WCC budget takes into account possible reductions for 2010

2.09.09

As the World Council of Churches (WCC) prepares for a new general secretary in January 2010 and its 10th Assembly in 2013, it also faces some financial challenges because of reduced income from donors, member churches and fluctuations in exchange rates.

At its meeting this week the WCC Central Committee accepted a number of recommendations from its finance committee related to the 2010 budget which has not been finalized. The recommendations included completion of a 2010 budget by 1 November and final approval of the budget by the executive committee in February 2010.

The Central Committee also adopted the audited financial statements from 2008 and the revisions made to the 2009 budget.

The finance committee report said that the first half of 2009 had been particularly challenging for finance management within the WCC due to reductions in expected income from member churches, specialized ministries and the impact of foreign exchange rates.

In June 2009 the approved expense budget of 38.7 million Swiss francs was revised by reducing planned expenditure by almost 1 million Swiss francs to match the forecast reductions in income. The reductions were caused by a decline in donations and unfavourable currency exchange rates.

As a Swiss-based organization, the WCC does business in Swiss francs while receiving its income in a variety of other currencies.

"We anticipate further reductions in contributions in the last half of 2009," said Dean Anders Gadegaard, the moderator of the Central Committee finance committee. "We don't know how severe it might be because we are waiting for the pledges from our dedicated donors to come in."

Gadegaard believes further reductions in 2010 income could be in the range of 5-10 percent. The 2010 budget presently stands at 35.5 million Swiss francs.

In the meantime the Central Committee asked the WCC staff to have a 2010 budget completed by 1 November so the WCC Officers meeting in early December could give provisional approval of the budget. Final approval for the 2010 budget would come at the February 2010 Executive Committee meeting.