000 for 2003, USD 395,000 for 2004 and USD 400,000 for 2005.

Geneva Coordination Budget

The Council also approved a CHF 13.8 million (USD 9.3 million)
Geneva Coordination budget for 2003, with a projected deficit of
CHF 894,572 (USD 599,562). The approval was given with the
understanding that the deficit would be covered from the general
reserves. On this point, the Council asked the General Secretary,
Rev. Dr. Ishmael Noko, to present to the next Executive Committee
meeting proposals for balanced 2004 and 2005 Geneva coordination
budgets, with staffing configuration corresponding to the
projected income.

Earlier, in the Treasurer's Report to the Council, Wremer had
noted that overall income to the LWF has decreased. Coupled with
this are fluctuating exchange rates that have lowered the currency
equalization fund from a balance of USD 893,00 to USD 353,000. The
original coordination budget for 2002 amounted to CHF 15.5 million
(USD 10.4 million), which was reduced to CHF 14.8 million (USD 9.9
million) in mid-November 2001, and has now been revised further
downwards to the current estimate of CHF 13.8 million (USD 9.2
million). Calling for action to improve LWF's financial situation,
Wremer noted that it would be hard to make further cuts in the
coordination budget without also scaling down more activities to
the detriment of the Federation's programs.

Churches Encouraged to Pay Assembly Fees

Also approved by this year's Council was the LWF Tenth Assembly
Budget amounting to USD 2.4 million. The assembly will take place
21-31 July 2003 in Winnipeg, Canada. The Council strongly
encouraged all LWF member churches to pay the full Tenth Assembly
fees by the first quarter of 2004. In presenting the report of the
Program Committee for Finance and Administration, Wremer noted
that the assembly budget remains very tight and highly dependent
on the Assembly fees. It is expected that the current USD 44,000
deficit will be covered by the first quarter of 2004. The Assembly
is the LWF's highest decision-making body, made up of delegates
from all the member churches. It meets every six years.

The Program Committee for Finance and Administration discussed in
depth the situation of membership fees. Particular attention was
given to the impact on the LWF income if the fair membership
calculations presented in 1999 and updated in July 2002 were
adhered to by all member churches. Membership fee contributions
remained stable in 2001 amounting to USD 2.1 million. The
Committee had noted with appreciation the efforts by member
churches towards adjusting to the level of fair membership fees,
based on the GNP of individual countries. The Council strongly
encouraged all member churches to pay the fair membership fees in
2003 and 2004.

Contributions to the Endowment Fund

Another financial matter discussed at the last Council meeting was
the LWF Foundation - Endowment Fund. In spite of the difficult
financial situation globally, LWF member churches that made
commitments to the LWF Foundation continued to regularly provide
their capital contributions. By 31 December 2001 the total funds
of the Endowment Fund amounted to CHF 4,960,348 (USD 3,337,796)
compared to CHF 3,934,709 (USD 2,647,333) in 2000.

The current total amount in the Endowment Fund includes
contributions from the Church of Sweden (USD 1.5 million),
Evangelical Lutheran Church of Finland (USD 500,000) and the LWF
German National Committee (DEM 3,416,794). In addition, the fund
has received USD 113,000 from the Endowment Fund of the
Evangelical Lutheran Church in America. Contributions have also
been received from the Evangelical Church of the Lutheran
Confession in Brazil, Evangelical Lutheran Church in Canada, and
Evangelical Churches of the Augsburg Confession in Poland and
Slovak Republic. The fund reached CHF 5.7 million by August 2002.

Established in response to a 1996 LWF Council recommendation, the
LWF Foundation - Endowment Fund aims to strengthen and supplement
financial support for the LWF's work through the investment of
income received on the fund's capital. On 1 April 1999, the fund
was registered as a foundation in the Canton of Geneva. A board
appointed by the LWF Board of Trustees in an honorary capacity,
directs the foundation and reports annually to the Council. The
fund's target by 2004 is CHF 10 million, with a long-term goal of
CHF 50 million. Earnings from 2001 were distributed to the
Department for Theology and Studies and Offices for Ecumenical
Affairs and Communication Services.

(The LWF is a global communion of Christian churches in the
Lutheran tradition. Founded in 1947 in Lund (Sweden), the LWF now
has 136 member churches in 75 countries representing over 61.7
million of the 65.4 million Lutherans worldwide. The LWF acts on
behalf of its member churches in areas of common interest such as
ecumenical relations, theology, humanitarian assistance, human
rights, communication, and the various aspects of mission and
development work. Its secretariat is located in Geneva,
Switzerland.)

[Lutheran World Information (LWI) is the information service of
the Lutheran World Federation (LWF). Unless specifically noted,
material presented does not represent positions or opinions of the
LWF or of its various units. Where the dateline of an article
contains the notation (LWI), the material may be freely reproduced
with acknowledgment.]

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