wfn.org | Capacity as a shared resource is crucial for LWF's sustainability

[FRANK_IMHOFF.parti@ecunet.org (FRANK IMHOFF)]

Financial trend shows balanced results for 1998
Press Release No. 6/99

BRATISLAVA, Slovak Republic, 23 June 1999 (lwi) - The Treasurer's report
to the 1999 Lutheran World Federation (LWF) Council meeting here from 22
to 29 June, not only underlined balanced financial results for 1998 but
also spelt out the need for the communion to contribute capacity as a
critical resource for long-term and genuine participation in sustainable
development and proclamation.

"The challenge of resourcing the LWF as a World Communion is obviously
not primarily one of financing projects and activities for each other,
but of sustaining capacity to express our common identity and calling in
a world of complexity, diversity and immeasurable possibilities and
need," LWF Treasurer Sigrun Mogedal said in her report to the Council.

In her report to the Council last year, the treasurer focussed on
instability and the need for the LWF to find better and more deliberate
strategies for coping with this instability and the need to strengthen
the ability to adapt to a changing pattern of resources, partners and
challenges.

In her report this year, she said 1998 was on the overall financially
difficult for the Federation, with decreases in contributions from
member churches and agencies, some of which were higher than expected.
As the foregoing situation calls for the need to adapt to a situation
with a lower level of overall income for regular LWF activities, the
challenge therefore is to maintain the current level of funding and
avoid a further decline.

The LWF was able to balance its Geneva Coordination Budget in 1998 with
funds from member churches and agencies. It was also able to increase
slightly the General Reserves and the Exchange Equalization Fund. The
LWF/ Department for World Service (DWS) field offices had a better
overview of the resources available and planned their activities within
these existing resources. But balanced financial results for the year
have also been possible "through substantial savings within the approved
budgets," Mogedal told the Council.

An overview of the trends for the Geneva Coordination Budget shows a
continued steady drop since 1993. Relatively, an increasing proportion
of the overall expenditure on this budget is taken by the General
Secretariat. Receipts and disbursement for projects indicate increased
receipts and disbursement for the Department for World Service (DWS)
projects in 1998 compared to 1997. The trend continues on a slight
decline for the Department for Mission and Development (DMD). The
Department for Theology and Studies portrays consistently very small
project funds and a rather slim structure in Geneva.

The total of receipts for the Geneva coordinating budget was USD 9.7
million in 1998 compared to USD 9.9 million in 1997. The total of
receipts for the LWF Program/Projects for 1998 was USD 83 million, an
increase from USD 76.7 million the previous year. The treasurer recalled
that in the report to the Council in 1998, she pointed out the need to
anticipate continued stagnation or further reduction in income from the
traditional sources of funding.

The estimated income for 2000 depends on the expected average exchange
rates. However, it is envisaged that the contributions from most of the
member churches and agencies will be at a similar level as for 1999,
with the exception of some further substantial decreases from Germany.

On functions performed in Geneva, Mogedal pointed out the need to
protect the sustainable capacity and finance for the critical minimum
administrative and programmatic functions if budget projections have to
be trimmed down further. As a follow-up to the 1998 Council meeting to
safeguard income for the Coordination budget, it should be possible
during this Council to receive adjusted calculations for membership fees
and some projections on what this will mean in terms of contribution to
the Coordination budget. But in the long term, the LWF Endowment Fund
may be the most promising instrument available to supplement membership
fee income to cover the cost for essential functions of LWF Geneva
towards sustainable identity, proclamation and service.

The management of the Augusta Victoria Hospital on the Mount of Olives
is able to control cost and avoid accumulating further deficits, the
treasurer told the 1999 LWF Council meeting. However, the  Norwegian
government has not had an adequate political response to its initiative
to safeguard the land on the Mount of Olives. The Swedish and Norwegian
governments are committed to contribute towards the accumulated deficit
at a total level of USD 3 million, on the condition that the land is
safeguarded and appropriate measures are taken to provide for a
continued international and Palestinian, Christian and ecumenical
presence. The German government is still ready to provide an
extraordinary grant in support of further development of the hospital.
The LWF holds the property in trust for the German foundation, Kaiserin
Auguste Victoria Stiftung.

Mogedal in her report pointed out that critical questions are being
raised about the overall contribution and effectiveness of development
assistance worldwide. This could on the one hand mean a re-focussing of
interests and commitments to sustainable development, or on the other
serve as an excuse for the international community to disengage from
development co-operation.

But for a church-based fellowship engaged in development, disengagement
for the LWF is not an option. "We believe that sustainable development
is possible and that the current pattern of poverty, injustice and
environmental degradation is against the will of God. The challenge is
to define our role and contribution in ways that empower and make
available new options for those who are on the margins," the treasurer
said in her report to the Council.

(The LWF is a global communion of 124 member churches in 69 countries
representing 58 million of the world's 61.5 million Lutherans. The LWF's
highest decision-making body is the Assembly, held every six or seven
years. Between Assemblies the LWF is governed by a 49-member Council,
which meets annually, and its Executive Committee. )

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Lutheran World Information
Assistant Editor, English: Pauline Mumia
E-mail: pmu@lutheranworld.org
http://www.lutheranworld.org/