wfn.org | [UMNS-ALL-NEWS] UMNS# 575-Women's Division to take new approach to

[NewsDesk <NewsDesk@UMCOM.ORG>]

Women's Division to take new approach to finances

Oct. 11, 2005

NOTE: Photographs and a related report, UMNS story #574, are available
at http://umns.umc.org.

By Linda Bloom*

STAMFORD, Conn. (UMNS) - A long-term decline in funding, impacted by
inflation, will mean a new approach to finances for the Women's Division
of the United Methodist Board of Global Ministries.

Various aspects of the current financial picture were discussed as
directors met Oct. 7-10 for the division's annual meeting. The Women's
Division is the administrative arm of United Methodist Women.

Jan Love, the division's chief executive, told United Methodist News
Service that while undesignated giving has varied in the past decade,
the real problem is that giving patterns have not kept pace with
inflation.

"There is a long-term decline, but it's primarily in relationship to
purchasing power," she explained.

In recent years, the division also has overspent its income "because of
the demands on us" to fill in the gaps when other institutions fall
short of funds, she added. To meet these demands, the division has spent
down some of its assets.

"We're still in excellent financial health," Love said, but she pointed
out that such spending cannot continue.

For 2007, the division is working on a "comprehensive picture" of how
all funds come in and how expenditures go out, she noted.

Roland Fernandes, treasurer for the Board of Global Ministries, reported
that undesignated giving to the Women's Division during the first eight
months of 2005 is $1.1 million less than during the same period in 2004.
Operating revenue for that period is $810,000 less than last year.

"In the present situation, we appear vulnerable but need to remember
that usually a good portion of the income is received towards the end of
the year," he said.

The division has reduced total operating expenditures by $1.84 million
compared to 2004, a reduction sparked by "a conscientious effort to
scale back spending."

"Through the first eight months of 2005, the lower expenditures more
than offset the lower income, resulting in a smaller deficit as compared
to 2004," Fernandes said.

According to his report, the division's total net assets declined by
almost $28 million from the end of 2000 to the end of 2004, with $23
million of that money falling into the unrestricted category.

The division's section on finance presented a brief paper, "United
Methodist Women Focus on Finance," to all directors.

According to the paper, the division will explore ways to streamline its
work and analyze the giving patterns of United Methodist Women and the
effective use of mission funds.

The division will continue to interpret the increasing needs and
critical issues of women, children and youth and the ways that mission
gifts change their lives, the paper said.

*Bloom is a United Methodist News Service news writer based in New York.

News media contact: Linda Bloom, New York, (646) 369-3759 or
newsdesk@umcom.org.

********************

United Methodist News Service
Photos and stories also available at:
http://umns.umc.org

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