wfn.org | Further Deficit Foreseen in LWF Budget in the Coming Years

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

Further Deficit Foreseen in LWF Budget in the Coming Years 
Different Options Could be Considered, Priority Setting Remains Crucial 

LWF Council Meeting, Geneva 1 - 7 September 2004 

PRESS RELEASE NO. 07-2004 

GENEVA, 2 September 2004 (LWI) * Based on current projections, the Lutheran World Federation (LWF) expects a difficult financial situation in the coming years. From the pledges received so far from its partner organizations as well as income from membership fees, a further deficit is expected in the LWF budget, according to the LWF Treasurer, Mr Peter Stoll. 

Stoll made these remarks during a press conference at the LWF Council meeting at Chavannes-de-Bogis near Geneva. In view of financial realities in some of the LWF member churches, especially in Germany, the LWF would either consider ways to improve efficiency or call for further cuts. 

In his report to the Council earlier in the day, the LWF treasurer proposed three strategic options. The LWF could cut down costs through reducing its aims and goals, thus reducing staff workload and the number of staff. However, this alternative could be avoided if the income could be increased or efficiency improved. 

Responding to a question as to whether the unfavorable financial situation was not linked to 'donor fatigue' among churches who have membership in other ecumenical or confessional bodies, Stoll said many churches saw their contribution to the ecumenical scene as a whole, thus they would have to balance their contribution to these bodies. 

On how the LWF's fair membership fees were determined, the treasurer explained that the church membership size and the Gross National Product of the respective country were the key considerations, and member churches had agreed to these criteria as fair measurement tools. Stoll noted with gratitude that some churches, including some poorer churches in the South, were paying more than their allocated membership fee. On the other hand, it was disappointing to note that some financially strong churches did not pay the expected fee. In the case of some of the Nordic churches, the complexity of the church-state structure was a major contributing factor in the under-payment of fair membership fees, he said. 

Asked if funding could be sourced from other organizations, for example the European Union (EU), Stoll said that this had been considered but that the LWF had to be realistic in its expectations. There are very strict regulations about how EU funding is allocated, and these regulations do not often align with the LWF's requirements for funding. 

Mr Pauli Rantanen, director of the LWF Office for Finance and Administration responding to a question on the LWF's investment policy, explained that the LWF invested with companies that both performed well and were "socially responsible." He referred to the LWF's Investment Principles and Guidelines to explain that organizations that were considered socially responsible might include those that were committed to environmental protection, product safety and recycling, and or human rights, gender equality, reasonable working conditions and the prevention of child labor. The investment guidelines outlined the communion's respect for human rights and its desire to use its resources to "participate in the furthering of a more just and sustainable world." 

One of the suggestions in the treasurer's report was the idea that English be considered as the only working language of the LWF as this could cut down on the costs of interpretation and translation. But a number of speakers argued against this proposal. The variety of languages spoken at LWF gatherings, others stressed, reflected the diversity of the communion. To remove this element would clearly give English-speaking countries a privileged position over those of other tongues, thus making the LWF "non-inclusive." Currently English, German, French and Spanish are the official languages of the LWF. 

But Stoll noted at the end it was all a matter of priority setting. 

(Written for LWI by Linda Macqueen, Editor, The Lutheran, Australia. Macqueen is working with the LWF communication team at this year's Council meeting.) 

* * * 
There are around 100 church representatives including the 49-member Council attending this year's meeting at Chavannes-de-Bogis near Geneva. In addition there are 70 participants consisting of invited guests, LWF staff persons, interpreters, journalists and stewards. The Council is the LWF's governing body between Assemblies, normally held every six years. The current Council was elected at the July 2003 LWF Tenth Assembly in Winnipeg, Canada, where it held its first meeting. The Council comprises the President, the Treasurer and ordained as well as lay persons drawn from the LWF member churches. The LWF currently has 136 member churches in 76 countries all over the world, representing 62.3 million of the estimated 66 million Lutherans worldwide. 

During the Council meeting, the LWF Office for Communication Services can be reached by telephone at +41 22 960 8282, or  (mobile) +41 (0)76 396 2863. 

* * * 
 
LUTHERAN WORLD INFORMATION
P. O. Box 2100, CH-1211 Geneva 2, Switzerland
English Editor: Pauline Mumia
Tel.:	+41/22-791 63 54
Fax:	+41/22-791 66 30
E-Mail: pmu@lutheranworld.org