wfn.org | WCC'S Financial Situation Stabilizes, Report Says

[PCUSA.NEWS@pcusa.org]

28-July-1997 
97295 
 
    WCC'S Financial Situation Stabilizes, Report Says 
 
    by John Newbury 
    WCC Office of News and Information 
 
GENEVA--Following reductions in staffing and infrastructure costs, the 
financial situation of the World Council of Churches (WCC) has 
"stabilized," according to its 1996 financial report. 
 
    Last year, the Rev. Konrad Raiser, WCC general secretary, warned that 
income was no longer sufficient to pay for present activities.  He 
announced "drastic action," including staff reductions, to deal with the 
situation. 
 
    Currently the WCC employs around 200 people who fill the equivalent of 
182 full-time posts.  On Jan. 1, 1996, the figures were 267 and 237, 
respectively. 
 
    In an introduction to the 1996 financial report, the Rev. Michael 
Davies, assistant general secretary for finance and administration, says, 
"The situation relating to general funds has stabilized.  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 CHF (Swiss Francs) 2.40 
million, compared to CHF6.6 million in 1995. Income for operating funds in 
1996, excluding investment income and exchange results, was CHF32.6 
million, compared to CHF32.7 million in 1995. 
 
    However, 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 CHF10.7 million, compared 
to a loss of CHF3.2 million in 1995. 
 
    The 1996 report shows total WCC income at CHF82.4 million against 
expenditure of CHF85.6 million.  In 1995 total income was CHF80.4 million 
versus expenditures of CHF101 million. 
 
    Despite efforts to increase member churches' contributions by 
establishing a minimum level of CHF1,000 per year, there has been "no 
significant change" in this source of income. 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 CHF6.35 million from 166 churches (compared to 1995's CHF6.27 million 
from 156 churches).  Last year, Raiser said, at least CHF10 million of 
undesignated income was needed. 
 
    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 finalized and approved, resulting from the Common 
Understanding and Vision process." 

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