Grant Process & New Apportionment Formula
Recommendations to Council on Finance & Administration
From Congregational Development Ministry Team
We are seeking to address the impact of the proposed apportionment formula, if adopted by the 2007 Annual Conference on United Methodist churches that receive grants to start new churches. With the new formula, grants to congregations initiating new ministries result in an increase in expenditures which then drives up the amount annually apportioned.
It is our intention to maintain an inherent value in apportioning our local churches that tangibly acknowledges the risk and encourages risk-taking for new ministry ventures that reach new populations. This “value” will recognize the significant up-front costs for staffing, equipment, marketing and facility purchase or rental in starting a new church.
A new church is:
· A new campus in a multi-site church
· A new off-site worship service
· A new connectional start
With the proposed changes, we make these two recommendations:
1. For new Multi-Site Settings – Grants from Congregational Development will be exempt from apportionments in the new formula. We recommend that the churches receiving grants will create a separate expense sheet to report on the grant income and expenditures made out of the grant money. These amounts will not be reported on Tables I, II, & III annual reports. They will be sent to CDMT annually for accountability purposes. This exclusion and reporting process will last for the tenure of the granting process.
2. For newly organized, stand-alone congregations – In the first full calendar year of chartered existence, the new congregation will be apportioned at 10% of local giving. The amount to be apportioned will be calculated on the annualized amount of the weekly giving average for the year in which the church is officially organized. New church grant dollars will be excluded from these calculations. This calculation of an apportionment, based on a 10% tithe of local giving, will continue through year three. In year four, the calculation of the apportionment will be done using the usual method of 15% membership, and 85% current expenditures, as there will be enough history to create a three year average. The amount apportioned will be 40% of the calculation in year four, and 50% in year five, and so on, until a congregation reaches full participation in year 10.