Chairperson of the Finance Committee Christina Jackson-Skelton, Evangelical Lutheran Church in America, presents her report to the Council 2012. © LWF/Milton Blanco
Finance Committee Chairperson Jackson-Skelton Reports to the Council
LWI Council Press Release No. 03/2012 – The chairperson of The Lutheran World Federation (LWF) Finance Committee Ms Christina Jackson-Skelton has commended LWF leaders for moving toward a budget and operational plan that is balanced and more sustainable.
Presenting the LWF’s 2011 financial results to this year’s Council meeting, Jackson-Skelton said a revenue increase in 2011 over the previous year was marked by increased member church contributions.
“Member churches have challenged themselves to be more accountable in the payment of membership fees and have turned around a two-year downward trend in this important revenue source,” she told the LWF Council meeting 15-20 June in Bogotá, Colombia.
The chairperson for the finance committee reported that membership fees increased for the first time since 2008, to EUR 2,415,000 over the 2010 contributions of EUR 2,283,000. She cautioned, however, that the level of contributions still lags behind the set goal.
The fair membership fee contribution is based on a formula that takes into consideration the membership size and the relative wealth of the member church country compared with other member church countries.
“Further growth in membership income would help to provide support for areas that have been identified as high priority in the strategic planning process, such as theological and ecumenical work,” said, Jackson-Skelton, who serves as Executive Director at the Mission Advancement unit of the Evangelical Lutheran Church in America.
Still, Jackson-Skelton said the 2011 membership fee contribution marked a move in the right direction. “The LWF Council has called for increased attention to membership fees and the 11 percent increase over prior year contributions is a positive step.”
She called for the LWF to focus on growing unrestricted revenue streams and continue fundraising, communications and donor relations activities. “The Council’s continued attention to these vital areas is needed as we look to build for the future for the sake of the mission we are privileged to share.”
Jackson-Skelton said the LWF had a positive net income from operations of EUR 856,000 for 2011, made up of EUR 221,000 for the Geneva Coordination budget and EUR 635,000 for the Department for World Service (DWS) country program coordination.
In 2011, the overall income was EUR 85 million, an increase of 10.4 percent over the EUR 77 million received the previous year. The total expenditure amounted to EUR 85 million, which included an operating expenditure of EUR 83.8 million, projects write-offs of EUR 0.4 million and investment losses amounting to EUR 0.3 million. Total expenditure in 2010 was EUR 75 million.
DWS accounted for EUR 72 million or 85 percent of expenditures; Department for Mission and Development EUR 9 million or 10.4 percent; Department for Theology and Studies, EUR 1 million or 1.2 percent; while the General Secretariat offices accounted for EUR 3 million or 3.4 percent of expenditures.
Reserves increased during 2011 from EUR 18.5 million to EUR 19 million, which is above the minimum target level. The LWF Endowment Fund was at negative CHF 1 million at the end of 2011, from an operating deficit of CHF 707,000 mainly due to losses on investments and foreign exchange.
Additional efforts would be required to reach the goal of CHF 20 million in assets for the fund by 2017, Jackson-Skelton concluded.
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