wfn.org | (LWF) LWF Treasurer Inger Johanne Wremer Calls

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

LWF Tenth Assembly, Winnipeg, Canada, 21-31 July 2003

PRESS RELEASE NO. 08

LWF Treasurer Inger Johanne Wremer Calls for "Matter-of-Fact" 
Attitude on Finances Needs of Member Churches Greater than Available
Resources

WINNIPEG, Canada, 23 July 2003 * The Treasurer of the Lutheran World
Federation (LWF), Inger Johanne Wremer, has paid tribute to the LWF member
churches and partners for their unwavering solidarity and financial
commitment over the past six years, but also called for a "matter-of-fact
attitude on financial policy and practice," in view of decreasing income.

"The years since the Assembly in Hong Kong have been rewarding ones for the
LWF, [but] also tough and challenging from a financial point of view," Wremer
said in the Report of the Treasurer to the LWF Tenth Assembly, July 22.

She pointed out that between the 1997 Ninth Assembly in Hong Kong, China and
the current Assembly, the LWF recorded an overall income of USD 580 million
of which USD 524 went to programs, projects and emergencies. She acknowledged
the financial means available in the LWF but expressed deep "concern that the
needs of the member churches remain greater than the resources available to
meet those needs. Certain areas of work are considered a priority, [but]
funding is not necessarily available," she noted.

Wremer, a member of the Church of Norway, and LWF Treasurer since June 2000,
noted that most of the funding is destined for specific programs and
projects. There is need for more unearmarked funding so that the LWF can work
in an even more flexible way and respond quickly to new and challenging
situations facing some of its member churches and partners.

Geneva Coorination Budget Greatly Affected

The treasurer noted that the continued decrease in overall income has impact
on the Coordination Budget of the LWF Geneva Secretariat. For most of the
years since the Assembly in Hong Kong, the fluctuations in exchange rates
have been to the disadvantage of the LWF. The Coordination (A) budget income
has decreased by 10 percent between 1998 and 2002, to the current sustainable
level of USD 9.5 million per year, Wremer said. 

She attributed the decrease also to a 20 percent depreciation of the US
dollar against the Swiss Franc, which overall makes the headquarters costs
more expensive, and hampers the balancing of the budget. While these factors
are beyond the control of the LWF, they have considerable consequences for
the overall financial situation including difficulties in balancing the
A-budget in recent years. In September 2002, the Council approved a
resolution calling for a balanced 2004-2005 budget. The number of staff
persons in Geneva has decreased from 92 in 1997 to 86 in April 2003. "The
decrease in income may result in a further reduction of staff," Wremer
observed.

She stressed the need to tackle income decrease "in a very careful" way - by
reducing staff costs and expenditure in general as well as keeping staff
positions vacant for some time." Although the reduced overall income also
reflects the strained economic situation of some member churches, it should
be underlined that most member churches and many related agencies contribute
to the budget as much as they possibly can, Wremer underlined. 

The financial situation has affected the Federation's general reserves,
which by the end of 2002 stood at USD 4.7 million, down from USD 6.7 million
in 1998. Wremer described the financial situation as manageable, due to the
"rather strict financial controls" but called "for soberness and very hard
priority-setting within the LWF."

The Treasurer expressed concern that the LWF may experience a further
general decrease in income, saying this "has to be taken nto account when the
LWF discusses its aims and goals and sets priorities." She urged the Council
that will be appointed at the Tenth Assembly to "have serious priority
setting discussions" on what the core functions of the LWF will be in the
future. "A cut in activities has to be made if the financial situation does
not improve," she observed.

The LWF has always relied on and is dependent on member churches and
church-related organizations for the main financial support for its
activities. The decrease in income also reflects the strained economic
situation of Assembly some member churches. Nevertheless it should be
underlined that most member churches contribute to the budget as much as they
possibly can. 

On annual membership fees, Wremer said that this remains an important source
of income for the LWF and an expression of commitment to the communion. Most
member churches have already adjusted their membership fees to the new "fair
membership level", while others are still striving to reach it.

She expressed hope that the income from membership fees will not only remain
stable, but again increase over the coming years to reach the level of fair
membership fees for all member churches. When this goal is reached, the
situation of the Geneva coordination budget will ease considerably and make
the LWF even more able to provide member churches with the services they
need. "I therefore strongly recommend that all members of the LWF pay the
amount of their fair membership fee. In the present situation, expectations
have to be adjusted to the financial realities, while at the same time the
LWF must seek new funding sources." 

She mentioned efforts by the LWF to guarantee basic rights for education in
different parts of the world, sensitize people about the HIV/AIDS pandemic,
provide emergency relief assistance and contribute to the life and work of
the member churches that are in a minority situation.

The LWF has also given priority to strengthening the organizational and
institutional capacities ofsmaller churches, especially in the South. The
need to also support smaller churches in theological matters has been
underlined by many member churches. 

One of the most positive aspects in the financial development of the LWF is
the Endowment Fund, launched at the 1997 LWF Ninth Assembly in Hong, King
China. The fund provides the member churches with an important instrument for
securing the financial viability of LWF operations, especially those that are
in the field, Wremer said. At the end of 2002, the Fund had USD 4.5 million.
The goal is to have USD 10 million in the short term, and a long term of USD
50 million. Worldwide economic problems, recessions and exchange-rate
variations in the contributions from member churches may threaten the
activities of the LWF. The present difficult economic situation calls for
creativity and hard work in order to find ways and means to get additional
support for the LWF. Special efforts to improve the LWF's financial situation
also include prioritizing fundraising and streamlining. 

In an update on the Augusta Victoria Hospital (AVH) on the Mount of Olives,
East Jerusalem, Wremer explained the difficult political and financial
conditions. Israeli tax authorities have taken the AVH to a lower court in
Jerusalem over the payment of employer's tax. The LWF has submitted an appeal
to a higher court and at the same time, together with member churches, is
pushing for political action from various governments.

She encouraged the member churches to pray for the hospital and also
contribute to its financial security, for instance by holding special
offerings.

The Tenth Assembly of the Lutheran World Federation (LWF) is taking place
21-31 July 2003 in Winnipeg, Canada, under the theme "For the Healing of the
World." It is being hosted by the Evangelical Lutheran Church in Canada
(ELCIC).

There are almost 700 men, women and youth participants in the Tenth Assembly
including 356 delegates from the 133 churches with full membership and three
associate members. TheAssembly is the highest decision-making body of the
LWF, and meets normally every six years. Between Assemblies, the LWF is
governed by its Council that meets annually, and by its Executive Committee.

Further information including photos, video and audio news, is posted on the
Assembly Web site www.lwf-assembly.org 

To order photographs, please contact LWF-Photo@lutheranworld.org 

*	*	*

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 76 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 and interfaith relations, theology, humanitarian
assistance, human rights, communication, and the various aspects of mission
and development work. Its secretariat is located in Geneva, Switzerland.