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The Lutheran World Federation
Lutheran World Information |
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| 24.09.2002 |
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| Over USD 64 Million for 2003 LWF Programs and Activities |
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USD 2.4 Million for Tenth Assembly, Increased Income in Endowment Fund
GENEVA, 24 September 2002 (LWI) – A total of USD 64,800,461 has been approved for programs and activities of the Lutheran World Federation (LWF) in 2003. This amount does not include emergency funding. A summary of needs (SON) based on the work of the organization’s departments and offices puts the 2004 figure at USD 60,634,529 with a projection of USD 58,053,107 for 2005.
The LWF Council approved the estimates at its September 10-17 meeting in Wittenberg, Germany, based on recommendations by its Program Committee for Finance and Administration, chaired by the LWF Treasurer, Ms. Inger J. Wremer (Church of Norway). The 49-member LWF governing body, comprising representatives from LWF member churches meets annually.
A combined total of SON amounting to USD 915,200 for 2003 was approved for the General Secretariat which includes the Offices for Finance and Administration, Personnel, International Affairs and Human Rights, Ecumenical Affairs and Communication Services. The expenditure foreseen for 2004 is USD 915,220 with a projection of USD 982,140 for 2005.
Some USD 192,000 was approved for the Department for Theology and Studies for 2003, USD 313,800 for 2004 and USD 296,000 is projected for 2005. The Department for Mission and Development programs and projects amount to USD 7.78 million for 2003, USD 5.78 million for 2004, and USD 5.65 million for 2005. The Council approved program expenditure for the Department for World Service to the tune of USD 55,521,841 in 2003, USD 53,227,959 in 2004 and USD 50,728,997 for 2005. The budget for the Lutheran Foundation for Inter-confessional Research – Strasbourg Institute is USD 390,000 for 2003, USD 395,000 for 2004 and USD 400,000 for 2005.
Geneva Coordination Budget
The Council also approved a CHF 14.8 million Geneva Coordination Budget for 2003, with a projected deficit of CHF 894,572. The approval was given with the understanding that the deficit would be covered from the general reserves. On this point, the Council asked the General Secretary, Rev. Dr. Ishmael Noko to present to the next Executive Committee meeting proposals for balanced 2004 and 2005 Geneva coordination budgets, with staffing configuration corresponding to the projected income.
Earlier, in the Treasurer’s Report to the Council, Wremer had noted that overall income to the LWF has decreased. Coupled with this are fluctuating exchange rates that have lowered the currency equalization fund.The original coordination budget for 2002 amounted to CHF 15.5 million, which was reduced to CHF 14.8 million in mid-November 2001. Calling for action to improve LWF’s financial situation, Wremer noted that it would be hard to make further cuts in the coordination budget without also scaling down more activities to the detriment of the Federation’s programs.
Churches Encouraged to Pay Assembly Fees
Also approved by this year’s Council was the LWF Tenth Assembly Budget amounting to USD 2.4 million. The assembly will take place 21-31 July 2003 in Winnipeg, Canada. The Council strongly encouraged all LWF member churches to pay the full Tenth Assembly fees by the first quarter of 2004. In presenting the report of the Program Committee for Finance and Administration, Wremer noted that the assembly budget remains very tight and highly dependent on the Assembly fees. It is expected that the current USD 44,000 deficit will be covered by the first quarter of 2004.
The Program Committee for Finance and Administration discussed in depth the situation of membership fees. Particular attention was given to the impact on the LWF income if the fair membership calculations presented in 1999 and updated in July 2002 were adhered to by all member churches. Membership fee contributions remained stable in 2001 amounting to USD 2.1 million. The Committee had noted with appreciation the efforts by member churches towards adjusting to the level of fair membership fees, based on the GNP of individual countries. The Council strongly encouraged all member churches to pay the fair membership fees in 2003 and 2004.
Contributions to the Endowment Fund
Another financial matter discussed at the last Council meeting was the LWF Foundation – Endowment Fund. In spite of the difficult financial situation globally, LWF member churches that made commitments to the LWF Foundation continued to regularly provide their capital contributions. By 31 December 2001 the total funds of the Endowment Fund amounted to CHF 4,960,348 compared to CHF 3,934,709 in 2000.
The current total amount in the Endowment Fund includes contributions from the Church of Sweden (USD 1.5 million), Evangelical Lutheran Church of Finland (USD 500,000) and the LWF German National Committee (DEM 3,416,794). In addition, the fund has received USD 113,000 from the Endowment Fund of the Evangelical Lutheran Church in America. Contributions have also been received from the Evangelical Church of the Lutheran Confession in Brazil, Evangelical Lutheran Church in Canada, and Evangelical Churches of the Augsburg Confession in Poland and Slovak Republic. The fund reached CHF 5.7 million by August 2002.
Established in response to a 1996 LWF Council recommendation, the LWF Foundation – Endowment Fund aims to strengthen and supplement financial support for the LWF’s work through the investment of income received on the fund’s capital. On 1 April 1999, the fund was registered as a foundation in the Canton of Geneva. A board appointed by the LWF Board of Trustees in an honorary capacity, directs the foundation and reports annually to the Council. The fund’s target by 2004 is CHF 10 million, with a long-term goal of CHF 50 million. Earnings from 2001 were distributed to the Department for Theology and Studies and Offices for Ecumenical Affairs and Communication Services.
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