From VirtueOnline: TEC in the Financial Tank

Dear Brothers and Sisters
www.virtueonline.org
September 30, 2011

If one had any doubts about the downward trend of The Episcopal Church, this week's story on the financial condition of the church should finally dispel that notion.

With fleeing parishioners, the promotion of pansexuality, declining dioceses and increasingly less income coming into churches, and hence, less for the diocese and national church, the Episcopal Church is scrambling to find ways to stop the hemorrhaging, rein in costs and find ways to do business that are more cost efficient...while promoting what they call mission.

We are now at a point, writes attorney Alan Haley, where the Episcopal Church finds itself in significant structural trouble, which is having equally significant ramifications for its budget. Even as there has been a steady drop in membership, the Church is expanding its national superstructure and its budget. This makes no sense, but apparently no one in charge will care, until the steady decline in voluntary contributions, from an ever-shrinking base of parishioners, literally forces the leadership to make painful cuts. Still, the Church continues to lose members -- on average, about forty parishes a year, the equivalent, one of its officers says, of a "very small, admittedly, diocese". Even such a small number, however, adds up significantly over time. The cumulative effects are extremely unhealthy for future prospects.

The Episcopal Church is like a huge mansion constructed some time ago, whose foundation is slowly eroding while its superstructure remains just as huge and heavy as ever. It makes no sense for the House of Bishops to keep growing while the number of parishes steadily diminishes. Likewise, it makes no sense for TEC to be downsizing its budget, to match the fall in voluntary contributions, while sending its bishops to meet in Quito, Ecuador, so that the Church can demonstrate its claim to an "international" polity.

At the center of this new reality is Bishop Stacy Sauls who recently took over as the Episcopal Church's chief operating officer. In Quito, he urged "structural reform" that he said could shift the church's focus toward mission.

He offered the bishops a "model" resolution for each diocese to submit to the 77th General Convention in 2012 for consideration. As one sign of how far out of sync TEC is with the rest of most not-for-profit corporations, TEC has spent 47% on administrative costs verses Red Cross at 20%.

The model resolution would call for a special commission to be charged with "presenting a plan to the church for reforming its structures, governance, administration, and staff to facilitate this church's faithful engagement in Christ's mission...."

He said General Convention costs the church $8.3 million plus another $353,000 for church center departments and $3.5 million for dioceses to send its deputation and bishops -- a total of $12.2 million every three years, not including the costs to individuals.

"Reducing the frequency of General Convention to every four years would save 25 percent and every five years would save 40 percent, Sauls continued, adding that the length and size of the meeting, how business is presented and ongoing work also could be restructured to reduce costs."

The HOB/HOD listserv is going viral with all the recommendations and possible changes the church will have to make if the supply of money becomes shorter and shorter. For the record TEC spent 47% on administrative costs verses 9% by the Red Cross.