Our West Ohio Annual Conference consisting of lay and clergy representing 1,150 United Methodist churches meets June 7 to 11 at the historic and scenic Lakeside grounds, in Lakeside, Ohio, along Lake Erie.In addition to inspiring worship services, the ordination of Deacons and Elders, the approval of the conference budget, and times for learning and growth, Bishop Bruce Ough will preside over our legislative meetings. This year, we have nine recommendations to consider as an Annual Conference.
Please keep Faith Community's representatives, Joyce Smith, Mary Carol Short, John Sherer, and me in your prayers as we prepare to participate in this year's Annual Conference.
Each day leading up to the beginning of Annual Conference, I am providing a recommendation so we can all begin praying and think about these issues that are before us. You are welcome to make comments on this blog regarding these issues.
RECOMMENDATION #3
2 Strength for Today…Bright Hope for Tomorrow
3
4 WHEREAS, the Strength for Today…Bright Hope for Tomorrow campaign committee was
5 discontinued in 2008 and the on-going work of donor identification, cultivation and solicitation
6 for the Initiative has been fully integrated into the mission of the Council on Development; and
7
8 WHEREAS, Recommendation #8, Financial Strength for Today Revisited, was passed at the
9 2006 Annual Conference in the following form (bordered and italicized for reading
10 convenience):
WHEREAS, on June 9, 2003, the West Ohio Annual Conference authorized
that “Money raised through the fund drive will be held and placed in an
investment fund by the West Ohio Conference Board of Trustees and then
distributed over a 10-15 year period. Each year an amount, determined by
the Conference Board of Trustees, will be granted to local churches by the
Board of Congregational and Community Development (for new ministry
starts and the revitalization of existing ministries) and to the area of
Leadership Development (for recruiting, training and retention of clergy and
lay leadership). Administrative costs will be netted from the original
corpus.”
2 Strength for Today…Bright Hope for Tomorrow
3
4 WHEREAS, the Strength for Today…Bright Hope for Tomorrow campaign committee was
5 discontinued in 2008 and the on-going work of donor identification, cultivation and solicitation
6 for the Initiative has been fully integrated into the mission of the Council on Development; and
7
8 WHEREAS, Recommendation #8, Financial Strength for Today Revisited, was passed at the
9 2006 Annual Conference in the following form (bordered and italicized for reading
10 convenience):
WHEREAS, on June 9, 2003, the West Ohio Annual Conference authorized
that “Money raised through the fund drive will be held and placed in an
investment fund by the West Ohio Conference Board of Trustees and then
distributed over a 10-15 year period. Each year an amount, determined by
the Conference Board of Trustees, will be granted to local churches by the
Board of Congregational and Community Development (for new ministry
starts and the revitalization of existing ministries) and to the area of
Leadership Development (for recruiting, training and retention of clergy and
lay leadership). Administrative costs will be netted from the original
corpus.”
WHEREAS, the above action of recovering administrative costs “from the
original corpus” meant that campaign expenses were never formally
incorporated into the Conference Council on Finance and Administration’s
budgets which led to campaign expenses not having been in budgets
approved by the Annual Conference, i.e., they have been “off of the books”.
original corpus” meant that campaign expenses were never formally
incorporated into the Conference Council on Finance and Administration’s
budgets which led to campaign expenses not having been in budgets
approved by the Annual Conference, i.e., they have been “off of the books”.
WHEREAS, on June 15, 2005, the West Ohio Annual Conference, in its
passage of Recommendation #8
• Provided for the repayment of campaign expenses from specific
contributions for that purpose and mandated a half tithe on all
other contributions;
• Reiterated the 2003 empowerment of the Board of Trustees and the
Board of Congregational and Community Development in funding
decisions flowing from the proceeds of the campaign;
• Called on the Conference Council on Finance and Administration
to limit Conference spending to authorized budget items and to
report to the 2006 Annual conference on the use of Line of Credit
funds; and
• Indicated support for all efforts to raise the level of apportionment
participation, and called for a plan to be in place by September
2005 to increase the number of churches paying apportionments in
full, but did not indicate who was responsible for making this
happen, nor is it clear that such a plan is in place.
32 WHEREAS, one of the four foci affirmed by the 2008 General Conference of The United
33 Methodist Church to guide the United Methodists at the dawn of the 21st century is “Developing
34 principled Christian leaders for the church and the world”; and
35
36 WHEREAS, current release of held funds is necessary for meaningful outcomes of Leadership
37 Development especially in the appointment of Residents;
38
39 THEREFORE BE IT RESOLVED,
40
41 In keeping with the 2003 Annual Conference approved action, affirmed in 2005 and
42 2006 regarding administrative costs and fees, the administrative costs for “Strength
43 for Today…Bright Hope for Tomorrow” continue to be repaid as follows:
44
45 1. Donors may designate their gifts for campaign expenses.
46 2. Earnings on gifts held for distribution will be allocated for campaign
47 expenses until they are paid.
48 3. 5 percent of all gifts will be allocated for campaign expenses until they
49 are paid.
passage of Recommendation #8
• Provided for the repayment of campaign expenses from specific
contributions for that purpose and mandated a half tithe on all
other contributions;
• Reiterated the 2003 empowerment of the Board of Trustees and the
Board of Congregational and Community Development in funding
decisions flowing from the proceeds of the campaign;
• Called on the Conference Council on Finance and Administration
to limit Conference spending to authorized budget items and to
report to the 2006 Annual conference on the use of Line of Credit
funds; and
• Indicated support for all efforts to raise the level of apportionment
participation, and called for a plan to be in place by September
2005 to increase the number of churches paying apportionments in
full, but did not indicate who was responsible for making this
happen, nor is it clear that such a plan is in place.
32 WHEREAS, one of the four foci affirmed by the 2008 General Conference of The United
33 Methodist Church to guide the United Methodists at the dawn of the 21st century is “Developing
34 principled Christian leaders for the church and the world”; and
35
36 WHEREAS, current release of held funds is necessary for meaningful outcomes of Leadership
37 Development especially in the appointment of Residents;
38
39 THEREFORE BE IT RESOLVED,
40
41 In keeping with the 2003 Annual Conference approved action, affirmed in 2005 and
42 2006 regarding administrative costs and fees, the administrative costs for “Strength
43 for Today…Bright Hope for Tomorrow” continue to be repaid as follows:
44
45 1. Donors may designate their gifts for campaign expenses.
46 2. Earnings on gifts held for distribution will be allocated for campaign
47 expenses until they are paid.
48 3. 5 percent of all gifts will be allocated for campaign expenses until they
49 are paid.
WHEREAS, an Annual Conference cannot commit a future Annual
Conference on financial matters.
Conference on financial matters.
THEREFORE BE IT RESOLVED,
A. The provisions of the 2003 Annual conference resolution iterated above
be carried forward through 2007.
B. The Conference Council on Finance and Administration continue to
report on its use of Line of Credit Funds each year to the Annual
Conference.
C. A complete accounting of “Strength for Today, Bright Hope for
Tomorrow” funds received and expended be made available to
members of the Annual Conference as soon as possible and preferably
before the adjournment of the 2006 session.
D. The Conference Board of Trustees limit distribution from “Strength for
Today, Bright Hope for Tomorrow” funds to the amount of campaign
expenses of the Conference recovered.
E. The Conference Council on Finance and Administration be instructed
to maintain fiscal integrity by assuring that all Conference expenditures
are as approved by that Council and in the budget approved by the
Annual Conference.
F. The 2005 Annual Conference call for a plan to raise the level of
apportionment payments be renewed by the Annual Conference, and
that the responsibility for formulation and execution for such a plan be
placed respectfully upon our Bishop and his cabinet and the
establishment and effectiveness of such a plan be reported to the 2007
Annual Conference.
1 4. Undesignated gifts will be used for campaign expenses until they are
2 paid.
3
4 All previous Annual Conference Actions regarding Strength for Today…Bright Hope
5 for Tomorrow taken on June 9, 2003, June 15, 2005, and June 14, 2006, be affirmed
6 except for Item D of the June 14, 2006, Action which stated The Conference Board
7 of Trustees limit distribution from “Strength for Today, Bright Hope for Tomorrow”
8 funds to the amount of campaign expenses of the Conference recovered.
9
10 Explanation and Rationale
11
12 We acknowledge the fiduciary reasoning that formed the 2003, 2005 and 2006 Actions. The
13 West Ohio Annual Conference has adhered to those Actions in all respects. We are committed to
14 continue to repay the administrative costs as established in those Actions.
15
16 The result, however, of having Item D in the 2006 Action has been that while the fiduciary
17 constraints are in place, funds are being held that are essential to gain the outcomes called for by
18 the Strength for Today…Bright Hope for Tomorrow Initiative. We do not see a valid reason to
19 continue limiting the distribution of funds being held; in fact, holding the distribution of funds is
20 a detriment to the Initiative’s outcomes and to on-going donor cultivation and satisfaction. Those
21 funds have been designated for specific purposes. Except for the half tithe applied to repay
22 administrative costs, those gifts should be utilized for their designated purposes without delay
23 and should not be tied in any respect to the repayment of administrative costs.
24
25 Gifts held for distribution funds in the various accounts as of December 31, 2008 amount to:
26 $831,484. In addition, the following figures are provided as background information:
27
Total Campaign Expenses $942,553
Total Campaign Expenses repaid -$248,677 (see below for detail)
Total Campaign Expenses yet to be repaid $693,876
DETAIL:
Pre-Strength for Today…Bright Hope for Tomorrow gifts $ 18,575
Interest (earnings on gifts held for distribution) $ 34,764
Designated gifts for Campaign expenses &
5 percent tithe on other gifts
$135,975
Undesignated gifts for Campaign expenses $ 59,363
Total Campaign Expenses Repaid $248,677
(Figures as of 12/31/08 and rounded to nearest dollar)
28
29 It can be argued that if held funds are released, then we would lose the benefit of the interest on
30 the held funds being applied to the repayment of administrative costs. Based on the current
31 amount of funds being held, the interest income is approximately $20,000 annually. However, as
32 a practical matter it is highly unlikely that the entire amount will be released under the
33 established procedures; hence, the entire amount of interest will not be lost. Also, removing the
34 current distribution limitation should substantially improve our ability to cultivate new
1 donations. By continuing to receive a half tithe on future gifts to repay the administrative costs,
2 we anticipate being able eventually to pay off the debt faster than interest on the held funds.
3 Furthermore and most important in our opinion is that the intrinsic value of increasing our
4 outcomes under this Initiative far outweighs the monetary value of interest on held funds and
5 keeps us in line with our mission.
6
7 Therefore, we propose this modified procedure be instituted that will hold the Annual
8 Conference in compliance with the intended fiduciary restraints, and allow the release of held
9 funds in order to deliver on our promise without further delay---to investors, to our districts for
10 new church starts, to our Annual Conference and to our next generation clergy leaders.
11
12 Promise to Investors:
13
14 Investor amounts should be used for their intended purposes, and we should be able to put the
15 investments to effective use without undue delay. Existing and potential investors are asking
16 why there have not been more direct outcomes from our Initiative.
17
18 Promise to our Districts for New Church Starts:
19
20 When Strength for Today…Bright Hope for Tomorrow was first introduced, the Conference
21 recognized the urgent need for new church starts to reach the 6.5 million people within our
22 conference boundaries, one-half of whom have no church affiliation. New church starts are
23 essential to meet the ever-changing demographics.
24
25 Promise to the West Ohio Annual Conference:
26
27 In order to remain vital as a Conference, we must be intentional about leadership development
28 and new church starts throughout the Conference. We have dedicated ourselves to these two
29 primary areas of importance and we must be able to release available funds to deliver on our
30 promise and create even more investment opportunities.
31
32 Promise to Next Generation Leaders:
33
34 One of the four foci affirmed by the 2008 General Conference to guide United Methodists at the
35 dawn of the 21st century is “Developing principled Christian leaders for the church and the
36 world.”
37
38 Submitted by:
39 Council on Development
A. The provisions of the 2003 Annual conference resolution iterated above
be carried forward through 2007.
B. The Conference Council on Finance and Administration continue to
report on its use of Line of Credit Funds each year to the Annual
Conference.
C. A complete accounting of “Strength for Today, Bright Hope for
Tomorrow” funds received and expended be made available to
members of the Annual Conference as soon as possible and preferably
before the adjournment of the 2006 session.
D. The Conference Board of Trustees limit distribution from “Strength for
Today, Bright Hope for Tomorrow” funds to the amount of campaign
expenses of the Conference recovered.
E. The Conference Council on Finance and Administration be instructed
to maintain fiscal integrity by assuring that all Conference expenditures
are as approved by that Council and in the budget approved by the
Annual Conference.
F. The 2005 Annual Conference call for a plan to raise the level of
apportionment payments be renewed by the Annual Conference, and
that the responsibility for formulation and execution for such a plan be
placed respectfully upon our Bishop and his cabinet and the
establishment and effectiveness of such a plan be reported to the 2007
Annual Conference.
1 4. Undesignated gifts will be used for campaign expenses until they are
2 paid.
3
4 All previous Annual Conference Actions regarding Strength for Today…Bright Hope
5 for Tomorrow taken on June 9, 2003, June 15, 2005, and June 14, 2006, be affirmed
6 except for Item D of the June 14, 2006, Action which stated The Conference Board
7 of Trustees limit distribution from “Strength for Today, Bright Hope for Tomorrow”
8 funds to the amount of campaign expenses of the Conference recovered.
9
10 Explanation and Rationale
11
12 We acknowledge the fiduciary reasoning that formed the 2003, 2005 and 2006 Actions. The
13 West Ohio Annual Conference has adhered to those Actions in all respects. We are committed to
14 continue to repay the administrative costs as established in those Actions.
15
16 The result, however, of having Item D in the 2006 Action has been that while the fiduciary
17 constraints are in place, funds are being held that are essential to gain the outcomes called for by
18 the Strength for Today…Bright Hope for Tomorrow Initiative. We do not see a valid reason to
19 continue limiting the distribution of funds being held; in fact, holding the distribution of funds is
20 a detriment to the Initiative’s outcomes and to on-going donor cultivation and satisfaction. Those
21 funds have been designated for specific purposes. Except for the half tithe applied to repay
22 administrative costs, those gifts should be utilized for their designated purposes without delay
23 and should not be tied in any respect to the repayment of administrative costs.
24
25 Gifts held for distribution funds in the various accounts as of December 31, 2008 amount to:
26 $831,484. In addition, the following figures are provided as background information:
27
Total Campaign Expenses $942,553
Total Campaign Expenses repaid -$248,677 (see below for detail)
Total Campaign Expenses yet to be repaid $693,876
DETAIL:
Pre-Strength for Today…Bright Hope for Tomorrow gifts $ 18,575
Interest (earnings on gifts held for distribution) $ 34,764
Designated gifts for Campaign expenses &
5 percent tithe on other gifts
$135,975
Undesignated gifts for Campaign expenses $ 59,363
Total Campaign Expenses Repaid $248,677
(Figures as of 12/31/08 and rounded to nearest dollar)
28
29 It can be argued that if held funds are released, then we would lose the benefit of the interest on
30 the held funds being applied to the repayment of administrative costs. Based on the current
31 amount of funds being held, the interest income is approximately $20,000 annually. However, as
32 a practical matter it is highly unlikely that the entire amount will be released under the
33 established procedures; hence, the entire amount of interest will not be lost. Also, removing the
34 current distribution limitation should substantially improve our ability to cultivate new
1 donations. By continuing to receive a half tithe on future gifts to repay the administrative costs,
2 we anticipate being able eventually to pay off the debt faster than interest on the held funds.
3 Furthermore and most important in our opinion is that the intrinsic value of increasing our
4 outcomes under this Initiative far outweighs the monetary value of interest on held funds and
5 keeps us in line with our mission.
6
7 Therefore, we propose this modified procedure be instituted that will hold the Annual
8 Conference in compliance with the intended fiduciary restraints, and allow the release of held
9 funds in order to deliver on our promise without further delay---to investors, to our districts for
10 new church starts, to our Annual Conference and to our next generation clergy leaders.
11
12 Promise to Investors:
13
14 Investor amounts should be used for their intended purposes, and we should be able to put the
15 investments to effective use without undue delay. Existing and potential investors are asking
16 why there have not been more direct outcomes from our Initiative.
17
18 Promise to our Districts for New Church Starts:
19
20 When Strength for Today…Bright Hope for Tomorrow was first introduced, the Conference
21 recognized the urgent need for new church starts to reach the 6.5 million people within our
22 conference boundaries, one-half of whom have no church affiliation. New church starts are
23 essential to meet the ever-changing demographics.
24
25 Promise to the West Ohio Annual Conference:
26
27 In order to remain vital as a Conference, we must be intentional about leadership development
28 and new church starts throughout the Conference. We have dedicated ourselves to these two
29 primary areas of importance and we must be able to release available funds to deliver on our
30 promise and create even more investment opportunities.
31
32 Promise to Next Generation Leaders:
33
34 One of the four foci affirmed by the 2008 General Conference to guide United Methodists at the
35 dawn of the 21st century is “Developing principled Christian leaders for the church and the
36 world.”
37
38 Submitted by:
39 Council on Development
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