Update from Finance & Planning

New financial model
almost complete

By Ronald Kelly

PASADENA—By the time you read this issue of the WCG News, all 389 of our U.S. congregations will be operating under the new financial model. As I write this copy, seven of our 10 districts have made the transition, and by the end of September, all districts will be enrolled.

Smooth changeover

We have been pleased with the smooth changeover to local congregation collection and budgeting.  Compliments are in order for those who have worked so hard to implement the changes—this includes head ushers, counting and tabulation staffs, church treasurers and pastors. Although starting something new may have some rough spots to smooth over, in a short period of time the local offering process will become an effective and important part of congregational life—and it won’t be difficult to manage.

A number of years ago most congregations began to take up offerings during worship services. The offering is just as much a part of worship as hymns and sermons, so this was an important first step.

Putting manual into practice

Then, more than two years ago we enrolled about 20 congregations in what we called a pilot program. These congregations helped us put a new Financial Manual into practice and then provided valuable experience in actually operating under the new model. 

If we had tried to roll out a new way to do church finances to all congregations at one time, we certainly would have had our hands full. However, by having a pilot program, we were able to make revisions to the manual and provide proper support as each congregation came on line.

Even though a significant number of congregations were processing locally in August, we processed just over $1 million here at headquarters. Of course this cannot now be compared to the previous year because at that time almost all donations were processed in Pasadena.

As I have mentioned a time or two in this column, we will no longer be able to give financial information comparing one year against another. We are, however, continuing to operate on a balanced budget, which was a primary 2004 goal. 

When the new model is fully in place, the headquarters budget from congregational apportionments will be about $300,000 per month. Local congregations will retain more than $1.2 million per month. As you can see, this is a totally different way to manage member contributions. 

Outreach and evangelism

Most congregations are excited to manage their funds. This will enable congregations to focus their talents and gifts on outreach and evangelism programs at the level of the local church.

Many are already starting to save for a future building. We strongly encourage allowing proper time to evaluate the purchase of a building. Having a strategic plan for outreach with a church meeting hall as a centerpiece is important.

Rushing too quickly into such a large financial commitment could turn out to be a mistake. Taking the time to save for an adequate down payment, or even to pay cash for a building, is the wise course of action.

Building a reserve fund

One other experience we learned during the pilot program was the importance of building an adequate reserve fund. In our Financial Manual we suggest that every congregation build at least a three-month operating capital reserve. Of course that will take time, even a year or two, but having reserve funds makes it possible to meet budgetary needs when income is lower than anticipated.

As we continue the financial transition, please continue to pray for wisdom and guidance from our heavenly Father. We certainly feel this important changeover to emphasize the importance of the local church in the work of the gospel will be exciting to each and every one of you who faithfully serve in our fellowship.

 

 

Wills and Trusts

Many members have requested information on how best to make a gift to the Worldwide Church of God, either during their lifetime or upon death through wills, trusts or other means.

If you want to receive information regarding such gifts, the Legal Department of the church is available to aid you in this regard without cost or obligation.

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