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This year the church will spend about $124 million on appropriations for world outreach and supporting missionaries.
For every dollar of tithe, about 2 percent goes to the church's world headquarters. That's a budgeted $36 million, but finance officers say headquarters in recent years has operated as much as $6 million below its cap, allowing the additional funds to be used in the field.
Other big expenditures include items such as $5.5 million for Adventist World magazine and $3.7 for funding Hope Channel operations. Smaller budgeted items include $200,000 for the Mission Quarterly and $20,000 in annual maintenance to preserve the Northern California home of church co-founder Ellen White. (for a complete 2010 budget, contact the ANN editor)
The world church's Treasurer Robert Lemon yesterday sat down with ANN for an interview regarding the church's finances. He discussed major budget items and the increasing support from the developing world. Excerpts from the interview follow:Adventist News Network: Every five years the church holds a World Session. How much will the church spend on this summer's World Session in Atlanta?
Robert Lemon: The world headquarters' cost directly for the Session is a little over $6 million. The total church cost is approximately twice that when you count all the travel and hotel expenses and expenses for delegates coming from all around the world, which I would estimate is about $12 million total.
ANN: Is it still worth having Session during a recession?
Lemon: If we were able to decide yes or no on something on short notice it might be possible to look at a different scenario. But Session location, hotels and arrangements are reserved 10 years in advance and confirmed five years ahead. You can't just pull the plug on something like that so close without huge financial penalties. If you count the cost of a Session and divide it by the number of church members and by the five years in-between, it comes to about 20 cents a year per member. That's less than half of a soft drink a year per member. Session is really a combination of a worldwide campmeeting and a business session and has a tremendous effect on the unity of the church. Church members around the world, no matter where they're coming from -- wealthy places, poor places, places with high membership or places with small membership -- they all have a part in the decision-making of the church. I don't think you could buy that unity any other way cheaper.
ANN: How does the church's financial picture look compared to 10 years ago? Was there a dramatic shift in the last decade?
Lemon: Certainly the last decade has seen dramatic membership growth in our church around the world and probably from a financial standpoint the change has been a huge increase in funds from areas of the world outside of North America. Last year, 60 percent of the funds coming to the world headquarters were from North America and 40 percent outside North America. The previous year it was 70 percent from North America and 30 percent from outside of North America. It was a major shift.
ANN: Each region contributes at least 2 percent of tithe to the world headquarters, while others contribute more for appropriations to other parts of the world. Some have said they wished their region would choose to keep more of the money locally. How do you respond?
Lemon: The gospel commission is to the whole world. I think one of the greatest blessings of our church is that no matter where we are, no matter how much we return in tithe it goes toward spreading the gospel to the whole world. My experience has been that areas that focus on keeping money locally don't grow as fast as those that are generous in sharing with the world field.
ANN: Historically, North America has chosen to give a larger percentage of tithe to the world headquarters, about 8 percent. Is that different than previous years?
Lemon: Well, 2 percent of that 8 percent goes for the world headquarters operation. So percentage-wise, North America doesn't fund the world headquarters any more than other divisions. The extra 6 percent is used for appropriations and missions work. North America used to give 10.7 percent and the rest of the divisions gave 1 percent. It was always North America's way of helping to spread the gospel throughout the world. But as other parts of the world have become financially stronger we have adjusted the percentages. Also, there are appropriations for world church institutions that happen to be located in North America.
ANN: What is the process for determining appropriations?
Lemon: A certain amount of it is history, but we just completed a major commission on appropriations where we had a team of six individuals from the church headquarters visit each of the 13 world divisions and spend a day or two reviewing all the use of tithe and funds within the divisions and made recommendations to the Financial Planning and Budget Committee for adjustments in appropriations. There are some divisions that will get an increase in appropriations, some that will remain rather constant, and there are others it is felt that can carry more of the burden locally and we'll be releasing some of the appropriations for use in other areas.
ANN: What accountability process is in place for appropriations?
Lemon: When we give appropriations to the divisions and the institutions in most cases they're not restricted and the board and executive committees of those organizations set their budgets and make decisions on how to use them. Then of course we have our auditing service that reviews whether items were treated appropriately. Of course if appropriations are restricted for a specific item, then auditors audit to those restrictions.
My question: What is the full cost for GC Session? In the answer you said "cost directly" is $6 million; what is the cost including the indirect costs?
I agree the session is worth the effort. I don't think the costs for the one-up-men-ship promos for the divisions is worth it. This week a church member, who will attend, told me how comforting it is to part of a gathering so large -- to think "I belong to this."
In response to the question regarding the change in the church's financial picture in the past ten years, the percentage shift in income attributed to membership growth outside the United States may have some merit. However there is as shift downward in the U.S. because of what I see to be improprieties within the governance of the churches business. To hire administrator's spouses so as to give two incomes is wrong. To spend millions on legal fees is wrong. To use business practices from inexperienced administrators is wrong. To not follow financial policies is wrong. Nepotism is wrong. An attitude that implies, "pat me on the back and I will take care of you," is wrong.
Whenever I question the auditing practice of the church I have been told that the audits are independent. When the leadership of the auditors are under and being directly responsible to the church's president or associates, that is not the definition of independent. Do all of the Executive Committee members see and read, independently, the findings of any audit?
I am of the opinion that a portion of the financial shift is in direct response to the record of what I believe is inappropriate behavior among the financial leadership. I think I can say that the impression given in the answer referred to is implying the shift is toward more membership outside the U.S. Is it really?
I have been a life-long supporter of the church financially and by participation. My questions and comments may sound cynical. Maybe I am becoming so -- I hope not. Questions are growing in my mind though, as I hear and read of such things as "inside interest and deals." Why can't the business of the church be cleaner?
I am sure the experienced church governance has heard my observations too many times, so I don't think I will ever hear answers with meaning. If there are meaningful answers the church publications would be carrying the news of the changes.
There needs to be direct independent audits that includes comparing voted actions with use of monies.
Thank you for allowing me, for the first time, to say what has been in my head for a long time.
Unfortunately, there have been problems and financial abuses over the years. And in some cases individuals may have looked the other way.
But overall as I sat on a conference finance committee for three years I saw extensive "checks and balances" to make sure there were not financial abuses. God is still working despite the human campaigning or glorification that may take place.
In the end I see many church leaders who are very committed to the Lord, His church and the work God wants to do through us. Maybe the problem is overwork just like in the corporate world. Sometimes stressed out, maxed out people can make wrong judgment calls.
IT HAS TO BE A SIN TO SPEND $6 million on this showcase. We are, or should be, the body of Christ. There are a lot of People in Haiti, Africa, etc. that cuold be fed with that money. OBVIOUSLY WE ARE ACTING LIKE FARICEOS ...
I doubt that my coment will be published ... BUT SOME OF YOU ARE GOING TO HAVE TO ANSWER TO GOD ... FOR THIS WASTE!
FARICEOS ... STOP THIS WASTE OF THE CHURCH MONEY ...
to General Nash & pedro...
i know that you two are the great supporters of the church but what do you really want to do with that USD 6-12 million?
Why do you call it a waste when the decision made during the meeting are very important for the mission, vision, and whatmore the Gospel ministry around the globe?
Where do you want the delegates to stay if cannot spend more than USD 6-12 million?
How are u going to absorb the expenses of the delegates who come all the way from Asia, Africa, Europe and etc?(especially those Dvisions which is so called "poor"?(if any)
there are few other questions that you need to ask before throwing the very bitter comments. i know in some ways or another, we are not really satisfied with the way the church fund was used especially when the figure goes up to USD 6-12 million just for few days & one occasion, but how we are going to lessen the expenses? in which ways?
i'm a great contributor towards the church either in tithe and offerings and other things. but i told them specifically that that money is for special purposes and i hope that we all can see it be used in a better way as possible. because when it is given to church, it's not my responsibility but yours and it's God money whether it is in yours' or mine hands.
to me that's all, my responsibilities are over about handling the money and so on but my responsibilities are on during the meeting in the church board to direct the usage of it in the beneficial ways.
So, i would like everyone in this column to stand for what is best for all especially for His cause and yes, dissatisfaction about the usage of something especially that in relation to finance is very much of our concern but just pray to the Lord that He will continue to enlighten the officers of any church departments in conference, divisions and GC levels that they are guided and led mightily and zealous and faithfully in handling and planning for the use of His entrusted funds.
GOD bless us all.