wfn.org | Newsline: Church of the Brethren faces challenging financial situation

[cobnews <cobnews@brethren.org>]

Newsline: Church of the Brethren News Service -- Feb. 12, 2009
Cheryl Brumbaugh-Cayford, News Director
800-323-8039 ext. 260 -- cobnews@brethren.org

CHURCH OF THE BRETHREN FACES CHALLENGING FINANCIAL SITUATION

(Feb. 12, 2009) Elgin, IL -- The Church of the Brethren is facing a challen ging financial situation at the start of 2009, according to the church's fi nance staff. The denomination has recorded a total net loss of $638,770 for  the year 2008 (in pre-audit figures).

A cluster of factors have brought about the situation, including loss of in vestment value, higher costs for fuel and utilities that have increased tra vel budgets and mission expenses, the exchange rate for the US dollar, and  a decrease in donations from individuals and congregations.

The loss in value of the denomination's investments is one contributing fac tor. As of the close of 2008, the Church of the Brethren had unrealized mar ket losses of about 35 percent of the value of its total investments, comin g to a little more than $4,863,900 (in pre-audit figures). This loss of inv estment value will continue to affect the church's budget in coming years,  staff reported.

However, a financial strategy to level the amount of investment income the  denomination actually takes in each year has helped protect the church from  what might have been a more severe loss of income in 2008. The denominatio n currently takes the average of the past five years of investment balances  in any given year.

Expenses budgeted for 2008 have proved to be realistic, but a budgeting pra ctice for anticipating giving may have been overly optimistic. For several  years, a practice for calculating what to expect in annual giving from cong regations has linked expectations to a high water mark set some years ago.

Although giving from congregations and individuals has declined, the declin e has not been as sharp as it might have been given the gloomy state of the  economy. The rate of giving may show a continuing commitment to denominati onal work, even as members and congregations face their own financial diffi culties. The total in giving from congregations and individuals came to $3, 611,460 in 2008, representing a decrease in giving of $150,560 or only 4 pe rcent of the actual donations received in the previous year (in pre-audit f igures).

Factors posing financial challenges also include the sharp rise in gas and  fuel costs experienced last year, which in turn affected the costs of utili ties as well as food, travel, and other expenses. The low value of the US d ollar has made international mission work more expensive, in countries wher e costs of goods and services have increased for mission staff and sister c hurches.

In another financial note, the church's New Windsor (Md.) Conference Center  experienced a loss of $201,040 in 2008 (in pre-audit figures). The loss ca me from the conference center's self-funded budget and did not affect the c ore ministries of the denomination. The loss is attributed to many groups c anceling bookings as the national economy fell.

The denomination's loss for 2008 has been able to be absorbed by net assets  that had been built up over the last five years. General secretary Stan No ffsinger has called on staff to seek new ways to cut expenses and to trim s pending from their programs in 2009. "We want the best thinking that you al l can give to face this situation," he told staff at a recent meeting. Plan s for capital improvements at the denomination's main facilities in Elgin,  Ill., and New Windsor, Md., are being revisited as well, among other measur es.

"Our big concern now is that giving is behind already for 2009," said treas urer Judy Keyser. "It's not just the 4 percent of last year. If the shortfa ll of giving continues at the current rate, it's something like 13 percent.  We're carefully considering what the impact will be on both the 2009 budge t and further years."

Executive staff will bring options for action to the Church of the Brethren 's Mission and Ministry Board at its next meeting on March 14-16.

The Church of the Brethren is a Christian denomination committed to continu ing the work of Jesus peacefully and simply, and to living out its faith in  community. The denomination is based in the Anabaptist and Pietist faith t raditions and is one of the three Historic Peace Churches. It celebrated it s 300th anniversary in 2008. It counts more than 125,000 members across the  United States and Puerto Rico, and has missions and sister churches in Nig eria, Brazil, the Dominican Republic, Haiti, and India.

># # #

>For more information contact:

>Cheryl Brumbaugh-Cayford
>Director of News Services
>Church of the Brethren
>1451 Dundee Ave., Elgin, IL 60120
>800-323-8039 ext. 260
>cobnews@brethren.org