New England Annual Conference

United Methodist Church

Equitable Compensation Commission

Fall 2016 and Spring 2017

Conference Year 2017

Grant Application Instruction Booklet

Contents:

1.Equitable Compensation Commission Mission

2.Base Cash Salary and Maximum Award Size for 2017.

3.Decision Process for Picking a Grant Application.

4.Minimum, Special Minimum, Strategic, and SustainingCompensation Grant Eligibility and Requirements and Limits.

5.Application Instructions.

6.Application Process.

Important Reminder: This Application is due no later than

November 15, 2016

For all Grants to begin January 1, 2017

Equitable Compensation Commission

New England Annual Conference

The United Methodist Church

The Mission of the Conference is to equip, connect, and support the local church. The Commission on Equitable Compensation is a Conference resource committed to that mission. Further, The Commission exists to fulfill the requirements of Paragraph 625 of the 2012 Discipline. The members of the Commission recognize their judiciary and stewardship responsibilities in the operation of the Commission, and our deliberations and policy-setting actions are evaluated to make sure that we are acting fairly and in the best interest of the all parties involved in the Equitable Compensation process.

The Commission believes that Equitable Compensation is just one part of the total support congregations need in their quest to fulfill their vision and mission and will work with other Conference resources such as the District Superintendent, the District Finance Team, the Office of Congregational Development, the Conference Resourcing Team, the Conference Consultant Network, the United Methodist Foundation of New England, and others to meet its responsibilities. All Conference and ancillary resources, not just money, should be utilized to assist the local church. This is why the Commission has made it a requirement that congregations seeking support should also seek support from these other resources.

TABLE 1

Base Cash Salary for 2017:

The New England Annual Conference set the followingminimum Base Cash Salaries, based on the recommendation of the CEC. Our goal is to have the Base Cash Salary for clergy to be equal to a range of 50% to 60% of the average of the top 25 Base Cash Salaries paid by local churches in the Annual Conference.

EQUITABLE COMPENSATION PROPOSED MINIMUM SALARY SCHEDULE FOR 2017
Salary increases are $400 above 2016, based upon a 2016 CPI of .7%
2016 Salary / 2017 Salary
FE/PE/FD/PD/AM / 40,000 / 40,400
3-5 Years / 40,600 / 41,000 / Additional $600
6-10 Years / 41,200 / 41,600 / Additional $1,200
11-15 Years / 41,500 / 41,900 / Additional $1,500
Over 15 Years / 42,000 / 42,400 / Additional $2,000
LP M.Div / Adv COS / 38,200 / 38,600
3-5 Years / 38,800 / 39,200 / Additional $600
6-10 Years / 36,786 / 39,800 / Additional $1,200
11-15 Years / 39,400 / 40,100 / Additional $1,500
Over 15 Years / 40,200 / 40,600 / Additional $2,000
LP COS or Equiv. / 37,200 / 37,600
3-5 Years / 37,800 / 38,200 / Additional $600
6-10 Years / 38,400 / 38,800 / Additional $1,200
11-15 Years / 38,700 / 39,100 / Additional $1,500
Over 15 Years / 39,200 / 39,600 / Additional $2,000
LOCAL PASTOR / 36,200 / 36,600
3-5 Years / 36,800 / 37,200 / Additional $600
6-10 Years / 37,400 / 37,800 / Additional $1,200
11-15 Years / 37,700 / 38,100 / Additional $1,500
Over 15 Years / 38,200 / 38,600 / Additional $2,000

TABLE 2

Maximum Award Size for 2017:

The following grant amounts are set by the 2016 Annual Conference and based on Minimum Base Compensation:

Minimum compensation grant / Up to 25%
Strategic compensation grant / Up to 40%
Sustaining compensation grant / Up to 65%

*Less than full time will be prorated. ½ year grants will be at 50%.

To be eligible for an Equitable Compensation grant, a charge must:

  1. Pay Mission Shares in full or must demonstrate commitment to pay each year in full. If Mission Shares are not paid in full, succeeding applications may be denied. Churches and pastors should note the relationship between payment of Mission Shares and payment of the pastor’s salary. (See Para 622 of the 2012 Book of Discipline. Churches are expected to pay minimum salary and at the same time pay Mission Shares).
  1. Increase on an annual basis the amount of local support for the pastor’s cash salary
  1. Conduct a stewardship campaign for financial support consisting of dated parameters and specific financial objectives directed to all members and constituency of a given church. Annual, reconcilable, and reportable results are to be indicated in the Lay Leadership section of the application.
  1. Employ no additional ordained or licensed personnel for pastoral services.
  1. Submit a Grant Application request by e-mail to your District Superintendent and the Commission on Equitable Compensation () no later than November 15 of the year preceding the grant.
  1. EACH APPLICANT CONGREGATION MUST SUBMIT A COPY OF THE LAST EXTERNALLY AUDITED FINANCIAL STATEMENT ON THE FUND BALANCE REPORT FORM. An external audit must be performed every 2 years. This is to be inserted into Section 7a in the application form or sent as an attachment. For this purpose an external audit is defined as being performed by a person that is not a member of your church. One way to meet this requirement is to exchange auditors with another church.
  1. If support is being sought for a multiple point charge only one application is needed. However, financial reports for each church in the charge must be included.
  1. After deciding which grant type is appropriate for your church submit the initial application. The full form will then be provided by an assigned monitor from the Commission on Equitable Compensation. They are to be electronically completed and signed by the Pastor and either the Lay Leader or Ad Council Chairperson.
  1. Complete the questions found in Parts 1-10 of the Grant Application Form.

COMPENSATION PACKAGE SPECIAL ARRANGEMENTS with MOU

In some instances and for very particular reasons, pastors and congregations make arrangements for compensation and benefits that are outside of the requirements outlined in this resolution. The Commission appreciates that such arrangements are warranted on occasion, and are in the best interest of the parties involved “provided that no member in good standing who is appointed to a pastoral charge is denied the minimum base compensation (2012 Discipline ¶ 625.9).” To maintain the integrity of the compensation and benefits system, the Commission recommends:

  • The specifics of such arrangements, including explaining how the arrangement provides for at least minimum base compensation as approved by the Annual Conference be spelled out in a Memorandum of Understanding that limits the conditions to one year. This may be as an addendum to the salary forms signed at Charge Conference, or as a separate letter included in the pastor’s and SPRC’s files.
  • The MOU shall be signed by the Pastor, the District Superintendent, and the SPRC Chair.
  • The MOU shall be reviewed and renewed annually.
  • It is provided in the MOU that such arrangements have no impact on compensation and benefits packages to be negotiated for future appointments.
  • In the case where a salary package includes special arrangements regarding salary or reimbursable funds, review of a clearly defined MOU will be required for consideration for any Equitable Compensation funds.

How to decide whether to apply for a Minimum, SpecialMinimum, Strategic, orSustaining cash salary grant:

A church cannot apply for funding from more than one category of Equitable Compensation grant. These grants cannot be used to fund new staff positions, programs, or church improvements, either directly or indirectly. Please read the following descriptions of the three grant types for the New England Annual Conference, and determine if a Minimum, Special Minimum, Strategic, or Missional Grant type is appropriate for your situation. A new grant request must be submitted for each year.

Compensation Grants provide support for the pastoral appointment; they fulfill the requirements of ¶ 625 of the 2012 Discipline. Except for Sustaining Ministry Grants, the goal should be to bring this funding to zero by having each church become self-sufficient over time. While our United Methodist connectionalism requires this support, which is embodied in our Conference’s Mission statement, the Commission strives to have each charge independently support its pastor.

Based on the recommended minimum amount by Conference action, the maximum grant percentages listed within the Grant description would be permitted in accordance with ¶ 625.9 of the 2012 Discipline. Please note, grants will be determined based on eligibility and need as determined by the Commission on Equitable Compensation after consultation with the Pastor, the Charge and the Superintendent. Half-year grants beginning July 1 shall be counted as Year 0 for determining continued eligibility and will be eligible for up to 50% of the following schedules:

Definition of a Minimum cash salary grant:

Minimum Cash Salary Grants are awarded for no more than four years, with the amount of the grant size decreasing with each successive year. The condition of the grant is that congregations will engage in a strategic plan to increase revenues and/or decrease expenses to balance their budgets and eliminate the need for this grant. Congregations are also expected to increase their participation in the Mission Share activity of the Annual Conference, with a goal of 100% participation.

Each pastor appointed full time to a pastoral charge must receive base cash compensation equal to the Minimum base cash salary schedule that is voted on by the Annual Conference. Each Conference member or Local Pastor who is appointed less than full time to a pastoral charge is eligible to receive cash compensation at least in proportion to that schedule (2012 Discipline, ¶ 342). The Minimum compensation amount and guidelines shall be recommended by the Annual Conference Commission on Equitable Compensation and set by the Annual Conference. Clergy appointed to a local charge whose cash salary falls below the Minimum levels established by the conference may apply for a grant from the Annual Conference Fund for Equitable Compensation.

A Minimum cash salary grant provides temporary support for the pastoral appointment; it fulfills the requirements of ¶ 625 of the 2012 Discipline. This grant also recognizes that the goal should be to bring this funding to zero by having each church become self-sufficient over time. While our United Methodist connectionalism requires this support, which is embodied in our Conference’s Mission statement, the Commission strives to have each charge independently support its pastor. Churches wishing to apply for a Minimum Salary grant must pay exactly Conference set minimum salary plus any years of appointment addition.

Minimum Compensation Grant Eligibility and Requirements:

1.Minimum cash salary grants will be awarded on a four-year decreasing basis. Beginning at 25% of Base Compensation, declining 5% per year over a 4 year term. Minimum Compensation Grants are designed to be used for minor disruptions in Church life or when transitioning LP to Elder appointments (e.g., at Commissioning) or 1/4 time appointment increases.

Churches should not anticipate assistance from the Commission for more than four years for a Minimum Compensation Grant.

2.Churches wishing to apply for Minimum Compensation Grants must pay their pastors exactly the Minimum Compensation as determined by the Annual Conference

Special Minimum Compensation Grant Eligibility and Requirements:

1.SpecialMinimum cash salary grants will be awarded on a four-year decreasing basis. Beginning at 25% of Base Compensation, declining 5% per year over a 4 year term. Special Minimum Compensation Grants are designed to be used to support pastoral compensation for those affected by the redesign of the Minimum Compensation Schedule.

Churches should not anticipate assistance from the Commission for more than four years for a Minimum Compensation Grant.

2.Churches wishing to apply for Minimum Compensation Grants must pay their pastors exactly the Minimum Compensation as determined by the Annual Conference

Definition of a Strategic cash salary grant:

A Strategic cash salary grant provides temporary support for the pastoral appointment.Strategic cash salary grants are awarded to enable Strategic ministry where the skills of the pastor and/or the demands of the situation indicate particular need.

Beginning at 40% of Base Compensation, and declining 5% over a 5 year term, Strategic Cash Salary Grants are designed to be used for major disruptions in Church life or when transitioning appointment increases over 1/4 or from 1/2 to 3/4. In consultation with the Cabinet, may be used for Strategic Appointment initiatives and salaries above Minimum Base.

In most cases, the Commission will expect the development and implementation of a Strategic parish plan, particularly focusing on financial stability by the end of the grant period. This grant focuses on the opportunity for growth and renewal in an existing charge or congregation. If the Strategic plan identifies new staff, programs, or building improvements, funding should be sought from other Conference resources for those items.

Sustaining Cash Salary Grants:

Sustaining cash salary grants are subject to the following considerations are primarily reserved for Mission Churches. In some particular circumstances, ongoing support for pastoral appointments may be necessary outside the usual scope of the Commission’s grant assessment program. In these special cases, District Superintendents, in cooperation with the Commission may seek to make funding available to sustain ministry in a particular missional setting. If your Superintendent initiates a conversation with you about Sustaining Grant status, you will receive specific instructions on how to proceed at that time.

Decision Time:

After reading the foregoing discussion about the grant types, determine whether a Minimum, Strategic, or Sustaininggrant type is appropriate. If nothing fits your needs, and your church/charge cannot pay its pastor, an Emergency Compensation Grant may be in order. Any pastor whose charge is unable to meet its compensation obligation has a right to an Emergency Minimum Salary Grant based on the Arrearage Policy of the Annual Conference and ¶ 625.9 of the 2012 Discipline. In these cases, the Pastor should immediately contact her/his District Superintendent, who shall immediately contact the Commission on Equitable Compensation. Working with both the local Church and the Commission, the Superintendent will work to assure the Pastor is paid for the remainder of the appointive year. If the Cabinet determines a need for the appointment to continue beyond the appointive year, the District Superintendent shall instruct the Church/Charge to apply for one of the regular categories of supplemental grants, in consultation with the Commission on Equitable Compensation.

Instructions and Application Forms:

There is 1 Grant Application Instruction Booklet (which you are now reading), with an initial (i.e., first year, PRELIMINARY) application embedded in it. The Instruction booklet is organized to allow the charge and pastor to determine the appropriate grant type for their particular situation. The Applicants may only apply for one category of grant. All grant forms require a computer with Microsoft Word and Excel installed, at a minimum of Office 2000. If using a newer version of Office, please save all forms in the ‘Legacy’ .doc format, NOT .DOCX FORMAT for ease and uniformity of assessment.

PLEASE NOTE: Upon receiving the completed Initial Grant, the chairperson of the Commission on Equitable Compensation will assign a Grant Monitor who will send you a FULL LENGTH GRANT APPLICATION and will assist you in completing that form if you have questions. COMPLETION OF AN INITIAL GRANT WILL NOT QUALIFY AS COMPLETION OF A FULL-YEAR GRANT APPLICATION.

Churches with no computer or internet access: The Commission recognizes that there may be some churches in the conference without access to computers. In such instances, contact your District Office or the Commission chairperson for further instructions. Please note that the responsibility for completing the application and submitting it on time remains with the applicant congregation and that these applications are still due to the Commission chairperson and the District Superintendent NO LATER THAN NOVEMBER 15.

Once the charge decides on the grant type for which it will make application, it should:

Fill in the form electronically, and e-mail the form to the Commission Chairperson () and to the District Superintendent NO LATER THAN NOVEMBER 15. Use a subject line as follows: Name of Church, City, State, Initial Grant Application. (Example: Wesley UMC Concord NH Initial 2017)

Once you have submitted an initial grant application, a monitor will be assigned to you who will send you a full grant form to complete. These template forms allow direct entry of typewritten information, as well as a “cut and paste” option in locations where essay or tabular information is needed (such as Part 7a Audit Information, Parts 9 and 10). The basic rules for grants changed substantially for 2015.Also, since 2012 the application process has changed for both initial (first year) and renewal grants. For both First Year and Renewal Grants the full grant forms will be distributed to the applicant congregations by their assigned Commission on Equitable Compensation Grant Monitor. In the case of First Year Grants you will receive these forms after submitting your initial application and will be due to the Chairperson, your Monitor and your District Superintendent No Later Than December 5. In the case of Renewal Grants these forms will be emailed to you by your monitor and will be due to the Chairperson, your Monitor and your District Superintendent No Later Than November 20.

All sections must be completed for the application to be considered by the Commission. The file is set up as a form - therefore, you will need to use the tab key or your mouse to move from one entry location to another within the form. Some sections have the option of “Cut and Paste” information into the application from other applications; some sections have pull-down menus for automatically filling in the required information.

Note: When saving the file, rename the file as follows: Church Name, City State, Initial, Minimum, Strategic, or Sustaining 2017 Grant.

If applicants experience difficulty with this process or need examples of financial reporting, please call either a member of the commission or refer to the denomination’s GCFA website for examples of Financial Statements and Budget Plans.

Filling in the forms:

The Pastor and Church complete the application by filling in the indicated blocks in the file. The file is in template format, so only data entry may be made – the format of the application cannot be changed.

These template forms allow direct entry of typewritten information into the MSWord file. The file is set up as a form - therefore, you will need to use the tab key or your mouse to move from one entry location to another within the form. Parts 7a, 9, and 10 have the option of “Cut and Paste” information into the application from. Part 8 has pull-down menus for automatically filling in the required information.