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The Lutheran World Federation
Lutheran World Information |
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| 11.09.2002 |
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| Council Press Release No. 7 - LWF Challenged to Develop Creative Ways to Get Additional Support |
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Treasurer’s Report to Council Calls for Prioritization of a Supportive Communion
WITTENBERG, Germany/GENEVA, 11 September 2002 (LWI) – The Lutheran World Federation (LWF) was today challenged to develop creative ways to get additional financial support for the Federation’s work. “A more concrete plan of action is needed,” LWF Treasurer Ms. Inger J. Wremer said in her Report to the Council today.
Combined receipts in 2001 amounted to USD 98.8 million compared with USD 102.2 million in 2000, a decrease of USD 3.4 million. Out of this figure, USD 8.2 million, representing 8.2 percent went toward administration related implementation while USD 90.6 million was allocated to projects. The receipts for 2000 stood at USD 8.4 million for administration and USD 93.8 million for project work
Although USD 200,000 was used from the general reserve funds, now standing at USD 4.3 million, to balance the coordination budget in 2001 (A-Budget) the LWF has a goal to reach a new sustainable budget level by 2004. The reason for the shortfall is that although some partners are able to increase their support, there are others who have had to cut back on theirs, Wremer said. She explained that more than 85 percent of the A-Budget is staff related costs, noting that intensified work is currently needed to prepare for the 2003 LWF Tenth Assembly. In addition, the exchange equalization fund decreased from USD 893,000 to USD 353,000, Wremer told LWF’s annual governing body, meeting in the Luther city of Wittenberg, September 10-17.
“But the financial situation is manageable. I am optimistic about it,” Wremer later told a press conference, responding to a question about the future of LWF finances.
The treasurer expressed deep gratitude that the membership fee contributions after declining in 2000 had remained stable in 2001 to reach USD 2.1 million, nearly matching the 2000 figure. She however remarked that the fair membership contributions – based on each country’s GNP - agreed during a consultation in 1999 would have resulted in an amount of more than USD 2.5 million.
Wremer expressed gratitude to LWF member churches for their contribution to the Endowment Fund, an additional instrument to ensure operative financial viability, enabling the sustainable continuation of the coordination services. Contributions to the fund between 1999 and 2001 stood at CHF 4.5 million (USD 2.8 million). By August 2002, additional pledges put the total amount in the fund so far at CHF 5.7 million (USD 3.6 million). The target is CHF 10 million (USD 6 million) by 2004.
The treasurer appreciated that it may be difficult for some members to contribute to the Endowment Fund and at the same time increase their membership fee, “and this therefore might seem a bit too much to ask for.” Nevertheless, she expressed hope that in due time, both membership fees and grants for the fund would reach a level at which the services of the secretariat as well as to the member churches, “can be done in a most satisfactory way, and LWF work in general can be more completely ensured.”
A USD 35,000 surplus was recorded in the Department for World Service (DWS) administration implementation budget and USD 2.8 million in programs, Wremer said. Project income for DWS in 2001 stood at USD 80.7 million and expenditure at USD 77.9 million compared with USD 83.7 million and USD 86.2 million respectively in 2000. The decline mainly resulted from lower income/expenditure relating to emergencies. The treasurer recognized the continuous good work that Action by Churches Together (the LWF and WCC-based network of church related agencies responding to emergencies) in collaboration with DWS. She stressed that new demands and changes in the international environment call for constant readiness to consider strategies and solutions.
In 2001, coordination income from member churches to the Department for Mission and Development (DMD) reduced from USD 2.4 million to USD 2.2 million. Lower interest rates also resulted in a decline of approximately USD 100,000 in investment income, which totaled USD 293,000. Allocation of USD 205,000 from membership contributions put the total income to USD 2.7 million. DMD’s coordinated project/program funds remained stable at approximately USD 9.4 million. There was a USD 803,000 decrease in program funds overall reflecting small deficits. Wremer expressed gratitude to member churches for their support for the ongoing work through the department. In any given year the DMD accompanies LWF member churches worldwide in the implementation of about 450 projects and programs.
The coordination budget income received from member churches toward the Department for Theology and Studies (DTS) declined by 10.8 percent to USD 502,000 in 2001. A further allocation of USD 149,000 from membership contributions for the year 2001 put the DTs deficit at USD 81,000.
The coordination income and expenditure for the General Secretariat, comprising the offices of the General Secretary, Deputy General Secretary, Ecumenical Affairs, International Affairs and Human Rights, Communication Services, Personnel, Finance and Administration decreased from USD 2.1 million in 2000 to USD 1.9 million in 2001. During the same period project income declined from USD 315,000 to USD 163,000, and project expenditure increased from USD 419,000 to USD 699,000. The treasurer noted “the situation is especially difficult for the offices of Ecumenical Affairs and Communication Services, both of which belong to the core functions of the LWF as a communion of churches.
The 2001 Coordination Budget stands at around CHF 15 million (USD 9 million). The 2002 budget, originally envisaged CHF 15.5 million (USD 9.6 million) was reduced to CHF 14.8 million (USD 9.2 million) in November 2001 and has been further revised to CHF 14.6 million. Wremer pointed out that it would be difficult to cut back further on the A-budget without also reducing more activities whose effect would be felt by the LWF.
Wremer said a task force set up to develop a new budget structure held it first meeting in January. The group focused on a structure aimed at improving transparency and broadening the basis of unearmarked funding while taking into account the LWF aims and goals. The team’s proposal will be examined closely during the Council meeting.
Special efforts to improve LWF’s financial position would include prioritizing fundraising, Wremer said. She also proposed the establishment of a task force for 2002/2003 to look into possibilities of streamlining Council preparations.
Wremer also spoke of the situation of the LWF-run Augusta Victoria Hospital (AVH) in East Jerusalem. Through grants from the governments of Norway (USD 2 million) and Sweden (USD 1 million), accumulated deficits could now be reduced and the hospital could operate without putting the property at risk. Decision is still awaited on a court case over an Israeli employer’s tax imposed on the AVH. The judge has allowed the LWF time to find a solution in negotiations with Israeli authorities. But “if the Israelis will not respect the tax exemption, and the court decides that LWF will have to pay, this may lead to the closure of the hospital,” Wremer told the Council meeting.
The treasurer also recognized the diversity in the Lutheran communion, with vastly different social locations, and resources. She called for the prioritization of a supportive communion that acts “in a sense of relatedness, responsibility and accountability to others within the federation.” Relating to each other this way not only contributes to solidarity; it also helps to resist exclusion from active participation for members that are in a rather difficult economic situation.
That minority churches are able to share their experiences and participate fully in the fellowship in spite of limited financial capacity is a concrete sign of a supportive church communion. “By sharing and building partnership between member churches we possibly will explore new areas for cooperation and fellowship,” she told the Council meeting.
Wremer, from the Church of Norway, was elected LWF Treasurer in June 2000, succeeding Dr. Sigrun Mogedal, who resigned the same year following appointment to a state position.
Staff of the LWF Office for Communication Services at the Council meeting can be contacted at German mobile telephone No., +49-(0) 170-8345 177.
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