Budget Shortfall of 20 Percent: GC Committee Meeting
From ANN and APD, April 18, 2016: The instability of the global economy, particularly the weakness of the United States Dollar in currency exchange rates, resulted in the General Conference of the Seventh-day Adventist denomination receiving about 20 percent less income in 2015, reported Pastor Juan R. Prestol-Puesán, chief financial officer, at the spring meeting of the denomination’s governing body last week in Washington DC. Consequently, the budget adopted last fall for 2016 must be revised, he told the GC executive committee.
The governing body of the global Adventist denomination meets twice a year. Policy items and major programs are on the agenda at the annual meeting in the fall and financial items are the major focus of the spring meeting, providing opportunity to tweak spending plans for the new year.
“My fears … came true,” Prestol-Puesan reminded the committee that he had cautioned the group about market uncertainties that might lead to losses on October 12 last year at its annual meeting. While giving remained strong worldwide, fluctuations in currencies resulted in an income loss of $19.4 million during 2015. (18.7 million Swiss franc or 17.2 million euros) The GC operates in U.S. dollars, but 53 percent of its funds come in from other currencies.
The reduced income came from three of the denomination’s “divisions” or regional organizations the financial statement indicated: The Inter-American Division due to a banking crisis in Mexico; the Southern Africa-Indian Ocean Division due to a decline in the value of the South African rand; and the Trans-European Division where there was a continuing decline in tithe revenues.
It is also true that other Protestant organizations in the United States with similar numbers of missionaries supported around the world in partnership with overseas Christians have had to make even larger budget adjustments. The Southern Baptist Commission World Mission Board, for example, has announced that large numbers of its missionaries are being brought back home or cut loose from its financial support.
Prestol-Puesan recommended to the leadership group that $9.9 million be taken from a reserve fund and put into the 2017 budget if the declining income continues through 2016. (That is 9.5 million Swiss francs or 8.7 million euros.) The 2017 budget for the GC will a very difficult one to prepare in any case “given the number of programs and commitments that we have,” he said. “Our approach to budgeting and finances for 2017 is one of caution, prudence, and common sense,” he stated. The 2017 budget will be initially voted at the annual meeting of the committee in the fall of 2016.
The Adventist denomination has a particularly complicated financial structure. The major source of its income is from the practice of tithing, followed by a strong majority of its nearly 20 million members around the world. They give ten percent of their personal income and these donations are largely managed through a Tithe Fund which is shared between the local conferences who cover the salary and benefits of pastors and underwrite Adventist schools, the union conferences and the GC, including its divisions. In North America, at least 85 percent of the Tithe Fund is consumed by the local conferences. Roughly half of the remaining 15 percent is used to support missionaries overseas.
What makes the system very difficult for the average member to understand is that a number of offerings and countless personal donations go to many other projects, agencies and special funds. On top of which, there are many programs and policies whereby various units of the denomination and even independent organizations share the costs, as well as necessary pooling of operations for things such as retirement plans for ministers and teachers where it would be impossible for a number of units to meet legal and fiduciary requirements separately.
Concern has been expressed by a number of analysts that as the growth of the Adventist faith move more and more into the southern hemisphere and developing nations, this complex financial structure will become more and more difficult to sustain. If the average income of Adventist givers is declining and international exchange rates bleed off the value of their giving, then situations such as confronted right now by the GC executive committee will occur more and more often.
“Major systemic changes may have to be made,” a retired church administrator told Adventist Today. “But the Brethren hate to do that. They generally prefer established policy and traditional methods over new arrangements. Unfortunately, that is not always the best way to deal with economic change.”
Other Business
The GC executive committee also devoted time to hearing reports about urban mission strategies in each of the divisions, as well as new missions in areas where there are relatively few Adventists. Three new appointments were made in key leadership roles for the denomination as Adventist Today has already reported in separate news stories. Several items of less importance were also on the agenda as the meeting wraps up.
The Adventist News Network is the official news service of the denomination and APD is the Adventist news service in Europe.
The GC Spin Doctors need some help. “the weakness of the US Dollar” should say the strength of the US Dollar, it has never been stronger in recent years than it is now. “market uncertainties might lead to losses?” really? Our treasurers are trading in stocks and bonds to support the work of the SDA church? Wall Street, China’s Stock market, and the Bank of England are the cause of this $20,000,000 short fall?
Here is another suggestion, just perhaps, just maybe, would you think that loss in confidence in GC leadership after the disaster at San Antonio might cause the voluntary givers of this church, to redirect their funds away from the GC towards other projects? That those who mourn the heresy of male headship, and the foolishness of voting one poorly supported chronology of creation, just might wish the send the Lord’s tithes and offerings to someplace that is listening to the Lord instead of 19th century rigid fundamentalism? My advice is either loosen up your death grip on male power and position, or get used to shrinking resources for you to play hierarchical power games with.
There was absolutely *no* disaster at last year’s GC Session. It’s unfortunate that so many are kicking against the goads. If you lose you stop bellyaching about it and go on and act in a constructive manner.
I agreed with the first post till he started banging on about the loss to feminists at the GC and calling it a disaster….I would say a disaster avoided….
If the church is investing in stocks and bonds then our actual tithe and offerings income is not sustainable. He who lives by interest dies by interest. Unfortunately the church has become dependent on scraping the faces of the poor…..blood money which large corporations and banks extract the last ounce out of poverty stricken indebted plebs.
The real issues are with relevance. If the church was relevant to their communities instead of flatlining in growth, there would be enough money and more to go around without relying on interest.
We have been saying the same thing over and over…..focus on the men and get results in church…as it used to be..remember the bad old days of the patriarchy? Did we ever have financial problems then?
And no, just because the church has mainly men in office doesnt mean its a patriarchy…it just means they are doing the bidding of the hordes of feminists who are mainly our men anyway….
A few sentences in this article fairly leaped off the page and smacked me in the forehead:
1) “The Adventist denomination has a particularly complicated financial structure.” Why so? could it possibly have anything to do with, 2) “Major systemic changes may have to be made…but the Bretheren hate to do that. They generally prefer established policy and traditional methods over new arrangements.”
There you have it, folks, two great reasons to shake things up. First, eliminate the GC hierarchy entirely and switch to a divisional plan, bypassing problems with the exchange rate and the need to fly people around the world several times per year, saving million$. At the same time cut out the dead wood at the top and allow fresh new, younger growth in each local region. If the church were a modern corporation the CEO and his “board of directors” would have been fired decades ago because of their unwillingness to adjust to present realities. Nineteenth century thinking lies at the heart of these problems and if not corrected will contribute to its demise.
The word of the General Conference has lost much of it’s luster and standing. No longer are representatives from the GC receiving as many speaking invitations as before. Recently one of our colleges in planning for their week of prayer decided to not invite a GC official because of the negative response from students and alumni to being associated with the GC.
In American contexts, the word “Camelot” is sometimes used to refer admiringly to the presidency of John F. Kennedy. The Lerner and Loewe musical was still quite recent at the time and his widow Jackie quoted its lines in a 1963 Life interview (Jacqueline Kennedy, interview with Theodore H. White, Life, Dec. 6, 1963) following JFK’s assassination. She said the lines, “Don’t let it be forgot, that once there was a spot, for one brief shining moment, that was known as Camelot” were Kennedy’s favorite in the score, adding that “there’ll be great Presidents again, but there’ll never be another Camelot again… It will never be that way again.” After scandals, ineptness, and out of touch sensitivities to it’s core base, the American Presidency like the “General Conference used to be respected and held in awe”. That time is past.
Welcome to 2016, where a 20% drop in support is a reality check. As in Camelot “this is what the common folk do”.
“the weakness of the United States Dollar in currency exchange rates”
This is a common lament of the GC PR “spin doctors”. I suspect that Prestol understands things better than did the PR types who wrote the article. How do US dollar exchange rates actually affect GC finances? Without considering the sources and applications of funds in the actual financial statements, I would totally ignore this line.
To the extent that there is a net outflow of funds from the USofA to other parts of the world, a stronger dollar helps and a weaker dollar hurts. To the extent that there is a net inflow, the situation is reversed. But the articles states that 53% of revenue comes from outside US, so a weaker Dollar actually increases Dollar-denominated revenue. However a weaker Dollar would increase the Dollar-denominated costs of operations in places with stronger currencies.
On the other hand I do believe that a weaker Mexican Peso would hurt the GC. Ditto for other Latin American currencies. With Brazil preparing to overtake North America as the greatest net contributor of GC funding, current events in Brazil would certainly be of concern to the GC Treasury.
“The reduced income came from three of the denomination’s “divisions” or regional organizations the financial statement indicated: The Inter-American Division due to a banking crisis in Mexico; the Southern Africa-Indian Ocean Division due to a decline in the value of the South African rand; and the Trans-European Division where there was a continuing decline in tithe revenues.”
OK – this makes more sense as an explanation of declining Dollar-denominated revenues. In other words, some of the overseas donor base took an even bigger hit in the foreign-exchange markets than the Dollar.
News writers struggle to understand and explain the finances of international organizations. So dig past the headlines into the meat of the data if you want to actually understand what is happening.
Regarding speculation that the underlying donor base is walking-away from Tithe contributions, one would have to look at the giving results for individual Divisions, in their native currencies, to determine whether and/or where this is happening.
For those who watched much of the 2015 GC Session online, the slickly-produced videos fawning over Ted Wilson may or may not have left a good impression. How much money would have been wasted if Ted had not survived to preach on the closing Sabbath? Or was all of this footage miraculously produced in a single week? If this was billed to the GC accounts, then perhaps Ted’s personal campaign funds or some friendly super-PAC might consider reimbursing the GC Treasury 8-).
I am not sure how many viewers reacted favorably to the sham and shambles of the live-streamed debate over ordaining women. Regardless of your own personal views on the question, this was probably not one of your GC Session highlights.
So I think that live-streaming large portions of the GC Session may be having some of the same effects on Adventist members as the “reality campaign” is having on US voters. But whether and to what extent this goes to the “bottom line” of giving, is not so obvious.
I did not see any videos fawning over Ted Wilson. Sometimes one imagines seeing what is in the eye of the beholder. I did see extravagant too fast moving videos from various areas of the world which could only have been cooked up by geeks who wanted to show off their skills.
The most impressive and simple was the one from MENA where the president, IMO, is a humble servant of the Lord, Homer Trecartin. Incidentally, he is coming back to the States because of health.
To identify the treasurer as “Pastor” is superfluous. He is essentially, the CFO of the G.C. and that is his official title and duties. This follows the long tradition of ordaining those in high administrative offices that do not require pastoral qualifications. How are his duties pastoral?
The deficit is not going to be erased; in fact, will probably grow larger as the church is now much heavier in poorer countries and the TED, for one, had less giving. This is the wave of future funding and plans should be made accordingly.
Elaine,
How are the treasurer’s duties pastoral? Great question! Juan Prestol was our conference treasurer when I was in Greater New York in the early 1980s. I know little about his service for the church prior to him becoming treasurer so I don’t know how much pastoral experience he has and he has been in treasury roles through his career since then. So I agree with you that we should limit our use of titles such as “pastor.”
I am confused by this. The weakness of the US dollar? As several above have pointed out, the dollar is ridiculously strong. Is the GC really taking in so much money from the underdeveloped countries and having to convert it into dollars?—which is the only way the strong dollar could be a weakness. The article mentions supporting missionaries in other countries, and having a strong dollar would make that easier, too. Any net outflow of money would, it seems to me, be helped by the strong US economy.
As for these vague market uncertainties, I’m not sure what that means. If what they’re referring to is investments in securities (and I see no reason why they shouldn’t invest conservatively) those, too, have been strong in the US, which is where you’d think they’d be investing.
Can you economists tell me what I’m missing here?
LGS
I for one am not sending them another red cent until they fully support Women’s Ordination and drop any other policies that create a second class of member. Sheesh, if it weren’t for women there would be no church.
“This sort of behavior is yet another reason I no longer send them any money.”
That’s right, Tim. Those who support WO won’t send them any more money and those who support male headship will not send them any more money.
Why those of you who support WO refuse to continue to support the church financially, is beyond me. You got your way in every area of church administration, so, what’s your beef?
And I hear they are putting a woman on the 20 dollar bill. And if Hillary is elected, “ma ma” will run the country, the finances of the country, and the church as well.
Small wonder the USA is a “wimp” country and the church will soon follow.
Of course, if anything goes wrong, we can always blame the women.
Bill Sorensen wrote:
“That’s right, Tim. Those who support WO won’t send them any more money and those who support male headship will not send them any more money.”
Well I support Women’s Ordination and I oppose Male Headship in the church. And my good wife still return our tithes and offerings. And some portion of these funds percolate-up to the GC. And they help to pay the salaries of people we agree with and people we disagree with.
Fortunately not everyone in the Adventist church is so mean-spirited that they will only give to/for things they totally agree with. Otherwise they would only give to very few causes because very few totally agree on every issue. Even within our own families not everyone agrees on everything. And the Adventist church is a very large family.
“Your Father in heaven causes his sun to rise on the evil and the good, and sends rain on the righteous and the unrighteous. Be perfect, therefore, as your heavenly Father is perfect.”
Are we giving to bless others, from gratitude to God who blesses even His enemies, or are we giving as a means of controlling? What kind of God are we actually serving?
A
Why do we need the GC? If we eliminated them, pethaps there would be a budget surplus.
RE: To identify the treasurer as “Pastor” is superfluous. He is essentially, the CFO of the G.C. and that is his official title and duties. This follows the long tradition of ordaining those in high administrative offices that do not require pastoral qualifications. How are his duties pastoral?
Yea, they make teachers pastors as well, legally, but with no actual duties of a pastor, so they can skirt the law and do things like force them to pay tithe (which is actually done in the Central California Conference!)
Aw well, I suppose that is what Jesus would do as well… (not.)
This sort of behavior is yet another reason I no longer send them any money.
What I’d like to see is the GC saying, “We’re short. Let’s cut some expenses.” Maybe one of those million-dollar meetings where people fly in from all over the globe. Ya think that’s gonna happen?
Loren,
Yeah, we’ll see where they cut. I remember some years back when conference budgets were tight and someone floated a proposal that church leaders use Internet-based video meeting services to conduct Union and Division meetings. They tried it and the comment I heard was that it “wasn’t personal enough” and lacked the “dymamics” they enjoyed.
Yes, Loren…like how about saving twelve million every five years by finding an alternative to the pep rally that just took place in SA? The amount of waste on travel, accommodations, and who knows what else, on meetings that accomplish who knows what on the the local level, is
disgraceful. Gotta be a better way!
Thanks…
Frank
We do have a strong artificially sustained economy in the United States; we also hold the largest debt. This does create a strong dollar.
More than have of the support comes in as other currencies. If we look at most currencies the exchange rates are lower; we get less in US dollars. In 2014 we were getting 1.4 US dollars per Euro, but now it is 1.1. Many currencies have an even greater reduction. As stated, sometimes the weakness of the exchange rates can help us in other countries, if we can pay within the local currency; but reporting is in US dollars.
The thing I find startling is that 53% of the support still comes in as other currencies. From Countries that have weaker economies. Is this not sort of like the widows mite; without even the widows might?
I see many complaints with intent, but few stated issues (the cost of the conference…). Maybe we should state the failures? Maybe we should state were the funds are not used to spread the Word or meet the needs? Otherwise does it not sound like, we are going to hold GOD hostage until we get our way and HIS way has no meaning?
I am personally glad to see one called, serving as “CFO”; and would contend stewardship and leadership requires such. Is there concern for his financial qualifications or actions? Maybe we should actually state something (and maybe prove it) before condemning or speaking against others?
The economy is bad out there for many; no matter the Country. Count your blessings.
Wisdom,
You are the only party to the conversation speaking to the issue. The budget has to be adjusted because the US dollar exchange rates have moved dramatically against currencies like the Brazil’s Real and India’s Rupee. To the extent that dollars can be returned to those countries the problem is not so severe. The GC pays all it salaries in US dollars I believe; it operates from the US.
Local Unions and conferences use local currency. It sounds like giving has stayed steady. The GC is where the problem is focused.
The GC has a problem and I’m sure they will make adjustments. Let’s do count our blessings.
I think the magic of Adventism, its bewitchment, is gone and accounts for the drop in income. The tithing concept has always been based on its eschatology, the enchantment of the imagined war in heaven, the messianic rescue of saints on earth, whizzing of three angels, the Catholic church killing Sabbath keepers, a majestic tabernacle in heaven as hangout of Jesus, fanciful interpretation of beastly prophecies, and the Adventist selection by God to deliver the goods in the end time. That was heady stuff for faithful tithe investors who viewed the end of all things at hand. But nada, the dream is dead.
Now what does the church offer in replacement? Arguments. Bickering over ordination, the age of the earth, the actual Eden citizenship of those dismal characters Adam and Eve, and the corporate distresses of running a business.
Adventists used to see themselves as “special” because their church was. They contributed tithes and offerings without complaint (while supporting expensive Christian “education”) because their hearts lived happily with what they bought with their minds. But the fantasy has crashed. With the death of the myths, inquiring minds have nothing fantastic to purchase.
The accounting apologists at the GC had better factor in this reality, to ignore it is at their peril.
Interesting concept Bugs and I agree.
There are almost a million new members since 2011, but not in the areas of bickering; they are actually failing. Granted the new members are in less fortunate areas, but the intent is on a Heavenly return. Do we have more to offer these growing areas? Is the offer not the same; priceless? Is it easier for those in the growing areas to accept; because they have little?
Is this the parable of the rich man, both those inside and out? Living in false wealth created by those before us and hawking our children’s future in debt? Looking for the next thing to hawk? Would the message change any of this or should HIS message not sell itself? Is the dream dead or did we kill it? Is problem the failing areas in total? Is there not hope, at least until no not one would be saved and the just deceived? But we still can’t stop trying, because of Love.
Maybe it is just our example in strength and beacon that is missing; in certain areas? Going back to our first Love; HIM? Removing us from the picture?
The headline is in error.
As is the story itself.
The General Conference office has a roughly $20O million annual budget and received what it expected to receive last year.
However, the increase in tithe paid by a growing church is almost totally in non-dollar currencies. These currencies bought fewer dollars for the General Conference to use last year than they bought in some years past. About $20 million fewer is the report.
The General Conference has years and years of experience with currency differences when building its budget for the coming year. It also uses a self-imposed spending limit of a bit (2% I think it is) less than the estimated revenue for the budget period. A report I read elsewhere said they were a little closer to that line last year, but were again still safely under their budget for the year.
Clearly, the CCFO was not surprised by the ‘strong’ dollar last year. In fact, in terms of financial calm, it was pretty much like any other recent year.
I’m hopeful some better informed than I will correct any glaring errors in what I’ve shared here.
Whether the roughly $200,000,000 budget for the world church headquarters is appropriate is quite another question. Do keep in mind that those dollars are by no means all spent on salaries, travel and real estate at headquarters.
Bill,
Thanks for that perspective. That puts things in a different light and removes the shadows of the “wolf at the door” or impending fiscal calamity.
The deficit in income by the church will continue to grow for the foreseeable future.
The treasurer would be wise to offer adjustments to the GC in the order of 20% across the board, except for a 50%slide in GC expenses. The US Dollar will continue to lead all other currencies, until all currencies capitulate, and begin the One World Money system of digital dollars, all tied into one Master System. Without the identification or “MARK”, there will be no buying or selling. This would be an ideal time to downsize, and rein in the activities of the GC. And consideration of dismissal
of the GC or Unions. The Church could be a society of autonomous Unions, each managing its own affairs.
I remember as a child the stories of Eric B. Hare and how over in the “Fuzzy Wuzzy” lands they paid their offerings with sweet potatoes. Works for me! The GC braintrust can start work on an algorithm to handle the exchange rate.
My apology. It appears I was conflating two different stories here. Unlike my first impression, the story here now clearly states that in 2015 the GC was $19 million under estimated revenue for 2015. While $19 million on a $200 million budget is not 20 percent, $19 million is substantial … about 10%.
The story here does not report on the current 2016 year, but notes that in the budget for 2017, next year, to be voted on during Annual Council this fall, the CCFO is recommending using $9.9 million from the ‘reserve’ fund to help make up anticipated reduction in currently available funds at that time.
Financial reporting is especially challenging. Percentages are almost always deceptive, even when they are accurate. Percentage is used both to make big numbers small and to make small numbers seem big in too many cases. I was excellent reporting here to use actual dollars.
It is also challenging to create a report from reading other reports. It is always best to interview a reliably source and to be able to ask questions. The missing question in this report is, “Elder Prestol-Puesan, how much short of the budget do you estimate the income for 2016, the current year, will be?”
“How much do you now estimate the General Conference have to take from its reserve funds during 2016?”
Church finances deserve a much more broad-ranging and in-depth report in the new future here in AToday.org I’m thinking.
Bill,
That would take sophisticated analysis, the requisite accounting expertise, all the facts and lots time. Not to mention the journalistic skills to avoid inducing somnambulism.
And finally a readership that was interested. This is presented as an exchange rate driven shortfall. You would never guess that reading most of the comments.
Some other commenters have more politely used the term “spin doctors” in referring to the outright dishonesty being expressed by the GC in an attempt to cover for their mismanagement and corruption. The strength of the dollar should be a benefit and there should be no reason to convert non$ currencies into dollars when they are needed in the regions of the world where they are received.
The GC needs to be forced to admit that it is failing and has failed. It needs to humbly repent as did corrupt kings of Israel in ancient history. In the absence of this repentance, it is appropriate for the rank and file members to withhold sharing the blessings that God continues to bestow on the members seperately and individually.
Ted et al should be sitting in sackcloth and ashes instead of making excuses for their lies and ineptitude.
To accuse the GC of corruption with no obvious proof should be cause for the Moderator to issue a warning to those who denigrate the officials of the SDA church with no basis.
I have proof of many instances of corruption and dishonesty in the church from the GC down to the local conferences including universities and institutions. It isn’t only lying to church members but also lying to government(s) to obtain visas and permits. The leaders involved say it is necessary to do the work that God wants them to do.
Do you think God blesses a ministry that is conducted on a platform of lies?!
Also, is it corrupt to promote a 13th Sabbath offering project when the project does not exist in the designated country? Is it corrupt to use tithe funds for purposes not eligible for tithe according to the church’s own published policies? Is it corrupt to threaten pastors to vote in agreement with the administration in committee meetings or risk losing their job and their retirement?
Is it corrupt to give a job to a family member who is less qualified than other eligible applicants?
I will name persons, places, and dates at the appropriate time.
Richard, the church was fabricated on what quickly became a lie, the whole false story of Adventist selection by God to husband the end of the world. I have had people on this forum who didn’t argue that point. They defended it with the argument it was a good belief for their family and their lives. Ellen has been excused of fraud, too. The ends justifies the means
So a few lies now have an inescapable precident. The men I ministered with back when Ingathering was a major curse on our lives raised it use as an issue of honesty. We represent the funds for “needy and poor,” but suspected the funds went into the general budget. We never got good answers from the administrators. It was raise your goal or be sent Timbuktu.
A friend, a student of when I taught Academy Bible Classes, recently died. He was the driver for the conference moving van in a large conference and he told me before he passed that the minsters and conference leaders he moved failed to gain his respect due to their duplicity. He called it corruption. I listened, but didn’t interview. A minister friend who retired from a GC position recently told me in anger, “They are all a bunch of crooks.”
I once, as a hospital chaplain sometimes worked with a Salvation Army chaplain. He once told me, from his inside knowledge, their system was totally corrupt.
Cash corruption is a corporate thing. Review the temple corporation in Christs day. The priests were the wealthy class.
Larry:
Thank you for your comments. I understand that corruption in religious organizations is not unique to Adventists and has existed for millennia. And I am not discouraged.
When I was a pastor, I repeatedly had to remind the conference officers that I work for God and that I only worked for them as long as their demands agreed with His. Now I have an independent ministry that God gave me where I am able to focus on teaching Salvation and Faith in Jesus rather than prophetic speculation about what might happen next.
I think if the Adventist church changed its focus, the money problems would be solved.
Without names and dates it seems to me that it could be described as gossip. And it undermines confidence in the Lord’s church.
You complained about the lack of proof so I gave you specifics but you still call it gossip. Even if I give you names, places, and dates, you will not believe. And you are still anonymous.
One more comment:
I am posting here with my real name. I’m not hiding behind some anonymous nickname. What are you hiding from SufferingSunfish?
I see no comments about the unneeded expense that will be associated with the move of NAD headquarters. Academies are having financial problems and NAD is going spend how many millions moving? Seems to me I read that NAD is allocating $300,000 on women in ministry. Is that more important than young people in SDA schools?
I say AMEN to these thoughtful responses. My humble opinion: This page is for those of us who want our voices heard. These will never be read by those at the top levels of management. Because they could care less about those who work there toes to the bone to pay 10% and to the conference, for them to split how they see fit!? What about our own backyard communities? W/Local Conferences is like any other big business. It is not for the “little guy.”
Last year I had a health scare, ended up in the hospital over night, and a heart cath before they let me go home. A couple days later I sat in the doctor’s office, and listened to these words: ‘”If you don’t change your dietary habits immediately, and take your recommended medications immediately, you will die.” Being the wise-guy, I said “I know I will someday.’ She replied, “if you don’t make the immediate changes now, it will be much sooner than someday.”
I’m not suggesting the church is on death’s door, but illustrating we don’t make needed change until we face dire circumstances. The GC is no different. When we don’t have the money, we will adjust. Until then, reports of decline in monies will prevail. For a church that stresses the importance of reaching lives for God, I’d like to see those words converted into actions. That would be less money at the top of the structure, and more funding for pastors, missionaries, and touch-points where real people live.
And ideal budget/financial report setup, is authentic and based on reality. When our SDA church considers a world budget for the coming year, we need to be,:
•Aware, which means the money being spent is aligned with our priorities and values.
•Looking forward, so the church is ready for the “unexpected”
•Flexible, understanding that life is anything but “expected” 😉
•Liberated, because we not living right on the edge financial or dependent on fluctuations
These are the values I get from looking at a budget. The focus of an ideal budget is to maintain those values, while cutting anything possible. Maximum value for minimum effort. While no one is pointing any fingers at any one church financial manager, if our fiscal church organization is to succeed, it’s important that we recognize the signs of bad management – in the church structure.
A retired friend of mine that worked for the IRS , auditing religious persons and organizations, said that the most common characteristics of bad (incompetent) church financial managers are;
• Divide, and conquer mindset
• Play the wrong goals game
• Blames others
• Always cleaning up
• Makes big, big plans
• Always busy
• One-way communication
Let’s be better stewards than we have ever been. Church financial managers also “answer to a higher authority”.
Has anyone looked at the fact that tithe is down because some of us are trying to survive sending our kids through Adventist education. I will be spending 39K for each of my kids next year. My counterpart denominational employee with the same scholarship I get, will pay nothing.
Sorry but until the denomination understands that money does not grow on trees and until they understand the real sacrifices that some of us are making, will continue to have a shortfall in funding.
Wake up- when I don’t make my bills I go bankrupt. I would encourage the church to do some careful budgeting. Someday our collages will also fail when all they have left is the denomination students attending.
Most of my generation have long ago cut ties and no-longer are waiting around to carry the burden anymore.
So now, after some vetting and noted issues; should we come up with a plan?
In overall guidance:
Many have stated transparency; should we suggest for all, bottom to top?
As Sam states, maximum value for return; should we suggest plans and justifications?
Would plans and projections limit the reaction mode that concerned many here?
We always hold the risk of the unexpected, how do we accommodate as best we can?
Reduced bureaucracy?
In program guidance:
Should we place priorities; (spreading the Word, helping the needy, our families and kids…)?
Should we place counterbalances; (teaching to fish, work for your daily bread…)?
Grass roots vs sponsored remembering as Steven states; times are hard all over?
Should we require proof of return?
Can we determine intrinsic value?
Can we remove us from the picture in determining return for HIM?
Do we utilize and rely on those with prove track records and knowledge?
Do we in the priesthood not all hold the responsibility of stewardship:
Remembering that all belongs to HIM?
A much larger picture than just money?
Have we taken that responsibility?
Has that responsibility not always existed?
Do we have to change us to meet that responsibility?
Are we ready for such difficult works (and responsibilities we have always held)?
Should we start teaching our kids now?
Just throwing out suggestions (in hopes of building, not tearing down).
Should this not be our plan, all of us (for and of…
Wisdom:
I have a plan. Abolish the GC and the entire organizational structure. Decentralize with regional management consisting of lay members elected by the membership in elections that are honest and not manipulated by career church politicians. Create an environment where the Holy Spirit can inspire and lead people to do what He wants rather than being suppressed by administrators who intimidate people so that they can maintain their power.
Let each church congregation retain and use its own tithes and offerings to accomplish the mission in their area as they are led by the Holy Soirit. Let God solve the problems of any inequity that might occur. He is the best One to inspire true sharing from the haves’ to the have nots’.
The windfall from cashing out the millions that are invested in man made investments rather than in the salvation of souls should be distributed throughout the churches and might even generate enough activity to finish the work quickly.
One more benefit from abolishing the organization: The proceeds from the sale of the conference office buildings and the elimination of the salaries of the “dried bones” that occupy those buildings would amount to hundreds of millions, if not billions of dollars which could be put to work accomplishing the true mission of the church.
How is it that the Mormons here in my city, have far more church buildings and members than Adventists, and yet they have no paid clergy? Is that not a major reason? As to their organizational structure world wide, how does it compare with Adventism with its very heavy paid clergy? They are well known throughout the world for their caring for their own, first, and others. They also operate more frugally by their building which is used for at least two or more congregations, meeting at stated times. One’s address designates where their “stake” or meeting house is.
What are some of the ideas that have come from the G.C. on saving on expenses and spending less? Just as households must cut back in times of less income they should present such plans to the members.
And the LDS faith has a very strict hierarchy of control, totally male-dominated, arguably like a cult. And elsewhere, Elaine, you have rightly denounced that tendency where it rears its ugly head within the Adventist community. So I am totally surprised and dismayed that you would advocate for Adventists to consider the LDS governance model.
I smiled as I read your note about the Mormons and their good stewardship. They also send the Bishop and elders to each members house and check tax receipt and pay stubs to assure that their members are really paying their 10% tithes and offerings. (And they don’t leave until they have the check).
If our local or general conference followed this practice they would be rolling in the money too.
Be careful what you wish for.
Strength or weakness of any currency only matters when exchanging one currency for another. Each time there is an exchange there is a loss. There is a cost to exchange currencies and there is a cost to exchange in the other direction as well.
I have no clue about the policy for the GC to exchange currency. There would be wisdom to establish a formula and keep funds in a multi-currency account. Exchange as needed and reduce the cost.
There is a lot of talk and action in world currency markets to shift from fiat worthless currency to shift to asset backed currency. Some nations have been beefing up their assets so they will have a strong currency. Do not count on the USD continuing to lead all other currencies. The USA knows how to spend and give; at what cost? Debit and more of it.
Jesus advocated tithing at a time when the “church leadership” was prepared to crucify Him. He knew it and it didn’t stop Jesus from upholding the system.
Ultimately the Lord of Heaven Who sees all and knows all settles up accounts. We need not attempt to manage the GC by withholding “our” tithe and offerings. Careful there. Is that Biblical? It is God’s money not ours. If each of us does what the Lord requires of us HE is capable of managing the results.
Allen:
I’m surprised you didn’t recommend Bitcoin (multi-currency account indeed)! I think we have dishonored God by the type of “investments” that the church has been doing. And that argument about Jesus encouraging support of a corrupt religious system is a traditional defense of the Adventist tithing doctrine but no one ever does anything to clean up the corruption. Are you sure that is what Jesus was saying? Are you sure that the tithing system in the Adventist church is modeled after the Jewish system? Jesus also drove the corruption out of the temple twice.
Giving is for the spiritual benefit of the giver, not the receiver. And I can enjoy the benefits of giving without casting my coins into the corrupt GC wishing well.
There are a number of comments on this web page that seem to ignore the realities of what the various conference organizations do, and how they are run.
First let me say that there is an enormous difference between reporting consolidated financial results in Dollars, vs actually exchanging the foreign currencies into Dollars. Any multi-national organization that is legally based in the US, does the former. Very few if any, actually do the latter. And that would include the GC. There is absolutely no reason to repatriate overseas monies into the US of A, unless they are needed to fund US-based operations.
Second, those who advocate doing-away with local Conferences, and replacing them with committees of lay volunteers, have no idea how difficult and unreliable would become the operations and services that are provided to individual churches and schools, etc. And despite the occasional and examples of misfeasance and malfeasance that we have all encountered, a large portions of the funds are actually expended in direct support of local church and school operations.
None of the foregoing is intended to suggest that some services cannot be provided more efficiently or more effectively. But simply shutting-down the various entities, without a LOT of planning regarding how to sustain their various beneficial functions, would result in total chaos. If that is what yoy really want, then go for it. But I for one do not wish to go there.
It is true that the local conferences provide services to the local congregations, but most of those services are designed to control the local church activities. The Sabbath School department assists local churches to promote the 13th Sabbath offerings and to use the approved study materials. The Ministerial department ensures that pastors are promoting the outreach and evangelism plans of the conference, not the local community, etc. Many non-affiliated churches function quite effectively without a big brother to oversee them. I would prefer to see a little Holy Spirit led chaos rather than a power-hungry, control-freak insisting that everything be done by the approved methods.
“a power-hungry, control-freak insisting that everything be done by the approved methods”
Well I have indeed known a few such administrators in my lifetime, but they are not really that prevalent in the local conferences where I have lived (though I will not say they are entirely absent elsewhere. Most local conferences now have a lot more lay oversight than they did when you were an employee. And strong lay leaders simply will not put-up with that kind of stuff for long, unless they are wired the same way. So on-balance I would not see this as more of an issue with local conference employees, than with lay leaders.
I could tell you lots of stories about power struggles among lay leaders also. And among all the pastors I have worked with, the ones who complained most vigorously about conference meddling, were the ones who themselves had the most control issues. Ditto for strong leaders of “independent ministries”. So I am not sure your “solution” solves anything that needs to be solved. You only push the problem around, humans being humans regardless of for whom and where they work.
The GC and the Unions are redundant in actions. The lean clean operating machine is what the SDA Church would be should one or both faded out of existence . If just one of the hierarchy’s exits, it should be the GC, as it is the 900 pound gorilla in the room,
siphoning off the greatest piece of the managing expenses, in order to have the black suit lieutenants, protecting the backs of the “big wheels” who constantly travel, have big budgets, using the low cost of air travel, and staying at Motel 6. What is the basic part of their daily routine?? Always available for photo ops; insuring their secretaries
do all their thinking, preparation of presentations, actually most of the work other than being the person receiving the celebrity treatment. They don’t evangelize their communities, or plant new churches. All communications are down, any coming up are filed by the secretaries in the round filing cabinets “don’t bother the boss with that one”. Constantly commanding the troops of the very best ways to do their jobs.
Of creating paper, creating paper, from department, to department, to department,
for filing each of their separate filing cabinets, being very very careful with the handling protocol of memos. Folks, all actions here is handling paper, and public appearances all over the globe. What a cushy ivory tower.
The entire organization is redundant having been created in an age of travel on horseback and communications by telegraph or pony express. Certainly with our modern technology, we don’t need 3 levels of management doing the same things. But the careers of the power-mongers require that each rung of the ladder exist so that they have a higher level to which to aspire. The entire system needs to be flushed to prevent the residual (aka remnant) from recreating it for themselves.
Successful businesses encourage independent thinking which is where most of the exciting new ideas originate. It is just the opposite in the church: One is discouraged or quickly disheartened when trying new ideas that did not first come from the ivory tower. But local people are much more in tune with their own situation and aware of its needs, not some suit sitting 3,000 miles away who has never been there.
Programs designed for the entire global church are ridiculous. While some may work in some places, none can work successfully everywhere. But the ideas continue to be suggested and some high auhtority figure “sells” it and it is promoted and becomes fact. Great example: the Ted head who suggested flooding NYCity and other large cities with millions of copies of the greatly edited and abridged G.C. which was reborn as “The Great Hope”–with a hope that they would not be trashed (which is where the majority died).
There have been similar “evangelistic” schemes in the past, promising great results. The Review regularly reports thousands of baptisms in some distant area, but nothing even faintly similar in the first world nations where memberships are dropping daily; either by formal resignation or largely through “disappearance” never to be researched. Getting newer members gets all the publicity while the back door is wide open and busy.
Elaine,
Sad, but all too true on this comment 8-(.
There is a fair case to be made for giving each Division more autonomy and stripping-down the core of the GC to a holding company, that basically handles the few remaining functions that actually benefit from being centralized. Perhaps the Division presidents could rotate-through the top GC offices as added responsibilities for chairing the irreducible number of remaining central committees and boards.
The trade-off between Union Conferences vs GC Divisions, is about checks and balances. The higher-ups do indeed influence the careers of their underlings. But it is the underlings who are in the majority on the nominating committees that selects their bosses.
So the real gorilla in the room, is whether in the interest of greater “efficiency” we want to go back to the model of the RC church and the 19th century SDA church, where the local bishops report directly to the Big Boys. More efficient but fewer checks and balances.
That being said, I think that some level of consolidation of Union Conferences is definitely in-order, not only in North America but in some other parts of the world also. I may write my own Opinion piece on this question. Among other things, the men (no women above the Glass Ceiling) who get elected to Union leadership, are generally institutional developers. They can no longer develop churches and schools so they develop bureaucracies. Strictly limiting the ratio of conference bureaucrats to local church members is a very good idea at all levels, and in all locales. And very unpopular with the career bureaucrats.
Jim:
I’m sure in your career you have experienced many nominating committees. It is delusional to think that underlings on a nominating committee will remove or oppose their bosses above them.
I personally as a pastor served on a nominating committee where the renomination of the existing President and Ministerial Secretary resulted in a heated dispute forcing the committee to meet again the following week. On Thursday of that week, I received a call from one of the aforementioned individuals suggesting that an unwise vote would be detrimental to my career.
This is one evidence that the structure of the organization prevents reform. I remain committed to abolishing the organization; at least the Unions and the GC.
At the local conference level in North America many if not most, nominating committees and executive committees are a majority of non-employees for that very reason. Things have changed a fair amount over the past couple decades. And in one conference, Yours Truly was very instrumental in that change.
Employee packing of committees were the norm in the 70’sand 80’s, because they
could be made to toe the line, such as Lawson experienced. They have been replaced, you say, but there were always fawning non employees who were buttered up. i never attended a board or constituency meeting that wasn’t pre-arranged. One Conference budget committee in particular where two of us determined that tithe funds to the amount of several hundred thousand dollars, were used for non-tithe
purposes. The two of us voted down the budget, but 18 others voted for it. That Conference President and his treasurer were shortly after transferred out, to the same positions in the western USA, from Canada.
Yep, the people who serve on committees are only as good as the people who nominate them wish them to be.
That is why we had to reform the nominating committee process, in order to make the nominating committee more responsive to the needs of the constituency, rather than to the needs of the entrenched bureaucracy.
Again, the constituencies actually have the power, if they have the will and the perseverance to use it effectively. If they just sit back and passively watch the scenery go-by, then they get what they deserve 8-(.
It is difficult to have a rational discussion when issues are mixed. It is my belief that rational, thoughtful Christians believe that their primary objective as Christians is to spread the good news of the gospel that Jesus died for our sins. Unfortunately, that objective is not the objective of most Christian churches. The primary objective of all corporations and churches is survival. Is the gospel objective the objective of our church organization? Does our church take positions that interfere with the gospel message? Short age is an example. Radioactive dating depends upon the constancy of radioactive decay constants. Our church has spent substantial funds to show that this decay constant is a function of time. Nobel prize winner Marie Curie expended substantial effort to show that no amount of pressure, extreme temperatures or other physical conditions were able to vary those decay constants. People of various religious and ethical positions have tried for over 100 years to disprove the constancy of the radioactive constants without success. A group from a midwestern university had data that apparently showed that decay constants fluctuated with the seasons. This created a stir with some Adventist biologists. It turned out that the equipment used to gather the data gave false readings, as demonstrated and published by another university. An agnostic with reasonable physics training might listen about Jesus, but if you mention 6000 years,he asks what are you smoking?
We should thank Dr. Saxon for his helpful note about the problem of credibility of a church whose highly problematical teaching on a scientific subject flatly contradicts a mass of scientific data. Sad.
The support for and the importance of the local church by Adventist leadership is one of the tragic underreported events and stories in the past ten years. One of the essential building blocks of spiritual growth is to become a part of a local church. The church, meaning was established by Christ to provide you with biblically sound instruction, allow you to express genuine worship with other believers, enable you to use your God-given gifts and abilities as He intended, and keep you accountable to spiritual leadership. Sadly we are not educating new Christians or inspiring new ones to think clearly or excel in serving God and their church. Ellen White could not have said it better;
““Higher than the highest human thought can reach is God’s ideal for His children. Godliness-godlikeness- is the goal to be reached. Before the student there is opened a path of continual progress. He has an object to achieve, a standard to attain, that includes everything good, and pure, and noble” Education p. 18
1. Are we diligent students?
2. Is God’s church a school for improvement?
3. Why do our homes look far better than our churches?
4. Why is there so little room for diverse thinking and ideas in our church?
5. When will we end gender discrimination in the ordination of our ministers?
etc. etc.
Sam,
A few answers to the questions you posed.
1. Diligent students? Diligence is measured both in the performance of students and the effectiveness of the teachers. Effectiveness can be measured only when there is a clear standard for measurement. The church has largely lost it’s historic mission purpose and justifies its continuance using an ill-defined concept of mission from which members are largely disconnected.
2. The church should be a school for improvement, but the factors in #1 prevent it from being that.
3. Our homes look better than our churches because we’re able to keep a far larger portion of our income.
4. There is little room for diversity because we have adopted a rigid, fact-focused attitude that causes us to believe our ideas are right so all other ideas are wrong. This leaves no room for the Holy Spirit, who doesn’t operate within our conceptual paradigms (our “boxes”). Note the almost allergic reactions some people have to any suggestion of variance from their concepts and you might wonder if they think the Holy Spirit is the Mark of the Beast instead of the Spirit of God.
5. We will end gender discrimination in ministry at all levels when our supreme devotion is to God and ministry in the power of the Holy Spirit instead of our egos about our beliefs.
Get rid of the top. Get rid of the middle man. Personal interests. Be more diverse.
Good parable George, appropriate? In analogy, relating a fact (or potential fact) against a root problem; actually existing outside of a closed system?
Relating the decay rate of Carbon 14 (potential constant) is only a part of a process. The ratio of Carbon 14 and Carbon 12 are both used as variables in the process. Both are created and variant non-constants; outside of the closed system and with many impacting variables. (physics training vs theoretical/application knowledge as another example). And yes there is bias in every instant; many with motive of intent.
Within our situation; do we not have HIS Plan and the BIBLE? Is the failing not just part of the root problem; a variant result? Is there good and bad in the top and middle? Do we have intent to meddle with those given to change (Proverbs 24:21); only for the sake of change or to meet requirements outside of The Closed System: HIS System?
Richard, maybe we should suggest a bidirectional communication path (up and down) for issues? Maybe one for employees and another for those concerned? If checks and balances is one reason for the existence of both?
We have heart, in instinct; should we not also have Love in Grace? Sufficient to fix the problem instead of addressing the issues; to help others that might be impacted? (Very difficult sometimes.)
Thoughts?
William Noel, April 25, 2016 at 6:15 am responded to
“Sam, A few answers to the questions you posed…”
Thank you William.
These are all excellent responses! They show experience and knowledge which result in wisdom. I encourage AT readers to read William Noel’s responses.
I am reminded of Sister White’s counsel regarding cooperation, sharing, and understanding our common experiences:
“A living experience is made up of daily trials, conflicts, and temptations, strong efforts and victories, and great peace and joy gained through Jesus. A simple relation of such experiences gives light, strength, and knowledge that will aid others in their advancement in the divine life.” EGWhite, Testimonies, volume 2, p. 579.
Thank you, William, for sharing those five answers.
Sam,
Thank you for your kind words.
#3 can be interpreted in at least two ways: that members need to give more and the local church needs to reduce how much is sent to the conference. I vote for both.
I’m surely not accusing anyone in the GC of being dishonest. I have served on committees at several of these levels, and I know that there is a rigorous auditing procedure in place. But something isn’t being communicated clearly here, nor does there seem to be a comprehensive plan for what to do about it.
There are paid pastors
There are paid teachers
There are paid conference workers
How many in each category?
Of course..I can’t talk during sermons since they are usually low/non interactive lectures. I share insights during Sabbath school because I feel sorry for the people who come to hear the samo trite, obscure, superficial, irrelevant religious lingo and cliches ..week after week. I will be attending an annual Sabbath school continuing education meeting this Sabbath to see if the incompetent SDA old wine skin institutional promoters will consider the idea of implementing surveys to get feedback from SDA church attenders and also to see how they feel about the SDA inept cliché presentations in the conference.
Jimbob,,
Good luck! I gave up on such conferences ages ago because the presenters never encouraged us to do anything but use the same old methods in the same old way while magically expecting the Holy Spirit to bless and give us different results.
You seem to want everyone to do everything for you. When are you going to put HIS works, efforts and Love into it?
There is no magic wand. This sounds like a self induced pity party. To your answers above.
1) You can’t sit on your behind and teach the kids; knowledge or Spirit. You can’t expect others to do it. Most of the kids can’t read (even the BIBLE) and 58% don’t believe in the BIBLE when they reach higher education; then we get to spend more money on remedial classes. But by HIS Grace we do have a lot of diligent parents and teachers out there.
2) Many commanded to teach don’t and many are paid to teach but consider it a job instead of HIS Calling. But again we do have a lot of diligent parents and teachers out there.
3) Our homes look better than our churches because HIS Blessings is our income? Sounds like a personal or pooled problem. No one wants to work. We have some unable, but then the many that can, do; then others just don’t.
4) HIS Diversity causes us to throw away our “boxes”.
5) HE didn’t start gender discrimination; you did.
The last sentence of the paragraph in Ellen’s testimony (V2, Social Gatherings, P579) quoted above; “The worship of God should be both interesting and instructive to those who have any love for divine and heavenly things.” Who’s problem is it If you feel uninterested, uninstructed or unLoved?
Who Is your light and beacon, you or HIM? Who helped you through the trials and let you live another…
Wisdom,
No matter what anyone says, you assail them with railing accusations. God has neither authorized and empowered you to sit in judgement of others the way you do continually, so I am thankful that only you will be held responsible in the Judgement for your never-ending blasphemies.
1 Timothy 4:
11 These things command and teach.
12 Let no man despise thy youth; but be thou an example of the believers, in word, in conversation, in charity, in spirit, in faith, in purity.
13 Till I come, give attendance to reading, to exhortation, to doctrine.
14 Neglect not the gift that is in thee, which was given thee by prophecy, with the laying on of the hands of the presbytery.
15 Meditate upon these things; give thyself wholly to them; that thy profiting may appear to all.
16 Take heed unto thyself, and unto the doctrine; continue in them: for in doing this thou shalt both save thyself, and them that hear thee.
We all have our BIBLES and can read. We know the vote and voice of the denomination. We are asked by the denomination to identify and exhort exceptions to doctrine. We all hold like responsibilities.
Are you not the one with railing accusations of never-ending blasphemies and judgement for all? We are all just thankful and joyous to have our names written in the BOOK and the ability to serve HIM.
We see someone that has been Loved by HIM, parents, family, community, Church and us; yet bully everyone and make accusations. We would like to state unproven; but we have no idea of what the accusations even are.
Submit your charges, proof and witnesses to your Church. Have the pastor take minutes and pass up the results to the GC since this is a global issue. Handle your accusations of blasphemies and wrongdoings the right way.
it will be interesting if the church can finally modernize. They need to slim down the overhead. The north american division could easily loose half of its administrative staff. Hopefully this will push them in the correct direction.
Well said Karl.
1662 135228Once I originally commented I clicked the -Notify me when new feedback are added- checkbox and now every time a remark is added I get four emails with exactly the same comment. Is there any indicates you possibly can remove me from that service? Thanks! 981405
Are denominational employees covered by Social Security? Are church pensions their sole benefits on retirement. Can they set up IRA’s and other plans?
Retirement funding is also one of the G.C. expenses, but what percentage or amount?
As mentioned by Saxon, there is a lot of unnecessary funding given to groups that have no part in spreading the Gospel; in fact are detrimental for educated prospects. If the “dead wood” were cut that has no relationship to what the church’s mission is, there are plenty of places where monies could be saved: ask the members who are the sole contributors of those funds!