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World Council of Churches
Press Release
For Immediate Use
15 July 1997

WCC FINANCIAL REPORT 1996 - SITUATION STABILISES

Following reductions in staffing and infrastructure costs, the financial
situation of the World Council of Churches (WCC) has "stabilised",
according to its 1996 Financial Report.

Last year, Rev. Dr Konrad Raiser, WCC General Secretary, warned that
income was no longer sufficient to pay for present activities.  He
announced "drastic action", including reductions in staffing levels, to deal
with the situation.

Currently the WCC employs around 200 people who fill the equivalent of
182 full time posts.  At 1 January 1996 the figures were 267 & 237
respectively.

In an introduction to the 1996 financial report, Rev. Michael Davies,
Assistant General Secretary for Finance and Administration, says, "The
situation relating to General Funds has stabilised.  As anticipated, there
was an operating shortfall in the year, but steps have been taken to
ensure that this is not repeated in subsequent years."

The shortfall on operating funds in 1996 was CHF2.40m compared to
CHF6.6m in 1995. Income for operating funds in 1996, excluding
investment income and exchange results, was CHF32.6 (1995 CHF32.7).

However, Mr Davies warns, "Whilst the operating shortfall was
contained in 1996 and the Council has been able to prevent further
erosion of its general reserves due to the good investment results...it is
clear that operating costs must not exceed income from now onward."

General investment income in 1996 amounted to CHF10.7m compared to
a negative result of -CHF3.2m in 1995.

The 1996 report shows total WCC income at CHF82.4 against
expenditure of CHF85.6 (1995 CHF80.4/CHF101m).

Despite efforts to increase member churches  subscriptions by
establishing a minimum level of CHF1,000 per annum, there has been "no
significant change" in this source of income.  Mr Davies explains that
although more churches have paid, "additional receipts have been offset
by decreases in contributions from some churches".

Membership contributions and other undesignated income in 1996
amounted to CHF6.35m from 166 churches (1995 CHF6.27 from 156
churches).  Last year, Dr Raiser said at least CHF10m of undesignated
income was needed.

Mr Davies says that a balanced budget has been agreed for 1997 and
work is proceeding on preparing a balanced budget for 1998.   However,
"The situation is complicated by the fact that the next WCC Assembly is
scheduled for 1998 and further staff reductions would make it difficult to
undertake all the work required."   Next year will also be a "year of
transition to a new structure and method of working, based on the
change envisaged, but not yet finalised and approved, resulting from the
Common Understanding and Vision process".

Copies of the 1996 Financial Report (English only) are available upon
request to the Press and Information Office.

**********The World Council of Churches is a fellowship of churches, now
330, in more than 100 countries in all continents from virtually all Christian
traditions.  The Roman Catholic Church is not a member church but
works cooperatively with the WCC.  The highest governing body is the
Assembly, which meets approximately every seven years.  The WCC
was formally inaugurated in 1948 in Amsterdam, Netherlands.  Its staff is
headed by general secretary Konrad Raiser from the Evangelical Church
in Germany.

World Council of Churches
Press and Information Office
Tel:  (41.22) 791.61.52/51
Fax:  (41.22) 798 13 46
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