wfn.org | LWF Challenged to Develop Creative Ways to Get Additional Support

["Frank Imhoff" <franki@elca.org>]

Treasurer's Report to Council Calls for Prioritization of a
Supportive Communion

LWF Council Meeting, Wittenberg, Germany, 10-17 September 2002

Press Release No. 7

WITTENBERG, Germany/GENEVA, 11 September 2002 (LWI) * The Lutheran
World Federation (LWF) was today challenged to develop creative
ways to get additional financial support for the Federation's
work. "A more concrete plan of action is needed," LWF Treasurer
Ms. Inger J. Wremer said in her Report to the Council today.

Combined receipts in 2001 amounted to USD 98.8 million compared
with USD 102.2 million in 2000, a decrease of USD 3.4 million. Out
of this figure, USD 8.2 million, representing 8.2 percent went
toward administration related implementation while USD 90.6
million was allocated to projects. The receipts for 2000 stood at
USD 8.4 million for administration and USD 93.8 million for
project work

Although USD 200,000 was used from the general reserve funds, now
standing at USD 4.3 million, to balance the coordination budget in
2001 (A-Budget) the LWF has a goal to reach a new sustainable
budget level by 2004. The reason for the shortfall is that
although some partners are able to increase their support, there
are others who have had to cut back on theirs, Wremer said. She
explained that more than 85 percent of the A-Budget is staff
related costs, noting that intensified work is currently needed to
prepare for the 2003 LWF Tenth Assembly. In addition, the exchange
equalization fud decreased from USD 893,000 to USD 353,000, Wremer
told LWF's annual governing body, meeting in the Luther city of
Wittenberg, September 10-17.

"But the financial situation is manageable. I am optimistic about
it," Wremer later told a press conference, responding to a
question about the future of LWF finances.

The treasurer expressed deep gratitude that the membership fee
contributions after declining in 2000 had remained stable in 2001
to reach USD 2.1 million, nearly matching the 2000 figure. She
however remarked that the fair membership contributions * based on
each country's GNP - agreed during a consultation in 1999 would
have resulted in an amount of more than USD 2.5 million.

Wremer expressed gratitude to LWF member churches for their
contribution to the Endowment Fund, an additional instrument to
ensure operative financial viability, enabling the sustainable
continuation of the coordination services. Contributions to the
fund between 1999 and 2001 stood at CHF 4.5 million (USD 2.8
million). By August 2002, additional pledges put the total amount
in the fund so far at CHF 5.7 million (USD 3.6 million). The
target is CHF 10 million (USD 6 million) by 2004.

The treasurer appreciated that it may be difficult for some
members to contribute to the Endowment Fund and at the same time
increase their membership fee, "and this therefore might seem a
bit too much to ask for." Nevertheless, she expressed hope that in
due time, both membership fees and grants for the fund would reach
a level at which the services of the secretariat as well as to the
member churches, "can be done in a most satisfactory way, and LWF
work in general can be more completely ensured."

A USD 35,000 surplus was recorded in the Department for World
Service (DWS) administration implementation budget and USD 2.8
million in programs, Wremer said. Project income for DWS in 2001
stood at USD 80.7 million and expenditure at USD 77.9 million
compared with USD 83.7 million and USD 86.2 million respectively
in 2000. The decline manly resulted from lower income/expenditure
relating to emergencies. The treasurer recognized the continuous
good work that Action by Churches Together (the LWF and WCC-based
network of church related agencies responding to emergencies) in
collaboration with DWS. She stressed that new demands and changes
in the international environment call for constant readiness to
consider strategies and solutions.

In 2001, coordination income from member churches to the
Department for Mission and Development (DMD) reduced from USD 2.4
million to USD 2.2 million. Lower interest rates also resulted in
a decline of approximately USD 100,000 in investment income, which
totaled USD 293,000. Allocation of USD 205,000 from membership
contributions put the total income to USD 2.7 million. DMD's
coordinated project/program funds remained stable at approximately
USD 9.4 million. There was a USD 803,000 decrease in program funds
overall reflecting small deficits. Wremer expressed gratitude to
member churches for their support for the ongoing work through the
department. In any given year the DMD accompanies LWF member
churches worldwide in the implementation of about 450 projects and
programs.

The coordination budget income received from member churches
toward the Department for Theology and Studies (DTS) declined by
10.8 percent to USD 502,000 in 2001. A further allocation of USD
149,000 from membership contributions for the year 2001 put the
DTs deficit at USD 81,000.

The coordination income and expenditure for the General
Secretariat, comprising the offices of the General Secretary,
Deputy General Secretary, Ecumenical Affairs, International
Affairs and Human Rights, Communication Services, Personnel,
Finance and Administration decreased from USD 2.1 million in 2000
to USD 1.9 million in 2001. During the same period project income
declined from USD 315,000 to USD 163,000, and project expenditure
increased from USD 419,000 to USD 699,000. The treasurer noted
"the situation is especially difficult for the offices of
Ecumnical Affairs and Communication Services, both of which belong
to the core functions of the LWF as a communion of churches.

The 2001 Coordination Budget stands at around CHF 15 million (USD
9 million). The 2002 budget, originally envisaged CHF 15.5 million
(USD 9.6 million) was reduced to CHF 14.8 million (USD 9.2
million) in November 2001 and has been further revised to CHF 14.6
million. Wremer pointed out that it would be difficult to cut back
further on the A-budget without also reducing more activities
whose effect would be felt by the LWF.

Wremer said a task force set up to develop a new budget structure
held it first meeting in January. The group focused on a structure
aimed at improving transparency and broadening the basis of
unearmarked funding while taking into account the LWF aims and
goals. The team's proposal will be examined closely during the
Council meeting.

Special efforts to improve LWF's financial position would include
prioritizing fundraising, Wremer said. She also proposed the
establishment of a task force for 2002/2003 to look into
possibilities of streamlining Council preparations.

Wremer also spoke of the situation of the LWF-run Augusta Victoria
Hospital (AVH) in East Jerusalem. Through grants from the
governments of Norway (USD 2 million) and Sweden (USD 1 million),
accumulated deficits could now be reduced and the hospital could
operate without putting the property at risk. Decision is still
awaited on a court case over an Israeli employer's tax imposed on
the AVH. The judge has allowed the LWF time to find a solution in
negotiations with Israeli authorities. But "if the Israelis will
not respect the tax exemption, and the court decides that LWF will
have to pay, this may lead to the closure of the hospital," Wremer
told the Council meeting.

The treasurer also recognized the diversity in the Lutheran
communion, with vastly different social locations, and resources.
She called for the prioritization of a supportive communion that
acts "in a sense of relatedness, rsponsibility and accountability
to others within the federation." Relating to each other this way
not only contributes to solidarity; it also helps to resist
exclusion from active participation for members that are in a
rather difficult economic situation.

That minority churches are able to share their experiences and
participate fully in the fellowship in spite of limited financial
capacity is a concrete sign of a supportive church communion. "By
sharing and building partnership between member churches we
possibly will explore new areas for cooperation and fellowship,"
she told the Council meeting.

Wremer, from the Church of Norway, was elected LWF Treasurer in
June 2000, succeeding Dr. Sigrun Mogedal, who resigned the same
year following appointment to a state position.

Staff of the LWF Office for Communication Services at the Council
meeting can be contacted at German mobile telephone No., +49-(0)
170-8345 177.

(The LWF is a global communion of Christian churches in the
Lutheran tradition. Founded in 1947 in Lund (Sweden), the LWF now
has 133 member churches in 73 countries representing over 61.7
million of the 65.4 million Lutherans worldwide. The LWF acts on
behalf of its member churches in areas of common interest such as
ecumenical relations, theology, humanitarian assistance, human
rights, communication, and the various aspects of mission and
development work. Its secretariat is located in Geneva,
Switzerland.)

[Lutheran World Information (LWI) is the information service of
the Lutheran World Federation (LWF). Unless specifically noted,
material presented does not represent positions or opinions of the
LWF or of its various units. Where the dateline of an article
contains the notation (LWI), the material may be freely reproduced
with acknowledgment.]

*	*	*
LUTHERAN WORLD INFORMATION
PO Box 2100, CH-1211 Geneva 2, Switzerland
English Editor: Pauline Mumia
E-mail: pmu@lutheranworld.org
Tel: (41.22) 791.63.54
Fax: (41.22) 791.66.30
http://www.lutheranworld.org/