Recommended
More Related Content
Viewers also liked
Viewers also liked (18)
Similar to Apportionment Calculation
Similar to Apportionment Calculation (20)
Apportionment Calculation
- 1. How is our Fair Share Apportionment calculated?
- 2. 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.
- 3. 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
- 4. Step One: The Annual Statistical Report Every year, each local church compiles their annual statistical report by answering questions about their local church expenditures.
- 5. 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.
- 6. Step Three A:Support for Ordained Leadership Statistical Report Questions: Clergy Related Expenses The Calculation Rate 51-52. 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% x 16%
- 7. 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 Statistical Report Questions: Program & Operational Expenses x 14%
- 8. Step Three C:Strengthening the Connection Statistical Report Questions: Total Expenditures 65. Grand Total Paid (minus) Apportionments paid (minus) 63. Principal & Interest Expenses (minus) 64. Capital expenditures The Calculation Rate x 1 %
- 9. 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
- 10. Step Four: “According to Means” Functions Pastoral Residual 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.
- 11. Step Four: “According to Means” Functions The Calculation Budget Size An additional calculation based on the overall budget size Total church expenditures minus benevolent giving Total squared, times .00000005
- 12. 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.
- 18. Questions? Contact: Merrie Bunt Apportionments Administrator, Northern Illinois Conference mbunt@umcnic.org
Editor's Notes
- In the Northern Illinois Conference there are Three Apportioned Funds. The amount each church is asked to contribute to the three funds is called their Apportionment, and its based on a formula.The formula matches expenses on the local church level to expenditures on the District, Conference, Jurisdiction, and Global Church levels.
- Apportioned giving is calculated using the local church’s budget as a baseline. A principle of matching like expenses is used so that local church expenditures are extended into similar ministries at a conference and global level. As people give to the local church, so they give to the global church.
- Each local church provides information about their budget line items in their annual statistical reports.
- In order to provide some stability and predictability in the apportioned giving amount, the calculation uses more than one year’s worth of data. The most recent five years of budget numbers are considered, with highest and lowest years’ numbers discarded and the remaining three years’ numbers averaged. ***The implication of this approach is that changes in expenses, such as adding or reducing clergy, or taking on new programs, will not result in immediate increases or decreases to the amount a local church is asked to contribute to apportioned giving.
- The 2009 Local Church Statistical Report Forms are in the mail. They are slightly different from previous years. The line numbers shown hear reflect the new Statistical Report Forms.
- There are two further calculations that look specifically at the means of a congregation’s ability to meet their apportioned amount.The Pastoral residual calculation (and no, I can’t tell you what residual means) compares clergy related expenses at similar-sized churches.Salaries above or below the conference average for like-sized churches indicates the means in the community. Again, this calculation provides fine tuning to the Apportionment amount. On average, it results in a $52 increase to the apportionment.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.
- 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.
- The Budget size calculation looks at the overall expenditures of a church.The reasoning behind this function is that larger budget churches generally have a higher proportion of administrative expenses.Churches with larger budgets to support the connectional ministries of the NIC at a higher level.For example: Churches with a $100,000 budget, we ask for an additional $500.The cap to this function is and increase of $32,000 to churches with $800,000 budgets or more.
- Finally, after the apportionment is calculated for a local church, if the calculation results in more than a 9% increase from the previous year, the apportionment is adjusted.
- =(10,000)^3 * .0000000001