Parish Finance - Peter Lea answers some questions
As he looked up, Jesus saw the rich putting their gifts into the temple treasury. He also saw a poor widow put in two very small copper coins. “I tell you the truth”, he said, “this poor widow has put in more than all the others. All these people gave their gifts out of their wealth; but she out of her poverty put in all she had to live on.”
Luke 21 vv1-4 NIV
As Chairman of the Diocesan Board of Finance, I am often asked questions about the Church and its money. The first and most fundamental question is: Q. Why should I give any money to the “temple treasury”?It does seem to some outside the church that we are quick off the mark to pass round the begging bowl. I don’t know what overheads might have existed 2000 years ago but today our major cost is providing our paid clergy with a living wage – or stipend. Without our clergy, our church would take on a very different shape, not least because we, the laity would have to do ALL the work in our parishes.
Q. How much should I give to the Church?
Jesus’ teaching is challenging and the story of the “widow’s mite” is one to pull us all up by our bootstraps.
It may be helpful to be aware that the average Parish Share payable across the diocese will be £430 per person next year. This means that between £8 and £8.50 per week needs to be found for Parish Share alone. On top of that, I think that a further £4 per week will be required to cover the expenses of your church whilst allowing for some mission giving by the church.
This comes to a total of around £12 per adult per week. Going back to the “widow’s mite”, some cannot give anywhere near this amount, so it falls to those who can to give even more.
Our giving should be based on God’s generosity to us rather than on what we decide to give to Him and His work. The Church in Wales has suggested in the past that we should give 5% of our income. There are many who would argue that this is too low a percentage and that biblical tithing (or giving 10%) is closer to the mark.
Once you have decided what is right for you, you may wish to set up a bankers order which ensures a regular monthly income for your parish treasurer. Most of our churches use an envelope scheme which is an excellent alternative as it reminds you to make a weekly gift even if you miss the odd Sunday in church. Either way, do make sure that your giving is under the Gift Aid Scheme if you pay tax as the church can claim back 28p from the Inland Revenue for every £1 you give. Please be assured that whatever you give, it will be treated confidentially.
Q. Am I getting value for money – and is this even a fair question to ask?
Yes it is a fair question and increasingly the question is being asked. The Church along with every other organisation must be able to demonstrate that it is not squandering the money it receives.
All our parishes are required to pay their Parish Share but it is up to the PCC to decide what to do with the rest of its income. Don’t be frightened to ask the penetrating and difficult question, which may be about Mission Giving – or the lack of it, or perhaps about some expenditure which you are not clear about.
The next newsletter will look at the Parish Share, what it is, why it is necessary and why it appears to be so contentious for some.
Q. How is my money used; and where does it go?
That is the single-most important question for some.
It’s a reasonable guess that for each £12 which is given to the church, the split of how that is used looks something like this:
• Ministry or Parish Share £8.00
• Maintaining churchfabric £2.25
• Heating, lighting, insurance etc £1.25
• Mission £0.50
This will of course vary from one church to another and the accounts of your church will give you a clearer picture if you ask to see them.
Q. How much does it cost to provide us with a vicar?
A vicar’s stipend (similar to salary) in 2008 will be just under £20,000, but that’s not the total cost. On top of this there are the costs of pension provision, national Insurance and Housing and these can bring the total cost up to around £35,000 p.a. Whilst these are the diocesan costs, parishes are of course expected to reimburse all their clergy with all their parish expenses.
Q. What is the cost of the diocesan administration and what scope is there for cut-backs?
Our diocesan administration costs in 2008 will be a little less than £200,000 or 5.7% of our total budgeted expenses and are small by comparison with English Dioceses. The paid staff comprise the Diocesan Secretary, an Accountant and two secretaries, one of whom is part time. One other member of staff looks after the Diocesan Advisory Committee on a part-time basis.
We already run with a very small team and I don’t believe that it would be possible to reduce this further without seriously impacting on the level of service provided. I am in no doubt that the administration cost represents excellent value for money.
Q, Why does the diocese have to increase Parish Share year after year?
We have been fortunate to receive generous financial support from the Representative Body of the Church in Wales in the past but the contribution from the R.B. towards ministry costs which has been decreasing for a number of years will stop entirely in 2009.
We, like everyone else, are subject to inflation and next year, stipends will be going up by just under 5% and whilst this is a little in excess of inflation, the ongoing and planned reduction in stipendiary clergy will help to offset the overall impact of this rise.
Pension costs continue to escalate but we have held Parish Share increases to a maximum of 5% in the recent past and we have prepared a forecast to 2012 and we hope to maintain that ceiling of 5% for the next 4 years.
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I rarely get the opportunity to express my thanks to our parishes and to those who provide the money required to keep our churches going.
This is a golden opportunity to say that “thank you” and to add how wonderfully well our parishes do in raising the necessary finance to pay their parish share and to maintain their church buildings.
A huge and heartfelt thank you to all in the parish communities in our diocese.
Peter Lea, Chairman – Diocesan Board of Finance
Peter is retiring as Chairman of the DBF after sixyears. The Diocese is greatly indebted to his unstinting service.
We are grateful to Mr Sandy Blair who is taking over the Chair and wish him well.