The Portion Meant for OthersApportionments – What Good Do They Do

Presented by:

Mary Zajac (pastormaryz@sbcglobal.net) - Pastor, Minooka UMC - CCFA Apportionments Interpretation

Merrie Bunt (mbunt@umcnic.org)- Northern Illinois Conference Apportionment Administrator

Questions, Questions, Questions

WHY?

HOW MUCH?

DOES IT WORK?

WHO DECIDES?

The Shared Mission Of United Methodists

Making Disciples of Jesus Christ for the Transformation of the World

Primary Mission Field Is LocalBut It Isn’t the Only Mission Field

We are connected to transform the World

… it’s part of a local cluster of United Methodist churches

A United Methodist Church is not in ministry alone

…which is a part of a District…

Which is part of the Northern Illinois Conference

…a global church, with conferences and members all over the world.

Which is Part of the General Church

JERUSALEM MACEDONIA

Our Work Together Has Biblical Foundations…

“At present, however, I am going to Jerusalem in ministry tothe saints; for Macedonia and Achaia have been pleased to share their resources with the poor among the saints in Jerusalem. They were pleased to do this, for if [they] have come to share the spiritual blessings, they ought also to be of service to them in material things.”

Romans 15:25-27 (NRSV)

• Wesley urged those in connection with him to “earn all you can and save all you can, so that you can give all you can.

• Wesley modeled modest living and sacrificial giving.

Our Work Together Reflects Wesleyan Values

We Understand That Every Offering Comes With A

Prayer

LOCAL CHURCH

PROGRAM LOCALMISSION

OUTREACH

GLOBALMISSIONS

GLOBALCRISIS

RESPONSE

What are our prayers?

Apportionments are supported by prayer filled

offerings

Faithful people seek to use them to fulfill the prayers of

United Methodists

Why?

Because it’s the way that United Methodists work

Global Mission for a Globally Connected People

Biblically Grounded

Based in our Tradition of Giving

Built on Prayer and Trust in Each Other

Questions, Questions, Questions

WHY?

HOW MUCH?

DOES IT WORK?

WHO DECIDES?

We Decide Together

General Conference

Annual Conference

Where are apportionments born?

1. Every four years, lay and clergy delegates to the General Conference envision what the UMC will do in mission and ministry during the next four years, and approve a budget to support that vision.

2. This budget is divided into “fair share portions” for each annual conference.

3. The Northern Illinois Conference receives its “fair share portion and includes it in the annual conference budget proposal.

General Church Apportionments

There Are Seven General Church Apportioned Funds

General Administration

Fund

World Service Fund 1,127,528

MEF - General Church 305,614

Black Colleges Fund 162,533

Africa University 36,373

Episcopal Fund 287,415 Interdenominational Cooperation Fund 31,671

General Church Admin 99,040

TOTAL 2,050,174

Where are apportionments born?

1. Every year, Northern Illinois Conference committees envision what the conference will do in mission and ministry, and submit budget requests to the Conference Finance and Administration Committee (CCFA).

2. These requests are reviewed and, as appropriate, are included in the annual conference budget which is reviewed and approved by lay and clergy members of the Annual Conference.

Northern Illinois Conference Apportionments

2009 Conference Budget

Cabinet and Clergy Expenses (2.26 M)

Conference Programming (1.5 M)

Conference Administration (1.28 M)

Other ( 0.25 M)

Total = 5.29 M

Where are apportionments born?

General Church and Northern Illinois Conference apportionments are combined in the budget, and then divided into “fair share portions” for each local church/charge, based on elements of the local church budget.

General Church Apportioned Funds

Conference Apportionments

GRAND TOTAL 2009 = $7.2 M

We Have Been Controlling Our Spending

Between 2001 and 2009 –Apportionments requested increased $262,000 (~3%)

And the % of the local church budget represented by Apportionments has gone down about 3% (16.5% in 2001)

We Commit to these Numbers TogetherIn order to fulfill our mission.

If the church supports the Advance

100% of your giving to the Advance goes to the ministry you designate.

• Advance administrative costs are funded from World Service and other sources.

• Advance giving is completely voluntary and is in addition to apportioned funds support.

• Advance giving is called “second mile” giving because the “first mile” is for local churches to pay 100% of World Service and conference benevolences.

The Advance for Christ and his Church

Questions, Questions, Questions

WHY?

HOW MUCH?

DOES IT WORK?

WHO DECIDES?

How is our Fair Share Apportionment calculated?

First, Let’s Review…In the Northern Illinois Conference there are Three Apportioned Funds. Every church is asked to contribute to each fund and the amount each church is asked to contribute is based on a formula.

Support for Ordained

Leadership

Based on clergy related expenses, including salary, benefits, housing allowances etc.

Provides support to clergy, thru District offices and District Superintendents,

moving costs, equitable

compensation, and scholarships to attend

seminary.

Mission & Evangelism

Based on expenses for other staff members, deacons, programs,

administration, and all other operational costs.

Supports New Church development,

Programming, vital mission and ministries at

all levels of the church.

Strengthening the Connection

Based on the total operation budget of

the local church (minus capital and debt expenditures).

Strengthens the connection at all levels

of the Church thru General and Annual Conference sessions,

and NIC, NJC, UMC administrative costs.

The Calculation: A five step process

Step One: Annual Statistical Report

Step Two: Five year look

Step Three: Apportioned Fund Calculation

Three A: Support for Ordained Leadership

Three B: Mission & Evangelism

Three C: Reconnecting the Connection

Step Four: “According to Means” Functions

Step Five: Additional Factors & Calculations

Step One: The Annual Statistical Report

Every year, each local church compiles their annual statistical report by answering questions about their local church expenditures.

Step Two: the five year look

The calculation looks at more than one year’s worth of data to provide some stability and predictability to the Apportionment amount.

The current year and four previous years’ worth of statistical report data are used. The high and low numbers are discarded, and the three remaining years’ numbers are averaged.

Step Three A:Support for Ordained Leadership

Statistical Report Questions:

Clergy Related Expenses51-52. Pension for clergy programs

53 a. Pastor's base Compensation

54. Associates Base Compensation

55 a-e. Housing allowances and utilities

56. Reimbursements

57. Other Cash allowances

For parsonage appointments, add 25%

The Calculation Rate

x 16%

Step Three B:Mission & Evangelism

58-9. Diaconal/Deacon Ministry

60. Other Staff Compensation & Benefits

61. Program Expenses

62 a-f. Other Current Operating

The Calculation Rate

x 14%

Statistical Report Questions:

Program & Operational Expenses

Step Three C:Strengthening the Connection

Statistical Report Questions:

Total Expenditures65. Grand Total Paid

(minus) Apportionments paid

(minus) 63. Principal & Interest Expenses

(minus) 64. Capital expenditures

The Calculation Rate

x 1 %

Step Four: “According to Means” Functions

Pastoral Residual

Calculated by finding the difference between the church’s clergy-related expenditures and the average expenditures for like-sized churches.

Affects Support for Ordained Leadership Apportionment

The Calculation

Residual cubed,

x .0000000001

Step Four: “According to Means” Functions

Churches that have higher clergy-related expenses than the average spent at churches of the same size are asked to give more for this apportioned fund.

Likewise, churches that have lower clergy-related expenses than average are given a credit for part of this apportioned fund.

Pastoral Residual

Step Four: “According to Means” Functions

Budget Size

An additional calculation based on the overall budget size

Total church expenditures minus benevolent giving

The Calculation

Total squared,

times .00000005

Additional Factors & Calculations

The Apportionment may not increase or decrease by more than 9% from one year to the next.

The Apportionment must be divisible by 12, so that monthly payments are a round number.

Here’s an example.

Statistical Report AnswersAve. Clergy Costs 50,000Ave. Operational Costs 50,000Ave. Total Expenditures 100,000Capital Spending 11,000Benevolent Giving 24,000

Here’s an example.

Fund 100: Support for Ordained LeadershipAve. Clergy Costs 50,000Rate of Apportionment 16%Sub-total 8,000Additional Calculation

Average AttendancePastoral Residual: above (below) similar sized churchesChange to apportionment

7010,000

+100

Net Clergy Apportionment $8,100

Here’s an example.

Fund 200: Mission & EvangelismAve. Church Operation Costs 50,000Rate of Apportionment 14%

Net Mission & Evangelism Apportionment $7,000

Here’s an example.Fund 300: Connectional Apportionment

Ave. Budget Grand Total 100,000Rate of Apportionment 1%Sub-total 1,000

Additional Calculation (Budget Size) +500

Net Connectional Apportionment $1,500

Here’s an example.

Fund 100: Support for Ordained LeadershipAve. Clergy Costs 50,000Rate of Apportionment 16%Sub-total 8,000Additional Calculation

Average AttendancePastoral Residual: above (below) similar sized churchesChange to apportionment

7010,000

+100

Net Clergy Apportionment $8,100

Fund 200: Mission & Evangelism Apportionment

Ave. Church Operation Costs 50,000Rate of Apportionment 14%

Net Mission & Evangelism Apportionment $7,000

Fund 300: Connectional ApportionmentAve. Budget Grand Total 100,000Rate of Apportionment 1%Sub-total 1,000

Additional Calculation (Budget Size) +500

Net Connectional Apportionment $1,500

Grand Total Apportionment $16,100

33%

33% 11%

7%

16%

Clergy Related CostsOperational ExpensesApportionment GivingCapital SpendingBenevolent Giving

Questions, Questions, Questions

WHY?

HOW MUCH?

DOES IT WORK?

WHO DECIDES?

Does it work – Yes!Some of it isn’t very

glamorous…

It’s used to build and sustain our Conference

Disaster relief Education Peacemaking Justice Seeking Church Growth

Does it work - Yes! Some of it is very exciting…

• In 100 different countries

• With over 900 supported mission personnel

• With more than 112,000 Volunteer-in-Mission placements

• 2007 GBGM figures

Yes! Our Ministry is Shared Global Ministry

• 225 retirement homes and long-term care facilities

• 70 hospitals and health-care facilities

• 50 children’s homes

• 30 ministries for persons with disabilities

• 113 colleges, universities and seminaries

• Day-to-day witness and outreach from over 45,000 clergy members and 1,200 deacons, and not to mention 8,000,000 lay members.

We are Transforming the World Through

…for children who dream of a chance to learn, to grow up safe from the brutalities of war and the threat of diseases which ravage their countries.

Who, thanks to the generous connectional giving of United Methodists, may in fact grow up and become…

Our Apportionments are at work every day

…students at Africa University, finding the answers that might save lives, and becoming the global leaders who will bring hope for the future.

…in places where we go to reach out to people who are hungry, sick or in need, regardless of their religion or the politics of their government.

Our Apportionments are at work every day

…beyond simply helping the poor, but working side by side with people in many different lands to help them raise themselves from poverty.

Our Apportionments are at work every day

Our Apportionments are at work every day facilitating our ability to be present with people in their time of crises

…right here in our own back yard building and revitalizing congregations.

We are able to be in all of these places because of the commitment of United Methodists to live and give connectionally.

Our Apportionments are at work every day

Apportionments are mission critical.

And we need to live it more fully.

In 2008 and 2009 our conference did not pay it’s full share to the

General Church

We requested churches in the conference to pay $8.2M

to cover a need of $7.2 M

Local churches contributed $6.1 M

We under spent the conference budget by $0.5 M

and found other sources to cover $0.36 M

our Global Mission, our portion meant for others was

underfunded by ~$0.27M

THANK YOU!For all you’ve done,

For all you are doing,

For all you will do in the days and years to come,

To make the love of Christ real to a hurting world.

Through United Methodist Connectional Giving.

You do make a difference!