News
By focusing on its core programmes and carefully controlling its expenditure, the World Council of Churches (WCC) is overcoming the difficulties it has faced over the past two years, and is now in a healthier financial position.
Forecasts are "modestly encouraging", according to WCC general secretary Rev. Dr Konrad Raiser's report to the Central Committee meeting in Geneva, 26 August - 2 September. "However," Raiser warned, "We have not yet reached the point of financial equilibrium, and the decline of contributions income has not been halted."
Indications are that the measures taken by its finance committee have set the Council's financial management on the right course.
Adjustments have been made in three areas - a reduction of activities, achieved without destabilising the WCC's core programmes, a reduction and reorganisation of personnel, and reduction of operational costs.
In 2002, the WCC faced a deficit of 6.6 million CHF, which involved a planned use of funds totalling 5.5 million CHF set aside for specific core programmes, and which reduced reserves by 1.1 million CHF. In the preceding year, the deficit was 11 million CHF, including a reduction in reserves of 5 million CHF, which sounded alarm bells.
In 2001, the WCC arranged bank loans totalling 4 million CHF, guaranteed by its investments. These loans were repaid in 2002.
However, in 2002 and with Central Committee approval, the WCC also opened a line of credit guaranteed by the mortgage of the Ecumenical Centre in Geneva. Planned as a precautionary measure, the credit line, although still available, was never used, according to WCC Finance Team coordinator, Elaine Dykes of the Church of Scotland.
The expenditure budget for 2003 is 46.2 million CHF. Results to July 2003 showed a small positive balance, reflecting the success of the measures taken the previous year, and generating expectations of an operational surplus at the year's end, with the aim of adding 1 million CHF to reserves.
Although total WCC income has decreased in the last two years, church membership income rose slightly in comparison with 2001. In 2001, 53% of the churches made contributions to the WCC; last year the percentage increased to 66%.
The WCC is launching a campaign to increase its income from affiliated churches. At the same time, it will continue efforts to maintain the level of contributions from agencies and other sources.
By 2005, the finance committee hopes that all WCC member churches will be contributing to the Council, bringing total contributions income from 6 million CHF to 10 million CHF. Contributions now represent 15% of the WCC's budget.