GCFA Board Meets, Hears Financial Modeling and Projections
Saturday, October 29, 2022
Nashville, Tennessee – The Board of Directors of the General Council on Finance and Administration (GCFA) held its monthly board call on October 28, 2022 and heard an update from the Committee on General Agency and Episcopal Matters (GAEM) on general Church apportionment trends and projections.
The latest Economic Advisory Committee projections of a 23% decline in local church net expenditures were presented. Those projections result primarily from a 21.3% impact due to disaffiliation as reflected in the latest survey of annual conference leadership.
The Board also heard that the Apportionment Sustainability Taskforce continues to support their original recommendation in 2018 of a 25% reduction to the base percentage. The Taskforce believes this change ‘creates a more flexible and nimble system and usher in a new paradigm. It recalibrates the connection and encourages collaboration at the general Church level.’
The Board then reviewed apportionment modeling with reductions in the base percentage ranging from 18%-25%. The modeling showed that without a reduction to funding of the Episcopal Fund, the other six general Church funds would experience a 45% reduction during the 2025-2028 quadrennium. This impact would increase to 50% by 2027.
The Board also heard an Episcopal Fund financial update. The analysis shows declining reserves beginning in 2023 as episcopal area vacancies are filled. Annual deficits for the Episcopal Fund could range from $4 to $6 million depending on funding reductions next quadrennium to the Episcopal Fund. Due to the projected depletion of reserves and the impending episcopal elections in November, GCFA Board President Bishop Michael McKee sent a letter to the Chair of Jurisdictional Committees on Episcopacy depicting the possible implications those elections may have on the Episcopal Fund. That letter can be viewed here. The attachments mentioned in the letter may be viewed here.
The GCFA Board will meet November 19 to determine a recommended base percentage for the 2025-2028 quadrennium, along with the applicable allocation to the Episcopal and General Administration Funds.