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Robert E. Lemon In preparing this report, it was inspiring to reread some of the treasurers' reports from past General Conference (GC) sessions. It is impossible to read these reports without sensing the marvelous way God has led through difficult times and thanking Him for His blessings and for the faithfulness of His children.
The new formula calls for all divisions to contribute 2 percent of gross tithe for the operation of the world headquarters and, in addition, for the North American Division to contribute an additional 6 percent of tithe to assist with the world missions program and with the support of GC institutions, most of which are located in North America. Other divisions provided additional funding directly to the mission territories within their divisions. The reduction from 10.72 percent to 8 percent of tithe from the North American Division and the increase from 1 percent to 2 percent from the other divisions was projected to result in a net reduction in funds available to the GC World Budget of $12 million per year, which is approximately 10 percent of the world budget.
This quinquennium has seen great economic turmoil in the world. Financial markets have been on a roller coaster, the events of September 11, 2001, war, SARS, the tsunami, and others have affected the economies of various parts of the world. As we look back at the increases in tithes and offerings during this difficult period, we can only say, "Praise the Lord for the faithfulness of His people and for His bountiful blessings!"
Maintaining appropriations at the same level in U.S. dollars throughout the quinquennium meant that many organizations received less in local currency because of the weaker U.S. dollar. We have appreciated the spirit of collegiality in working through this period, and we thank the officers of the recipient organizations and their committees for the way they dealt with these budgetary realities. We also thank the General Conference departmental directors, staff, and others who have worked hard to stay within budget and accepted that some positions were not filled when vacancies occurred. Everyone's combined efforts kept the average annual increase in costs at the GC headquarters to less than 3.3 percent during the quinquennium, in spite of a 5.7 percent average annual increase in the Washington area remuneration factor under policies set by the North American Division. The increase in the remuneration factor was the result of rapid escalation of housing costs in the area. Although we have completed only the fourth year of the five-year phase-in, in 2004, the GC headquarters operated on only 2.04 percent of world tithe. This is only .04 percent above the fully phased-in cap objective of 2 percent. The Big Picture The Adventist Development and Relief Agency's revenue totaled $74,834,363, and Adventist Risk Management's was $16,348,487. In 2003 the total revenue of local churches and tithe-based organizations (local conferences/missions, unions, divisions, the General Conference and associations) was $2,321,902,969. Tithes and Offerings
A major shift in recent years toward more project giving has helped stimulate interest in missions and has been a great blessing in many areas. Various ministries and groups have taken on projects and helped strengthen the work. We praise the Lord for this! Each of us who supports these projects and ministries does so with the desire to see souls saved in the kingdom. One of the drawbacks of an excessive reliance on project giving is that attention spans can be short. When there is greater need in another area, most of the support is shifted to the new area, often leaving the local organization (if there even is a local organization) to maintain the project or outreach without sufficient resources. Sometimes we lose all the progress that has been made. We still need a strong program of mission giving administered by the Executive Committee of the General Conference to make sure the work progresses in all areas, and not just in the areas where projects have been successfully promoted. A strong mission offering program that can sustain major long-term initiatives is doubly important as we focus on the 10/40 window area. Many of the most effective outreaches in this area are ones that must be carefully planned and funded for long periods of time, as no local organization or membership exists to carry them forward. They are of a nature that any communication to supporters about the progress made can itself put the work at risk. We must do a better job of communicating the continued and increased need for support of the mission offerings to finish the work in "all the world." Remember, none of us are "going home" until we all "go home." General Conference Revenues and Expenditures During the Quinquennium Our Financial Future The Real Big Picture The chief executive officer of a major software development company, cited for having one of the best employee benefit programs in the United States, was asked in an interview why his company provided such excellent benefits to its employees. "Ninety-five percent of my assets drive out the front gate every evening," he said. "It's my job to bring them back."
Transferring Funds The Lord does not look at the size of the offering, but at the sacrifice on the part of the giver. Someone has said: "Giving is not God's way of raising money; it is God's way of raising people into the likeness of His Son." Jesus admonished us: "Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: but lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: for where your treasure is, there will your heart be also" (Matt. 6:19-21). We cannot take our gold and silver with us--hearses don't come with luggage racks. In 1979, in a country where my wife, Sherry, and I once served, the currency was suddenly changed, and the old currency became worthless overnight. It couldn't be changed even at the bank. During the next few weeks large amounts of the old currency were placed in offering plates, but they could accomplish nothing. The only treasure that we can "transfer" to heaven is that which is converted into saved souls. There will come a time when our money will no longer be "transferable," even if given to God's cause. The real report on the assets of the church has already been given by Elder Bediako, General Conference secretary, as he reported how the "Lord added to the church daily such as should be saved." After God promised to Joshua "every place that the sole
of your foot shall tread upon, that have I given unto you" (Joshua 1:3),
we find these sad words: "The Lord said unto him, Thou art old and stricken
in years, and there remaineth yet very much land to be possessed" (Joshua
13:1). May we not hear those same words in reference to the half of the world
(10/40 window) that is still practically untouched by the gospel. |
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The new cap of 2 percent of world tithe for the GC headquarters'
operations represents a reduction of approximately 18 percent, or $6 million
in the headquarters' annual operating budget. It was hoped that the annual increase
in tithe would offset the reduction in tithe percentage each year during the
five-year phase-in period so that appropriations to divisions and GC institutions
would not need to be reduced and employees would not have to be laid off at
the GC headquarters. In preparation for the change, the GC took major steps
to reduce costs at headquarters and was already operating well below the old
cap by the time the new formula was voted. A freeze on new positions under the
cap was put in place and has been strictly adhered to throughout the quinquennium.
Tithe increased worldwide by an average of 5.9 percent per year
during the quinquennium. Because of this increase, and even though mission offerings
remained essentially flat and the new Tithe Sharing Formula reduced the percentage
of the gross tithe coming to the General Conference, the GC's total unrestricted
revenue grew by an average of almost 1 percent per year. Total net assets increased
in each of the five years of the quinquennium, and working capital increased
by $17 million between 2000 and 2004 to meet the increased requirement. Appropriations
to divisions and GC institutions were not reduced, and the GC has not had to
dip into its working capital as originally projected.
Local church funds have kept pace with tithe increases and have
actually increased from around 25 percent of tithe during the 1930s, 1940s,
and 1950s to more than 35 percent of tithe since the early 1960s. Mission offerings
over that same period have decreased from approximately 60 percent of tithe
in the 1930s to 3.8 percent in 2004. This steady decline has dramatically affected
the ability of the church to provide funds for entering new areas.
The real assets of the church--its members--walk out the front
door of the church every Sabbath. It's our job not only to make sure they return
the next Sabbath but also to help them maximize their effectiveness during the
week. The greatest contributions from church members are not tithes and offerings,
but donated time and service. Think, for example, of the hours spent each week
by the Sabbath school teachers in preparing for their important work in the
children's divisions. Add to that all the hours given by the others who help
out in Sabbath school, Pathfinders, community services, witnessing, etc. Multiply
that by what it would cost to hire the work done and you get an idea of the
value of those services. |
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