Connected To Transform


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Apportionments: The portion meant for others

This presentation seeks to answer four common questions about apportionments:
Why do we have them?
Who decides?
How much do we pay?
Does it work?

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  • 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 expenditures as a baseline. A principle of matching like expenses is used so that giving to the local church is 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 here 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 clergy related expenses at similar-sized churches.Salaries above or below the conference average for like-sized churches indicates a greater 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.
  • 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 compared to smaller budget churches. In turn, they are asked 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. If you’re following along on your calculator, that’s 100,000 ^2, times .00000005The cap to this function is an 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
  • =(100,000)^2 * .00000005
  • To put the total apportionment into perspective, given this example, the apportionment comes out to 11% of the total church budget.That’s better than the average of 12-14% for most churches.
  • Connected To Transform

    1. 1. The Portion Meant for Others<br />Apportionments – What Good Do They Do<br />
    2. 2. Presented by: Mary Zajac ( - Pastor, Minooka UMC - CCFA Apportionments InterpretationMerrie Bunt ( Northern Illinois Conference Apportionment Administrator<br />
    3. 3. Questions, Questions, Questions<br />WHO <br />DECIDES?<br />HOW MUCH?<br />WHY?<br />DOES IT <br />WORK?<br />
    4. 4. The Shared Mission Of United Methodists<br />Making Disciples of Jesus Christ for the Transformation of the World<br />
    5. 5. Primary Mission Field Is LocalBut It Isn’t the Only Mission Field<br />We are connected to transform the World<br />
    6. 6. A United Methodist Church is not in ministry alone<br />… it’s part of a local cluster of United Methodist churches<br />
    7. 7. …which is a part of a District…<br />
    8. 8. Which is part of the Northern Illinois Conference<br />
    9. 9. Which is Part of the General Church<br />…a global church, with conferences and members all over the world.<br />
    10. 10. Our Work Together Has Biblical Foundations…<br />JERUSALEM<br />MACEDONIA<br />“At present, however, I am going to Jerusalem in ministry to<br />the saints; for Macedonia and Achaia have been pleased to <br />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.” <br /> Romans 15:25-27 (NRSV)<br />
    11. 11. Our Work Together Reflects Wesleyan Values<br /><ul><li>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.
    12. 12. Wesley modeled modest living and sacrificial giving.</li></li></ul><li>We Understand That Every Offering Comes With A Prayer<br />LOCAL CHURCH <br />PROGRAM<br />GLOBAL<br />MISSIONS<br />LOCAL<br />MISSION<br />OUTREACH<br />GLOBAL<br />CRISIS<br />RESPONSE<br />What are our prayers?<br />
    13. 13. Apportionments are supported by prayer filled offerings<br />Faithful people seek to use them to fulfill the prayers of United Methodists<br />
    14. 14. Why?<br />Because it’s the way that United Methodists work<br />Global Mission for a Globally Connected People<br />Biblically Grounded<br />Based in our Tradition of Giving<br />Built on Prayer and Trust in Each Other<br />
    15. 15. Questions, Questions, Questions<br />WHO <br />DECIDES?<br />HOW MUCH?<br />WHY?<br />DOES IT <br />WORK?<br />
    16. 16. We Decide Together<br />General Conference<br />Annual Conference <br />
    17. 17. Where are apportionments born?<br />General Church Apportionments<br />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.<br />2. This budget is divided into “fair share portions” for each annual conference.<br />3. The Northern Illinois Conference receives its “fair share portion and includes it in the annual conference budget proposal.<br />
    18. 18. There Are Seven <br />General Church Apportioned Funds<br />General Administration<br />Fund<br />
    19. 19.
    20. 20. Where are apportionments born?<br />Northern Illinois Conference Apportionments<br />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).<br />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.<br />
    21. 21. 2009 Conference Budget<br />Cabinet and Clergy Expenses (2.26 M)<br />Conference Programming (1.5 M)<br />Conference Administration (1.28 M)<br />Other ( 0.25 M)<br />Total = 5.29 M<br />
    22. 22. Where are apportionments born?<br />General Church Apportioned Funds<br />Conference Apportionments<br />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.<br />GRAND TOTAL 2009 = $7.2 M<br />
    23. 23. We Have Been Controlling Our Spending<br />Between 2001 and 2009 –Apportionments<br /> requested increased $262,000 (~3%) <br />And the % of the local church budget <br />represented by Apportionments has gone<br /> down about 3% (16.5% in 2001)<br />
    24. 24. We Commit to these Numbers Together<br />In order to fulfill our mission.<br />
    25. 25. The Advance for Christ and his Church<br />If the church supports the Advance<br />100% of your giving to the Advance goes to the ministry you designate.<br /><ul><li>Advance administrative costs are funded from World Service and other sources.
    26. 26. Advance giving is completely voluntary and is in addition to apportioned funds support.
    27. 27. Advance giving is called “second mile” giving because the “first mile” is for local churches to pay 100% of World Service and conference benevolences.</li></li></ul><li>Questions, Questions, Questions<br />WHO <br />DECIDES?<br />HOW MUCH?<br />WHY?<br />DOES IT <br />WORK?<br />
    28. 28. How is our Fair Share Apportionment calculated?<br />
    29. 29. First, Let’s Review…<br />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.<br />
    30. 30. The Calculation: A five step process<br />Step One: Annual Statistical Report<br />Step Two: Five year look<br />Step Three: Apportioned Fund Calculation<br />Three A: Support for Ordained Leadership<br />Three B: Mission & Evangelism<br />Three C: Reconnecting the Connection<br />Step Four: “According to Means” Functions<br />Step Five: Additional Factors & Calculations<br />
    31. 31. Step One: The Annual Statistical Report<br />Every year, each local church compiles their annual statistical report by answering questions about their local church expenditures.<br />
    32. 32. Step Two: the five year look <br />The calculation looks at more than one year’s worth of data to provide some stability and predictability to the Apportionment amount.<br />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.<br />
    33. 33. Step Three A:Support for Ordained Leadership<br />Statistical Report Questions:<br />Clergy Related Expenses<br />The Calculation Rate<br />51-52. Pension for clergy programs<br />53 a. Pastor&apos;s base Compensation<br />54. Associates Base Compensation<br />55 a-e. Housing allowances and utilities<br />56. Reimbursements<br />57. Other Cash allowances<br />For parsonage appointments, add 25%<br />x 16%<br />
    34. 34. Step Three B:Mission & Evangelism<br />58-9. Diaconal/Deacon Ministry<br />60. Other Staff Compensation & Benefits<br />61. Program Expenses<br />62 a-f. Other Current Operating<br />The Calculation Rate<br />Statistical Report Questions:<br />Program & Operational Expenses<br />x 14%<br />
    35. 35. Step Three C:Strengthening the Connection<br />Statistical Report Questions: <br />Total Expenditures<br />65. Grand Total Paid<br />(minus) Apportionments paid<br />(minus) 63. Principal & Interest Expenses<br />(minus) 64. Capital expenditures<br />The Calculation Rate<br />x 1 %<br />
    36. 36. Step Four: “According to Means” Functions<br />Pastoral Residual<br />Calculated by finding the difference between the church’s clergy-related expenditures and the average expenditures for like-sized churches.<br />Affects Support for Ordained Leadership Apportionment<br />The Calculation<br />Residual cubed,<br />x .0000000001<br />
    37. 37. Step Four: “According to Means” Functions<br />Pastoral Residual<br />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.<br />Likewise, churches that have lower clergy-related expenses than average are given a credit for part of this apportioned fund.<br />
    38. 38. Step Four: “According to Means” Functions<br />The Calculation<br />Budget Size<br />An additional calculation based on the overall budget size<br />Total church expenditures minus benevolent giving<br />Total squared, <br />times .00000005<br />
    39. 39. Additional Factors & Calculations<br />The Apportionment may not increase or decrease by more than 9% from one year to the next.<br />The Apportionment must be divisible by 12, so that monthly payments are a round number.<br />
    40. 40. Here’s an example.<br />
    41. 41. Here’s an example.<br />
    42. 42. Here’s an example.<br />
    43. 43. Here’s an example.<br />
    44. 44. Here’s an example.<br />
    45. 45. Questions, Questions, Questions<br />WHO <br />DECIDES?<br />HOW MUCH?<br />WHY?<br />DOES IT <br />WORK?<br />
    46. 46. Does it work – Yes!<br />Some of it isn’t very glamorous…<br />It’s used to build and sustain our Conference<br />
    47. 47. Does it work - Yes! Some of it is very exciting…<br /> Disaster relief<br /> Education<br /> Peacemaking<br /> Justice Seeking<br /> Church Growth<br />
    48. 48. Yes! Our Ministry is Shared Global Ministry<br /><ul><li>In 100 different countries
    49. 49. With over 900 supported mission personnel
    50. 50. With more than 112,000 Volunteer-in-Mission placements
    51. 51. 2007 GBGM figures</li></li></ul><li>We are Transforming the World Through<br /><ul><li>225 retirement homes and long-term care facilities
    52. 52. 70 hospitals and health-care facilities
    53. 53. 50 children’s homes
    54. 54. 30 ministries for persons with disabilities
    55. 55. 113 colleges, universities and seminaries
    56. 56. 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.</li></li></ul><li>Our Apportionments are at work every day<br />…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.<br />Who, thanks to the generous connectional giving of United Methodists, may in fact grow up and become…<br />
    57. 57. …students at Africa University, finding the answers that might save lives, and becoming the global leaders who will bring hope for the future.<br />
    58. 58. Our Apportionments are at work every day<br />…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.<br />
    59. 59. Our Apportionments are at work every day<br />…beyond simply helping the poor, but working side by side with people in many different lands to help them raise themselves from poverty.<br />
    60. 60. Our Apportionments are at work every day facilitating our ability to be present with people in their time of crises<br />
    61. 61. Our Apportionments are at work every day<br />…right here in our own back yard building and revitalizing congregations.<br />We are able to be in all of these places because of the commitment of United Methodists to live and give connectionally.<br />
    62. 62. 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<br />
    63. 63. We requested churches in the conference to pay $8.2Mto cover a need of $7.2 MLocal churches contributed $6.1 M<br />
    64. 64. We under spent the conference budget by $0.5 Mand found other sources to cover $0.36 Mour Global Mission, our portion meant for others was underfunded by ~$0.27M<br />
    65. 65. THANK YOU!<br />For all you’ve done,<br />For all you are doing, <br />For all you will do in the days and years to come,<br />To make the love of Christ real to a hurting world.<br />Through United Methodist Connectional Giving.<br />You do make a difference!<br />