As we consider the economic impact of COVID-19’s economic impact on churches, donation rates, and, ultimately, apportionment collection rates, we are beginning to understand the how the financial loss in our worldwide secular economy is impacting giving in the United Methodist Church.
Even before the COVID-19 pandemic or 2019's Special Session, the Connectional Table and GCFA had been grappling with the fact that our finances are not the same as in years past. The previous financial baseline for the denomination is no longer credible. In addition, according to Rev. Dr. Lovett Weems, the United States is forced to reckon with The Coming Death Tsunami. Dr. Weems shares research indicating that the as Baby Boomers die, this country will experience the highest total number of annual deaths since the 1940s. Deaths are projected to increase sharply from 2019 until 2050. Locally, pastors have experienced both declining membership and declining finances, and Weems' projections suggest it will get worse. Faced with these realities, The United Methodist Church is seeking to adapt.
As the Connectional Table began its budget setting work with GCFA in 2018, we addressed these new realities. We chose to adjust our budget to more realistic levels, recommending that the overall budget be reduced by 18%, and that the World Service fund be reduced by 23% compared with the previous quadrennium. For 2021 – 2024, the initial the recommendation from GFCA was for a $493.8 million general church budget, the lowest in more than 20 years. This was published in the ADCA volume 2, section 1 (Reports to Financial Administration) for General Conference 2020. The apportionment asked of local churches also took our denominational reality into account. That figure, too, would be less in the 2021-2024 quadrennium. These deep cuts impacted most agencies and funds in our church.
Upon review of the financial data from this last May's apportionment giving from our jurisdictions and central conferences, it is clear that The United Methodist Church is faced with another potential decline in resources. We must begin to refocus yet again, and build strength for the future, with the sure knowledge that our mission and ministries are still critical for the church and world.
The proposed quadrennial budget reductions were already steep prior to COVID-19. These reductions will be worse if our collection rate for the year continues at its current rate of hoovering around 60%, or declines further, meaning our funds and agencies will receive 60% or less of their budget for the year. This is a substantial decrease from the 80% - 90% apportionment collection rates we have seen for more than 15 years.
GCFA compared collection rates of apportionments between 2017, 2019 and 2020. Because the total apportionments for all three years are virtually the same, the comparisons are insightful.
GCFA reports that May 2020 collections declined significantly:
Down 38% compared to 2017.
Down 50% compared to 2019.
You can see this a data and a collect of charts in GCFA’s General Church Apportionment Summary - May YTD - June 2020.
If you look closely at the “2020 Monthly Apportionment Collections Compared to Prior Years“ chart's year-by-year comparisons you will see that since early 2020, apportionments began to drop before the coronavirus pandemic (compared to 2017 and 2018), and the pandemic created a steep decline. As the United States reopens, we might see a shift in these numbers. It is still too early to know the full effect of the pandemic on the finances of the church.
As we consider collections rates compared to possible income for 2020, ask yourself:
How will 60% or 40% collection rate on apportionments be felt across various General Church funds?
What work do we need to do now to make adjustment if this is our new reality?
What programs do you think are most vital to the future of our church, and at what level do they need to be resourced?
In these new circumstances, how do you suggest we refocus? What must The UMC do to begin to build strength for the future?
As we see possible reduction in finances and uncertainty, I've reflected on Paul's reminder to Timothy, “For the Spirit God gave us does not make us timid, but gives us power, love and self-disciplineâ€(2 Timothy 1:7). Timothy, like us all, needed to be reminded that we are blessed with the permanently, indwelling Holy Spirit of God, who has gifted us and empowered us with all that we need for life and ministry, no matter how difficult or dangerous life in this world may become.
May these new financial realities not discourage us. Our ministry and mission are still critical to the world. Our God can use each of us do amazing things with the talents, and treasures we have been given, and it is our job to make the most of what we have.
May these new financial realities not discourage us. Our ministry and mission are still critical to the world. Our God can use each of us do amazing things with the talents, and treasures we have been given, and it is our job to make the most of what we have.