wfn.org | Task Force Proposes Dramatic Changes

[PCUSA.NEWS@pcusa.org]

22-January-1997 
 
 
97032         TASK FORCE PROPOSES DRAMATIC CHANGES 
            IN PROCESS FOR ALLOCATING RESTRICTED FUNDS 
 
                     by Jerry L. Van Marter  
 
TAMPA, Fla.--A proposal to radically decentralize the allocation of 
restricted funds given to the General Assembly of the Presbyterian Church 
(U.S.A.) has been endorsed by the General Assembly Council (GAC) executive 
committee. 
 
     The plan was adopted by the committee at its Jan. 10-11 meeting here 
and sent on to the full GAC for approval when it meets Feb. 4-9 in 
Louisville. 
 
     If adopted, any governing body (including a session) will be free to 
"submit a request for a project to be considered for [restricted] fund 
utilization."  Moreover, those governing bodies -- sessions, presbyteries 
or synods -- will be permitted to submit a funding request "on behalf of a 
racial-ethnic constituency group within its bounds." 
 
     The new process for allocating restricted funds was proposed by a task 
force authorized by the 1996 General Assembly in response to overtures from 
the synods of the Southwest, Rocky Mountains and Living Waters.  Those 
overtures sought a new mechanism whereby denominational mission funds would 
"be allocated at the governing body level, where [mission] can be done most 
efficiently and effectively." 
 
     Historically, all money given to the General Assembly -- unrestricted 
and designated -- has been allocated through the General Assembly mission 
budget.  Synods and presbyteries have been involved peripherally in those 
funding decisions, and sessions virtually not at all.  The Rev. Gary 
Skinner, executive of the Synod of Alaska-Northwest and chair of the task 
force, said the proposed new process "defines a new level of partnership 
among governing bodies in honoring the intent of faithful Presbyterians 
whose faithful stewardship over more than two centuries has resulted in a 
significant number of restricted funds." 
 
     The GAC has come under criticism in recent years for allowing 
restricted funds to accumulate in accounts held for the denomination by the 
Presbyterian Foundation.  Last spring, the council approved a plan to 
"spend down" tens of millions of dollars in "accumulated income" from the 
restricted funds -- but with the GAC still making the final determinations 
about how the money would be spent. 
 
     "Does this plan accelerate the spend-down we approved last spring?" 
asked the Rev. Hugh Burroughs, an executive committee member from Santa 
Monica, Calif. 
 
     "Yes, and it also decentralizes the process," Skinner replied. 
 
     The proposal calls for the focus the first year (1997) to be on 
restricted funds that are not currently within the General Assembly mission 
budget.  The GAC is called to publish a list, as soon as possible, of all 
such restricted funds, their amounts and the restrictions that are on them. 
 
     The Presbyterian Foundation has created two public electronic 
databases -- CARE (Comprehensive Analysis of Restricted Endowments) and 
PRECIS (Presbyterian Restricted Endowment Compliance Information System) -- 
that "identify the key documents for each fund" and "accurately and fully 
depict how the gift proceeds can be used." 
 
     Governing bodies can, after examining the information, submit a 
request to a special GAC "oversight committee" for funding from any of the 
available restricted funds for which they believe they fit the spending 
criteria. 
 
     The GAC would also be responsible for implementing "appropriate 
consultation processes for each fund ... with all interested parties ... 
for the purpose of approving a joint recommendation ...  regarding the 
allocation of the funds involved."  If those involved cannot agree on a 
recommendation, the proposal suggests, "the decision of the General 
Assembly Council shall be final." 
 
     The proposal recommends that in ensuing years a similar process be 
employed to allocate new restricted funds and then allocate of restricted 
funds that have already been included in mission budgets. Because mission 
programs and denominational priorites change, Skinner said, "there ought to 
be opportunity to assess previous commitments and make adjustments as 
necessary." 

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